Imported Plastic Balls as Part and Accessory Deodorant Products Subject to 10% Advance Sales Tax

January 12, 1982 BIR RULING NO. 003-82 199 000-75 003-82 Winthrop-Stearns Inc. 74 Epifanio de los Santos Avenue Mandaluyong, Metro Manila Attention: Mr . R . F . Bocek Gentlemen : This refers to your letter dated September 10, 1981 requesting clarification as to the correct rate of advance sales tax applicable to your importation of six (6) cartons containing 21,000 pieces of plastic balls tussy roll-on deodorant which arrived via SS "Anders Maersk" B/L No. NYFC 39057 on October 13, 1980 from New York under Invoice No. W-80-2518. You have represented that you are a manufacturer of "Day Long Deodorant Anti-Perspirant"; that the subject imported plastic balls are exclusively used by you in your manufacture of the said product specifically placed at the tip of the bottles in order to regulate the flow of the liquid preparatory to usage; and that the Bureau of Customs subjected your said importation to 50% advance sales tax plus 100% mark-up for the reason that the same falls under the purview of the term "perfumery". In reply, I have the honor to inform you that your manufactured deodorant product which checks underarm odor and perspiration is subject to the 10% sales tax imposed by Section 199(a) of the Tax Code. Consequently, the imported plastic balls in question being a part and accessory of said deodorant product you manufacture, is subject to the same rate of tax, i.e., the 10% advance sales tax based on the landed cost, plus 25% mark-up, pursuant to Section 193(b), in relation to Section 199, both of the Tax Code. cdta Very truly yours, RUBEN B. ANCHETA Acting Commissioner