BIR Ruling

February 10, 1975 The Commissioner Bureau of Customs Manila S i r : In connection with the letter of the President, Commercial Motors Corporation to this Office dated February 7, 1975 requesting that their importation of automotive parts to be used in the assembly of Mercedes-Benz be subjected to the 7% advance sales tax with 25% mark-up, please be advised that, it appearing in the letter of the Central Bank of the Philippines to Commercial Motors Corporation dated November 24, 1974 that the request of the latter for another year's extension (up to December 31, 1975) of the phase-out period of its authority to assemble Mercedes-Benz cars has been approved; and that CMC was granted the necessary dollar allocation by the Central Bank, its importation of automotive parts to be used in the assembly of its Mercedez-Benz cars for the duration of its phase-out period is subject to the 7% advance sales tax with a 25% mark-up pursuant to Section 183(b) in relation to Section 184-A(b) and 186, all of the Tax Code. Accordingly, this will serve as authority for that Office to release the importation of Commercial Motors Corporation of automotive parts upon payment of the 7% advance sales tax. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5