BIR Ruling

July 7, 1970 Mr. Jose T. Viduya Collector of Customs Bureau of Customs Port of Manila Manila S i r : This refers to your letter dated July 1, 1970 requesting information as to the rate of sales tax applicable to imported triangle cut, back nylon umbrella covers unsewed. In reply, I have the honor to inform you that it appearing that the imported black nylon umbrella covers are pre-cut in triangle shape and that they are intended exclusively to be used in the manufacture of umbrellas by the importer thereof, the same 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, (cf. BIR Rulings Nos. 468 dated Oct. 2, 1959 and 243 dated June 15, 1960). cdta However, black nylon umbrella covers imported by one who is not a manufacture of umbrellas are subject to the 40% advance sales tax with a 50% mark-up in accordance with Section 183(b) in relation to Section 185(p), both of the Tax Code, (cf. BIR Ruling No. 243, dated June 15, 1960). In this connection, it is requested that this Office be informed of the names of and addresses of the importers of the said articles in order that necessary investigation may be conducted to ascertain whether or not the same were used in the manufacture of umbrellas. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue