Imported Methyl Methacrylate Monomer to be Used Exclusively as Raw Materials in the Manufacture of Essential Articles are Subject to 10% Advance Sales Tax

October 20, 1987 BIR RULING NO. 323-87 162 (c) 000-00 323-87 Gentlemen : This refers to your undated letter requesting a ruling on the appropriate percentage tax to be applied on your importation of 14.04 MT Methyl Methacrylate Monomer to be used exclusively as raw materials in the manufacture of plastic roofing materials and plumbing fixtures. In reply, please be informed that under Section 163(2) of the Tax Code as amended, by Executive Order No. 36, any article subject to the original sales tax, when used as a raw material in the manufacture or preparation of essential articles, shall, subject to certain conditions be taxed at the same rate as the finished product. Accordingly, since the above finished products are essential articles subject to the 10% sales tax [Sec. 163(2)(k), Tax Code], your importation of 14.04 MT Methyl Methacrylate Monomer to be used exclusively as raw materials in the manufacture of said finished products shall be subject to the advance sales tax at the same rate, e.i. 10%, provided that the purchasers shall certify to you as importer that the imported articles shall be used exclusively in the manufacture of the said essential articles. If the purchasers fail to issue the certification, the raw materials will be taxed at 20%. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner