Applicable Rate of Advance Sales Tax on Importation of Loudspeaker Parts

January 15, 1985 BIR RULING NO. 007-85 199 (a) 000-00 007-85 Gentlemen : This refers to your letter dated June 28, 1984 requesting for and in behalf of your client, DAI-ICHI ELECTRONICS MANUFACTURING CORPORATION, on the applicable rate of advance sales tax on its importation of loudspeaker parts. It is represented that Dai-Ichi Electronics Manufacturing Corporation is a registered export producer under R.A. 6135 with the Board of Investments, with BOI Certificate of Registration No. 79-912; that since 1976, it has been importing loudspeaker parts classified under the CB commodity classification code of Essential Producers, specifically EP-764-23-08 and EP764-92-01, and has been paying 10% advance sales tax based on the landed cost plus 25% mark-up; that the loudspeaker parts are for the speaker models which it manufactures, and their uses or applications are the following: Speaker Model Other Uses PRO-803/PRO-69 For public address system, studio/auditorium Test Equipment & other low frequency applications. DT-40 Fish Finder, rat expeller, automotive horns, ultrasonic alarm, & other high frequency applications. HM-40 Monitors, automotive horns, & other mid-frequency applications. FM-601/FM-602 Paging System, extension FM-600 speaker, automotive horns, BGM, public address system, computer, and for general applications. BS-38/BS-44 For security monitor, studio test equipment and for other general applications. FM-103/FM-480 Intercom, communication equipment, dictating machine, automotive horns, and other general applications. Your said letter was referred to the Investment Incentives Division for verification as to whether the said imported loudspeaker part of your client, Dai-Ichi Electronics Manufacturing Corporation are parts of a phonograph, radio-phonograph sets or radio. In a memorandum report dated November 14, 1984, the investigating examiner has reported that "on the question whether said loudspeakers form part of radio, radio-phonograph, or phonograph, these loudspeakers are of low wattage that usage to either of the three products is not feasible." In reply, please be informed that the aforesaid loudspeaker parts are subject to the 10% advance sales tax based on the landed cost thereof plus 25% mark-up under Section 193(b) of the same Code as amended by Executive Order No. 833. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner