Whether it is Still Necessary to Maintain an Importer's Bond on Importation of Propylene Glycol USP

January 3, 1991 BIR RULING NO. 003-91 160 000-00 003-91 Gentlemen : This refers to your letter dated June 26, 1990 stating that you are a regular importer of industrial chemical including once a year importation of approximately 15,000 kgs. of Propylene Glycol USP; and that you have an existing Importer's Official Bond No. 63557/G(11)155 in the amount of P50,000.00 issued by Pioneer Insurance and Surety Co. and for which you have been paying yearly insurance premiums amounting to P1,727.50. You are now requesting information from this Office as to whether it is still necessary to maintain an importer's bond on your importation of Propylene Glycol USP. In reply, please be informed that pursuant to Section 160 of the Tax Code, as amended, manufacturers and importers of articles subject to specific tax shall give a bond in an amount equal, as nearly as can be estimated, to twenty per cent of the taxes payable by them during an average year. Our laboratory analysis shows that Propylene Glycol USP, which is used especially for polyester, resins, cellophane, polypropylene glycol and as non-toxic antifreeze in breweries and dairy establishments and solvents for pharmaceutical, is not subject to excise tax. Accordingly, and it appearing that you are paying the corresponding duty and value-added tax on every importation of said article before effecting the release thereof from customs custody and which is usually covered by an Authority to Release Imported Goods (ATRIG) issued by this Office, the filing of importer's bond on your importation of Propylene Glycol USP may be dispensed with. Very truly yours, (SGD.) JOSE U. ONG Commissioner