There are no internal revenue requirements on exportation of handicraft products. On this matter,...

October 6, 1960 BIR RULING NO. 442-60 Mr. Apolonio C. Ondevilla Tabaco, Albay S i r : In reply to your letter dated August 18, 1960, addressed to Mr. Elias E. Vega, Revenue Operations Executive (Assessment) of this Bureau, I have the honor to inform you as follows: As manufacturer of handicraft products exclusively for export, you are not subject to any percentage tax in accordance with section 188(e) of the National Internal Revenue Code, as amended, However, with regard to internal revenue tax on business you are subject only to the fixed annual tax based upon your gross annual sales during the preceding calendar year in accordance with section 182(A)(2) of the same Code. If the products you manufacture are for domestic sale or consumption or if part are exported and part are sold locally, you are subject to the manufacturers fixed and percentage taxes prescribed by sections 182(A)(1) and 186 of the said Code. If you purchase handicraft products from the manufacturers thereof for the purpose of resale locally or for exportation, you are subject to the graduated annual fixed tax prescribed in section 182(a)(2) of said Code. Regarding information on customs duties it is suggested that you direct your query to the Commissioner of Customs. There are no internal revenue requirements on exportation of handicraft products. On this matter, it is suggested that you inquire from the Central Bank. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue