Importation of Orange Concentrate Used in the Manufacture of Sunta Orange Subject to 10% Advance Sales Tax

July 22, 1986 BIR RULING NO. 116-86 165 (A) (3) (b) 000-00 116-86 Gentlemen : This refers to your letter dated June 23, 1986 requesting in effect, that your importation of 97 drums of orange concentrate be subject to the 10% advance sales tax imposed under Section 165(A)(3)(b) of the Tax Code as amended by P.D. No. 2031. You have represented that you are engaged in the manufacture of beverage; that you imported 97 drums of orange concentrate under B/L No. 43365628 which arrived last April 11, 1986 on board S/S Bremen Express; and that this imported orange concentrate is an essential article in the manufacture of your orange softdrink SUNTA ORANGE. In reply, I have the honor to inform you that beverages and concentrates thereof, whether in liquid or granulated form intended for consumption as a drink, are taxable at 10% under Section 165(A)(3)(b) of the Tax Code. Accordingly, since the aforementioned importation of your softdrink, Sunta Orange, the same is subject to 10% advance sales tax based on the total value used by the Bureau of Customs in determining tariff and customs duties, including customs duties and other charges, pursuant to Section 162(c), in relation to Section 165(A)(3)(b), both of the Tax Code, as amended by P.D. No. 2031. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner