BIR Ruling

March 6, 1967 The Vice President Mobil Oil Philippines, Inc. P. O. Box 608 Manila S i r : This refers to your letter dated December 22, 1966, stating as follows: cdt "We should like to reiterate our request for a blanket authority to import crude oil from Basrah, Iraq, Middle East, Seria, Brunei, British, Borneo and other sources, without the payment of the specific, compensating, and/or advance sales taxes, covering the period from November 1, 1966 to October 31, 1967. These crude oil importations will be used in the manufacture of petroleum products on which we will pay the corresponding specific and sales taxes imposed in Sections 142, 144, 145 and 186 respectively of the National Internal Revenue Code." In reply, I have the honor to inform you that your importations of crude oil to be used by you in the manufacture of petroleum products on which you will pay the corresponding specific tax is not subject to the payment of specific and compensating taxes pursuant to Sections 183(b) and 190, both of the Tax Code. However, those used in the manufacture of articles subject to sales tax are necessarily subject to the advance sales tax. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue