BIR Ruling

May 2, 1969 Philippine National Railways P.O. Box 448 Manila Attention: Mr . Benito P . Isip Chief, Accounting Department Gentlemen : This refers to your letter dated March 26, 1969 requesting opinion or ruling on the question posed therein, as follows: "We have for reference the shipment of sugar in bulk for export usually tendered for transportation via our lines by Canlubang Sugar Estate, Central Azucarera de Tarlac, etc. Herewith, you will please find a sample of the pertinent shipping order-bill of lading presented by the shipper to our billing clerk at point of origin to cover the haulage of said shipment. On this shipping order, the shipper declared the volume or weight in kilos per picul bag to be loaded in the wagon and the value of each shipment. Thus, the shipper prepares only one shipping order-bill of lading for the whole consignment while this Company upon receipt of this shipping document issues a separate freight waybill for every wagon necessary to move the shipment. A question as to how much internal revenue stamp be affixed on the shipment under consideration arises. Should the BIR stamp be based on the total declared value of the shipment which is P123,537.25 or on the individual value of the shipment loaded in each wagon?" In reply, I have the honor to inform you that a bill of lading, as defined, is "a contract by which the carrier agrees to deliver the goods entrusted to him for transportation to the person named therein." (National Bank of Chester vs. Atlanta & C.A.L. Ry. Co., 25 S.C., 216.) Under the said definition, the word "contract" is understood to refer to one shipment of cargo. As the separate waybills issued by the PNR cover the shipments of sugar by wagon and, therefore, constitute several contracts for the transportation thereof, the said waybills are the documents subject to documentary stamp tax. Since the value of the sugar loaded in each wagon exceeds P10,000, the amount of P1.50 as documentary stamp tax is due on each waybill pursuant to Section 227 of the Tax Code, plus an equal amount as science stamp tax required under Republic Act No. 5448. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue