Bacardi Rum Which Jardine Wines and Spirits Phils., Proposed to Import from Trinidad & Tobago, Subject to Specific Tax at the Rate of P8.00 for Every Proof Liter

December 11, 1997 BIR RULING NO. 130-97 138 (a) 000-00 130-97 Jardine Davies, Inc. Jardine Davies Building 222 Sen. Gil J. Puyat Avenue 1200 Makati, Manila Attention: F . T . Dumpit Gentlemen : This refers to your letter dated June 30, 1997 which was referred to this Office by the Regional Director of Revenue Region No. 8, Makati City, requesting on behalf of Jardine Wines & Spirits Philippines, Inc . (JWSPI) , confirmation of your opinion that Bacardi Rum which the latter will import from Trinidad and Tobago, is subject to tax at the rate of P8.00 for every proof liter pursuant to Section 138(a) of the Tax Code, as amended by R.A. No. 8240. cdt In support of your request, you submitted to this Office the following documents, viz.: 1. Certificate of Origin dated June 10, 1997 by Bacardi GmbH that the country of origin of the "10 Kartons CARTA BLANCA RUM 12/100cl BACARDI" is Trinidad & Tobago"; 2. Certification dated June 27, 1997 and June 9, 1997 by Trinidad Distillers Limited that Bacardi Rum is made from the base product manufactured from sugar cane from Trinidad & Tobago, a sugar producing country; 3. Certificate of Origin dated June 9, 1997 by the Customs and Excise Officer of Trinidad & Tobago that the product referred to in Item No. 2 above is manufactured from sugar-cane molasses from Trinidad & Tobago, a sugar cane producing country; and 4. Certification from Bacardi International Limited dated June 6, 1997 that Bacardi rum is produced from sugar cane molasses. In reply, please be informed that Section 138(a) of the Tax Code, as amended by R.A. No. 8240, provides viz.: "Sec. 138. Distilled Spirits . On distilled spirits, there shall be collected, subject to the provisions of Section 139 of this Code, specific taxes as follows: "(a) If produced from the sap of nipa, coconut, cassava, camote, or buri or from the juice, syrup, or sugar of the cane, provided such materials are produced commercially in the country where they are processed into distilled spirits, per proof liter, Eight pesos (P8.00): Provided, That if produced in a pot still or other similar primary distilling apparatus by a distiller producing not more than 100 liters a day, containing not more than fifty (50%) of alcohol by volume, per proof liter, Four Pesos (P4.00);" "(b) . . . Accordingly, we hereby confirm your opinion that the Bacardi Rum which Jardine Wines and Spirits Phils., proposed to import from Trinidad & Tobago, shall be subject to specific tax at the rate of P8.00 for every proof liter. cdta Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue