BIR Ruling No. 194-82

June 9, 1982 BIR RULING NO. 194-82 204-00 000-00 194-82 FAME-Capt. I.P. Estaniel Foundation, Inc. Second Floor, Teodora Bldg. 806 Castro Street corner Taft Avenue Malate, Metro Manila Attention: Capt . Cesar P . Carandang President Gentlemen : This refers to your letter dated November 20, 1981 requesting exemption from compensating taxes on your importation of Furuno Marine Radar Simulator Equipment, a device used in training maritime students and which monitors the student's response to the instructor's command during routine training. cdta The records show that you are duly registered with the Securities and Exchange Commission as a non-stock and non-profit corporation, and determined by the National Science Development Board (NSDB Certification No. 80-F-04) to have been organized for scientific advancement pursuant to Section 24 of Republic Act No. 2067, as amended by Republic Act No. 3589. In reply, I have the honor to inform you as follows: Section 24-a of Republic Act No. 2067, as amended by Republic Act No. 3589, states: "Any provision of existing law to the contrary notwithstanding, apparatus, instruments, utensils, equipment, and materials may be imported into the Philippines, whether or not foreign exchange has been allocated by the Central Bank for the payment of such importations, free from all taxes and duties, upon certification of the National Science Development Board that such articles are imported solely for scientific and technological research and development and not for barter, sale or hire ; Provided, however , That in case such articles are subsequently conveyed or transferred to other parties for a pecuniary consideration, taxes and duties shall be collected thereon at double the rate provided for under existing laws, payable by the transferor. . . ." (Emphasis ours). cd The evidence presented to support your request consist of a certification dated March 9, 1982 from the National Science Development Board to the effect that the above importation is for scientific and technological research and development especially in navigation for which you have been established and, therefore, the same is not for barter, sale or hire. Accordingly, under the foregoing provision of law, said importation is exempt from the compensating tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner