Revoking Ruling 233-93 - Importation of Web Offset Press Taxable

July 8, 1993 BIR RULING NO. 316-93 REVOKING RULING 233-93 IMPORTATION OF WEB OFFSET PRESS TAXABLE 101 (a) 00-00 16-93 Claretian Communications, Inc. (Formerly Claretian Publications, Inc.) 2 Mayumi Street, UP Village Quezon City Attention: Ms . Sara Jane Z . Saba Head-Foreign Missions This refers to BIR Ruling No. 101(a)-217-92-233-93 dated May 27, 1993 granting your request for exemption from the value-added tax on your importation of one (1) set stc. 6 units of Web Offset Press with on-line 2 folding units, 2 rolls stands and 1 constant feed tensioner assembly coming from the U.S.A. covered by Proforma Invoice No. N6253-93 dated January 16, 1993, and valued at $90,000.00. cdtech 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 thereto, please be informed that after a re-study of the said ruling, this Office finds the same devoid of legal basis. Contrary to the certification by the local Secretary-General of UNESCO, offset printing press cannot be placed in the category of scientific instruments or apparatus as envisioned under Annex D of the UNESCO Florence Agreement. Specifically, they refer to scientific instruments or apparatus, intended exclusively for educational purposes or pure scientific research; that such scientific instruments or apparatus are consigned to public or private scientific or educational institutions approved by the competent authorities of the importing country for the purpose of duty-free entry of these types of articles; and that the same are placed under the control and responsibility of the educational institutions. On the other hand, Article III of the UNESCO Florence Agreement stating "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 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." does not substantively support the grant of tax exemption because the offset printing press imported by you are neither intended exclusively for showing at a public exhibition, nor destined for subsequent re-exportation. This revokes BIR Ruling No. 101(a)-217-92-233-93 dated May 27, 1993. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue