BIR Ruling

April 24, 1969 Gurnamel Sons P.O. Box 2850 Manila Gentlemen : This refers to your letter of March 28, 1969, requesting information as to the rate of advance sales tax due on liquid eye liner container of the sample submitted. In reply, I have the honor to inform you that as a rule, containers are not considered parts or accessories of the articles or products to be contained in them. As such, they are considered ordinary articles and, therefore, subject only to the 7% sales tax under Section 186 of the Tax Code. However, in view of the fact that the container referred to above is especially made and designed so as to be useful only with the product therein contained, it becomes in effect an accessory of the liquid eye liner placed in it, and, inasmuch as the product to be contained therein is subject to the 50% sales tax the importation of such container is subject to the 50% advance sales tax based on the landed cost thereof plus 100% mark-up pursuant to Section 183(b) in relation to Section 184(c), both of the Tax Code. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue