Damaged and Unfit Raw Materials Consigned to Goodyear Tire & Rubber Co. of the Phil.

April 3, 1959 BIR RULING NO. 193-59 Warner, Barnes & Co., Ltd. P.O. Box 294, Manila Gentlemen : This is with further reference to your letter dated July 7, 1958, stating that occasionally, raw materials consigned to Goodyear Tire & Rubber Co. of the Phil., Ltd. are damaged in transit and thereby become unfit for the purpose for which they were imported. For that reason, said company rejects those raw materials and claims against underwriters who are locally represented by you. You further stated that importations of raw materials by said company for use in its manufacture of tires, etc. are tax exempt in accordance with Republic Act No. 901, and that as the raw materials in question can be utilized for other purposes, you are contemplating to sell them. In answer thereto, I have the honor to inform you that, insofar as internal revenue laws and regulations are concerned, there is nothing to prevent you from disposing of those raw materials. However, you are under obligation to make a return of sales thereof and pay the sales tax due thereon, based on the gross selling price thereof, within ten (10) days from the date of sale. Said return and payment should be submitted and made to B.I.R. Regional District No. 3, Esco Bldg., Canonigo St., Paco, Manila. As regards the question of whether or not the sale of the abovementioned articles may violate any provision of Republic Act No. 901, it is suggested that the matter be taken up with the Department of Finance which is charged with the administration of said law. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue