Imported Alkylbenzone to be Used as Raw Material in the Manufacture or Preparation of Detergents is Subject to 10% Sales Tax

July 27, 1987 BIR RULING NO. 219-87 163 (2) (i) 161-86 285-86 219-87 Gentlemen : This refers to your letter dated April 30, 1987 requesting a ruling as to the correct rate of tax due on your importation of Dodecane and Benzole which you used in the manufacture of Alkylbenzone which is in turn used as raw material in the manufacture of detergents. In reply, please be informed that detergents are subject to the 10% sales tax, in accordance with Section 163 (2)(i) of the Tax Code. Accordingly, Alkylbenzone which is used as raw material in the manufacture or preparation of detergents is subject to sales tax at the same rate of 10% provided that the purchasers thereof shall certify to you that the said raw material shall be used exclusively in the manufacture of detergents. [Section 163(2), Tax Code, as amended by Executive Order No. 36]. If the purchasers fail to issue the certification, the above material will be subject to the 20% sales tax. On the other hand, you, as importer shall certify to this Bureau that your importation of Dodecane and Benzole shall be used exclusively as raw materials in the manufacture of Alkylbenzone. If you fail to issue the certification, your aforesaid importation will be subject to 20% advance sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner