Applicable Rate of Compensating Tax on Importation of Aromatic and Odoriferous Substances

May 31, 1985 BIR RULING NO. 083-85 194 (b) 000-00 083-85 Gentlemen : This refers to your letter dated November 22, 1984 requesting a ruling on the applicable rate of compensating tax on your importation of aromatic and odoriferous substances (biological active culture waste degrader and odor compound 1005) and concentrated cover odors 211 (oil soluble-floral type) which, as represented, will be your own use. Brochures submitted show that biological active culture waste degrader and odor control compound 1005 is a stable liquid suspension compound capable of digesting complex proteins, starches, fats, cellulose, detergents, grease and oils at accelerated rate; and that concentrated cover odors 211 (oil soluble-floral type, when mixed with light oil or solvent to effect better dispersion, will form a film on top of liquid surfaces containing water thereby trapping odor. In reply, please be informed that your aforesaid importation of aromatic and odoriferous substances (biological active culture waste degrader and odor compound 1005 and concentrated cover odors 211 (oil soluble-floral type) are considered as similar or analogous to the articles enumerated in Section 194(b) of the Tax Code, as implemented by Rev. Regulations No. 8-84 dated June 5, 1984. Accordingly, the said aromatic and odoriferous substances are subject to the 50% advance sales tax based on landed cost thereof plus 25% mark-up, pursuant to Section 193(b) in relation to Section 194(b) both of the Tax Code, as amended by Executive Order No. 883. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner