Imported Empty Bottles Exclusively for Brand Name "Caronia" is Subject to 50% Sales Tax

December 11, 1981 BIR RULING NO. 266-81 194-b 79-61 266-81 The Commissioner Bureau of Customs M a n i l a S i r : This refers to your letter dated July 13, 1981 requesting advice as to the correct rate of advance sales tax and work-up to be imposed on the importation of twelve (12) 20-footer containers of 15 c.c. empty bottles marked "Vibelle", which arrived at the Port of Manila on May 20, 1981 on board the S/S "Maersk Tempo" consigned to ORIENTAL INDUSTRIES, INC. and covered by Import Entry No. 09081. In reply, please be informed that your observation is hereby confirmed to the effect that the aforesaid imported empty bottles are specially manufactured as to size, shape, volume, and capacity for use as containers of nail polish exclusively for the brand name "Caronia". In fact, the imported bottle bears the word "Vibelle" which is the same mark printed on the bottle used in the manufacture of the said finished article. cdtech Since "Caronia" nail polish is a cosmetic which is subject to the 50% sales tax imposed under Section 194(b) of the Tax Code, the imported empty bottles in question are subject to the same rate of tax, pursuant to the last paragraph of the said section which provides: "Any material, part or accessory of the above-mentioned articles shall be taxed under this Section." In view thereof, this Office is of the opinion, and so holds, that the aforesaid empty bottles are subject to the advance sales tax at the rate of 50% based on the total landed cost, plus 100% mark-up, pursuant to Sections 193(b) and 194(b) of the Tax Code. BIR Ruling No. 199-00-000-56-30-81 dated February 3, 1981 cited by the importer applies to imported empty bottles which are intended for general use . Said ruling, therefore, does not apply to the imported empty bottles which are destined solely for the manufacture of "Caronia" nail polish. Very truly yours, RUBEN B. ANCHETA Acting Commissioner