BIR Ruling

June 20, 1969 California Refining Corporation P.O. Box 2343, Manila Attention: Mr . Jose Lugay III Asst . General Manager Gentlemen : This refers to your letter dated June 17, 1969 requesting that your importation of Food Processing Machinery Pasteurizer-Cooler contained in three (3) boxes be subjected to the 7% compensating tax prescribed by Section 190 in relation to Section 186, both of the Tax Code. It is represented that the machinery will be used to pasteurize all your food products; that the pasteurization process of the machinery involves steam heating of the products, 180 to 200 degrees fahrenheit for a certain length of time depending on the sizes of the products being pasteurized; that due to intense heat on the products after passing the pasteurization chamber, gradual cooling and washing is necessary; that the machine has a cooling chamber which is nothing but a compartment with a multiple series of fresh water sprinklers where the pasteurized products pass and undergo gradual cooling and washing; and that the machine is not equipped with any mechanical refrigerating unit which produces refrigeration cooling. In reply, I have the honor to inform you that under the foregoing description of the use and nature of the imported machine and our appreciation of the brochure submitted, the article in question is a complex food processing machinery. Hence, the same is subject to the 7% compensating tax prescribed by Section 190 in relation to Section 186, both of the Tax Code. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue