FACTS
Petitioner, Resins Incorporated, seeks for
refund from respondent Central Bank on the claim that it was exempt from the
margin fee under the RA No. 2609 for the importation of urea and formaldehyde,
as separate units used for the production of synthetic glue of which it was a
manufacturer. The specific language of the Act speaks of “urea formaldehyde”,
and petitioner admittedly did import urea and formaldehyde separately.
ISSUE
Whether or not the imported
urea and formaldehyde by the petitioner is exempt from the margin fee under RA
No. 2609.
HELD
‘Urea formaldehyde’ is clearly
a finished product, which is patently distinct and different from ‘urea’ and
‘formaldehyde’, as separate articles used in the manufacture of the synthetic
resins known as ‘urea’ and ‘formaldehyde’. Thus, petitioners import is not
exempt from margin fee.
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