Personal and Household Effects Brought in by a Returning Resident

June 4, 1959 BIR RULING NO. 276-59 Mr. Santiago Benitez 8 Zinnia, Roxas District Quezon City S i r : This has reference to your undated letter relative to the personal and household effects brought in by Miss Caroline Topacio, a returning resident. cdt You contend that the amount serving as basis of the exemption from the compensating tax of articles brought in by returning residents shall be the f.o.b. value thereof and not the landed cost. You base your contention on the exemption provision of the law which used only the word "value" in respect of returning residents and not the term "total value" in the case of single shipments consigned to individuals. We restudied very carefully the provisions of section 190 and we are fully convinced that the amount of the exemption is based on the "landed cost". This conclusion emanates from the provision of the first paragraph of section 190 of the Tax Code which prescribes the basis of the tax reading "shall pay on the total value thereof at the time they are received by such persons, including freight, postage, insurance, commission and all similar charges . . .". The term "total value" used in the exemption provision (2nd paragraph of section) must necessarily bear the same meaning as used in the first paragraph, that is, including expenses of importation. This is for the reason that similar terms used in a statute cannot be interpreted in different lights. Your argument that, in respect of returning residents, only the value (f.o.b. value) should be the basis because only the word "value" and not the term "total value" is used as in the case of single shipments consigned to individuals is untenable. It is rather inconceivable that Congress should lay different bases for importations by individual residents and returning residents. The use of the word "value" in the second sentence of the 2nd paragraph must be considered in relation to the use of the term "total value" in the first sentence thereof. Accordingly, your request for exemption from tax of the personal and household effects brought in by Miss Topacio has to be, as it is hereby, denied because the landed cost thereof exceeds P500.00. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue