Interpretation of the word "bond" used in Sec. 127 (Tax Code)

January 9, 1958 BIR RULING NO. 024-58 Mr. Fidel F. Corcuera c/o La Perla Cigar & Cigarette Factory 224 Quirino Avenue, Paraaque Rizal S i r : You letter to the Collector of Customs, dated March 30, 1957, requesting for "a definite interpretation" of the word "bond" as used in the second paragraph of Section 127 of the Tax Code was referred to this Office for reply. The provisions in question run as follows: "SEC. 127. . . . upon permit from the Collector of Internal Revenue and subject to the regulations of the Department of Finance, manufacturers of cigars and cigarettes may withdrawn from bond, free of tax local and imported wine and distilled spirits in specific quantities and grades for use in the treatment of tobacco leaf to be used in the manufacture of cigars and cigarettes; but such wine or distilled spirits must first be suitably denatured." (Emphasis supplied) It is obvious from the aforequoted provisions of the law that the term "bond" does not mean the bond itself but rather, the place of storage which is under bond. Accordingly, bonded warehouses are well within the purview of the aforesaid term as used in the abovequoted provision of Section 127 of the Tax Code. cdtech Very truly yours, (SGD.) JOSE ARAAS Collector of Internal Revenue