BIR Ruling

May 23, 1975 Luzon Brokerage Corporation P. O. Box 591 Manila Attention: Mr . R . M . Millares Vice-President for Customs Affairs Gentlemen : This refers to your letter dated April 29, 1975 requesting information as to the rate of advance sales tax due on the importation by your client, ICCM Trade Development, Inc., of 1,200 pieces Exterior Car Antenna, 700 pieces antenna connecting cord and 200 pieces antenna bumper clips. In reply, I have the honor to inform you that this Office is not unaware of the fact that a few years back only cars were equipped with radio sets as indispensable devices or as necessary components thereof. But time has changed. The designers of modern vehicles, in order to keep abreast with the march of progress and with the tendency of adopting all sorts of attraction and convenience, seemed to find a void in a vehicle not equipped with a radio set and so they thought of drawing up plans which make a radio an ordinary and usual equipment of all motor vehicles coming out of their assembly plant. It is no longer unusual to see all motor vehicles such jeeps, vans, panels, trucks and buses equipped with radios. With the foregoing in mind, this Office believes as it hereby holds that the car antenna and connecting cords imported by your aforesaid client are subject to the advance sales tax at the rate of 7% only, the tax to be based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5