Rate of Tax to Be Imposed on Importation of Various Chemicals

February 19, 1985 BIR RULING NO. 018-85 199 (a) 000-00 018-85 Gentlemen : This refers to your letter dated June 11, 1984 requesting a ruling for and in behalf of your client, 211 Billy Philippines, Inc. on the rate of tax to be imposed on its importation of the following chemicals: cdt Articles Uses 1. Orange Oil Valencia Chiefly as flavor and perfume 2. Sodium Citrate Gran Septemic or urinary acidosia. Has been used as a diuretic and expectorant. 3. Sodium Chloride In salt depletion, for hydration, Gran laxative, emetic. 4. Propylparaben As a preservative in concentration of 0.03% in conjunction with other hydroxybenzoate in aqueous preparations. 5. Methylparaben Used mainly for its activity in solutions against molds, fungi and yeast, to preserve aqueous preparations. 6. Sulfuric acid reagent Principal applications are manufacture of fertilizers. Explosives, dyestuffs, other acids, parchment paper, glue. Medical use: Concentrated acid formerly used topically as caustic, dilute sulfuric acid has been used in gastric hyperacidity, as appetite stimulant, formerly in serious diarrhea. 7. Starch Powder Medical Use: Absorbent dusting (Amylum) powder, demulcent for irritated Insoluble colons; antidote in iodine poisoning; topically in ointments or pasten; has been used as sponge for hemostasis and internal surgical dressing, manufacture of tablets of medicinal substances; also used in food industry. 8. FD & C Red No. 3 Dyes certified for use in foods, Aluminum Lake drugs, and cosmetics. (Erythrosine) & FD & C Yellow No. 6 (Sunset yellow FCF) 9. Edetate Calcium Medicinal Use: Chelating Disodium detoxicant for poisoning by lead and other heavy metals. Veterinary Use: Chelating agent in lead poisoning on horses and calves. 10. Citric Acid Powder Acidulant in beverages, confectionary, effervescent salts, in pharmaceutical syrups, elixirs, in effervescent powders and tablets, adjust the pE of foods and as synergistic antioxidant, processing cheese. In the manufacture of alkyd resins, in esterified form as plasticizer, foam inhibitor, and as sequestering agent to remove trace metals. Medicinal Use: Has been used to dissolve urinary bladder calcult; used for rickets and as mild astrinkert. 11. Emulsion Silicons 30 It is used in industrial barriers Percents (Dimethyl- creams for protecting the skin polysoloxane) or against irritant substance. Dimethylcone Creams, ointments and lotions containing dimethylcones are employed for the prevention of bedsores and to protect the skin against trauma from urine or fascal discharge. Then activated with silice, they are used in the treatment of flatulence and matearism, for the elimination of gas, air or foam from the gastro-intestinal treat. In reply, please be informed that on the basis of the laboratory report, the aforesaid chemicals except orange oil valencia are subject to 10% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 198(b), in relation to Section 199(a), both of the Tax Code, as amended by Executive Order No. 883. The orange oil valencia comes within the purview of an extract under Section 2(d) of Revenue Regulations No. 8-84 implementing Section 194(b) of the Tax Code as amended, subject to the 50% advance sales tax based on the landed cost thereof plus 25% mark-up under Section 193(b), in relation to Section 194(e), both of the Tax Code, as amended. cdti Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner