Computation of the advance sales tax on untaxed or improperly taxed imported articles covered by Presidential Decree No. 53, dated November 13, 1972, as amended by Presidential Decree No. 80, dated December 11, 1972, and implemented by Department Order No. 56-72, dated December 12, 1972 and Revenue Memorandum Circular No. 70-72 dated December 29, 1972

January 15, 1973 REVENUE MEMORANDUM ORDER NO. 04-73 SUBJECT : Computation of the advance sales tax on untaxed or improperly taxed imported articles covered by Presidential Decree No. 53, dated November 13, 1972, as amended by Presidential Decree No. 80, dated December 11, 1972, and implemented by Department Order No. 56-72, dated December 12, 1972 and Revenue Memorandum Circular No. 70-72 dated December 29, 1972 TO : All Internal Revenue Officers and other concerned. For the information and guidance of all concerned, there is quoted hereunder the provisions of Customs Memorandum Order No. 57-72 dated December 1, 1972: "Republika ng Pilipinas Kagawaran ng Pananalapi KAWANIHAN NG ADUANA Maynila "December 1, 1972 "CUSTOMS MEMORANDUM ORDER NO. 57-72 "SUBJECT : Determination of the Dutiable Value Under Section 201 of the Tariff and Customs Code, As Amended, and Computation of Advance Sales Tax on Imported Articles "TO : ALL COLLECTORS OF CUSTOMS, HEADS OF DEPARTMENTS, CHIEFS OF DIVISIONS AND OTHERS CONCERNED "1. Determination of Customs Duties on the Basis of Home Consumption Value plus Ten Per Cent (10%) Thereof . The dutiable value of imported articles subject to an ad valorem rate of duty under Section 201 of the Tariff and Customs Code, as amended by Presidential Decree No. 34, shall be based on the home consumption value or price (excluding internal excise taxes) of the same, like or similar articles, bought and sold or offered for sale freely in the usual wholesale quantities in the ordinary course of trade, in the principal markets of the country from where exported on the date of exportation to the Philippines, or the date nearest to such date, including the value of all containers, coverings and/or packings of any kind, and all other costs, charges and expenses incident to placing the article in a condition ready for shipment to the Philippines, plus ten (10%) of such home consumption value or price. cd "2. Source of Information as to Home Consumption values . The home consumption values are those ascertained and established values of articles exported to the Philippines as published from time to time by this Office. The Bureau has compiled, published and issued Customs Valuation Circulars numbered 30-72 to 38-72, dated November 20, 1972, listing the home consumption values of various imported articles by commodity groupings. These values shall be used in computing the dutiable values of such imported articles in the assessment of duties thereon until otherwise revoked or revised by the Bureau. Pursuant to Section 1313(b) of the Tariff and Customs Code, as amended by Presidential Decree No. 34, Collectors of Customs shall furnish importers or brokers, upon request, the latest value information on imported articles. For this purpose, the attached Consulta form now being used in the Port of Manila is hereby declared as a standard form for adoption in the other Ports. In instances where the value information pertaining to a certain imported article is not available to the Collector of Customs in the Port concerned, he should immediately request for such information from the Valuation and Classification Department of the Bureau which shall furnish and transmit the same as expeditiously as possible. "4. Computation of Advance Sales Tax on Imported Articles . The advance sales tax on imported articles shall be computed on the basis of the home consumption value as published or ascertained, or the invoice value, whichever is higher, including freight, postage, insurance, commission, customs duty and all similar charges, plus the required mark-up depending upon the nature of the imported article pursuant to Section 183(b) of the BIR Code, as amended. "5. This Order shall take effect immediately. "(SGD.) ROLANDO G. GEOTINA Acting Commissioner of Customs" The attention of all internal revenue officers particularly those Coordinating Officers assigned to implement Presidential Decrees Nos. 53 and 80 and Department Order No. 56-72 is invited to Section 4 of the Customs Order which provides for the computation of advance sales tax on imported articles in order to achieve uniformity in the computation of the taxes that are due on the articles covered by the said Presidential Decree. The determination of the home consumption value should, however, be correlated to Section 4 of Department Order No. 56-72 which provides that items, commodities, goods and articles subject to tax shall be considered as having been imported as of assessment. All those concerned are hereby enjoined to comply strictly with the provisions of the above-mentioned orders and circulars. MISAEL P. VERA Commissioner of Internal Revenue