BIR Ruling

July 8, 1976 Manila Midtown Commercial Corp. P. O. Box 4447 Manila Attention: Mr . Lorenzo A . Almendares Manager, Import Dept . Gentlemen : This refers to your letter dated June 22, 1976 requesting that the so-called "furnishing fabrics",consisting of 1,092 yards and covered by Air/Waybill No. 079-5160-8804 be subjected to the compensating tax at the rate of 7%,on the ground that they will be used exclusively as draperies in your Manila Midtown Ramada Hotel. cdta In reply, I have the honor to inform you that it appearing from the samples submitted to this Office that the said fabrics are not clothing materials but are materials for draperies and seat covers and will, in fact, be used as draperies in your hotel, your importation of the above-described fabrics is subject to 7% compensating tax, pursuant to previous rulings of this Office interpreting the term "textile" used in Section 185(p) of the Tax Code as one used for clothing purposes. This letter will serve as authority to the Commissioner of Customs to release the abovementioned shipment of "furnishing fabrics" upon payment of 7% compensating tax, if upon inspection, said fabrics are found to be materials for draperies and seat covers and not for wear, as dresses, pants and other apparel. aisa dc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3