Exemption from Excise Tax of Manufacturer/Producer of Raw Marbleized Limestone or Lessee/Owner/Operator of Mining Claim

September 1, 2000 BIR RULING NO. 032-00 Sec. 130 (A) (2) 000-00 Teresa Marble Corporation 17 Shaw Boulevard, Pasig City Attention: Annie G . Dee President & Gen. Manager M a d a m : This refers to your letters dated December 15, 1999 and January 13, 2000, inquiring if you are liable for the payment of excise tax on your business of buying raw marbleized limestone and selling the finished marbleized products to the domestic/foreign buyers. It is represented that Teresa Marble Corporation is not in anyway or manner engaged in the exploration, development and commercial production of quarry resources, more particularly marbleized limestone in any part of the country; that rather, Teresa Marble Corporation is engaged actively in the purchase of raw marbleized limestone from marble quarry operations throughout the country and then process some and send a large part of the purchased blocks to your processing marble plant at Teresa, Rizal for processing into finished marble products of different sizes and shapes as specified by the buyers, local and/or foreign. prLL In reply, please be informed that pursuant to Section 4 of Revenue Regulations No. 13-94, all lessees, concessionaires, owners or operators of mines, processors of minerals, licenses or permittees of quarry/mines, producers or manufacturers of mineral products, whether natural or juridical persons, shall be liable to the payment of the excise tax due on minerals, mineral products and quarry resources removed from the minesite and/or place of production. Under Section 130(A)(2) of the Tax Code of 1997, the excise tax on nonmetallic mineral or mineral products, or quarry resources shall be due and payable upon removal of such products from the locality where mined or extracted, but with respect to the excise tax on locally produced or extracted mineral or mineral products, the person liable shall file a return and pay the tax within fifteen (15) days after the end of the calendar quarter when such products were removed. Accordingly, since you are either the manufacturer or producer of the raw marbleized limestone nor a lessee, owner or operator of a mining claim, you may be exempted from the payment of the 2% excise tax imposed under Section 151(A)(2) of the Tax Code of 1997. However, you must show proof that the excise tax on the raw marbleized limestone has already been paid by the manufacturer or producer of the same; otherwise, being the person having possession of the marbleized products, you shall be liable for the tax due thereon. Finally, as a VAT-registered taxpayer, your local sales of finished marbleized products is subject to 10% value-added tax while your export sale is subject to 0% VAT, pursuant to Section 106 (A) also of the Tax Code of 1997. SCaITA This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) DAKILA B. FONACIER Commissioner of Internal Revenue