BIR Ruling [DA-294-97]

June 17, 1977 Messrs. Joaquin Cunanan & Co. 8th Floor Building 6784 Ayala Avenue Makati Rizal Gentlemen : This refers to your letter dated April 1, 1977, requesting confirmation of the opinion that the kraft paper bags which your client, Franklin Baker Company, imports for use in packaging its desiccated coconut products, and which your aforenamed client exports abroad are exempt from the compensating tax. In reply, I have the honor to inform you that if, as represented, your client is the manufacturer of the coconut products which will be packed in the kraft paper bags imported by it and which your client will export abroad, then the said kraft paper bags are exempt from the compensating tax, pursuant to Section 190(c) which exempts from said tax "articles to be used by the importer himself in the manufacture or preparation of articles for export", and in accordance with BIR Ruling No. 61, series of 1958. In this connection, you are advised that in order that such importation may be withdrawn from Customs Custody without payment of the compensating tax, an application for tax exemption should be filed with this Office, indicating therein the name of the importer, its business, the import entry covering the importation sought to be exempt from the compensating tax, the total landed cost thereof and for what the imported articles shall be used. Said application should be accompanied with copies of import declaration and other documents filed with the Bureau of Customs and a certification from the importer that the imported articles shall be used by him in the manufacture or preparation of products for export abroad. cdta Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8