Rate of Advance Sales Tax on Importation of Raw Materials Used in the Production of Concrete Reinforcing Bars

October 13, 1986 BIR RULING NO. 211-86 163 (2) (k) 161-86 211-86 Gentlemen : This refers to your letter dated September 12, 1986 stating that you are a manufacturer of steel bars, wire rods, steel pipes and tubes; that you have an importation of Ingot mold, Graphite Stoppers, Fireclay Nozzles, Graphite Electrodes with tapers and nipples and Dolmite which are the raw materials used in the production of concrete reinforcing bars. Based on the foregoing, you now request for a ruling as to the correct rate of advance sales tax on your aforementioned importation which is scheduled to arrive anytime this month. In reply, please be informed that since the aforesaid finished articles, concrete reinforcing bars, are classified as essential articles, subject to the 10% sales tax in accordance with Section 163(2)(k) of the Tax Code, your importation of raw materials to be used in the manufacture of the said finished articles is subject to the advance sales tax at the same rate of 10% provided that you as the importer/manufacturer shall certify to this Bureau that your importation shall be used exclusively in the manufacture of reinforcing bars. (Section 163(2) Tax Code as amended by Executive Order No. 36). If you fail to issue the certification, the above importation will be subject to the 20% advance sales tax. Very truly yours, (SGD.) ROMULO M. VILLA Acting Commissioner