BIR Ruling No. 101-82

April 2, 1982 BIR RULING NO. 101-82 195-i 000-00 101-82 International Brokerage Corporation Room 305, A & T Building Escolta, Manila Attention: Mr . Estelito C . Bagunas President Gentlemen : This refers to your letter dated December 10, 1980 requesting, in behalf of your client G.E.C. Mear and Associates, for a reconsideration of the Authority to Release Imported Goods No. 0014854 dated November 4, 1980, to the effect that shipments covered therein, i.e., three (3) cases of Aerosol Humidifier parts and accessories, should only be subject to 10% compensating tax rather than 25%. cdti It is represented that the subject imported humidifier is not an air conditioner nor humidifier for textile manufacturing but rather a part of a kiln drying machinery used mainly to absorb the humid in kiln drying process of sawn lumber and specifically described as follows: that the unit has a guaranteed output of 10 litres water evaporation per hour in a room maintained at 21C and 55% R.H.; that the use of moulded glass fibre for the complete body of the unit combined with the use of stainless steel for the atomizing disc and blading means that the unit will never be affected by corrosive elements in either the water or the atmosphere; and that as air enters the unit it is filtered to protect the water storage and recirculation system from atmospheric dust to ensure long trouble free service. It also appears in the authority to release the said imported articles that the same shall be used exclusively by your client in its business operation and not for sale, barter or exchange. In reply, please be informed that, this Office, in classifying the said imported articles, took into consideration the following specifications as stated in the brochure, to wit: (1) That the device has a refrigeration circuit with an auxiliary condenser; (2) That it is equipped with thermostatically controlled heater; (3) That it has primary air circulation fans; (4) That it is bodied in moulded glass fibre with self-coloured light stone glass finish; and (5) That it is operated by electricity. The term "cooler" means "one that cools, one that brings about loss of heat or protects from heat; . . . refrigerant; . . . one that operates as a cooling device or machine" (Webster's Third New International Dictionary, p. 501) whereas the word "cabinet" is defined as "a box having a tight-closing door and containing an ovenlike chamber in which a desired temperature, humidity and circulation of air may be maintained for humidification, sterilization, or evaporation . . ." (Ibid, p. 309). Consequently, viewed against the aforequoted definitions, the imported humidifier in question is similar or analogous to "mild cooler cabinet" within the context of par. (i) of Section 196 of the Tax Code, as amended. In view of the foregoing, we find no merit in your request for reconsideration. Accordingly, your client's importation of three (3) cases Aerosol Humidifier parts and accessories is subject to 25% compensating tax prescribed by Section 196(i), in relation to Section 204, both of the Tax Code of 1977, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner