BIR Ruling No. 063-83

April 15, 1983 BIR RULING NO. 063-83 Gentlemen : This refers to your letter dated December 8, 1981 requesting exemption from the 10% sales tax for engaging in business, herein below stated: "1. We import the refill of pen from foreign countries like Germany and we pay the corresponding advance sales tax upon their arrival. "2. We have a contract with a manufacturer (Standard Plastic Corporation) who will manufacture the barrel, caps, boxes and cartons together with the marks and prints and from whom we purchase the materials. "3. As soon as we have the refill and the barrel and caps, we hire several workers or employees who will arrange or assemble, or post the refill on barrel and caps, arranged them on the boxes which will be ready for delivery to our customers." In reply, I have the honor to inform you that under the foregoing circumstances, you will fall within the definition of the term "manufacturer" as any person who by physical or chemical process, "combines any such raw material or manufactured or partially manufactured products with other materials or products of the same or different kinds and in such manner that the finished products of such process or manufacture can be put to a special use or uses to which such raw material or manufactured or partially manufactured products in their original condition could not have been put." [Sec. 187(x), Tax Code] In view thereof, you are subject to the annual fixed tax of P100.00 prescribed in Section 192(1) of the Tax Code, and to the rate of sales tax prescribed in Section 197.I(A) of the same Code depending on the selling price of the ballpen. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue