Specific Tax — Re-Rectification of Alcohol

November 5, 1979 BIR RULING NO. 098-79 Specific tax re-rectification of alcohol This refers to your letter dated August 14, 1979, requesting information as to whether you may sell, under bond, rectified alcohol produced by you from alcohol procured from other distillers, to your customers who are themselves rectifiers. In reply, please be informed that if the rectifiers buying from you said alcohol so produced will actually further re-rectify the same to meet the standard quality of their liquor products, you may still sell to them said alcohol under bond, provided, you comply with the requirements imposed by Section 141 of the National Internal Revenue Code and Section 16 of Revenue Regulations No. 3 relative to the filing of a joint bond conditioned upon the future payment by the rectifier of the specific tax that may be due on the finished product, the submission of the notice of shipment of underbond alcohol (BIR Form 2.27), the issuance of the official tax receipt (BIR Form 2.07), the taking of duplicate samples of the alcohol to be shipped and the affixture of the corresponding internal revenue labels to their containers; and provided, further, that no loss for re-rectification and handling shall be allowed and the rectifier thereof shall pay the specific tax due on such losses. In this connection, you are not allowed any loss for re-rectification and handling with respect to the alcohol procured by you from other distilleries and rectified in your establishment; hence you shall pay the specific tax due on such losses to be determined in the usual periodic stock takings as required by existing revenue regulations.