The Bureau of Customs (BOC), under the leadership of Commissioner Ariel Nepomuceno, is strengthening support for the country’s international aviation sector through a new Customs Administrative Order (CAO) establishing bonded facilities for the importation, storage, and use of Jet A-1 fuel for international air transport operations.
CAO No. 03-2026, titled “Establishment of Bonded Jet A-1 Fuel Facility,” provides the regulatory framework for the establishment and operation of Bonded Jet A-1 Fuel Facilities (JAFFs). It allows qualified international air transport operators and fuel suppliers to import and store Jet A-1 fuel exclusively for international operations, subject to applicable customs rules and safeguards.
Under the CAO, qualified Jet A-1 fuel importations may be entered conditionally free from vat and excise tax, subject to prescribed requirements. The fuel must be used exclusively for international air transport operations and not for domestic consumption. The order also sets eligibility and operational requirements for direct importers and suppliers, including dedicated storage facilities and restrictions on the domestic use of imported Jet A-1 fuel.
To safeguard government revenue, in line with President Ferdinand Marcos Jr.’s thrust to strengthen fiscal responsibility while facilitating legitimate trade, the CAO requires performance, security, and transport security bonds, along with monitoring and liquidation procedures and penalties for violations. Jet A-1 fuel diverted or used for domestic operations shall be subject to applicable duties and taxes.
Nepomuceno emphasized that the initiative balances trade facilitation with revenue protection by supporting efficient international aviation operations while maintaining strong controls over qualified fuel importations.
“The initiative balances trade facilitation with revenue protection.”
“Mas mapapadali natin ang legitimate international aviation operations habang sinisiguro na protektado ang pondo ng gobyerno,” the customs chief said.
“With proper monitoring and safeguards in place, we can facilitate legitimate operations while ensuring accountability and compliance with customs laws,” he added.
“With proper monitoring and safeguards in place, we can facilitate legitimate operations while ensuring accountability and compliance with customs laws.”
The establishment of Bonded Jet A-1 Fuel Facilities forms part of the BOC’s continuing efforts to modernize customs procedures, facilitate legitimate trade and transportation, and strengthen regulatory oversight while supporting a more efficient and business-friendly environment.
