BIR Ruling No. 041-63

April 29, 1963 BIR RULING NO. 041-63 Laureano Investment & Development Corp. Laureano Building, Pasong Tamo Ext. Makati, Rizal Gentlemen : Reference is made to your letter dated December 5, 1962, requesting confirmation of your opinion that imported articles ordinarily subject to specific tax are exempt therefrom if the same are sold to departing tourists or passengers for consumption outside of the Philippines. And in line with such opinion, you request authority to adopt either of the following procedure. "1) Taxes, duties and fees that we have paid for imported items like scotch whiskey and other spirits and wines shall be refunded to us if the sale is made for products that shall be consumed outside the territory of the Philippines or re-exported out of the country by departing passengers and tourists. "2) Payment for taxes, duties and fees shall be deferred and that a surety bond be filed corresponding to the amount of the taxes and duties if the imported goods earmarked for re-export are deposited in our warehouse. "3) Alternatively, taxes and duties shall be unpaid and the goods deposited in the bonded warehouse and drawing from bonded warehouse shall be made upon presentation of invoices covering sales to departing passengers and for consumption outside of the country. The shall be delivered at the customs zone or at the premises on area located after customs inspection had been made or accomplished and of course, passport numbers of the departing passengers properly indicated in their invoices together with their flight numbers and other details of their flight outside the country". In answer thereto, I have the honor to inform you that the specific tax paid on imported article, such as scotch whiskey and other wines spirits, are not refundable even if the same are sold to departing tourists or passengers for consumption outside Philippine territory. This is for the reason that the sale to the departing passengers is purely an ordinary sale consummated locally. That the fact they are consumed by the individual buyers outside this country is not of any moment. Accordingly, it is regretted that your request cannot be granted. Please be further informed that the question of customs duties and fees in not within the jurisdiction of this Office. It is, however, suggested that the same be referred to the Commissioner of Customs. cdtech (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue The above ruling was duly signed by the Acting Commissioner of Internal Revenue on April 29, 1963. (SGD.) P. F. LANDAS Revenue Operations Head (Legal)