Imported Chemicals Used in the Manufacture of Industrial Explosives are Subject to 20% Advance Sales Tax
BIR Ruling No. 300-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 22, 1987
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September 22, 1987 BIR RULING NO. 300-87 162 (c) 163 (a) 000-00 300-87 Gentlemen : This refers to your letter dated July 31, 1987 requesting a ruling on the applicable rate of advance sales tax on your importation of the following chemicals allegedly for use as raw materials in the manufacture of industrial explosives: 1. Aluminum Granules 2. Calcium Stearate 3. Guargums 4. Calcium Nitrate 5. Sodium Nitrate/Nitrite 6. Sodium Bichromate/Bisulfate 7. Polypropylene Yarn 8. Thiourea 9. Sodium Alkali (Petro-P or N 14) 10. Ethylene Glycol 11. Premix 12. Master Mix Jellies 13. P E T N 14. D N T 15. Evatane 16. Ammonium Nitrate 17. Alkathene (Master Batch) 18. Melinax Tape In reply, please be informed that your finished articles known as industrial explosive or any of the aforesaid chemicals are articles not covered by Section 163(1), (2) and (3) of the Tax Code; hence, subject to 20% 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) of the Tax Code, as amended, in relation to Section 6.IV.A of Revenue Regulations No. 11-86. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner (Officer-In-Charge)
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