Imported Oven is Subject to 25% Compensating Tax

December 3, 1981 BIR RULING NO. 241-81 204-00 000-00 241-81 Hoechst Philippines, Inc. Salcedo Street, Legaspi Village Makati, Metro Manila Attention: Mr . Antonio C . Dapat Import/Export Gentlemen : This refers to your letter dated August 8, 1980 requesting that your importation of one (1) unit standard oven type E with accessories to be used in your pharmaceutical laboratory be subject to 10% instead of 25% compensating tax. It appears from the brochure presented that the Lytzen standard oven have a temperature range of 30 to 225 degrees centigrade and are widely used for the drying of glassware, the drying of powders and granules, sterilizing of glassware, instruments etc., silicon treatment of glass bottles and glass ampoules and for many other purposes. Based on the foregoing, the said oven is similar or analogous to electric, gas, and oil stoves and ranges enumerated in Section 197 (E) of the Tax Code. Accordingly, being an imported article, it is subject to the 25% compensating tax based on the landed cost thereof, in accordance with Section 204, in relation to Section 197(II) of the Tax Code, as amended. If the imported article will be sold, bartered or exchanged, the same will be subject to the advance sales tax. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner