MANILA – The Bureau of Customs has issued new rules allowing the establishment of bonded facilities for the importation, storage and use of Jet A-1 fuel intended exclusively for international aviation operations.
Under Customs Administrative Order No. 03-2026, qualified international air transport operators and fuel suppliers may import and store Jet A-1 fuel in Bonded Jet A-1 Fuel Facilities, subject to customs requirements and safeguards.
Qualified fuel importations may be conditionally exempt from value-added and excise taxes, provided the fuel is used only for international air transport operations and not for domestic consumption.
The order sets eligibility and operational requirements for direct importers and suppliers, including dedicated storage facilities, performance and security bonds, monitoring procedures and restrictions on domestic use.
Any Jet A-1 fuel diverted to domestic operations will be subject to applicable duties and taxes.
BOC Commissioner Ariel Nepomuceno said the policy is intended to support efficient international aviation operations while protecting government revenue through tighter monitoring and accountability measures.
CAO No. 03-2026 will take effect 15 days after its official publication.