Second Shipment of Certigen Vaccines which Replaced the Tax-paid Damaged Shipment of Same Articles is No Longer Subject to Another Advance Sales Tax

November 3, 1987 BIR RULING NO. 337-87 162 (c) 110-86 337-87 Gentlemen : This refers to your letter dated September 10, 1987 requesting exemption from the payment of advance sales tax and import duty on your shipment of 2000 x 50 D and 1000 x 10 D Certigen Vaccines (EC-541.64-13) which is allegedly a replacement of a tax-paid damaged shipment of same articles. It is represented that your original shipment of 3000 x 50 D and 1000 x 10 D Certigen Vaccines under L/C-GP-512-275/87 ACF arrived last August 11, 1987 and released to your customs brokers from PSI storage on August 14, 1987, that your supplier's forwarders failed to indicate in the Air Way Bill that the goods were vaccines, perishable and need refrigeration, that since there were no conditions set, the vaccines were not refrigerated for more than 72 hours as a result of which the said goods were destroyed as the same were no longer suitable for sale to the public; that although said articles were destroyed, you nevertheless paid the corresponding taxes and duties thereon as evidenced by the attached xerox copy of Customs Official Receipt No. 866079; that your supplier, Diamond Laboratories de Mexico, has agreed to replace the entire shipment which will be arriving on the first week of October; and that the Central Bank has approved your request for authority to import on no-dollar basis the replacement for the damaged shipment. In reply, please be informed that the advance sales tax imposed under Section 162(c) of the Tax Code, as amended is based and paid only once on the articles imported. Consequently, your second shipment of 2000 x 50 D and 1000 x D Certigen Vaccines that would replace the damaged items imported last August 11, 1987 the advance sales tax on which amounting to P13,951.00 has already been paid is no longer subject to another advance sales tax. This will serve as authority for the Bureau of Customs to forego the imposition of the advance sales tax on your incoming shipment of 2000 x 50 D and 1000 x D Certigen Vaccines. As regards exemption from the payment of import duty, it is suggested that you direct your request to the Bureau of Customs which has jurisdiction over the matter. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner