BIR Ruling

August 19, 1969 Han Heng Electrical Supply 664 Juan Luna St. Binondo, Manila Attention: Mr . Alejandro Siy Gentlemen : This refers to your letter dated August 4, 1969 requesting information as to the advance sales tax due on your importation of 6 packages consisting of Motor Control Parts such as timer or time relay, insulators, electric switches, bulbs and fluorescent tubes. In reply, I have the honor to inform you that it appearing in the catalogues submitted that the imported timers or time relay are contrivances essentially used in the operation of machineries and other mechanical devices, the same are subject to the 7% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relations to Section 186, both of the Tax Code. The other imported articles like insulators, electric switches, etc. may be subject to the 7% sales tax under Section 186 of the Tax Code provided that they are not specially designed to be used as parts or accessories of articles subject to the 30% sales tax imposed in Sections 185, 185-A and 185-B, all of the Tax Code. LibLex Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue