Payment of Specific Tax in Addition to the 10% Advance Sales Tax on the Shipment of BASF WAX A

July 6, 1988 BIR RULING NO. 301-88 101 145 (a) (3) 000-00 301-88 Gentlemen : This refers to your letter dated June 7, 1988 requesting information as to whether you have to pay specific tax in addition to the 10% advance sales tax paid on your shipment of BASF WAX A. It is represented that based on the total landed cost of P86,628.65, you paid P8,663.00 as 10% advance sales tax on the imported wax which arrived on June 1, 1988 under Entry No. 45473. In addition to the said tax, you were also required by the customs appraiser to pay specific tax. In reply, please be informed that your above importation of wax is subject to the 10% value-added tax based on the landed cost thereof, pursuant to Sections 101 and 103(d) of the Tax Code, as amended by Executive Order No. 273. Accordingly, the advance sales tax you have already paid which is likewise, based on landed cost, is hereby applied against the value-added tax due. Moreover, in addition to VAT, your above importation is subject to the specific tax of P3.50 per kilogram [Sec. 126 and 145(a)(3), Tax Code]. Accordingly, said specific tax shall be paid before the same is released from customs custody. (Sec. 128, Ibid .) Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner