Importation of Absorbent Gauze, an Article Primarily Intended for the Administration of Medicine, is Subject to 10% Advance Sales Tax

June 24, 1987 BIR RULING NO. 177-87 162 (c) 000-00 177-87 Gentlemen : This refers to your letter dated May 7, 1987, requesting a ruling as to the correct rate of advance sales tax payable by you on your importation of absorbent gauze. You contended that gauze is a thin transparent loosely woven material usually of cotton and is used to apply medicine and bandages to a wound, that the same is sterilized and is supplied to hospitals to be used as a base for medical treatment by applying it direct to the skin opening for the immediate cure of the wound, that the same is also primarily used by all manufacturers of medicated plaster wound strips like "Band-Aid", etc. wherein the gauze is conveniently placed at the center of the plastic strip with the proper medicine to be applied direct to the wound, laceration or any kind of skin opening to prevent infection. In reply, please be informed that absorbent gauze falls within the purview of the phrase "articles primarily intended for the administration of medicine"; hence, your importation of the same is subject to 10% advance sales tax pursuant to Section 162(c) in relation to Section 163 (2)(h) of the Tax Code, as amended by Executive Order No. 36. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner