BIR Ruling

July 18, 1967 Memorandum for: The Revenue Operations Head (Specific Tax) This refers to the application of La Fuerza Enterprises to import Union cigarettes from Hongkong with a corresponding request that internal revenue stamps be sent to the Revenue Attache in Hongkong for affixture to the cigarettes they are importing. prcd As stated in our 1st Indorsement dated April 26, 1967, the question of whether or not La Fuerza Enterprises should be permitted to import Union cigarettes considering that the same brand of cigarettes is locally manufactured under an existing patent is not one that can be resolved by this Office, the matter being within the jurisdiction of the Bureau of Commerce. In resolving another question as to whether or not that Office may disapprove applications for permits to import foreign brand cigarettes where the same brand of cigarettes are locally manufactured and duly registered with and approved by the Philippine Patents Office, we said that where the patentee fails to comply with the requirements imposed by Sec. 35 of Republic Act No. 166, as amended, that Office may still accept and approve applications for permits to import articles of the same brand as that of the patentee. However, where the patentee has complied with the requirements of the said law, that Office should not issue permits to import cigarettes having the same brand as the registered brand of the cigarettes manufactured by the patentee. (See our memorandum to that Office dated July 6, 1967). This Office is not the proper forum to decide controversies arising from the infringement of patent rights. This Office is only concerned with the collection of taxes. Consequently, if the importation of La Fuerza Enterprises of the cigarettes in question is approved by the Government Offices concerned, then there is no alternative for this Office than to give due course to its application to import the cigarettes and consider favorably its request to sent strip stamps abroad for affixture to the cigarettes. prll (SGD.) MISAEL P. VERA Commissioner of Internal Revenue