BIR Ruling No. 056-62

February 19, 1962 BIR RULING NO. 056-62 Messrs. Ross, Selph & Carrascoso Attorneys at Law P. O. Box 781 M a n i l a Gentlemen : Reference is made to your letter dated October 25, 1961, requesting a ruling on the liability to the specific tax of damaged and stolen cigarettes. You stated that 200 cartons of cigarettes were imported, entries for which were duly filed without however payment of duties and taxes, the same having been stored in the customs warehouses under bond. Prior to the withdrawal of the cigarettes from the bonded warehouse and payment of duties and taxes thereon, it was found that 20 cartons were totally damaged because of leakage in the roof of the warehouse and were unfit for sale and consumption. It was also discovered that 80 cartons were stolen and efforts exerted to locate them were futile. In reply thereto, I have the honor to inform you that, in the case of the damaged cigarettes, the importer is not subject to the specific tax (See Sec. 125, Tax Code; Asiatic Petroleum Co. vs. Rafferty, 38 Phil. 475). In the case, however, of the stolen cigarettes, he remains liable to the specific tax (see Cia. General de Tobaccos vs. Collector of Internal revenue, G. R. No. L-9071, January 31, 1957). Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue