Internal Revenue Bonded Warehouse may Be Constructed and Maintained in Any Port of Entry

February 26, 1974 BIR RULING NO. 003-74 An Internal Revenue Bonded Warehouse may Be Constructed and Maintained in any Port of Entry . This refers to your letters dated October 11, 1973 and January 29, 1974 stating that you are building a distillery in Pulupandan, Negros and would like to transport the alcohol in bulk tankers between Negros and Manila; and that you propose to build storage tanks in North Harbor for receiving the alcohol from Negros. Under the foregoing facts, you would like to request confirmation of your understanding that you can construct an internal revenue bonded warehouse at the North Harbor in pursuance of the provisions of Section 154 of the Tax Code. In reply, I have the honor to inform you that Section 154 of the Tax Code provides that an internal revenue bonded warehouse may be maintained in any port of entry for the storing of imported or manufactured goods which are subject to specific tax. The tax on such goods shall be payable only upon removal from such bonded warehouse. In other words, this provision contemplates the maintenance of internal revenue bonded warehouse not only for the storage of imported articles subject to specific tax but also locally manufactured articles subject to specific tax. In view thereof, this Office believes that you can construct a bonded warehouse in the North Harbor, Manila for the purpose of storing alcohol transported to it from Negros under bond. cdt