Tax Exemption of Metal Covers and Bottoms Imported from Without the Philippines

January 7, 1960 BIR RULING NO. 019-60 Mr. S. R. Carlos Purchasing Agent National Carbon Philippines Inc. Highway 54, Mandaluyong, Rizal S i r : In reply to your letter dated November 24, 1959, I have the honor to inform you that metal covers and bottoms imported from without the Philippines for the manufacture of flashlight battery which are intended for consignment abroad are exempt from both the compensating and advance sales taxes, pursuant to sections 183(b) and 190 of the Tax Code. Accordingly, the raw materials which you will receive for the manufacture of Blue Metal Covers and Metal Bottoms for consignment abroad shall be exempt from both the advance sales and compensating taxes. However, before any authority may be issued by this Office for the release of the raw materials from customs custody free from tax, you must file a surety bond with this office in amount equivalent to the amount advance sales tax that may be due on the shipment as security for the payment thereof in case the finished products are not actually consigned abroad. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue