Request for Imported Carton Rotary Piston Blower to Be Subject to 10% Compensating Tax

March 3, 1986 BIR RULING NO. 018-86 197-11 140-84 018-86 Gentlemen : This refers to your letter dated June 11, 1985 requesting in effect that your importation of one (1) carton rotary piston blower for pneumatic conveyor, to be used in your factory be subject to the 10% compensating tax. It is represented that the said imported rotary piston blower type RV-13 NW65 which arrived via airfreight under Airway Bill No. DANZAZ 1-0134713 is for the exclusive use of your pneumatic conveyor in your factory; that it cannot be used for air conditioning and refrigeration application for the following reasons: (1) the airflow capacity of the blower is 2300 1/m (liters/minute) or 81.2 cu. ft/minute (CFM) at a discharge pressure of 1.2 kg/cm 200 17 PSIC or 470 inches watercolumn; (2) the drive motor is 5.2 KW for an airflow rate of only 81.2 CFM; (3) the size of the assembly is 0.6m x 0.4 the rotary piston blower type is especially designed for use in pneumatic conveying systems and other special applications but not in air handling units of air conditioning systems. In reply, please be informed that the said imported rotary piston blower is similar or analogous to an electric fan and/or exhaust fan. Hence, the same subject to the 25% compensating tax prescribed by Section 204 in relation to Section 197 of the Tax Code of 1977, as amended. If this article, however, has been released from Customs custody after January 1, 1986, the same shall be subject to 30% compensating tax under Section 169 (formerly Section 205), in relation to Section 165(A)(1) (0) (formerly Section 197) of the Tax Code, as amended by P.D. No. 1994. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner