BIR Ruling [DA-155-98]

April 17, 1998 BIR RULING [DA-155-98] Bureau of Customs Manila Gentlemen : This refers to the letter dated March 31, 1998 of Integrated Multi Cotton Mills, Inc., Boomtown Industrial Park, Bo. Tambubong, Bocaue, Bulacan, in effect requesting for a ruling exempting from the 2% excise tax imposed under then Section 151(a)(2) of the Tax Code, as amended by R.A. No. 7729, [also Section 151 (A) (2) of the Tax Code of 1997] its importation of 6,412.5 metric tons in jumbo bags of "CONCH" Portland Cement which arrived on March 09, 1998. cdta It appears that you refused to release the said shipment unless the corresponding excise tax due thereon in the amount of P 356,217.00 is paid, on the ground that cement falls under the definition of "minerals" and/or "mineral products". In BIR Ruling No. 002-98 dated January 8, 1998, addressed to the Kultura Knitex Corporation, this Office held that xxx xxx xxx In reply, please be informed that Revenue Regulations No. 13-94 dated July 20, 1994 which governs the taxation of Minerals and Mineral Products includes in its coverage under the term "Other Non-Metal", cement materials, but not the finished product cement. Accordingly, not being a mineral product, cement is exempt from the 2% excise tax but subject to the 10% value-added tax imposed under Section 107 (a) of the Tax Code of 1997. aisadc Accordingly, cement not being a mineral product is exempt from the 2% excise tax. However, its importation is subject to the 10% value-added tax imposed under Section 107 (A) [ formerly Section 101 (a) ] of the Tax Code of 1997. (DA-009-98 dated January 20, 1998) Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)