Imported Essential Oil Used Exclusively in the Manufacture of Soap is Subject to 10% Advance Sales Tax
BIR Ruling No. 252-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 1, 1987
Full text
September 1, 1987 BIR RULING NO. 252-87 162 (c) 163 (2) 000-00 252-87 Gentlemen : This refers to your letter dated August 25, 1987 requesting a ruling on the rate of advance sales tax applicable on your importation of essential oil/KW-0904 based on your certification that the same shall be used as raw material in the manufacture of soap. In reply, I have the honor to inform you that soap is considered an essential article. Accordingly, based on your certification that the imported essential oil shall be used exclusively in the manufacture of the said essential article, the same is subject to 10% advance sales tax based on the total value used by the Bureau of Customs in determining tariff and customs duties including customs duties and other charges pursuant to Section 162(c) in relation to Section 163 (2)(i), both of the Tax Code, as amended by Executive Order No. 36 which took effect August 1, 1986. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.