Importation of PKWF Solvent (or Solvent in Its Generic Sense) Not Included in the List of Petroleum Products, Subject only to 10% VAT, But Exempt from Excise Tax

December 29, 1997 BIR RULING NO. 143-97 145-106-95-143-97 BASF Coatings & Inks Phils., Inc. P.O. Box 1470, Makati CPO Makati City Attention: Ms . Monette R . Alon Purchasing Manager Gentlemen : This refers to your letter dated May 6, 1996 which was referred to this Office by the Revenue District Officer of Revenue District No. 53, Las Pias-Muntinlupa, requesting in effect for confirmation of your opinion that your importation of PKWF solvents is exempt from excise tax. It is represented that you are importing PKWF solvents regularly and based on the latest Clean Report of Findings by SGS, solvents are classified under Tariff Heading 2710.00.90 which is for Oils and Preparations; and that as attested by your supplier, PKWF solvents are mineral oils for application as printing inks solvents which are obtained from distillation of gas oils. It appears that our Standard Classification and Laboratory Section, thru the Chief, Tax Fraud Division, has previously certified that PKWF solvents do not fall under Section 145 of the Tax Code. Based on the foregoing, your importation of PKWF solvent (or solvent in its generic sense) which is not included in the list of petroleum products, is subject only to 10% VAT pursuant to Section 101(a) of the Tax Code, as amended, but exempt from excise tax imposed under Section 145 of the same Code. (BIR Ruling No. 106-95 dated July 14, 1995). prLL Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue