BIR Ruling No. 305-82

November 29, 1982 BIR RULING NO. 305-82 196-g 013-80 305-82 C. A. Manimtim Brokerage Rm. 816 Filman Bank Bldg. Escolta, Manila Gentlemen : This refers to your letter dated March 4, 1982 requesting that the importation of your client, Sterling Paper Products Enterprises, Inc. of 48 bales Felt on board S/S "Electro Ace", Reg. No. FISC-0008, under Bill of Lading No. KM2-02635 and covered by Entry No. 14267-82 be subjected to the 10% advance sales tax. In reply, please be informed that findings of this Office disclosed that felt is a resilient unwoven fabric commonly of textile materials (wool, fur, cotton, nylon and other natural or synthetic fibers) compacted by pressure and/or heat. Accordingly, and since the felt imported by your client is intended solely for the manufacture of blackboard erasers, it is subject to the 25% advance sales tax based on the landed cost thereof plus 50% mark-up, pursuant to Section 193(b), in relation to Section 196(g), both of the Tax Code, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner