Importation of Filter Cloth for Filter Press Subject to 25% Compensating Tax

May 15, 1985 BIR RULING NO. 070-85 196 (g) 76 82 070-85 Gentlemen : This refers to your letter dated April 17, 1985 requesting that your importation of 1,000 meters filter cloth for filter press under Entry No. 14357 which arrived on March 22, 1985 per "President Kennedy" Voyage 195 as covered by bill of lading No. 698707 be subject to the 10% compensating tax. It is represented that this filter cloth is a part of the filter press in your Ball Mill Section, a machine which dehydrates the clay or slip being used in the production of dinnerwares; that a one-piece filter cloth cut into the size of the filter press is folded in the middle and clamped in between the filter plate and filter board that are being pushed by the membrane pump; that the clay or slip is placed on the folded filter cloth and as the membrane pump pushes all the other connecting parts of the filter press, the water is being extracted from the clay or slip and goes to the connecting chamber making the clay or slip homogenous and cohesive and thereby increasing its plasticity; that filter cloth is an integral part of the filter press, without which, the filter press will not function accordingly in the extraction of the liquid from the clay or slip. In reply, please be informed that said filter cloth is subject to the 25% compensating tax based on the landed cost thereof, pursuant to Section 204 in relation to Section 196(g) of the Tax Code, as amended. If the said imported articles will be sold, bartered or exchanged by you, the same will be subject to the advance sales tax. cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner