BIR Ruling No. 045-62

February 14, 1962 BIR RULING NO. 045-62 Macondray & Co., Inc. P. O. Box No. 768 M a n i l a Gentlemen : Reference is made to your letter dated November 13, 1961, requesting information as follows: "With reference to imported wines and liquors temporarily stored in bonded warehouse, we would like to have clarified some points, regarding payment if any, of specific taxes, special import taxes and duties. "1. In case of destruction by fire and/or loss by theft while the goods are still in the bonded warehouse, is the owner liable for the payment of the above taxes? "2. Also in case of fire and theft, if these taxes had already been paid to the government but withdrawal of the goods has not been effected, will the owner of the goods be entitled for the refund of the specific taxes, special import taxes and duties paid? In answer thereto, I have the honor to inform you that in case of destruction by fire, the importer is not liable for the payment of the specific tax otherwise due on the imported wines and liquors, it being understood that the warehouse above referred to is a customs bonded warehouse (Asiatic Petroleum Co. vs. Rafferty, 38 Phil., 475). In case of loss by theft, however, the importer is nonetheless is liable for the payment of the tax, because the articles were undoubtedly put into the commerce and trade of the country (See Cia. General de Tabacos vs. Collector, G. R. No. L-9071, Jan. 31, 1957). On the other hand, the loss of the articles by fire will not entitle the importer to a refund of the tax thereon before the occurrence of the loss. However, in the remote possibility that the tax was paid even after the occurrence of the fire, the same is refundable (Asiatic Petroleum Co. vs. Rafferty, supra). As loss by theft does not exempt the importer from the tax, it follows that such loss will not be entitled him to a refund of the tax paid on the wines and liquors irrespective of whether payment was made before or after the happening of the loss. With respect to the matter of special import tax and customs duties, it is suggested that the same be referred to the offices concerned, said tax and duties not being internal revenue. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue