BIR Ruling

April 12, 1967 The Controller F. E. Zuellig, Inc. P. O. Box 604 Manila S i r : This refers to your letter dated December 9, 1966, stating as follows: "I have the honor to request a ruling on the rate of tax of our proposed importation of Microwave Oven to be leased by our firm to different restaurants, hotels and hospitals. This oven is heated by microwaves which are short radio waves of the same kind that are presently used in radar, television and radio. The heat produced by microwaves is so intense that this oven is capable of heating objects in matter of seconds. cdpr "When microwave energy, emitted from an electron tube, strikes on objects, it is reflected, absorbed, or transmitted through the 1) the dielectric co-efficient of the object, 2) its shape, 3) its mass, and 4) the amount of moisture contained in the object. Generally, metals will reflect nearly all of the energy, much the same as a mirror reflects light waves. Glass, paper and most plastics are transparent to microwave energy and as such will permit microwaves to pass through them with little or no absorption. Materials such as food and liquids will absorb the energy in varying degrees, converting it to heat. This conversion takes place as a result of the interaction between the microwaves and the molecules that make up the material. "Microwave heating offers several unique advantages over convection and conduction heating. As previously stated, the energy is absorbed only by the product to be heated; none is wasted on heat transfer media such as oil, water, air, or in heating the oven walls. Heat can be turned on or off instantaneously." prcd In reply, I have the honor to inform you that as the abovementioned article appears to be an electric appliance of the type used for cooking food, the same is subject to 30% advance sales tax based on the landed cost thereof, plus 50% mark-up, pursuant to Section 183(b), relation to Section 185(i), both of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue