Importation of Polyfoam Sheets and Polypropylene Resins is Subject to Advance Sales Tax

June 5, 1987 BIR RULING NO. 157-87 163 (c) 000-00 157-87 Gentlemen : This refers to your letter dated April 10, 1987, in effect, requesting a ruling on the proper tax to be paid by you on your importation of polyfoam sheets used in the manufacture of polyfoam boxes commonly used in Supermarkets for packaging and marketing fresh agricultural products, e.g., meat or vegetables, bakery products; and cooked food, and polypropylene resins used in the manufacture of rope, twine and string. adc In reply, please be informed as follows: 1. The importation of polyfoam sheets as raw material in the manufacture of polyfoam boxes specifically designed for packaging and marketing fresh agricultural products , e.g., fresh fish, meat and vegetables, or similar products, bakery products and cooked food 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 163(2) of the Tax Code, as amended by Executive Order No. 36. However, your purchasers shall certify to you that the imported articles shall be used exclusively in the manufacture or preparation of the said essential articles. In case, the purchasers fail to issue the certification, the above importations shall be subject to the 20% advance sales tax. 2. The importation of polypropylene resins used in the manufacture of rope, twine and strings which are subject to the 3% miller's tax imposed by Section 168 of the Tax Code, is subject to 20% advance sales tax imposed by Section 162(c) in relation to Section 163(4) of the Tax Code, as amended. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner