BIR Ruling [DA-037-99]

January 21, 1999 BIR RULING [DA-037-99] Philippine Airlines Post Office Box 1955 Manila Attention: Mr . Elvis A . Yao Senior Asst . Vice-President Fuel Management Department Gentlemen : This refers to your letter dated January 20, 1999 requesting this Office to uphold the letter dated 29 May 1998 of then BIR Commissioner Liwayway Vinzons-Chato with respect to your current importation of Jet A-1 fuel. As represented, this Office has previously authorized the underbond release of your previous importation of Jet A-1 fuel without the payment of the appropriate excise tax until the issue on the taxability of importation of petroleum products by Philippine Airlines has been resolved by this Bureau; that you now have a current importation of 96,753 barrels of Jet A-1 fuel under Bill of Lading No. 99/4; that said shipment is still on hold at the depot of your handling agent in Bataan despite the surety bond you have already posted from the accredited survey agency. In reply, we confirm that the question of whether or not PAL is subject to the payment of excise tax on its importation of fuel is still pending resolution by this Office. In view hereof, we reconfirm our previous ruling authorizing the release of your current importation without payment of the corresponding excise tax, but without prejudice to the final resolution of this Office on this subject. Further, such conditional release is subject to the same conditions as previously stated, viz: 1. That the shipment is exclusively consigned to Philippine Airlines as the importer; and 2. That the surety bond posted by Philippine Airlines to cover the said shipment shall remain valid until such time when the appropriate ruling on the matter has been issued by this Bureau. LibLex This will serve as the authority for the Bureau of Customs to release your shipment of 96,753 barrels of Jet A-1 fuel under the surety bond issued therefor. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue