BIR Ruling

August 24, 1972 Edward Keller Ltd. (Philippine Branch) 2723 Pasong Tamo Extension Makati, Rizal Attention: C . V . Halili, Jr . Manager, Pharmaceutical Dept . Gentlemen : This refers to your letter dated July 12, 1972 requesting us to grant an authority to release your shipment of Mandrax tablet from the Bureau of Customs for the following reasons: cdta (1) That the order (Order No. 1627) among others for 100 tins of Mandrax tablets x 1000's was placed by you sometime on December 16, 1971 with your principal, Roussel Laboratories Ltd., Columbus House, Wembley Park, Middlesex, England which shipped the goods ex-United Kingdom on board the "Glenbeg", covered by Invoice No. SN2985 dated February 4, 1972, Bill of Lading No. 32 dated February 15, 1972 and Consular Invoice No. NY52132D dated February 4, 1972; (2) That the shipment arrived Manila on April 5, 1972 and entered Customs under Entry No. 269447(72), for which duties and taxes amounting to P13,703.00 were paid on April 7, 1972 through the First National City Bank under Central Bank Receipt No. 119409C; (3) That the entire shipment with the exception of the 100 tins of Mandrax tablets was released to you on May 31, 1972; and (4) That on June 21, 1972, notice of seizure of the said Mandrax shipment was issued to you by the Bureau of Customs for violation of Section 2530(F) of the Tariff and Customs Code in relation to Section 14, Article 3 of Republic Act No. 6425, the Dangerous Drugs Act. acd It appears that Mandrax tablets contains Metaqualone 250 mg. and Diphenyhydramine RCI-25; that neither definition of narcotic drugs as listed in Section 339 of the National Internal Revenue Code; and that it falls however under the definition of Regulated Drug as defined by the Dangerous Drugs Act of 1972 (Republic Act No. 6425). In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Pursuant to Section 36(1) of Republic Act No. 6425, otherwise known as the "Dangerous Drugs Act of 1972", the Board (Dangerous Drugs Board) may authorize the importation, distribution, prescription, dispensing and sale of, and other lawful acts in connection with, dangerous drugs of such kind and quantity as it may deem necessary according to the medical and research needs of the country, which authorization shall be required by the Commissioner of Internal Revenue as a basis for the issuance of licenses and permits for such purposes in accordance with Republic Act No. 953. From the foregoing provision of the law, it appears that only upon authority of the Dangerous Drugs Board may your importation be released considering that Mandrax tablet is a regulated drug falling within the provision of the Dangerous Drugs Act. Considering, however, that the aforesaid Board which is empowered by Republic Act No. 6425 to authorized importation of regulated drugs has not yet been created as provided under the said law, and since your shipment has already arrived Manila, this Office will not offer any objection if said shipment of Mandrax tablets will be re-exported to the supplier. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue