Various Foodstuffs Considered as Essential Articles are Subject to 10% Advance Sales Tax

June 19, 1987 BIR RULING NO. 173-87 161 000-00 173-87 Gentlemen : This refers to your letters dated April 22 and 30, 1987, requesting in effect, a ruling as to the rate of advance sales tax payable by your client, Cafield Enterprises, on the latter's importation of 1 x 20' container STC 410 and 345 cartons of various foodstuffs which arrived on April 14, 1987 on board S/S "Maersk Pinto VB716." It appears from the documents submitted that the said shipment consisted of candy, guava juice, pickled lettuce and other foodstuffs like sesame seed oil, salted yellow bean, red bean curd and white bean curd, and that you, as customs broker for Cafield Enterprises, had paid 20% advance sales tax on the aforesaid importation. In reply, please be informed that all of the aforesaid shipment are considered essential articles, hence, subject to 10% advance sales tax pursuant to Section 162(c) in relation to Section 163(2) both of the Tax Code, as amended by Executive Order No. 36. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner