Importation of Web Offset Press Exempt From VAT

May 27, 1993 BIR RULING NO. 233-93 IMPORTATION OF WEB OFFSET PRESS EXEMPT FORM VAT 101 (A) 217-92 233-93 Claretian Communications, Inc. (Formerly Claretian Publications, Inc.) 2 Mayumi St., U.P. Village Quezon City Attention: Ms . Sara Jane Z . Saba Head-Foreign Missions This refers to your letter dated April 14, 1993 requesting exemption from the value-added tax on the importation of one (1) set stc: 6 units of Web Offset Press with on-line 12 folding units, 2 rolls stands and 1 constant feed tensioner assembly, coming from the U.S.A., covered by Proforma Invoice No. NC258-93, dated January 14, 1993, and valued at P90,000.00. cdta Documents submitted to this Office show that you are a non-stock and non-profit corporation engaged in the publication, printing and distribution of religious and educational printed materials to various religious and educational institutions; that you extend moral and material support to the religious missions in the Philippines and other parts of the world thru the use of tri-media: print, electronic and cultural media; that upon the favorable recommendation of the Secretary-General, UNESCO, National Commission of the Philippines, you were granted by the Department of Finance in its letter, dated February 11, 1993, exemption from the payment of customs duties pursuant to the provisions of Annex D (a) and (b) of the UNESCO Florence Agreement in line with the last paragraph of Section 105 of the Tariff and Customs Code. In connection therewith, please be informed that pursuant to Section 103(u) of the Tax Code, as amended by Executive Order No. 273, and implemented by Section 9(b) (16) of Revenue Regulations No. 5-87, dated September 1, 1987, transactions which are exempt under International Agreements to which the Philippines is a signatory are exempt from the value-added tax. Article III of the UNESCO Florence Agreement provides as follows: "The contracting States undertake to give every possible facility to the importation of educational, scientific or cultural materials, which are imported exclusively for showing at a public exhibition approved by the competent authorities of the importing country and for subsequent re-exportation. These facilities shall include the granting of the necessary licenses and exemption from customs duties and internal taxes and charges of all kinds payable on importation, other than fees and charges corresponding to the approximate cost of services rendered." Such being the case, the aforesaid instrument/equipment consisting of the Web Offset Press and its accessories in the name of the Claretian Publications, Inc. (now Claretian Communications, Inc.) remains exempt from the 10% value-added tax. In other words, the exemption granted to you by virtue of the UNESCO Florence Agreement is not revoked by the Value-Added Tax Law. This serves as a certification authorizing you to secure the release from customs custody of the one (1) set Web Offset Press (Model 1969) and its accessories without payment of the 10% value-added tax (BIR Ruling No. 041-88; 401-88). cdtech LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue