BIR Ruling

October 22, 1969 Po & McWilliams, Inc. Suite 220 Alliance Bldg. 410 Rosario St. Manila Gentlemen : This refers to your letter dated August 16 and September 5 and 11, 1969 requesting information as to whether or not potable rectified spirits or refined alcohol (180 Proof Ethyl Alcohol) for export is exempt from specific taxes. In reply, I have the honor to inform you that under Section 123 of the Tax Code specific internal revenue taxes do not apply to anything produced or manufactured here which shall be removed for exportation and is actually exported without returning to the Philippines. Such being the case, the 325,000 Imperial Gallons of refined alcohol which the Cebu Alcohol Plant, the manufacturer thereof, shall supply to the Government of Ceylon, in case it wins in the bidding, are exempt from the specific tax. However, in case you will buy the said alcohol from local producers, the same although for export are not exempt from the specific tax. Under the foregoing provision of law, the exemption from the payment of specific taxes on articles produced or manufactured for export can availed if by the producers or manufacturers thereof and not by a party which merely buys said articles although for export. With regard to the requirements governing the exportation of the said articles either by the producers or manufacturers thereof or by a dealer, you are requested to see our Specific Tax Department for such requirements. LexLib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue