BIR Ruling

January 25, 1973 The General Manager Edge Worth Marketing Corporation Rm. 804 Enterprise Bldg. Cor. Rosario & Carvajal Sts. Binondo, Manila S i r : This refers to your letter dated January 24, 1973 requesting that your importation of 5 cases of NEC receiving tube-electronic tube be subjected to the 7% advance sales tax on the basis of the landed cost thereof plus 25% mark-up. cd It is represented that the electronic tubes are of general application that is they can be used as parts of radio receiving sets, phonographs and other electrical appliances; and that the imported articles will be sold "as is". In reply, I have the honor to inform you that the rate of tax on imported electronic tubes or other articles considered parts and accessories of both radio receiving sets and phonographs depends upon the destination thereof. Where the articles are imported for resale, as is, the same are invariably subject to the 7% advance sales tax. It being represented that the electronic tubes imported by you will be sold as is, the same are subject to the 27% 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. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue