BIR Ruling

June 28, 1977 Tax on Imported Cooling Towers This refers to your letters dated June 8 and 24, 1977 requesting that the importation of your client, ABC & Co., Inc. of the following articles, viz: 1 unit BF 40 SC Turbo Industrial Plate Ice Maker capacity, 40,000 lbs/24 hrs. 1 unit CT 40 Turbo Cooling Tower (Good Fellow Propeller Series) for above Ice Maker be released from customs upon payment of the 7% advance sales tax with a 25% mark-up. The documents submitted show that the aforecited imported article is a 20 ton ice plant machinery to be installed at the DEF Ice & Cold Storage, Butuan City; that the ice plant machinery is watercooled, thus, the inclusion of the cooling tower; and that you have posted Domestic Insurance Company of the Philippines Bond No. G(16)00222 to cover the difference between the 40% tax to be imposed if the imported cooling tower is found later to be used for purposes other than those represented and the 7% advance sales tax to be paid upon release thereof. In reply, I have the honor to inform you that your request is hereby granted it appearing that you have filed a bond with this Office in an amount equivalent to 33% representing the difference between the 7% advance sales tax to be paid upon release of the cooling tower from customs custody and the 40% tax if upon verification the imported article is used for air conditioning purposes. cdtai