BIR Ruling No. 053-65

May 24, 1965 BIR RULING NO. 053-65 Mr. Vicente Zamora, Jr. VICENTE ZAMORA MANUFACTURING, CORP. P. O. Box 94 M a n i l a S i r : Reference is made to your letter dated November 11, 1964, requesting information as to the rate of percentage tax and mark-up due on your contemplated importation of "Fuji Denki" air purifier (dust collector) which, you claim, is not a luxury item but a medicinal item and will be resold to various hospitals, clinics and offices. In reply thereto, I have the honor to inform you that the so-called "Fuji Denki", air purifier is considered an "air-conditioning unit". Air conditioning is defined as "a process of washing, humidifying, and dehumidifying air before it enters a room, hall or building. The artificial control within enclosures of these viables of humidity, temperature, air motion and air cleanliness is termed 'Air conditioning'. Its general method of accomplishment is by means of special treatment of air circulated within and supplied to the enclosure. This air conditioning is accomplished through ventilation and, in reality, is a refinement of that art, combining with it, as it does, air cleaning, heating, cooling, humidifying, dehumidifying and effective control of air motion within the enclosure." (Encyclopedia of Science by McGraw) Being considered an air-conditioning unit, the so-called "Fuji Denki" air purifier is subject to 30% advance sales tax computed on the import invoice value thereof including freight, postage, customs duty and all similar charges plus a mark-up of 50% of such total value, in accordance with Section 183(b), in relation to Section 185-A, both of the Tax Code. cdi Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue