When Compensating Tax on Imported Articles may be Refunded

February 17, 1966 BIR RULING NO. 007-66 Allied Brokerage Corporation Robert Dollar Bldg. Port Area, Manila Attention : Mr . Daniel de Leon Gentlemen : This refers to your letter dated December 31, 1965, stating the following: cdtech "Messrs. Dole Philippines, Inc. imported five (5) Drums Omaflora (BOH) which were cleared through customs of Dadiangas, Cotabato. "Unfortunately, however, it was subsequently found that this chemical is not suitable for use in their pineapple plantations in Mindanao and it is now their intention to ship it to Honolulu. "As the cargo will be re-exported, we shall be very grateful if you will kindly advise us whether, under the circumstances, the Compensating Tax paid thereon would be refundable." In reply, I have the honor to inform you that, generally, compensating tax paid on articles imported may be refunded where the articles imported are returned or re-shipped to the original supplier or exporter within a reasonable time; that the articles returned or re-shipped are established and identified to be the same articles imported; and that the foreign exporter had acknowledged having received the articles previously exported. However, as represented by you, the importer (Dole Philippines, Inc.) will re-export the chemicals in question to a third person. In such event, the importer will not be entitled to the refund of the compensating tax paid thereon. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue