Tax Imposed on the Importation of Ford Consul Sedans

July 1, 1958 BIR RULING NO. 351-58 Golden Taxicab 74 Plaza Dilag Paco, Manila Gentlemen : This is in connection with your importation of Ford Consul sedans in completely knocked down condition which were allowed to be released from customs custody upon the payment of only 7% compensating tax and upon your filing of Capital Insurance and Surety Co., Inc. Bond No. G-14676 to guarantee the payment of the deficiency tax in case the shipment in question is subject to 50% compensating tax. This Office, after a careful study of the matter, believes that the privilege of the reduced rate of tax on automobiles imported in completely knocked down parts and accessories can be availed of only when the importer thereof is an automobile manufacturer or car assembler who makes such importation for the purpose of assembling them into finished automobiles. Since you are not yourselves car manufacturers or assemblers, you are not entitled to the reduced rate of tax on the importation in question and, therefore, the proper rate of tax that should be imposed thereon is 50%. Accordingly, you are hereby requested to effect the settlement of the deficiency tax on the shipment in question in the amount as may be computed by the Bureau of Customs. Very truly yours, (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue