Drugs Can Be Released from Customs Custody Free from the Compensating Tax
BIR Ruling No. 493-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Nov 25, 1960
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November 25, 1960 BIR RULING NO. 493-60 2nd Indorsement Respectfully returned, thru the Commissioner of Customs, to the Honorable, the Secretary of Finance, Manila. It appears that the Ciba Pharmaceutical Company of New York, United States, donated to the St. Luke's Hospital, Cathedral Heights, Espaa, Quezon City, drugs for free distribution to the latter's charity patients. Not having the necessary funds with which to pay the compensating tax due thereon, said Hospital transferred the drugs to the Department of Health which in turn has accepted them for the purpose of distributing the same free to indigent patients. The Department of Health now requests that the drugs be released from customs custody without the prepayment of the compensating tax. Under the foregoing circumstances, the Department of Health and not the St. Luke's Hospital is the recipient of the drugs in question. Such being the case, and considering that said department is an instrumentality of the government, the drugs can be released from customs custody free from the compensating tax. MELECIO R. DOMINGO Commissioner of Internal Revenue
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