Importation of Methyl Alcohol (Methanol) Not Subject to Excise Tax

September 13, 2001 BIR RULING NO. 039-01 Vicente R. Reyes and Associates 22 Tirad Pass, Quezon City Attention: Mr. Amado P. Galang Partner Gentlemen : This refers to your letter dated January 16, 2001 requesting on behalf of your client, Belman Laboratories, Inc., for a confirmation of your opinion that the importation of methyl alcohol (methanol) is not subject to excise tax under Title VI of the National Internal Revenue Code. It is represented that methyl alcohol or methanol is a "colorless poisonous liquid, cH3oH, originally obtained from wood, and now made synthetically; that it is used as a solvent in denaturing ethyl alcohol and in the manufacture for formaldehyde, etc." (Lexicon Webster Dictionary, 1991 edition); and that being poisonous and unfit for oral intake, and originating from wood (not petroleum-based), this kind of alcohol is not one of those enumerated under Title VI of the NIRC which are subject to excise tax. In reply, please be informed that methanol is a light volatile pungent flammable poisonous liquid alcohol usually made synthetically (as by catalytic reaction of carbon monoxide and hydrogen under pressure) and used chiefly as a solvent, anti freeze or formaldehyde and other chemicals. (1971, Webster's Third New International Dictionary) "Spirits or distilled spirits" defined under Section 141, Chapter III of the Tax Code of 1997, Excise Tax on Alcohol Products, is the substance known as ethyl alcohol, ethanol or spirits of wine, including all dilutions, purifications and mixtures thereof, from whatever source, by whatever process produced, and shall include whisky, brandy, rum, gin and vodka, and other similar products or mixtures. Considering, therefore that methyl alcohol or methanol is not one of the spirits or distilled spirits defined under the aforecited section, we hereby confirm your opinion that importation thereof by Belman Laboratories, Inc. exempt from the payment of excise tax. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) RENE G. BAEZ Commissioner of Internal Revenue