Request for Classification of Imported Dental Supplies as Medicine Subject to 10% Advance Sales Tax

April 18, 1986 BIR RULING NO. 045-86 165 (A) (3) (g) 000-00 045-86 Gentlemen : This refers to your letters dated January 28, March 3 and April 5, 1986 requesting, in effect, that your importation of dental supplies consisting of impression materials, filling materials and baseplates be classified as medicine subject to the 10% advance sales tax under Section 165(A)(3)(g) of the Tax Code as amended by PD 1991. Documentary evidence submitted show the uses and description of the following imported articles: Super Pink Impression Material This is an alginate impression material in powder form which when mixed with water, forms a pasty mass capable of retaining impressions when it hardens into a rubbery mass after a few minutes. Unlike the silicons group, this material is not pastelike at the start but is in powder form. The essential component of this material is sodium potassium alginate. TT 300 Wax and/or Tropical Wax The wax sheet is seated and formed to simulate the gum and palate in the stone model of mouth structures in the course of artificial denture construction. The artificial teeth is mounted on this wax after which the model with the teeth is placed in a flask, heated in a water bath, thus, dissolving the wax and creating a space which can be packed with acrylic material which forms the gum portion of the denture. Tropical wax has the same size and use as TT 300 wax but the former is a little softer than TT 300. Cavex Baseplates These are pink plates made of shelloc and some fillers used for rough dental impressions. The plates are about 1 or 2 mm thick, roughly ovoid (upper) or horseshoe (upper) in shape, corresponding in general to the size of the arch of the teeth in the mouth cavity. The plates soften on exposure to heat, and thus, are moldable into specific size and shape suitable for dental impression taking. Cavex Impression Paste This material is an impression paste belonging to the zinc oxide Eugenol Impression paste group. It consists of zinc oxide paste and eugenol paste which when mixed together forms a pasty mass which hardens after a few minutes. This mass is capable of retaining impressions made on it and is therefore, used in the practice of dentistry for taking impressions of teeth and other mouth structures in the course of fabricating dentures or artificial teeth. Sil-21 Impression Paste This material is a silicone based material for impressions of the tooth and related mouth structures in the course of making dentures, jacket crowns, inlays and other dental restorative procedures. Cavex Pellets, Powder and Caps This dental filling materials belong to the silver amalgam alloy group. The Pellet consists of silver alloy and is crushed and mixed with mercury to form a pasty mass called amalgam filling which is placed in a tooth cavity and allowed to harden there, and restore the portion of the tooth previously eaten up by decay. The "caps" or capsule contains the silver powder and mercury separated from each other by a membrane. When the capsule is placed in an amalgamator (mixer), the membrane breaks and the mercury and silver alloy mix to form the amalgam filing. In reply, please be informed that the term "medicine" is defined as a substance or preparation used in treating disease; any substance, such as a drug, used in treating disease, healing, relieving pain, etc. (Webster's Third New International Dictionary & Webster's New World Dictionary) In other words, it is a substance supposed to possess curative or remedial properties, i.e., healing wounds or curing disease. Your imported impression materials including the cavex baseplates are not used for treating disease healing or relieving pain but for taking impression of teeth and other mouth structures in the course of fabricating dentures or artificial teeth. Likewise, your imported cavex in pellet, powder or caps form cannot be considered as medicine as that term is defined above because they are only used as filling or covering materials on the tooth cavity previously eaten by decay. cdtech In view thereof, this Office is of the opinion as it hereby holds, that your imported impression materials, filling materials and baseplates do not come within the purview of medicine under Section 165(A)(3)(g) of the Tax Code, as amended. Accordingly, they are subject to the 20% advance sales tax based on the total value used by the Bureau of Customs in determining tariff and customs duties, pursuant to Section 162(c) in relation to Section 165(A)(2) of the Tax Code, as amended. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner