BIR Ruling

February 14, 1969 Mr. Alberto A. Yguico President & General Manager A. A. Yguico Industries, Inc. P.O. Box 88, Commercial Center Makati, Rizal S i r : This refers to your letter of February 4, 1969 requesting information as to rate of advance sales tax due on imported plastic tubes and plastic cup containers to be used in the manufacture of DEP hair dress-styling gel products. In reply, I have the honor to inform you that as a rule, containers are not considered parts of 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 special design of the plastic tubes and plastic cup containers imported as shown in the samples submitted, they are considered part or accessory of the DEP hair-styling gel product placed in them and, inasmuch as the product to be contained in them is subject to the 50% sales tax the importation of such containers 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. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue