BIR Ruling

October 4, 1976 G.S. Rosario Brokerage Rm. 404 Natividad Bldg. Escolta, Manila Attention: Mr . Cesar C . Avila Operation Manager Gentlemen : This refers to your letter dated September 6, 1976 requesting a clarification as to the rate of advance sales tax applicable to the importation of your client, Molave Trading, Inc. of one (1) Lot Precision Laboratory Instruments consisting of Hotpack Chamber/Sterilizer low temperature Model PR-100-F 7 cu. ft.,and Hotpack Chamber/Sterilizer low temperature Model A1-100 18 cu. ft. In reply, I have the honor to inform you that it appearing in the brochure of the imported articles that they are low-temperature freezers made of steel; that they are used as equipment for research, testing, treating, storing, preserving, production, chilling, stabilization, of metals, quick aging of steel, shrink, fitting, wire manufacturing, aircraft manufacturers, missile manufacturers, instrument manufacturers, biological storage, universities-colleges hospital medical laboratories, breeding associations, biochemistry, biology, preventive medicine, diagnostic laboratory, etc.; and that they are provided with hinges and latches that could be locked, and also four swivel casters for easy moving, it is the opinion of this Office as it hereby holds that the imported articles are subject only to the 7% advance sales, the tax to be based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. aisa dc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3