CTA Case No. 5759 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY INTEL TECHNOLOGY PHIL., INC., Peti ti oner, - versus - C .T.A. C ASE NO . 575 9 COMMISSIONER OF INTERNAL REVENUE, Promul gated : Res pond ent. APR 25 200j041,r-t~t- X ------- ----- ---- - ----- - ------- -- --- - - - ------ - ---- - --- - -- - - - X DECISION T he instant petiti on seeks th e issuance of a tax c redit ce rtificate in th e amount of P32,878,990 .75 a ll egedl y representing unutili zed input va lue-added tax (V AT) paid by Pe titi oner on its do mes ti c p urch ases o f capita l goods and serv ices from January to March 1997. The antecedent facts fo ll ow. Petiti oner is a do mestic corporati on dul y orga ni zed and existin g und er and by virtue of the laws of the Republic of the Phdippines with principal office at Gateway Business Park, Javalera, Ge n. Tri as, Cavite. It is e ngaged in the business of designing, deve loping, manufac tmin g and ex portin g advanced and large-sca le integ rated c ircuit com po nents, commonl y referred to in the industry as In tegrated C ircui ts o r " IC's ." O n December 8, 1995 , th e Phili p pine Economi c Zo ne A uth ority dul y registered herein Petitioner as an Ecozo ne Export Enterpri se w ith a pioneer status, pursuant to the provis ions o f Republi c Act N o. 791 6 a nd w as iss ued Certifica te of Registrati on N o. 95-

DEC ISION - CTA CASE NO. 5759 PAGE 2 133. Petitioner also registered itse lf as a value-added tax entity and was issued on January 30. I996 a certifi cate of registrati on bearing ROO Contro l No. 96-540-00071 3. In its first qu arter VAT return fil ed w ith Respo ndent 's coll ection agent, DBP- Gateway Branch. Petiti oner reported V AT input taxes on its domestic purchases of capital goods and services totalling P32,878,990. 75 (Ex h. F). The payments were all egedl y made on its do mesti c purchases of capital goods and services used by Petitioner to start its commerc ial operati ons. O n A ugust 25. 1997 and March 12. 1999, Petitio ner nl ed with the One-S top Shop Inter- Age ncy Tax Credit and Duty Drawbac k Center of the Department of Finance applicati ons for tax credi t/refund of value-added tax paid amounting to P28 ,345,652.34 and P4 ,533,338 .41 , respectively, (A nnexes D to G, Petition for Review). A s all eged in its Petiti on for Rev iew, Petiti oner anchored its claim on Secti ons I 00 (a)(2 )(A)(i) and 108 [should be Secti on I02] (b)( I) o f the Tax Code, to state: "Sec 100. Value Added Tax on Sale ofGoods - (a) Rate and base of tax.- "There shall be lev ied x x x ( I) T he term x x x (2) The foll owing sales by VAT-registered persons sha ll be subj ect to 0%: (A) Export sales - T he term "export sales" means: (1 ) The sa le and ac tual shipment of goods from the Philippines to a foreign co untry, irres pecti ve of any shipping arrange ment th at may be agreed upon whi ch may influence or determine the transfer of ownership of the goods so ex ported and pa id fo r in acce ptab le fo reign currency or its equi valent in goods o r services, and acco unt for in accordance with the rul es and regul ati ons of the Bangko Sentralng Pilipinas;" T he Tax Code further dec lares:

DECISION- CTA CASE NO. 5759 !'AC E 3 Sec. 102. Value Added Tax on Sale (~('Services and Use or Lease of Properties - XXX (B) Transactions Subject to Zero Percent (O'Yt,) Rate. - The following services performed in the Philippines by VAT-registered persons shall be subjeci. to zero percent (0%) rate: (I) Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP)" In addition, Petitioner cited Section 8 (a) of Revenue Regulations (RR) No. 5-87 and Section I 06 (a) of the Tax Code, thus: "Sec. 8. Zero-rating. - (a) In general. "A zero-rated sale is a taxable transaction for value-added tax purposes. A sale by a VAT- registered person of goods and/or services taxed at zero rate shall not result in any output tax. The input tax on his purchases of goods or services related to such zero-rated sale shall be .wailable as tax credit or refundable in accordance w ith Sec. 16 of these Regulations. x x x Sec. 106. Refunds or tax credits ~l input lax. (a) Any VAT- registered person whose sales are zero-rated or effectively zero-rated, may within two (2) years after the close of the taxable quarter w hen the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales except transitional input tax to the extent that such input tax has not been app lied against output tax; provided, however, in the case of zero-rated sales under Section IOO(a)(2)(A)(i), (ii) and (b) and Section 102(b) ( I) and (2), the acce ptable foreign currency exchange proceeds thereof had been duly accounted in accordance with the regulations of the Bangko Sentral ng Pilipina s. As Respondent failed to act on Petitioner's claim for refund and the two-year prescriptive period for the filing of a judicial claim for refund was about to lapse, the

DECISION- CTA CASE NO. 5759 PAGE4 in stant petition was filed on March 31, 1999 and subseq uently amended on June 30, 1999. In his Answer filed on May 13, 1999, Respondent claimed by way of Special and Affirmative Defenses that: "5. Pe titioner 's alleged claim for refund is s ubject to administrative routinary investigation/examination by respondent's Bureau; 6. Petitioner failed to show that the taxes subject of the case at bar were erroneously or illegally collected on account of its failure to present proofs showing that its a ll eged s;:~les are indeed zero-rated sa les. 7. The amount of P32,878,990.75 being claimed by Petitioner as alleged VAT input tax for the period .January to June 1997 was not properly documented. 8. In an action for refund/cred it, the burden of proof is on the taxpayer to establish its right to refund and failure to sustain the burden is fatal to the claim for refund/credit. 9. It is an elementary rul e that claims for tax refund/credit are construed in strictissimi juris against the taxpayer as they partake the nature of exemption from tax." The issue We are tasked to reso lve have been stip ulated by the parties to be as follows : Whether or not Petitioner is entitled to a refund of the VAT input taxes paid arising from dom estic purchases of taxable goods and services from January 1, 1997 to March 31, 1997 in the amount ofP32,878,990.75. We find for the Petitioner. While Petitioner's reliance on Sections 100 (a)(2)(A)(i) and 102 (b)(l) ofthe Tax Code is erron eous as Peti tion er was at the time still in its pre-operating stage where there

DEC ISION- CTA CASE NO. 5759 PAGE 5 were st ill no export sa les to speak of. its claim for refund may nonetheless be given due co urse on the basis of Secti on 106 (b) of the 1997 Tax CL.�de which provides: Sec. I 06(b) Cap ita l goods. - A VAT-registered person ma y apply for the issuance of a tax credit certificate or refund of input taxes paid on cap ita l goods imported or loca ll y purchased, to th e ex tent that such input taxes have not been appli ed against output taxes. The application may be made onl y within two (2) yea rs afte r th e close of the taxable quarter when the importation or purchase was made. As impl emented , Section 4.106-1 (b) of Revenue Regul ations 7-95 allows the refund or tax credit of input taxes paid on capital goods, thus: Sec.4. l 06-1 . Refunds or tax cred its of input tax . - (b) Capita l Goods. - Only a VAT-registered person may apply for iss uan ce of a ta x credit certificate or refund of input taxes paid on capital goods imported or locall y purchased. The refund shall be allowed to th e ex tent that such input taxes have not been ap plied against output taxes. The ap pli cati on should be made within two (2) years after th e close or th e taxab le quarter when th e importa ti on or purchase was made . Refund of input taxes on cap ita l goods shall be allowed only to the extent that such capita l goods are used in VAT taxable business. If it is also used in exempt operations; the input tax refundab le shall only be th e ra table portion co rrespo ndin g to th e taxable operat ions. " Capital goods or properties" refer to goods or properties w ith estimated useful life greate r tha n one yea r and which are treated as depreciable assets und er Secti on 29 (f) , used directly or indirectl y in the prod uction or sale of taxab le goods and serv ices . Finding Petitioner to be legall y entitl ed to file a claim for refund , We dwell on the iss ue on wheth er or not Petitioner was ab le to substanti ate its claim. To prove its case, Petitioner presented in evidence documents consisting of: a. Petiti oner' s Certificate of Registrati on No. 95-133 issued by Philippine Eco nomi c Zone A uth ority (Ex hibit "A" & "A-1 ") ; b. Petitioner' s BIR Certificate of Registratio n w ith ROO Control No. 96-540- 000713 iss ued on January 30, 1996 by Revenue Di strict Office No. 54 (Exhibit " B");

DEC ISION- CTA CASE NO. 575 9 1'/\Gl ~ 6 c. Registration Agree ment entered into by a nd between PEZA and Petitioner last December 8, 1995 (Ex hibit C); d. Monthly VJ\T Returns for th e month of Janu ary and February of 1997 (Exhibit D & E)~ e. Petiti o ner's Quarterly VAT Returns fo r whole year of 1997 including the amend ed return for th e third and fourth quarters of 1997 (Exhibit F to K) ; f. Certi II cati o n o f inward re mitta nce elated March I0, 1999 issued by RCBC (Ex hibit S) ; g . Certifi ca ti o n iss ued by Ms. Maria Wencita C. Salvador, independent C PA co mmi ss io ned by th e Co urt (Ex hibit T); h. S umm ary of purchases a ttac hed as Annex "A" to the Certifi cation m arked as Ex hi bi t "T" (Ex hibit U); i. Schedule o f input VAT pa id with excep ti o n attached as Annex " B" to the Certifi cati o n marked as Ex hibit " T" (Ex hibit W& W-1 ); j . Cop ies of Pet iti o ne r' s suppli er in voices and offc ial receipts for the first quarter of 1997 (Exhibit V, V-I to V-496). Res ponde nt, o n hi s part, s ubmitted thi s case for dec is ion without presenting ev idence on th e gro und that there is no repo rt o f in ves tigation (p.213, CTA Records). As to w heth er o r no t Petiti o ner's claim for refund , both in the administrative and judicial leveL was timely fil ed , th e Co urt no ted that Pe titi o ner' s 1997 quarterl y VAT re turn was erro neo usly stamped as received by the BIR's co ll ec ti o n age nt bank o n April I0, 1996 (Exh. F). The rece ipt o f th e re turn s ho uld have been dated April I0, 1997 to be log ica L T herefo re, cou ntin g fro m April 10, 1997, th e filin g of the claims for refund with th e Respo nd ent and wi th thi s Co urt were both we ll w ithin the presc ripti ve pe riod of two yea rs in acco rd ance w ith Secti o n 230 o f th e Tax Code. 5 4u

DEC ISION- CTA CASE NO. 5759 PAGE 7 Due to its voluminous documents, Petitione1 , engaged the serv1ces of an indepe nd ent CPA. Ms. Maria Wencita C. Salvador. purs uant to CTA Circular No. 1-95, as amended by CTA C ircular No. I0-97 . M s. Salvador was spec ificall y tasked to make a special audit on Pe titi oner' s claim for refund of input taxes on domestic purchases of goods and services . In her repo rt dated .June 28. 2000. M s. Salvador opined that only the amount o f P28.335,439. I0 rep rese nts a va lid claim for tax credit (Exh. T) . After a thoro ugh exa mination by thi s Court. however, of the invoices and official receipts presented by Petitioner and after taking into consideration the report of the independ e nt C PA. the Co urt sti II found the need to reo uce further the amount of input VAT be in g claimed e ither because so me in vo ices or official receipts are not in Petiti o ner's name or a re without suppo rting documents like official receipts from the Bureau of Customs per RAMO No. 2-93. There are also purchases of goods that cannot be considered as capital goods as defined under Section (2) (d) of Revenue Regulations No . I0-94. The Cou rt also noted that th e additional claim for tax credit/refund of P4 ,533,338.4 1 s ubjec t o f Pet itioner's Claimant Information Sheet No. 34402 (Annex E, Petition for R ev iew) dated March 12.. 1999 was not supported by evidence. The report submitted by th e independent C PA eve n excluded th e sa id additional claim. Based on th e foregoing , We find Petitioner to be entitled only to the reduced amount of P27,472, 195.04. computed as fo llo ws: Amount of Claim P32 , 878,990 .75 Less: Di sallowances (a) Unaudited claim/No supportin g documents P4 ,533,338.41 (b) Per indepe nd ent C PA 's verlication I0,213 .24

DECISION- 863,244.06 5,406,795.71 CTA CASE NO. 5759 PAGE 8 (c) Per Court's ver ification (Annex A) Refundable Amount P27.472.195.04 Likewise, records show that the VAT input taxes of P28,345 ,652.34 were not applied against any o utput VAT liability as shown in Petitioner's amended quarterly VAT returns for th e third and fourth quarters o f' 1997 (Exhs. I and .1). In its amended third quarterly VAT return, th e claimed input taxes of P28 ,345,652.34 were included in the total input taxes of P47,56 7,483 .93 deducted as "Any Refund/TCC Claimed" from the "Total Available Input Taxes" of P94,754,804.08 resulting to an amount of P47, 187,320.15 "Excess Input Taxes." Verily, Petitioner no longer carried over the claimed input taxes of P28 ,3 45 ,652. 34 to the succeeding quarters. Finally, Respondent rai sed in his memorandum that Respondent 's VAT registration was erroneous because it is covered by a spec ial law. Citing Section 24 of Republic Act 7916, otherwise known as "The Special Economic Zone Act," which provides in part: "SEC. 24 . Exemption .fi'om Taxes Under the National Internal Revenue Code.- Any provi sion of existing laws, rules and regulations to the contrary notwithstanding, no taxes, local and national , shall be imposed on business establi shments operating within th e ECOZONE. In lieu of paying taxes, five percent (5%) of the gross income earned by all businesses and enterprises within the ECOZONE shall be remitted to the national government x x x" Respondent argued that its sales are not zero-rated but are exempt from VAT, thus, it is not allowed any tax c redit on input taxes paid . The iss ue has a lready been add ressed by thi s Co urt a number of times, foremost of which was through a resolution promulgated on September 20, 2000 in CTA Case No. 550

( DEC IS ION- CTA CASE NO. 5759 PAGE9 592 i entitled Seagate Technology (Philipp ines) vs. Co.~�1missioner ol Internal Revenue. In said resoluti on, thi s Court rul ed : " Res pondent is correct in arguin g that if an entity is re gistered with PEZA as an ecozone enterpri se and is remitting 5% of its gross income to th e nati onal gove rnm e nt, it is exempt from pay ment of the V AT pursuant to the prov is ions o f Secti on 24 o f Rep ubli c Act No. 7916, to qu ote: "Section 24. Exemption fro m Taxes Under the National internal Revenue Code. - Any provisio n of ex isting laws, rules and regul ati ons to th e contrary notw ithsta ndin g, no taxes, local a nd nati onal, shall be imposed on business establishments ope ratin g w ithin th e EC OZON E. In li eu of paying taxes, fiv e percent (5%) of th e gross income earned by all businesses and enterpri ses within the ECOZON E shall be remitted to the nati onal government x x x." Underlining wpplied . However, W e do not agree that the afo requoted Jaw is applicable to th e case at ba r. Secti on 23 of Republi c Act N o. 79 16 provides: "Section 23. Fiscal incentives. - Bus iness establi shments operating w ithin th e ECOZON E shall be e ntitl ed to the fisc al incenti ves as prov ided for und er Pres identi al Decree No . 66, the law creatin g th e Ex port Process ing Zone Authority, or th ose prov ided fo r und er Boo k VI of Exec uti ve Orde r N o. 226, oth erw ise known as the Omni bus In ves tme nt Code o f 1987." Under the aforementi oned Jaw, a PEZA reg istered ente rpri se has the option to choose betwee n two sets o f fi sca l incenti ves . One, th at whi ch is provided for und er Pres idential Decree No. 66, as amended, and Section 24 of RA 7916 which includes the 5% preferPnti al tax on gross income earned, whi ch is in li eu of natio nal and local taxes and second , as that provided for und er Book Vl of Exec uti ve Order No . 226 , including but not limited to a n income tax ho liday (!TH) of 4 o r 6 years dependin g on whe th er an entity is registered as a pi onee r o r non-pioneer e nterpri se. lf an ecozone enterpri se chooses th e 5% pre ferenti al tax, it is exempt from pay me nt o f all nati onal and loca l taxes. Howeve r if an ecozo ne enterprise o pted fo r th e income tax holiday, it is onl y exempt from payment of the inco me tax but still subj ect to othe r nati o nal inte rn a l revenue taxes inc ludin g the va lue-ad ded tax . These we re ex plicitl y eluc idated by the Bureau of Intern al Revenue in VAT Rulin g N os . 037-98 ; 043-98; 027-99; and 063 -99.

DEC ISION- CTA CASE NO. 5759 PAGE 10 The reco rd s of th e case co nvince Us th at Petitioner availed of the fi scal ince nti ves und er Exec uti ve Order No. 226 because of the fact that Petiti o ner is a VAT reg is tered entity w ith Ce rtifi cate of Registration ROO Contro l No . 97-08 3-000600-V dul y iss ued by Respondent 's A ssistant Reve nue Di stri ct Offi ce r. M s . G lo ri a D. Dec ie rdo, fo r and in beha lf of Mr. Ni e to A. Rac ho, Reve nue Di stri ct O!Tice r, ROO No . 83 , Dalisay, Cebu (Ex h. B).'' WHEREFORE, in th e li ght of a ll th e fo rego in g, Res po nd e nt is hereby ORDERED to ISSUE A TAX CREDIT CERTIFICATE in favor of Petitione r in the amo unt o r P27.472, 195. 04 representin g input va lue add ed tax pa id by Petitioner on its ca pita l good s fro m Janua ry to Marc h of 1997 . SO ORDERED . ~- ea-~ ERNESTO D. ACOSTA Presiding Judge I CONCUR: CERTIFICATION I hereby ce rti l'y th at the a bove dec isio n was reac hed after d ue consu ltatio n w ith the members of th e Co urt of Tax Ap pea ls in acco rd ance w ith Sect io n 13, A rt icle VIII of the Co ns tituti o n. L- LSJ~o~ ERNESTO D. ACOSTA Pres idin g .Judge 552

INTEL TECHNOLOGY PHILS. , INC. ANNEXA SUMMARY OF DISALLOWED INPUT VAT PER COURT'S VERIFICATION FOR THE QUARTER ENDING , MARCH 31 , 1997 EXHIBIT REFERENCE INVOICE INPUT NUMBER AM OUT VAT (a) Not in the name of the company V-44 2172 p 3,850.00 p 350 .00 V-62 59 ,074 .80 5,370.44 ANALOGIC SYSTEMS CO RP . V-65 630 25.718.40 2,338 .04 V -6 4 16.530 .00 1,502 .73 CALIFORNIA TRADING & TE CH. co V-63 63 1 V-66 9,274 .37 843 .12 CHASE PACIFIC TECHNOLOGY V-68 632 43 ,358.00 3,941 .64 V-67 DAUIS INDUSTRIAL SALES V-81 647 8,700 .00 790.91 EGO-TRIANGLE TE CHNOLOGIES , INC. V-104 39,800 .00 3,618 .18 V-103 648 JUNNA INDUSTRIAL CORP. V-235 6 ,765.00 615 .00 V-236 5157 151 ,652 06 13 ,786 .55 L.S. ROLDAN ENTERPRI SES V-3 17 LINKAGE FIRST VENTURES , INC . V-3 18 4991 13,031 .00 1,184 .64 MODERN BUSINESS METHODS , INC . V-310 3,271 .30 297 .39 NIKKITA BUSINESS SYSTEMS INC . V -3 09 225 940 .03 OLIVE INDUSTRIAL SALES CO ., INC. V -3 08 10,340 .38 204 .55 V-3 07 1932 2,250.00 PAN PACIFIC INDU STRIAL SALES V-306 17,533.09 V-305 1741 192,864 .00 3,685 .91 REACH MARKETING GEN . MDSE. V-408 40,545 .00 3,545.45 SILICON VALLEY COMPUTER SCIENCE V-409 35377 39,000 .00 2,545.45 SUNSH IN E COMMODITIES V-398 28 ,000 .00 1,018.18 V-397 35376 11,200.00 1,557 .82 SYMBOL SCIENCES, INC. V-396 17 ,136 .00 100.18 TOTAL OFFICE PRODU CTS & SERVICES V-395 307 1,102 .00 1,636 .36 V-427 18,000 .00 600 .00 748 6,600 .00 886 .36 9,750 .00 1,772 .73 46576 19,500 .00 1,772 .73 19,500 .00 3769 45,045.45 495,500 .00 3 ,090 .91 1080 34,000 .00 120,573.84 1081 p 45242 45 348 2587 6 4 329 10424 10438 10451 2078 5984 1 Subtotal (b) No supporting documents CH ITI CK FIRE SYSTEMS , INC . 340 ,796.49 30,981 .50 LIBERTY BROADCASTING NETWORK, INC. 4 ,933 . 11 448.46 Subtotal p 31,429.96 (c) Not considered capital goods as defined under Section (2) (d) of Revenue Regulations No. 10-94 ADD-FORCE V-30 4468 5,642 .07 512 .92 V-32 44 69 4 ,030 .05 366 .37 V-31 4470 4,030 .05 366 .37 1 of 5

V-33 4471 5,256 .70 477 .88 6 ,337 .25 576.11 V-29 4472 7,264 .17 660 .38 4,684 .93 425 .90 V-28 4625 5 ,183 .65 471 .24 1,750 .00 159.09 V-27 4646 6 ,750 .00 613 .64 10,780. 00 980 .00 V-25 4700 2,495 .00 226.82 13,475.00 1,225.00 AGRO PRINTING & PUBLISHING , INC . V-40/V-41 130 12 ,801 .25 1, 163 .75 16,170.00 1,470 .00 AMITY HARDWARE & CON ST. SUPPLY V-42 8614 9,980 .00 907.27 3,000 .00 272 .73 BROWN DIRECT SALES CORP. V-56 414814 2,804 .35 254 .94 V-57 415058 725 .50 65 .95 2,485 .50 225 .95 V-58 415288 2,809 . 11 255.37 3,054 .69 277.70 V-59 415774 10 ,000 .00 909 .09 1,764 .95 160.45 V-60 416749 6,160 .00 560.00 77 ,310. 00 7,028 . 18 V-61 416762 14,416 .88 1,310.63 15,373 .88 1,397 .63 ENCARNACION BECHAVES , INC . V-105/V-106 28448 6,023 .60 547 .60 7,123 .60 647.60 GLOBE TELE COM V-117/V-118 Deposit slip 28,527 .66 2,593.42 16,791 .26 1,526.48 V-119/V-120 Deposit s! '> 11,777.46 1,070.68 33 ,567 .16 3,051.56 V-122 Deposit slip 16 , 145 .00 1,467 .73 10,431 .00 948 .2 7 V-123/V-124 Deposit slip 27,352 .32 2,486 .57 V-126 Deposit slip 80448 73 .13 1,654 .07 150 .37 V-128 703144 8,956 .86 814 .26 1,95943 178.13 V-127 Deposit slip 4,933. 11 44846 1,804 .38 164 .03 GRM INTERNATIONAL V-135/V-130 58160 1,710.45 155 .50 1,766 71 160 .61 V-136/V-130 58269 1,663 .70 151 .25 1,6 1145 146.50 V-176/V-184 58514 1,656 .05 150 .55 3,298 .19 299 .84 V-173/V-175 58516 1,849 .10 168.10 1,678 .88 152 .63 V-256 58703 8,956 .86 814 .26 1,654 .07 150.37 V-255 58704 2,315 .27 210.48 24.750 00 2,250 .00 V-220/V-221 136 2 of 5 V-219/V-221 158 V-248/V-221 159 V-218/V-221 166 G.C. EMERY SALES, INC. V-245 106390 V-244 109791 KIMBERLY-CLARK PHILIPPINES, INC . V-234 38%45 V-233 389646 LIBERTY BROADCASTING NETWORK , INC . V-290 48464 V-279 to V-288 48454 V-277/V-232 8433 V-270 to V-275 193485 V-269 193488 V-267 193 491 V-268 193494 V-265 193497 V-264 193500 V-232 8433 V-291/V-292 193507 V-276 193515 V-293 193518 V-279 to V-288 193530 V-232 8433 V-232 8 33 PHILCOPY CORP. V-301 24585

PH ILI PP IN E LONG DISTANCE V-300 24586 9 ,35 0 .00 850 .00 V-364 676872 3,060 .28 278 .21 POST MODERNE WEARHOUSE V-366 676871 1,390 .82 126.44 REACH MARKETING GEN . MDSE . V-368 676870 2,860 .60 260 .05 STAR PAPER CORPORATION V-372 676869 9, 154 .83 832 .26 THE PE NI NSULA MANILA V-370 676868 4 ,146 .89 376 .99 THE PRE MI ER INSURANCE & SAFETY V-3 74 686866 12,252 .91 1,1 13.90 V-297 676865 10.702 .77 972. 98 W INCE L ENTERPR ISES V-299 676864 5,53 1.64 502 .88 V- 362 135,500 .00 12,318.18 V -414/V-415 1809 18,000 .00 1,636 .36 V-399 1066 20,430 .00 1,85 7 .2 7 V-392 8392"50 468,11 8.18 42 ,556.20 V-376 222679 19 ,05 4 .20 1,732 .2 0 V-437 22 1360 5,793.4 1 52 6.67 V-439 145565 3,238 .82 29 4.44 V-435 145596 6,6 13.81 60 1.26 V-473 145597 9,414 .21 855 .84 V-471 146 4 38 V-475 146439 429. 28 39 .03 V-477 146440 7,22 1.59 65 6 .51 V-479 146441 V-491 146442 787 .94 71 .63 V-481 147248 9,835 .68 89 4 .15 V-483 147249 6,069.45 55 1.77 V-495 147250 7,407 .69 673 .43 V-431 147281 V-487 147299 45 1.99 4 1.09 V-493 14745 1 2 ,368 . 19 215.29 V-485 14 74 52 31 ,01 1.49 2,8 19.23 V-489 147453 2,285 .72 207.79 V -433 147454 V-424 150 184 4 2 1.72 38. 34 V-423 13758 4,358.77 396 .25 13778 2,508 .87 22 8 .08 58,403 .17 5,309. 38 Su bt ota l 4,560 .00 414 .55 32 ,000 .00 2,909. 09 p 127,457.48 (d) Not supported by official receipts from th e Bureau of Customs per RAMO NO . 2-93 3 ,4 96 .25 4,1 40.40 GRM INTERNATIONAL V-227 32529 38,458 .74 2 1,4 07 .94 V-224 32530 4 5,54 4 .44 3, 372.26 V-221 32438 235,487 .29 8,2 07 .00 V-162 32354 32 ,585 .78 2,658 .34 V-183/V-184 3246 1 90, 277.00 9 8 ,4 99 .8 5 V- 153/V-154 32327 29,241 .74 40,35 1.43 \f-196/V- 198 32386 1,083 ,498.36 11 5,67 8.25 V-155/V- 153 32 : 27 443,865 .68 115 ,864 . 14 V-156/V-153 32327 1,272,460 .7 1 1,4 86 .00 V- 157/V- 153 32327 1,274,505 .56 2.207.5 1 V-199 58041 16,345 .99 1,648 .37 V-200 58042 24 ,282 .60 V-201 58043 18,132 07 3 of 5

V-202 58044 8,173 .95 74309 V-203 58045 14 ,107.27 1,282.48 V-197/V-198 58046 12 ,668 .6 0 1,151 .69 V-204 58047 11 ,855 .08 1,077.73 V-167 58048 64,063.67 5,823 .97 V-166 58049 15,944 .56 1,449 .51 V-165 58050 39,542 .69 3 ,594 .79 V-159/V- 158 58051 105,156 62 9,559.69 V-160/V-158 58052 262,338 .91 23,848 .99 V-163/V-161 58053 56,528 .32 5,138 .94 V-164/V- 161 58054 19,194 .82 1,744 .98 V-134/V-130 58196 13,553 .68 1,232.15 V-133/V-130 58198 16,833 .54 1,530 .32 V-132/V-130 58201 13,291 .20 1,208.29 ' /-1 31/V- 130 58202 24 ,653 .20 2,241 .20 V-149/V-142 12,700 .53 1,154 .59 V-148/V-142 58~03 12,078 .27 1,098 .02 V-147/V-142 28,435.97 2 ,5 85 .0 9 V-146/V-142 58204 12,405 .52 1,127 .77 V-145/V-142 58205 13,167.44 1,197 .04 V-144/V-142 58206 12 ,520 .57 1'1 38.23 V-143/V-142 58207 17,772 .09 1,615.64 V-137/V-130 58208 13,513 .08 1,228.46 V-138/V- 130 58233 16,256 .38 1,477 .85 V-139/V-130 583 18 17,879.76 1,625.43 V-140/V-130 58319 23,649.51 2,149.96 V-141/V-130 58320 13,839.28 1,258 .12 V-150/V - 142 58321 13,970 .43 1,270 .04 V - 151/V- 14 2 58322 13,981 .89 1,271 .08 V-152/V-142 58323 18,013.51 1,637 .59 V-194/V- 19 5 58324 12 ,276 .90 1,116.08 V-193/V-195 58325 19,031 .25 1,730 . 11 V-192/V-195 58435 29,957.42 2,723.40 V-191/V-195 58436 39,780 .73 3,616.43 V-190/V-195 58437 55 ,929 .66 5,084 .51 V-189/V-195 58� 38 14 ,442.86 1,312 .99 V-187/V-188 58439 58,560 .95 5,323 .72 V-186/V-188 58440 67,824 .56 6,165.87 V-185/V-188 58441 68,086 .92 6,189.72 V-182/V-184 58442 55,593 .73 5,053.98 V-181/V-184 58443 25,711 .72 2,337.43 V-180/V-184 58496 17,132.83 1,557.53 V-17 9/V- 184 58497 13,953 .78 1,268 .53 V-178/V-184 58498 V-177/V-184 58507 7,901 .69 718.34 V-174/V-175 58508 13,716 .90 1,246.99 V-172/V-175 58509 10,115.26 V-171/V-175 58515 919 .57 V-170/V-175 58517 7,878.44 716.22 V- 169/V-175 58518 7,257.94 659.81 V-168/V-175 58519 7,257 .94 6 5 9 .81 V-230 58520 8,434 .94 766 .81 58"21 32,739 .03 2,976 .28 58522 13,307 .94 1,209.81 4 of 5 556

V-229 58 523 27,080 .57 2,461 .87 V-228 58524 8 ,00 7 .41 727 .95 V-2 16 58525 V-2 15 58526 28 ,943.04 2,631 .19 V-2 14 58527 8 ,4 6 5.93 769 .63 V-223 58605 7, 84 3.28 713.03 V-222 58606 V-226 58L2 6 12 ,34 2 .48 1,131 .13 V-225 58627 17 ,952 .00 1,632 .00 V-259 58628 V-258 5870 1 8,321 .85 756 .53 V-257 58702 7,378 .88 6 7 0 .81 V-254 58705 11,270.7 1 1,024 .61 V-253 58706 26 ,51 0.00 2 ,4 1 0 .00 V-252 58707 6,7 10.00 6 1 0 .0 0 V-25 1 58708 5, 060.00 4 6 0 .00 V-250 58709 6,402 .00 582 .00 V-249 587 10 5, 060.00 4 6 0 .00 V-2 12 587 11 6, 160.00 560 .00 V-2 11 587 12 10,19 1.95 926 .54 V-2 10 587 13 8 ,18 0 .2 0 743 .65 V-209 587 14 8 , 180 .2 9 743 .6 6 V-208 587 15 7,691 .38 6 9 9 .22 V-207 587 16 7 ,68 5 .2 9 698 .66 V-206 58- 17 7 ,460.81 678 .26 V -205 587 18 8,523 .43 774 .86 V-263 587 19 7.795 29 708 .66 V-262 58720 8,50 5 .39 773 .22 V-26 1 5872 1 12,3 14 .62 1' 119.51 9,63 7.53 876 .14 Subtotal 7,954 .3 1 723 . 12 9,703 36 882.12 Total p 583 ,782.78 p 863,244 .06 5 of 5