Cards Printed and Distributed as a Sales Promotion

September 25, 1959 BIR RULING NO. 459-59 United Drug Company, Inc. 82 Mayflower Street Mandaluyong, Rizal Attention : Romulo L . Malabanan Gentlemen : Reference is made to your letter dated August 25, 1959 requesting opinion whether or not the cards which you will cause to be printed and distributed as a sales promotion scheme will be subject to the specific tax. cdtech As stated in your letter, the cards which you refer to as "gimmick" will show on the four corners of each card the basic numbers, letters, and symbols of the ordinary playing cards, but in the center of each card, there shall be printed a picture of a product of yours together with a brief promotional message regarding the uses, formula, dosage, etc. of the product. You further elaborated on the purpose and method of distribution of this form of advertisement as follows: "The primary purpose of this gimmick is the promotion of your products. The distribution is made only to physicians, for these products are 'ethical items' that are never promoted to laymen, but only to those who are authorized by law to make prescriptions. Every card carries an advertisement of a single product. As soon as the promotion of a particular product is needed, these cards are printed and distributed free of charge and at no time will more than one product be promoted at the same time. This is so because, the promotion of a product is best achieved in this manner, for physicians will have more time to absorb and realize the advantages of this product without the least of confusion. In the future, should the need to promote another product arises, another kind of card is then printed and distributed to physicians, also free of charge and so one. Consequently, the different kinds of cards composing a deck will not be printed all in one time. Only one kind of card will be printed at a time and only in the event as the need to promote the product arises." In reply thereto, I have the honor to inform you that the cards in question, while they have some appearances of ordinary playing cards, are not playing cards within the contemplation of the law, and, therefore, are not subject to the specific tax prescribed by section 147 of the Tax Code. Even assuming that this possibility occurs, it appears clear however, that the primary purpose of these cards is the promotion of the products of your manufacture. LLphil Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue