Non-taxability of Shells (cajetillas)

September 8, 1958 BIR RULING NO. 488-58 U.S. Tobacco Corporation 24th & Boston Streets Port Area, Manila Gentlemen : With reference to your letter of the 27th ultimo, I have the honor to inform you that, pursuant to Section 137(b)(1) of the National Internal Revenue Code, cigarettes containing Virginia type and/or flue-cured tobacco, of 71 millimeters or less in length and weighing 1- kilos or less per thousand, which are not wrapped in tinfoil or cellophane nor packed in cartons or in tin cans are subject to the specific tax of P8.00 per thousand. On the other hand, pursuant to Section 137(b)(2) of the same Code, cigarettes containing the same type of tobacco and of the same length and weight, which are wrapped in tinfoil or cellophane or packed in cartons covered with paraffin or wax paper or in tin cans are subject to said tax at the rate of P12.00 per thousand. Such being the case, your request that the shells (cajetillas), samples of which have been submitted to this Office, be approved for use as primary containers of the new brand (Dunbar) of cigarettes you are contemplating to manufacture under the P8.00 per M class is hereby granted, provided that the same shall not be covered with paraffin or wax paper and provided further that said cigarettes do not exceed 71 millimeters in length and 1- kilos in weight and are not to be wrapped in tinfoil or cellophane. LLphil Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue