BIR Ruling

October 31, 1972 The General Textiles, Inc. P. O. Box 2470 M a n i l a Attention: Mr . Jose R . Marqueta Manager Gentlemen : This refers to your letter dated October 26, 1972 requesting information as to the rate of compensating tax due on your importation of Vibro Washer. cdta It is represented that the Vibro Washer is an adjunct to a range of a textile continuous dyeing process in the finishing section of your integrated textile mill; that the continuous dyeing range section is composed of chemical padder, steamer, airing arrangement, washer and dryer. In reply, I have the honor to inform you that under the foregoing circumstances and it appearing in the brochure of the article imported that it is a component of a continuous dyeing range of an integrated textile mill, this Office believes, as it hereby holds, that the imported Vibro Washer is subject only to the 7% compensating tax prescribed in Section 190 in relation to Section 186, both of the Tax Code. It may be stated, in this connection, that "washing machines of all types" under Section 185(1) of the Tax Code have reference to laundry washing machines of the kind used in commercial laundries and these of the household type which are taxable at 40%. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue