Tax Imposed on the Importation of "49 Rolls Printing Paper"

March 24, 1960 BIR RULING NO. 147-60 La Tondea, Inc. 453 Echague St., Manila Gentlemen : In answer to your letter dated March 14, 1960, wherein you requested exemption from payment of the advance sales and compensating taxes on "49 Rolls Printing Paper . . ." which, as you have stated, will be used exclusively for making labels of your products, please be informed as follows: The exemption from payment of the advance sales and compensating taxes granted by sections 183(B) and 190 of the Tax Code in favor of manufacturers of articles subject to specific tax covers only the articles imported by them which form part of their finished products. While paper is indispensable in making labels for your finished products, it is not, however, actually a part of wine which is your finished product subject to specific tax. Therefore, this Office believes and so holds that your above-mentioned importation is subject to the 7% advance sales tax based on its landed cost plus 25% mark-up, pursuant to sections 183(B) and 186 of the Tax Code. LLphil Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue