BIR Ruling

January 30, 1968 The Commissioner of Customs Manila S i r : This refers to your letter dated January 25, 1968 relative to the importation of Aircon, Incorporated of 41 cases compressors and 3 cases running capacitors and overload covered by ATRIG No. 16105 dated January 17, 1968. In reply, I have the honor to inform you that Aircon, Incorporated, after appropriate investigation by this Office, had been found to be a qualified manufacturer of non-integrated products within the purview of R.A. No. 3029. To qualify his product as non-integrated, a manufacturer need not have to manufacture the compressor unit. Thus paragraph II(b), Features of the Amendment, of General Circular No. V-338 of this Office provides, viz.: "(b) Non-integrated manufactured product . A manufacturing enterprise shall be considered to have produced a "non-integrated manufactured product" if it manufactures at least 50% of the total quantity of the intermediate components and parts of the finished product. The compressor unit need not , however , be manufactured by the manufacturing enterprise ." The abovementioned importation of Aircon Incorporated is, therefore, subject to only 15% advance sales tax based on the landed cost thereof plus 50% mark-up. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue