Tax on the Importation of Articles Covered by Bid by an Awardee

February 13, 1958 BIR RULING NO. 095-58 T.J. Wolff & Co., Inc. P.O. Box No. 920 Manila S i r s : With reference to your letter dated January 31, 1958, I have the honor to inform you that a bid entered in connection with the procurement of supplies for government offices is essentially an offer to sell. The awardee, therefore, in such case, should he import the articles covered by his bid, is considered the importer of the articles. Such importation is, therefore, subject to the sales tax. It may be stated in this connection that only direct importations by the Government is exempt from tax. The fact that the dollars used in payment of the electric counter and its accessories you sold to the Institute of Science and Technology was taken from Government quota did not make the Government the importer thereof. llcd Moreover, under Republic Act No. 1937, even Government importations are now subject to tax although the tax paid on such importations is refundable upon proof that the imported articles are actually destined for Government use. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue