IMPORTANT NOTICE FOR BONDED IMPORTERS IN PUERTO RICO
Puerto Rico recently enacted Law 72-2015 which (among other things) increased the state level Sales and Use Tax (IVU) from 6% to 10.5% effective July 1, 2015. The municipal level rate of 1% remains the same, which makes the total IVU rate 11.5% as of July 1. Following the enactment of this tax rate increase, Puerto Rico’s Treasury Department issued Information Bulletin 15-11, 6/17/2015, which describes the impact of this rate change on bonded importers. By way of a quick reminder, importers who agree to post a bond are permitted to clear their goods from customs without paying sales tax. Instead, they are allowed to pay any applicable tax by the 10th of the next month after the import occurs.
As the amount of the bond that “bonded” importers are required to post is tied to an organization’s monthly tax collection and remittance requirements, it is expected that most taxpayers will be required to increase the amount of their bond to account for the increased rate. In order to increase the bond amount, importers must send a written request by letter along with an insurance rider indicating that the increased bond amount has been duly authorized and guaranteed. This letter and the accompanying rider should be sent to the address below, as soon as possible, to ensure that the bond amount is sufficient to account for imports as of July 1, 2015:
Negociado de Impuesto al Consumo
Departamento de Hacienda
Edificio Mercantil Plaza
Avenida Ponce de León
Parada 27 1/2
San Juan, Puerto Rico 00918
By way of a quick summary, the bond amount continues to be defined by the requirements contained in Circular Letter of Internal Revenue 14-03 (CC 14-03). These requirements state that the bond must be based on the amount of IVU due on the merchandise being imported, plus an additional 25% to cover any administrative charges, interest, or potential fines. Importers will not qualify for bonded status if the bond guarantee is less than $10,000.
