Tax Imposed on Parts and Accessories of Automobiles Imported as Replacements

July 28, 1958 BIR RULING NO. 390-58 The Collector of Customs Manila S i r : With reference to your letter dated July 21, 1958, I have the honor to inform you that parts and accessories of automobiles imported as replacements are subject to only 7% advance sales tax. It appears, however, that the instant shipment of the Philippine Vegetable Oil Corporation does not actually consist of parts and accessories for replacement but is a shipment to cover shortages of a previous shipment of CKD parts and accessories of Ford Consul cars. The instant shipment should therefore be subjected to 50% advance sales tax. In this connection, it may be stated that the privilege of the reduced rate of tax on automobiles imported as completely knocked down parts can be availed of only when the importer thereto is an automobile manufacturer or a car assembler who makes the importation for the purpose of assembling them into finished automobiles. Accordingly, if the previous shipment of the company of Ford consul cars in knocked down condition had been subjected to only 7% advance sales tax, it is requested that the deficiency in tax be collected. It will be appreciated if this Office can be informed of the result of the action to be taken thereon. prll Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue