BIR Ruling

February 21, 1973 Consolidated Terminals, Inc. P. O. Box 947 Manila Attention: Mrs . Bernardina M . Sanchez Custom Broker Gentlemen : This refers to your letters dated February 16, and 20, 1973 requesting that the importation of your client, Phildensan Manufacturing Company of raw materials to be manufactured into parts and accessories of radio receiving sets and phonograph stereos, be subjected to 7% advance sales tax. In reply, I have the honor to inform you that it being represented that the imported raw materials will be used by your client in the manufacture of intermediate frequency transformers, and oscillating coils for radio receiving sets and phonograph stereos; and that the manufactured parts and accessories, will be sold to manufactures of household appliances, the imported raw materials are subject to the 7% advance sales tax 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. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5