BIR Ruling

April 28, 1969 The President Transvite Trading Corporation Suite 410 Lopez Building Aduana St., Port Area Manila S i r : This refers to your letter dated April 11, 1969 requesting information as to the correct rate of advance sales tax due on dining wares which you are contemplating to import. It is represented that the dining wares to be imported are silver plated with 0.11 gram per square inch; that the base metal of said items is an alloy, namely: nickel 20%, copper 46%, and zinc 34%. In reply, I have the honor to inform you that under Section 184(b) of the Tax Code, imported articles made of, mounted, ornamented or fitted with precious metals or imitations thereof or ivory are subject to the 50% sales tax. The term "imitations thereof" includes plating and alloys of such metals. Accordingly, the dining wares you are to import being silverplated articles shall be subject to 50% advance sales tax based on the landed cost thereof, plus 100% mark-up pursuant to Section 183(b) in relation to Section 184(b), both of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue