Request for Exemption from Compensating Tax of the "COLUMBIA" Magazine Sent to Knights of Columbus Members

January 13, 1986 BIR RULING NO. 006-86 169 00-69 006-86 Gentlemen : This refers to your letter dated December 14, 1985 requesting exemption from compensating tax of the monthly magazine called "COLUMBIA" which are sent to the members of the Knights of Columbus in the Philippines by the Knights of Columbus Supreme Council in New Haven, Connecticut, U.S.A. through your National Office. It is represented that some 60,000 members of the Knights of Columbus in the Philippines, a Catholic, fraternal, family service organization, are recipients free of charge, of a monthly magazine called "COLUMBIA", published and printed at the Knights of Columbus Supreme Council in New Haven, Connecticut, U.S.A., that the aforementioned magazine used to be mailed directly from New Haven, Connecticut, U.S.A. to each individual member of the Knights of Columbus in the Philippines every month but because second class mail matter from the USA is normally shipped via surface means, the magazines would reach each member two and a half to three months from the date of issue thus rendering the articles and items of interest published therein rather passe; that you have requested the Knights of Columbus Supreme Council to air-freight monthly 60,000 copies of "COLUMBIA" via Philippine Airlines, our National flag carrier; that the UNESCO in the Philippines recommended approval of your request for a tax exemption on said magazines under the provisions of the UNESCO Florence Agreement; and that you assure this Office that the copies of the magazine will be properly wrapped and pre-addressed to the subscribers thru the Bureau of Posts. cdtech In reply, please be informed that your request is hereby granted, provided that copies of the magazine shipped to you in bulk are individually wrapped and pre-addressed to Philippine recipients; and that upon receipt of said copies, you shall deliver the same to the Post Office for mailing to the recipients. The above exemption is justified by the Agreement on Importation of Educational, Scientific and Cultural Materials of which the Philippines is a signatory, stating that the "contracting States undertake not to apply customs duties or other charges on, or in connection with, the importation of books, publications and documents," among which are "newspapers and periodicals." (See Article I of Agreement) The magazine "COLUMBIA" falls within the term "periodicals". cd Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner