BIR Ruling [DA-207-96]

June 25, 1996 BIR RULING [DA-207-96] 1st Indorsement June 14, 1996 Referred to the Revenue District Officer, Revenue District No. 33, Port Area, Manila, the entire papers relative to the request for ATRIGs by Commercial Motors Corporation in connection with its importation of fifty (50) units of Mercedes Benz (MB) 100 VAN D2.9 described as public transport type passenger motor vehicles covered by Invoice No. 9600001 and B/L No. FBL-KR-015AB60001. It appears from the attached brochure that said vehicles are twelve-seater coaches; that their engine displacement capacity is only 2.874 cc (diesel-fed) or 2,199 cc (gasoline-fed), but their gross vehicle weight appears to be 3.11 tons. Applying the criteria used in the Harmonized System Code of the Tariff and Customs Code,more particularly Heading No. 87.02 (p. 441), they are public-transport type passenger motor vehicles, as the latter is defined in page 440 of the same Code, stating "3. For purposes of heading No. 87.02, the expression "public transport type passenger motor vehicles" means vehicles designed for the transport of ten (10) persons or more (including the driver)." ACcHIa Pursuant to BIR Ruling No. 75-89 dated April 14, 1989 and in consonance with Revenue Memorandum Order No. 14-95 dated March 24, 1995, which prescribed a seating capacity of ten (10) passengers or more including the driver as the criterion for the exemption from the imposition of the Ad Valorem Tax, the above-described imported utility vehicles are not subject to the Ad valorem tax imposed under Section 149 of the Tax Code. This serves as your authority to cause the release of the aforesaid vehicles without the payment of Ad Valorem Tax, subject to the above conditions. IDSETA (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue