BIR Ruling

October 29, 1973 Mr. Romeo L. Luna Attorney-at-Law 8th Floor, Bank of P.I. Bldg. Ayala Avenue, Makati, Rizal S i r : This refers to your letter dated October 11, 1973 requesting that the importation by your client, Sikatuna Fishing Corporation of 3 crates Used Mycom Compound Compressor, Model N62B under B/L No. YM-35 aboard "Don Hacinto II", be released from customs custody upon payment of the 7% compensating tax. It is represented that the subject shipment is an industrial heavy duty compressor for use in your client's fish for export ice and cold storage facilities in Zamboanga City; that it uses ammonia as refrigerant; and that it has a heavy capacity with 40 tons refrigeration or 480,000 BTU/Hr. and cold storage capacity of 100 tons. In reply, I have the honor to inform you that from the foregoing description of the use and nature of the imported compressors, the same are industrial refrigeration equipment. Such being the case, the same are subject to the 7% compensating tax pursuant to Section 190, in relation to Section 186, both of the Tax Code, as amended. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."