BIR Ruling [UN-225-94]

July 26, 1994 BIR RULING [UN-225-94] Manila International Container Port Bureau of Customs Manila Attention: Ms . Leticia I . David Chief, Formal Entry Division Gentlemen : This refers to you 1st Indorsement dated July 4, 1994 requesting for a ruling whether the importation of 65 Units Tata Sierra Vehicle (LHD) covered by Import Entry Nos. 47219 and 47220, shipped from Bombay, India, on April 24, 1994 and consigned to Autocorp Group, in Metro Manila, is subject to ad valorem tax under Section 149 of the Tax Code. It appears that the above-described vehicles are 5-seater Van type declared as ambulance motor vehicles and that from the accompanying picture, it is comparable in size, configuration and appearance to other imported utility vehicles for passenger use with engine capacity ranging from 2001 to 4500 c.c. Report of the Chief, Formal Entry Division, Manila International Container Port, Bureau of Customs, Manila, indicates that only detachable stickers marked with the word "Ambulance" and "Red Cross" were pasted on the vehicles to show that they were ambulances; that while the standards set by the Board of Investments were squarely met, the vehicles are not equipped with para-medical paraphernalia which is the basic feature of an ambulance and not just to transport the patients with ease and speed; and that the appearance of the motor vehicle show that it is a 5-seater van unit where the seats were purposely detached. In reply, please be informed that in accordance with Executive Order No. 90, in relation to Department of Finance Order No. 34-93, imported utility vehicles with engine capacity from 2001 to 4500 c.c. are taxable as automobiles; hence, subject to ad valorem tax and VAT upon release from customs custody pursuant to Sections 149 and 101(a) respectively of the Tax Code. (Refer to BIR Ruling No. 377-93) cdi Very truly yours, ALICIA P. CLEMENO Acting Assistant Commissioner (Legal Service)