BIR Ruling

July 16, 1969 1st Indorsement Respectfully forwarded to the Honorable, the Secretary of Finance, Manila, the within letter of the Commissioner of Customs dated July 8, 1969 requesting that the Bureau of Customs be authorized to grant exemption under Republic Act No. 4103 which amends Section 190 of the Tax Code allegedly in line with and pursuant to the intent and purpose of Section 6 of said Code. Section 6 of the Tax Code provides that for the collection of the National Internal Revenue on imported articles, the Commissioner of Customs and his subordinates are constituted agents of the Commissioner of Internal Revenue. The provision of the law is very clear. It constitutes the Commissioner of Customs and his subordinates as agents of the Commissioner of Internal Revenue only insofar as collecting internal revenue on imported articles is concerned. The power and prerogative to determine who are exempt from internal revenue taxes and the requirements for such exemption are exclusively lodged in the Commissioner of Internal Revenue, and the latter is not authorized by any existing law to delegate such power and prerogative. Consequently, the request of the Commissioner of Customs should be denied for lack of legal basis. It may be mentioned in this connection that this Bureau has always been expediting the processing or applications for exemption under the provisions of Republic Act No. 4103. llcd (SGD.) MISAEL P. VERA Commissioner of Internal Revenue