BIR Ruling

April 2, 1973 Chesebrough-Pondas, Inc. P. O. Box 844 Makati Commercial Center Makati, Rizal Attention: Mr . D . G . Malabuyo Marketing Supervisor Gentlemen : This refers to your letter dated March 15, 1973 requesting confirmation that your importation of crude ground talc A and B is subject to the 7% advance sales tax with a 25% mark-up. In reply, I have the honor to inform you that it being represented that the imported crude ground talc is to be used in the manufacture of your "Dreamflower" talcum powder with the following formula: cdta Ingredients Quantities in KG. Talc 96.740 Zinc Stearate 1.000 Boric Acid Powdered 1.500 Iryosa RP-300 0.060 Lanolyn Anhydrous 0.200 Perfume Comp. OP. No. 11911-A 0.500 which is subject to the 7% sales tax as talcum powder, it is opinion of this office as it hereby holds that the imported crude ground talc is subject only 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, (Rev. Reg. No. V-42). Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue