BIR Ruling No. 098-65

August 20, 1965 BIR RULING NO. 098-65 The President Wise & Company, Inc. P. O. Box 458 M a n i l a S i r : Reference is made to your letters dated February 24, and March 12, 1965 requesting information as to the rate of advance sales tax due on your importation of one (1) drum of essential oils "Laundarome" type 4465/E for use in the manufacture of laundry soaps and detergents. In answer thereto, I have the honor to inform you that if, as represented, the imported essential oils (laundarome type) will be used by you in the manufacture of laundry soaps and detergents they are subject to only 7% advance sales tax based on the total landed cost thereof, plus 25% mark-up, pursuant to Section 183(b), in relation to Section 186, both of the National Internal Revenue Code. However, if they are to be disposed of by you to others, they shall be subject to 50% advance sales tax even if the purchaser or transferee will use the oils in the manufacture of articles subject to only 7% sales tax. In other words, imported essential oils are, as a general rule, subject to only 7% advance sales tax if they are imported directly by the manufacturer himself for use in his manufacture of articles subject to only 7% sales tax. cdll Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue