BIR Ruling [DA-039-99]

January 22, 1999 BIR RULING [DA-039-99] Hon. Gelacio R. Manalang City Mayor Tarlac City S i r : This refers to your letter dated January 12, 1999 requesting for exemption from the payment of tariff and customs duties relative to the donation by the Philippine Medical Association in America, 162 Beach, 2nd St., Belle Harbor, New York, 11696, U.S.A. of 30 cartons (balikbayan boxes) containing various operating room equipment and supplies, medical equipment and pharmaceutical supplies to Governor Jose Yap of Tarlac or to you which will be utilized for a medical/surgical mission by the Philippine Medical Association in America in Tarlac City on February 15-16, 1999. In reply thereto, please be informed that your request for exemption from the payment of tariff and customs duties of the aforementioned shipments should be addressed to the Commissioner of the Bureau of Customs which has jurisdiction on the matter. However, the aforementioned donation is subject to the 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus excise tax, if any, and other charges, such tax to be paid by the importer (Office of the City Mayor) prior to the release of such medical supplies and equipment from customs custody pursuant to Section 107(A) of the Tax Code of 1997. (BIR Ruling No. 224-92 dated August 13, 1992) LLphil Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)