Inclusion of Customs Duties in the Total value of Imported Articles

February 5, 1958 BIR RULING NO. 073-58 With reference to your letter dated January 24, 1958, I have the honor to inform you that under Section 190 of the Tax Code "All persons residing or doing business in the Philippines, who purchase or receive from without the Philippines, any commodities, goods, wares, or merchandise, excepting those subject to specific taxes under Title IV of this Code, shall pay on the total value thereof at the time they are received by such persons, including freight, postage, insurance, commission and all similar charges, a compensating tax equivalent to the percentage taxes imposed under this Title on original transactions effected by merchants, importers, or manufacturers, such tax to be paid before the withdrawal or removal of said commodities, goods, wares, or merchandise from the customhouse or the post office: . . " aisadc Under the foregoing provision of the law it is clear that the total value of imported articles includes customs duties . Accordingly, customs duties form part of the total value of importer articles for purpose of the compensating tax. However, no "mark-up" is added to such total value in the computation of the tax. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue