BIR Ruling No. 091-82

March 30, 1982 BIR RULING NO. 091-82 199-a 3-82 091-82 Aura Laboratories, Inc. 150 E. Rodriguez Jr. Avenue Libis, Quezon City Attention: Mr . Erotido L . Valdez Finance Director Gentlemen : This refers to your letter dated February 25, 1982 requesting a ruling on the correct rate of advance sales tax applicable to imported plastic balls used in the manufacture of roll-on deodorants. You have represented that Aura Laboratories, Inc. is engaged in the manufacture of roll-on deodorants, among others, and that it uses subject imported plastic balls exclusively as part of the containers of the said roll-on deodorants in order to regulate the flow of the liquid preparatory to usage; that subject imported balls are being placed at the tip of the bottles of the following roll-on deodorants, namely: 1. Feelin' Fresh Roll-on Anti Perspirant/Deodorant 2. Sportif Roll-on Anti Perspirant/Deodorant 3. Trazarra Roll-on Anti Perspirant/Deodorant and that the Bureau of Customs is currently subjecting your importation at 50% advance sales tax based on landed cost plus 100% mark-up for the reason that the same falls under the purview of the term "perfumery". In reply, I have the honor to inform you that we have consistently ruled that manufactured deodorant product which checks underarm odor and perspiration is subject to the 10% sales tax imposed under Section 199(a) of the Tax Code. Consequently, since the plastic balls in question are imported and the same being a part and necessary of the roll-on deodorant product you manufacture, they are subject to the 10% advance sales tax based on the landed cost, plus 25% mark-up pursuant to Section 195(b), in relation to Section 199, both of the Tax Code, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner