Facts: Petitioner imported light/medium mix special oil and heavy crude oil on various dates and was accordingly assessed ad valorem duties. The assessment was based on a memorandum issued by the acting commissioner of customs which provided that duties and taxes in the importation of crude oil shall be based on the gross actual receipt without deducting the basic sediment and water (BSW) content.
The assessment was timely protested by Caltex on the ground that BSW content should have been deducting before imposing assessable ad valorem taxes.
Issue: What is the basis of the taxes imposed?
Held: The axiomatic null is that the dutiable value of an imported article subject to ad valorem is based on its home consumption value or price freely offered for sale in wholesale quantities in the ordinary course of business or trade in the principal market of the country from where exported on the date of exportation to the Philippines. The home consumption value is the price declared in the consular, commercial, trade on sales invoice.
0 comments:
Post a Comment