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BIR Ruling

BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Mar 19, 1973

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March 19, 1973 United Philippine Lines, Inc. UPL Building P. O. Box 127 Manila Attention: Mr . R . M . Tanseco Vice President Finance Gentlemen : This refers to your letter of even date requesting that your importation of one (1) unit ammonia compressor, Howe Model DS-40 under B/L SF/MLA #0230, M/V "Phil. Pres. Quezon" Voy. 36W, Entry No. 16075, be released from customs custody upon payment of the 7% compensating tax. In reply, I have the honor to inform you that, pending resolution of the question as to the proper rate of sales tax that should be imposed on the imported articles, the aforesaid shipment may be released upon payment of only 7% compensating tax thereon upon filing by you of a surety bond with the Commissioner of Customs to answer for tax differential equivalent to 33% of the landed cost should this Office eventually decide that the shipment is subject to the 40%, compensating tax. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue

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