Tax on the Importation of "Refined Bleached Deodorized Palm Oil" from Singapore

May 4, 1987 BIR RULING NO. 120-87 163 (2) 000-00 120-87 Gentlemen : This refers to your letter dated February 16, 1987 stating that your company has opened a letter of credit for the importation of "refined bleached deodorized palm oil" from Singapore to be used as raw material for your own manufacture of margarine and shortening, and that you now request a certification that said raw material is subject to 10% advance sales tax. aisdc In reply, please be informed that among the articles considered essential are margarine and shortening (Section 163(2)(b)(d), Tax Code, as amended by Executive Order No. 36). Accordingly, your importation of bleached deodorized palm oil to be used as raw material in the production or manufacture of margarine and shortening will be 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 163(2), both of the Tax Code, as amended. However, you as importer shall certify to this Bureau that your aforesaid imported articles shall be used exclusively in the manufacture or preparation of essential articles. If you fail to issue the certification, your aforesaid importation will be subject to 20% advance sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner