Resolution Concurring in the Ratification of the Agreement between the Philippines and Mexico for the Avoidance of Double Taxation with Respect to Taxes on Income and the Prevention of Fiscal Evasion

December 13, 1961 BIR RULING NO. 442-61 The Honorable The Secretary of Finance (Thru the Commissioner of Customs) Manila S i r : Reference is made to the letter dated October 4, 1961 of the Commonwealth Foods, Inc., Makati, Rizal, which was referred to this Office for comment under 1st Indorsement dated October 16, 1961 of that Department, requesting exemption from all taxes on the shipment of stale and expired coffee which it previously exported and are to be returned to it by its Hongkong office for reprocessing. LLpr From the documents submitted in support of said request, it appears that on June 20, 1957, the corporation exported to Hongkong 50 cartons Instant Cafe Puro, 24 x 2-oz. jar; 30 cartons Ground Cafe Puro, 12 x 15-oz. jar; and 100 cartons Ground Cafe Excelente, 12 x 15-oz, jar under Export License No. 057-0485, CB Reference No. 470 and 30 cartons Soluble Cafe Bueno, 24 x 2-oz, jar; 20 cartons Ground Cafe Puro, 24 x 1-lb. box; 10 cartons Ground Cafe Puro, 48 x -lb. box; 30 cartons Ground Cafe Bueno, 24 x 1-lb. box; and 10 cartons Ground Cafe Bueno, 48 x -lb. box on May 18, 1961 under Export License No. 061-0879, CB Reference No. 886. Because of the length of time that had elapsed, parts of the above-stated items allegedly either became stale or had expired, and in order to maintain the quality of the corporation's products, its Hongkong office, Commonwealth Foods (International), Ltd. (Room 207, Windsor House, Hongkong), is shipping to it the stale and expired coffee for reprocessing, after which they shall be shipped back to the latter. As stated in the letter of the corporation, the following are the stale and expired coffee to be reprocessed: prll From June 20, 1957 shipment 993 jars Ground Cafe Excelente, 15-oz, jar; 131 jars Ground Cafe Puro, 15-oz. jar; 415 jars Instant Cafe Puro, 2-oz, jar; and 259 jars Instant Cafe Philippines, 2-oz, jar From May 18, 1961 shipment 432 boxes Ground Cafe Puro, 1-lb; 384 boxes Ground Cafe Puro, -lb.; 700 boxes Ground Cafe Bueno, 1-lb.; and 420 boxes Ground Cafe Bueno, -lb. It is noted that while the others might really be parts of the coffee exported by the corporation on June 20, 1957 and May 18, 1961, however, the 259 jars Instant Cafe Philippines, 2-oz. jar, could not be a part of either, none of the kind appearing to have been exported on either date. If the above-enumerated items (except as indicated) were actually parts of those exported on said dates, the same can be imported into the Philippines for the purpose of reprocessing by the importer himself for reconsignment abroad free from the advance sales and compensating taxes. Neither will the corporation be subject to any other tax by reason of the importation. With respect to the 259 jars Instant Cafe Philippines, if the same will be imported into this country for reprocessing purpose only, no advance sales or compensating tax is also due thereon, pursuant to Sections 183(b) and 190 of the Tax Code. cdtech The papers bearing on the case are herewith respectfully returned. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue The above ruling was duly signed by the Commissioner of Internal Revenue on December 13, 1961. (SGD.) P. F. LANDAS Revenue Operations Head (Legal)