Computation of the Compensating Tax Due on an Automobile Imported from Japan

November 2, 1960 BIR RULING NO. 468-60 Mr. Juan R. Evaristo 977 Maria Cristina Sampaloc, Manila S i r : This is with reference to your letter of even date, requesting this Office that in the computation of the compensating tax due on your automobile imported from Japan, the freight charges should be excluded in the landed cost of said car. It appears that you are employed and presently on active duty in the United States Navy and that you are the owner of an automobile, Model 1951 Chevrolet 3 Dr Hard Top, License No. 385895 (Japan), Motor No. JAD467504, which was brought to Manila from Yokohama, Japan, on board LST 117 (owned and operated by the U.S. Government), free of freight charges, as evidenced by a verification of the Commanding Officer, Military Sea Transportation Service Office, Apo 928, c/o Postmaster, San Francisco, California, dated October 31, 1960. Such being the case, I have the honor to inform you that no freight charges shall be included in the landed cost of the automobile, above-described, in the computation of the compensating tax that is due thereon. (BIR Ruling Nos. 452 & 467, S. of 1960.) This will serve as authority for the Commissioner of Customs in not including the corresponding freight in the determination of the landed cost of the automobile in question. It is understood, in this connection, that said automobile is for personal use only and not for sale. cdtech Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue