BIR Ruling No. 208-82

July 6, 1982 BIR RULING NO. 208-82 199-a 000-00 208-82 Andres R. Narvasa & Associates Second Floor, TOFEMI Bldg. 955 Quezon Avenue, Quezon City Attention: Atty . Domingo Z . Legaspi Gentlemen : This refers to your letter dated April 2, 1982 requesting in behalf of your client, LY-NA (Phils.) PHARMACEUTICAL, INC., a ruling on the rate of tax to be imposed on the following imported articles, viz: 1. LY-NA Medicated Cream 2. LY-NA Medicated Pearl Paste 3. LY-NA Medicated Nourish Face Cream It appears that the aforesaid products are imported from Woei Meei Hih Chemical Industry Co. of Taipeh, Taiwan; that the report on the laboratory analysis (Laboratory No. 06-82-003-2529-B) conducted by the National Institute of Science & Technology dated May 28, 1982 on the submitted samples of the aforesaid preparations confirmed the presence of sulfur and cetanol in each of the three products, as follows: Alcohol Content Name of Sample Sulfur (Cetyl Alcohol) 1. LY-NA Medicated Cream 1.5% 2.0% 2. LY-NA Medicated Pearl Cream 2.0% 5.6% 3. LY-NA Medicated Nourish Face Cream 1.6% 2.0% that in the light of the said NIST report, the Food and Drug Administration in its letter dated June 21, 1982 reaffirmed its certification dated August 25, 1981 that the above products are considered as medicaments for the cure of acne and pimples; and that the Central Bank classified the same articles as EC (Essential Commodities) 541-79-19; and that this Office has previously authorized under Authority to Release Imported Goods No. IT-0010096 dated July 9, 1979, the release of similar articles upon payment of 10% advance sales tax with a 25% mark-up. In reply, please be advised that on the basis of the foregoing and our appreciation of the documents submitted, the aforesaid LY-NA Medicated Cream, LY-NA Medicated Pearl Cream and LY-NA Medicated Nourish Face Cream imported pharmaceutical products are subject to 10% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 193(b) in relation to Section 199(a), both of the Tax Code, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner