Affixture of BIR Strip Stamps on Bottled Compounded Liquor

July 13, 1988 BIR RULING NO. 306-88 152 156 208-88 306-88 Gentlemen : This refers to your letter dated June 21, 1988, in effect requesting a ruling exempting your repacked denatured product from the requirement of affixture of internal revenue labels. It is represented that you are a holder of a permit known as O-2-201 to engage in the business of repacking denatured alcohol; that as repacker, you purchase denatured alcohol from manufacturers thereof the taxes on which were already paid by the latter; that you repack the denatured alcohol in various kinds of containers, such as bottles, tin cans, etc.; that before removal of the repacked products, you affixed auxiliary labels to each and every original containers and the regular labels to the secondary containers; and that for each and every sale thereof, you pay the corresponding value-added tax thereon. In reply, please be informed that the theory behind BIR Ruling No. 100-000-00-005-88 is that the affixture of BIR strip stamps on bottled compounded liquor is an administrative measure for monitoring the movement of products subject to excise tax; and that since the excise tax on said products has been replaced by VAT, the affixture of BIR strip stamps to the container is no longer necessary. Accordingly, repacked denatured alcohol (not otherwise used for motive power) placed in various kinds of containers for sale to the users need not be affixed with BIR strip stamps. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner