Taxability of an Integrated Manufacturer of Materials Primarily Intended for Clothing

April 1, 1987 BIR RULING NO. 092-87 163 (2) (g) 270-86 092-87 Gentlemen : This refers to your letter dated January 15, 1987 stating that you are an integrated manufacturer of materials primarily intended for clothing; and that you want a certification from this Office to the effect that your importation of raw materials such as fibers, yarns, chemicals and dyestuffs for the manufacture of textiles intended for clothing be subject only to 10% sales tax. iatdc In reply, please be informed that clothes and textiles intended for clothing are subject to 10% sales tax in accordance with Section 163(2)(g) of the Tax Code, as amended by Executive Order No. 36. Accordingly, the raw materials which are subject to the original sales tax imposed by Section 163 of the Tax Code consisting of fibers, yarns, chemicals and dyestuffs are subject to the same rate of 10%; provided that you as importer/manufacturer shall certify to this Bureau that all of the said raw materials shall be used exclusively in the manufacture of clothes and textiles intended for clothing. If you fail to issue the certification, the above importation will be subject to 20% advance sales tax. This will authorize the Bureau of Customs to release your importation of fibers, yarns, chemicals and dyestuffs upon payment of the corresponding 10% advance sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner