Car Brought in by an Executive of the American President Lines

June 14, 1960 BIR RULING NO. 242-60 The Collector of Customs M a n i l a S i r : Reference is made to your letter dated June 13, 1960 relative to the car brought in by Mr. E. C. Morris, an executive of the American President Lines, free from freight charges. The question is raised as to whether or not the corresponding freight charges on the automobile, even if no charge was actually paid, should nevertheless form part of the landed cost of the car for purposes of the compensating tax. In reply thereto, I have the honor to inform you that, under the circumstances prevailing in the instant case, this Office is of the opinion that no freight charge shall be added to the landed cost it not being an item of expense actually incurred and there being an adequate consideration or basis for the non-imposition of the freight charge. This ruling should not, however, be considered as a precedent of general application. It is applicable only to the instant case. Any similar case in the future shall be duly considered as they arise. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue