Cancellation of the Bond in the Importation of the "Diabetes Mellitus" Film

March 30, 1959 BIR RULING NO. 170-59 Marsman & Company, Inc. P. O. Box 297, Manila Gentlemen : Reference is made to your letter dated February 13, 1959, requesting cancellation of the bond (P.A.G. Bond No. M-0558) filed by you in connection with your importation of the film, entitled: Diabetes Mellitus. As grounds for said request, you stated that this Office found said film to be an educational film and that, upon tendering payment of the compensating tax, you were advised by the Bureau of Customs that the same is exempt because the declared value thereof is only $40.00. LexLib In answer thereto, I have the honor to inform you that, as the aforesaid film was found by this Office to be educational in nature, the same is exempt from the specific tax prescribed in Section 146 of the Tax Code. However, as the exemption provided for in the penultimate paragraph of Section 190 of said Code in favor of "any single shipment consigned to any single person when the total value thereof does not exceed one hundred pesos" has application only to non-business importations and considering that the purpose in importing and showing the film in question is to promote the sales of that company, the same is subject to the compensating tax irrespective of the value thereof. In view thereof, it will be highly appreciated if you can now pay to the Bureau of Customs the compensating tax due on the film. Thereafter, the official receipt evidencing such payment should be shown to this Office so that the bond filed by you can be cancelled. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue