BIR Ruling No. 071-62

April 23, 1962 BIR RULING NO. 071-62 The National Printing Co., Inc. P. O. Box 237 M a n i l a Gentlemen : Reference is made to your letter dated March 20, 1962, requesting information on the following: cd "This is in connection with our shipment of 6 cases Graphic Art Films which arrived on board SS BAYERMSTEIN (13 cases Photo chemicals already withdrawn and taxes duly paid) requesting opinion from your office regarding BIR taxes due on the said shipment. "These films are fed on the Litho-Camera of an offset department of our printing plant. This Litho-Camera is of considerable size, so constructed very differently from ordinary & cinematographic cameras; and used for the automatic composition of tax by photographic means, such photographing the clocks of types previously met by hand and the film produced is used to prepared the printing plates. "We would like to inform you that the subject-shipment of Graphic Arts Films are not the same as the ordinary photographic films used in Photographic shops. As you will notice in the commercial invoices the size is 20" x 24", a size that is too big for any camera in any photographic shops. Besides, these films are very much thinner making them exclusively suitable for use in the offset department of a printing plants, such as ours is. Another thing is that the ordinary camera uses high speed films such as super . . . which required very very short exposure for just a matter of seconds; whereas, the subject-films require a very much longer exposure of about 3 minutes, making the latter unusable in ordinary photographic shops. The films we have imported are so manufactured for industrial use; hence, they are thinner and cheaper in price, which explains the fact that longer exposure is necessary. "May we further request that the shipment in question be exempt from the mark-up, in as much as the films will be used exclusively in our printing press." In reply thereto, I have the honor to inform you that based on the aforequoted facts, said films are subject to the 7% compensating tax prescribed in section 190, in relation to section 186 of the Tax Code. Said tax is based on the total landed cost of the articles without mark-up. This serves as Authority for the Commissioner of Customs, Manila, to effect the release of the above-mentioned films upon prepayment of the 7% compensating tax, provided that upon inspection thereof the some are found to be as represented. cdtech Very truly yours, BENEDICTO PADILLA Acting Commissioner of Internal Revenue