Computation of the Total Landed Cost of Importations

February 10, 1959 BIR RULING NO. 058-59 West Pacific Brokerage Corporation Room 306, Maritima Building Dasmarias, Manila Gentlemen : Reference is made to your letter of the 29th ultimo, stating that beginning January 1, 1959, importations by new and necessary industries became subject to customs duties at the rate of 10%. In other words, the full exemption from customs duties enjoyed by said industries prior to January 1, 1959 has been diminished to 90% only. For that reason, you now request information as to the amount of customs duties that should be included in the computation of the total landed cost of said importations for the purpose of arriving at the correct amount of advance sales tax payable thereon under Section 183(b) of the National Internal Revenue Code. In answer thereto, I have the honor to inform you that, for such purpose, the amount of customs duties actually paid on the imported articles should be included in computing the total landed cost thereof. In this connection, it may be stated that pursuant to Section 1 of Republic Act No. 901, from January 1 to December 31, 1959, the exemption of new and necessary industries from internal revenue taxes shall be only 90% of the taxes (in the present case, advance sales tax) payable by them. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue