BIR Ruling

April 25, 1973 Miss Julia A Amargo Certified Public Accountant 346 Pureza, Sta. Mesa Manila M a d a m : This refers to your letter dated March 16, 1973 requesting that the importations if your client, Vibelle Manufacturing Corporation of raw materials to be used in the manufacture of its products, namely, (1) Joie Medicated Powder, (2) Night in Tokyo Medicated Pomade, and (3) Jergens Medicated Lotion which were considered as pharmaceutical and/or medicinal preparations by this Office in our letters to your client dated May 17, 1967 and December 20, 1967, and our letter to you dated August 19, 1971, be subjected to the 7% advance sales tax. In reply, I have the honor to inform you that inasmuch as the aforesaid products manufactured by your client have already been classified by this Office as pharmaceutical and/or medicinal preparations subject to the 7% sales tax under Section 186 of the Tax Code, importations of your aforesaid client of raw materials to be used in its manufacture of the above-stated products are subject to the 7% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code, as amended by Presidential Decree No. 69. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue