BIR Ruling No. 114-65

September 29, 1965 BIR RULING NO. 114-65 The Vice-President Erlanger & Galinger, Inc. 669 United Nations Avenue M a n i l a S i r : This has reference to your letter dated May 24, 1965, requesting a ruling on the rate of percentage tax on your importation of BRUNNING Class 2000 & 2000R and MULTILITH OFFSET machine. In the brochure submitted, it is shown that said Brunning 2000 and 2000R are electrostatic copiers capable of producing copies at impressive speeds; that it effects reproduction by simply placing the original instrument desired to be copied on the right top side of the glass space of the Brunning and a sensitized paper to which reproduced copy is to be made on the left lower side; that when the Brunning is switched on, a reproduction of the original comes out just on top of the loading tray; that said Brunning can also perform in imaging the multilith offset master by using another kind of sensitized paper. The brochure likewise indicates that the Multilith Offset is a printing machine; that it can print the original as appearing in the master by passing the master and an ordinary paper through the printing machine; that reproduction is made by the use of the multilith electrostatic solution and that it cannot function as such without the master first passing through the Brunning 2000 or 2000R (Multilith Offset is useless without the Brunning 2000 or 2000R). You have also explained verbally that while the Brunning 2000 or 2000R can operate independently as a copier, nevertheless, with respect to the use of the Multilith Offset machine, it is to be used essentially in the production of paper master plates for the machine; and that as aforesaid, as the Multilith Offset machine cannot operate without the Brunning 2000 or 2000R, the two machines are always disposed of together and not independently. In answer thereto, I have the honor to inform you that in an investigation conducted by an examiner of this Office it was found out that the Brunning Class 2000 and 2000R are not mere accessories of the Multilith Offset Machine but devices that could be operated independently of each other. It also appears that the master plate produced by the Brunning machine could be used in other types of offset press. As the Brunning Class 2000 and 2000R are admittedly copying machines, they are subject to the 30% advance sales tax prescribed by Section 183(b) in relation to Section 185(j), both of the Tax Code. However, the Multilith Offset Machine is subject to only 7% advance sales tax, it appearing to be clearly a printing machine. lexlib Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue