Taxes Imposed on Locally Sold Light Alloy Aluminum Wheels and Imported Aluminum Ingots

October 21, 1986 BIR RULING NO. 225-86 163 (2) (n) 000-00 225-86 Gentlemen : This refers to your letter dated September 16, 1986 requesting that your manufactured light alloy aluminum wheels for domestic sale as well as the imported aluminum ingots material exclusively used in the manufacture of said product be subject only to 10% sales tax. It is represented that you are a BOI registered company that pioneered in the manufacture of light alloy aluminum wheels; and that since 1977 you have been exporting your manufactured wheels to the United States, Japan, Kenya, Sweden, Norway and Southeast Asia. In reply, please be informed that you manufactured light alloy aluminum wheels come within the purview of spare parts and accessories of motor vehicles. Accordingly, your domestic sale is subject to 10% sales tax pursuant to Section 163(2)(n) of the Tax Code as amended by Executive Order No. 36. On the other hand, your importation of aluminum ingots material to be used in the manufacture of said finished articles is subject to the advance sales tax at the same rate of 10% pursuant to Section 162(c) in relation to Section 163(2)(n) of the Tax Code, as amended, provided that you as importer/manufacturer shall certify to this Bureau that your aforesaid importation shall be used exclusively in the manufacture of light alloy aluminum wheels. If you fail to issue the certification, your importation will be subject to 20% advance sales tax. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue