Imported Shampoo is Subject to Either 30% or 20% Advance Sales Tax, Depending on Its Saponaceous Matter Content

September 7, 1987 BIR RULING NO. 268-87 162 (c) 163 (4) 000-00 268-87 Gentlemen : In reply to your letter dated June 17, 1987, please be informed that Shampoo to be imported by you is a cosmetic product/toilet preparation if it contains not more than 5% saponaceous matter, hence subject to the 30% advance sales tax, pursuant to Section 162(c) in relation to Section 163 (1), both of the Tax Code, as amended by Executive Order No. 36 which took effect August 1, 1986 [Sec. 2(a), Revenue Regulations No. 8-84, or the Cosmetic Products Regulations]. asiacd On the other hand if the imported shampoo contains more than 5% saponaceous matter, the same is subject to the 20% advance sales tax, pursuant to Section 162(c), in relation to Section, 163(4), both of the Tax Code. [Sec. 3(a), Ibid ] Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner