BIR Ruling No. 389-61

No date supplied BIR RULING NO. 389-61 In reply to your letter . . . , I have the honor to inform you that, on the assumption that the Stereo-phonic Record Player (blue and white, Eldorado) which was brought from Guam and now under the custody of the Bureau of Customs will be used by you and not for resale, the same is subject to 30% compensating tax, pursuant to Section 190, in relation to Section 185, both of the National Internal Revenue Code. The tax must be paid before the withdrawal or removal of the article from customs custody and may be paid in money order. The compensating tax is based on the total landed cost of the imported article. "Total landed cost" means invoice value plus freight, postage, insurance, commission and all other similar charges incurred until release of the article from customs custody. Such being the case, and considering that we have no information regarding the total landed cost of the record player in question, we are not in a position to advise you of the actual amount of compensating tax due thereon. Accordingly, and as the Commissioner of Customs and his subordinates are agents of the Commissioner of Internal Revenue for the collection of internal revenue taxes on imported articles, it is suggested that the matter be taken up with the customs officials concerned. The matter of customs duties, not being internal revenue and, therefore, not within the province of this Office, should also be taken up with the proper customs officials. LLjur (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue