Tax Exemption on the Importation of Jute Sacks by Domestic Products Export Co., Inc. (Legaspi City)

March 6, 1958 BIR RULING NO. 179-58 The Regional Director BIR Regional District No. 6 Naga City S i r : With reference to your memorandum dated January 7, 1958, you are informed that, for purposes of the exemption from the sales or compensating tax of articles to be used in the manufacture or preparation of articles for consignment abroad, the importer need not be the manufacturer or producer of the articles exported. For purposes of the exemption, it is enough that the imported articles are used by the importer in preparing articles for export and are actually exported with said articles. Accordingly, the importation by the Domestic Products Export Co., Inc. of Legaspi City of jute sacks to be used as containers of copra to be exported by it is exempt from either the sales or compensating tax regardless of whether or not it is the producer of the copra exported. LibLex You are, however, advised in this connection to verify whether or not the imported jute sacks were actually used as container of the copra exported. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue