Exemption of the Importation of Methanol from Internal Revenue Taxes

March 3, 1988 BIR RULING NO. 069-88 145 000-00 069-88 Gentlemen : This refers to your letter dated February 17, 1987 requesting a certification that you are exempt from paying internal revenue taxes on your importation of Methanol under Article 46 of the Omnibus Investments Code. It is represented that you are a pioneer enterprise duly registered with the Board of Investments (BOI) under the provisions of Presidential Decree No. 1789 otherwise known as the Omnibus Investments Code as export producer with Certificate of Registration No. 82-387 issued on August 19, 1982; that on March 5, 1986 you imported 499,458 M/Tons of Methanol in bulk (Saudi Arabian origin) per pro forma invoice dd January 29, 1986, commodity code EP 512, 11.00, L/C No. UBLC-296-86/039 CC as described in the Tanker Bill of Lading No. 004 of Tomas Shipping Co. (S) Pte. Ltd., Singapore dated February 9, 1986; and that said imported article shall be used as raw material in the manufacture of coco chemicals. In reply, please be informed that BOI Registered pioneer enterprises are exempt from all taxes under the National Internal Revenue Code, as amended, except income tax, to the extent of 100% for the first years pursuant to Article 46(a) of P.D. No. 1789, before its amendment by B.P. Blg. 391 effective on April 28, 1983. Under Section 21 of B.P. Blg. 391, existing enterprises which are enjoying the incentives under the laws repealed by said law shall continue to enjoy such incentives for the period therein stated, provided that said enterprises may waive such incentive and opt to be governed by the provisions of B.P. Blg. 391. You have orally represented to this Office that you did not waive the incentives provided under P.D. No. 1789. Accordingly, your above importation of Methanol is exempt from taxes, pursuant to Article 46(a) of P.D. No. 1789. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner