Semirara says court issued TRO halting duties on fuel imports

SEMIRARA Mining and Power Corp. (SMPC) said a regional trial court has granted its request for a 20-day temporary restraining order (TRO) against the government’s collection of duties and taxes on its fuel imports.

“We disclose today that Semirara Mining and Power Corp. filed a Complaint for Injunction with prayer for Temporary Restraining Order and/or Writ of Preliminary Injunction… to enjoin the Department of Finance (DoF), BIR (Bureau of Internal Revenue), and BoC (Bureau of Customs) from collecting duties and taxes on the company’s fuel imports,” SMPC said in a regulatory filing on Wednesday.

The company said the Regional Trial Court of Makati Branch 234 issued the TRO on June 17, but has yet to publicly release a copy of the court order as of press time.

SMPC said its exemption is backed by Section 295(f) of the National Internal Revenue Code, as amended by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

It also cited Presidential Decree (PD) 972 or the Coal Development Act of 1976 and its Coal Operating Contract.

“The company maintains that it remains exempt from such charges under PD 972 and its Coal Operating Contract, which prevail over general laws and are protected by the Constitution’s Non-impairment Clause,” it said.

Sought for comment, Bureau of Customs Assistant Commissioner Vincent Philip C. Maronilla said the agency is awaiting the official copy of the TRO and the complaint.

He added that the BoC will coordinate with the Bureau of Internal Revenue and the Department of Finance on legal steps.

The BIR and DoF have yet to respond as of press time.

SMPC said the legal proceedings will have “no effect on its business operations.”

The Consunji-led company is the country’s largest coal producer, supplying fuel to domestic power plants, cement factories, and industrial users, and exporting to markets such as China, South Korea, and Brunei. — Sheldeen Joy Talavera