Request for Reevaluation of the Classification Contained in the Authority to Release Imported Goods (Essential Oil)

June 24, 1986 BIR RULING NO. 093-86 162 (c) 165 (A) (2) 000-00 093-86 Gentlemen : This refers to your letter dated March 20, 1986 requesting reevaluation of the classification contained in the Authority To Release Imported Goods No. NARD-86-0903 wherein you imported four (4) packages Essential Oil (covered by Contract No. BBP85/104) is subjected to 50% advance sales tax pursuant to Section 163 of the Tax Code, as amended. You have represented that the main activity of Bush Brooke Allen Philippines, Inc. is the manufacture of flavors; that the above articles are imported solely for use in the manufacture of seasonings intended for snacks, soups sauces and convenience food products; and that your will use the same as raw materials in the manufacture of your Cherry fruit flavors and not in the preparation of perfumery products. In reply, I have the honor to inform you that since the aforesaid imported articles are flavoring materials in the manufacture of your Cherry fruit flavors, the same are not taxable as cosmetics but are considered ordinary articles. (Section 3, Revenue Regulations No. 8-84). As such, they are subject to 20% advance sales tax, pursuant to Section 162(c) in relation to Section 165(A)(2) of the Tax Code, as amended by PD Nos. 1991, 1994 and 2031. This ruling has been issued on the basis of the aforesaid representations of fact. Accordingly, if upon investigation, it turns out that the facts are not as herein represented, this ruling shall not be applicable. This will serve as authority for the Bureau of Customs in affecting release of the aforesaid shipment upon payment of the corresponding 20% advance sales tax. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner