Forwarding Establishment

July 29, 1971 BIR RULING NO. 016-71 Forwarding establishment . A subsidiary firm of a foreign international firm which was incorporated under the laws of the Philippines for the primary purpose of engaging in the business of packing, crating, boxing and preparing for shipment overseas of household furniture and furnishing and related articles, and as a forwarder of the same, as well as general commodities, is engaged in business as a forwarding establishment. aisa dc "A 'forwarding merchant' or 'forwarder' is one who ships or sends goods for others to their destination by the instrumentality of third persons without himself incurring the liability of a carrier to deliver them, and neither includes a consignor shipping goods nor a carrier engaged in transporting them. In re Emerson, Marlow & Co., 199 F. 95, 98, 117 C.C.A. 635." "The term 'forwarder' includes persons simply engaging to forward goods to a certain destination, which agreement is discharged by shipping the goods by the usual or most direct conveyance to the place designated, but it does not include persons agreeing to forward the goods to the place of destination when the agreement includes the charge for freight for the entire distance, but the latter person is a carrier. Krender v. Wolcott, N.Y., 1 Hilt, 233-227". (Words & Phrases, Perm. Ed. Vol. 17, p. 447) Accordingly, it is subject to the annual fixed tax of P50.00 and to the 3% tax in accordance with Sections 182(A) (1) and 191(15) of the Tax Code, as amended.