Importation of Vessel, M/T "Crane Vanguard" with a Gross Weight of 5,096.0 Tons (deadweight) Exempt from Value-Added Tax

May 31, 1996 BIR RULING NO. 063-96 103 (g) 000-00 063-96 Flagship Petroleum Carriers, Incorporated Ground Floor, AMREH Bldg. 94 Scout Rallos Street Kamuning, Quezon City Attention: Arturo M . Madrigal, Jr . Vice-President-Chartering Gentlemen : This refers to your letter dated April 29, 1996 requesting confirmation of your opinion that your importation of vessel, M/T "Crane Vanguard" with a gross weight of 5,096.0 tons (deadweight), is exempt from Value-Added Tax. Documents submitted show that the subject vessel was sold to you by a Japanese owner; that it originated in Nagasaki, Japan; and that it has the following specifications: aisadc Description of Goods SECOND HAND PETROLEUM M/V CRANE VANGUARD YEAR BUILT JUNE, 1982 ("AS IS WHERE IS") CB COMMODITY CODE 793.22-00 Name of Vessel : MV "CRANE VANGUARD" Year Built : June, 1982 Gross Tonnage : 3,080.0 tons Dead Weight : 5,096.0 tons Dimensions : 96.01 x 15.00 x 7.80M Main Engine : HANSHIN 3.300HP xxx xxx xxx" that per Certification dated May 28, 1996, issued by the Honorable Congressman Exequiel B. Javier, Chairman, Committee on Ways and Means, House of Representatives, the unit of measure used in Section 103(g) of the National Internal Revenue Code as amended by R.A. 7716 which provides for the exemption from value-added tax of the importation of passenger and/or cargo vessel of more than five thousand (5,000) tons whether coastwise or ocean-going, including engine and spare parts of said vessel to be used by the importer himself as operator thereof refers to the deadweight (DWT). In reply, please be informed that based on the foregoing facts, and pursuant to Section 103(g) of the Tax Code, as amended by R.A. 7716, your opinion that your importation of the subject vessel is exempt from value added tax, is hereby confirmed. This ruling is being issued on basis of the foregoing representation and will be revoked if it turns out later that the facts are not as represented. LLjur Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue