BIR Ruling

May 20, 1966 2nd Indorsement Respectfully returned to the Honorable, the Undersecretary of Finance, Manila, the within inquiry of Customs Examiner Rose Urbano relative to the assessment and collection of advance sales tax on the importation of (1) glass bottles with caps by Vibelle Manufacturing Co., and (2) glass bottles by Metro Drug Corporation, with the following comment and recommendation. LibLex As a general 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 7% sales tax under Section 186 of the Tax Code. However, considering their peculiar make and indispensability to the manufacture and processing of "KISS ME FOUNDE", a make-up base liquid preparation, this Office is of the opinion as it hereby holds that the imported glass bottles with caps and with the corresponding literature printed thereon, are considered part or accessories of the make-up base liquid preparation to be placed in them, and, therefore, the importation thereof by Vibelle Manufacturing Co., is subject to 50% advance sales tax, based on their total landed cost, plus 100% mark-up, pursuant to Section 183(b), in relation to Section 184(c) of the Tax Code. With regard to the importation of glass bottles by the Metro Drug Corporation, the same is subject to the 50% advance sales tax, plus 100% mark-up in line with the foregoing discussion. cdt (SGD.) MISAEL P. VERA Commissioner of Internal Revenue