BIR Ruling

May 17, 1977 OGAMOR Trading Corp. 208 Pilar St., Mandaluyong Rizal Attention: Mr . Antoinette T . A . Carbonell Manager Gentlemen : This refers to your letters dated May 6 and 10, 1977 requesting a certificate of exemption from payment of customs duties and internal revenue taxes for the imported scaffolds (brochures describing them are herein attached) as per SBTC MLC #77/0408 which arrived via Philippine Airlines under airway bill # 00760325. It is represented that said scaffolds were sent by your branch office in San Francisco, California, USA for demonstration purposes to enable you to solicit orders from prospective clients in the Philippines. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Said imported articles are subject to 7% compensating tax based on their total landed cost without any mark-up pursuant to Section 190 in relation to Section 186, both of the Tax Code. cdta As to your request for exemption from payment of customs duties it is suggested that the same be taken-up with the Bureau of Customs. Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8