BIR Ruling [DA-150-96]

April 26, 1996 BIR RULING [DA-150-96] 1st Indorsement March 12, 1996 Returned to the Revenue District Office, Revenue District No. 33, the within papers of Mr. Noel Miole of 11 Yakal St., Sev. Subd., Bayan Taguig M.M. and Mr. Augusto Argosino c/o Carrera, Candelaria & Associates, Ste. 405 Makati Stock Exchange Bldg., Ayala Tower One, Makati City, relative to the importation of one (1) Unit 1987 Hi-Lux Toyota and one (1) unit 1977 GMC Suburban. Investigation report by Mr. Joaquin Sienes, Jr. dated November 10, 1995 described the respective vehicles as follows: 1. Toyota Hi-Lux, consigned to Mr. Noel Miole is essentially a utility vehicle; its base floor surface is flat; intended to be used in carrying cargoes on a steady and efficient manner; while it is easily convertible to multi-purpose utility vehicle with various applications such as for the transport of persons and merchandise and that said Toyota Hi-Lux, is a pick-up or van convertible to an open-bed or closed van. aESIHT 2. One (1) unit 1977 GMC Suburban consigned to Mr. Augusto Argosino c/o Carrera, Candelaria & Associates has one (1) bucket seat in front measuring 150 cm. x 75 cm., a backseat in the second row measuring 165 cm. x 75 cm. and in the rear measuring 165 cm. x 167 cm. x 109 cm; the actual seating measurement of said vehicle complied with and exceed the BIR prescribed dimension of 35 cm. x 60 cm. per person as prescribed under Article 11 and that said vehicle can comfortably accommodate 12 persons and that its engine displacement is 5012 cc. Based on the foregoing report, and from the picture showing that it is an open-bed, the conclusion is justified that the Toyota Hi-Lux as above-described is a cargo vehicle. Accordingly, the same may be released from customs custody without the payment of ad valorem tax. On the other hand, the 1977 GMC Suburban which is designed for passenger use with seating capacity of 12 or more passengers, falls within the purview of transport type passenger vehicles, contemplated under Heading No. 87-02 of the Harmonized Tariff & Customs Code; hence, not taxable as an automobile. (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue