Manila: The Bureau of Customs (BOC) is set to establish bonded facilities dedicated to the importation, storage, and use of Jet A-1 fuel, aimed at bolstering the country's international aviation sector. Customs Administrative Order (CAO) No. 03-2026 outlines the regulatory framework necessary for the establishment and operation of Bonded Jet A-1 Fuel Facilities (JAFFs). These facilities will enable qualified international air transport operators and fuel suppliers to import and store Jet A-1 fuel exclusively for international operations, in accordance with applicable customs rules and safeguards.
According to Philippines News Agency, the CAO allows qualified Jet A-1 fuel importations to be conditionally exempt from value-added and excise taxes, provided they meet specific requirements. The imported fuel is strictly for international air transport operations and cannot be used for domestic consumption. The order outlines eligibility and operational prerequisites for direct importers and suppliers, including the necessity for dedicated storage facilities and stringent restrictions on the domestic use of imported Jet A-1 fuel.
The initiative aligns with President Ferdinand R. Marcos Jr.'s agenda to enhance fiscal responsibility while facilitating legitimate trade and safeguarding government revenue. The CAO mandates performance, security, and transport security bonds, along with detailed monitoring and liquidation procedures. Penalties will be enforced for any violations, particularly if Jet A-1 fuel is diverted or used for domestic operations, making it subject to applicable duties and taxes.
The BOC emphasized that this initiative aims to balance trade facilitation with revenue protection, supporting efficient international aviation operations while maintaining stringent controls over qualified fuel importations. "We can further facilitate legitimate international aviation operations while ensuring that government funds are protected. With proper monitoring and safeguards in place, we can facilitate legitimate operations while ensuring accountability and compliance with customs laws," stated BOC Commissioner Ariel Nepomuceno.
CAO No. 03-2026 is scheduled to take effect 15 days following its official publication. The complete text of the CAO is accessible via this link: https://customs.gov.ph/wp-content/uploads/2026/09/2026CAO-03-2026.pdf.
