BIR Ruling No. 217-83

December 8, 1983 BIR RULING NO. 217-83 Gentlemen : This refers to your letter dated October 18, 1982 requesting exemption from compensating taxes on your importation of Marine Radar Simulator Equipment, a device used in training and/or upgrading the technical skills of Filipino seafarers in radar equipment operation, shiphandling and maneuvering, collision avoidance, radar navigation, narrow water navigation, passing ships in congested channels, decision-making, voice communication, and others. The records show that you are organized as a stock corporation and is duly registered with the Securities and Exchange Commission and with the Maritime Industry Authority; and that the National Science Development Board has issued a certification (NSDB) Certification No. 82-014) stating that your importation of said device is for scientific and technological research and development pursuant to Section 24-a 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 and as reaffirmed by Section 27 of Executive Order No. 784, 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. . . ." The evidence presented to support your request consist of a certification dated September 23, 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. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue