BIR Ruling [DA-048-02]

March 20, 2002 BIR RULING [DA-048-02] Nissan Motor Philippines, Inc. Nissan Technopark Brgy. Putong Sta. Cruz Santa Rosa, Laguna Attention: Ms. Marian S. Calimon Vice-President Finance Gentlemen : This refers to your letter dated December 14, 2001, requesting for a ruling to the effect that the NISSAN SERENA QRV which you will import from YULAN MOTOR CO., LTD. of Taiwan as a completely built unit (CBU) to be introduced to the Philippine Market on the first quarter of 2002, is exempt from the ad valorem tax imposed under Section 149 of the 1997 Tax Code. Ocular inspection conducted by Revenue Officer On Premises Mary Ann T. Lumboy, assisted by Zone-in-Charge Fernando Castro, disclosed that the NISSAN SERENA QRV is a ten-seater utility van with the following factors and specifications, viz: MECHANICAL FEATURES: Engine model - SR20DE Seat Belts - 1st and 2nd rows with seatbelts DIMENSIONS, WEIGHT & CAPACITY Overall Length - 4,720 mm. Overall Width - 1,695 mm. Overall Height - 1,825 mm. Wheel Base - 2,695 mm. Seating Capacity - 10 passengers SEAT MEASUREMENT 1st Row - two (2) seats, each measuring 52 cm. wide by 60 cm. long for a total of two passengers. 2nd Row - bench types seats measuring 130 cm. wide by 63.4 cm. long, for a total of three (3) passengers. 3rd Row - bench type seats measuring 130 cm. wide by 78.2 cm. long, for a total of three (3) passengers. 4th Row - two singles bench type seats, each measuring 36 cm. wide by 60 cm. long, for a total of two (2) passengers. In reply, please be informed that on the basis of the aforestated report of the duly authorized representatives of this Office duly supported by brochures and photographs showing that the 10-seat Nissan Serena QRV is designed to transport ten (10) passengers; that the passenger seats conform to the area specifications prescribed under Revenue Regulations No. 14-97, as amended by Revenue Regulations 14-99, and that aside from meeting the area measurement, the seat area has also feet spaces, leg and head rooms that will enable an average built adult passenger to sit comfortably, this Office is of the opinion and so holds that the same is exempt from the ad valorem tax imposed under Section 149 of the 1997 NIRC. This will, therefore, serve as your authority to secure the release of the imported Nissan QRV from customs custody without payment of the ad valorem tax. aCATSI Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner (Legal and Inspection Group)