Tax Imposed on the Importation of Zinc Chloride for Soldering Tin Cans for the Containers of Petroleum Products

October 28, 1959 BIR RULING NO. 573-59 Mr. H. K. Hedinger Asst. A & F Manager Standard-Vacuum Oil Company P. O. Box 436, Manila S i r : Reference is made to your letter dated October 20, 1959, requesting reconsideration of our ruling dated September 3, 1959, (BIR Ruling No. 451, Current Series) holding that your importation of zinc chloride for soldering tin cans for the containers of your petroleum products is subject to 7% advance sales tax, the same to be based on the landed cost thereof plus 25% mark-up. In support of said request, you assert the fact that you are not engaged in the business of selling containers, so that you are not to pay the advance sales tax on the zinc chloride, which is purposely imported for soldering flux which forms an integral part in the manufacture of tin cans as containers of petroleum products you sell and on which you pay the corresponding specific tax. After a careful analysis of the facts and law involved in this case, I have the honor to inform you that this Office is of the opinion, as it hereby holds and reiterates and under the facts obtained herein, your importation of zinc chloride is subject to the advance sales tax imposed in section 186 in relation to section 183(b) of the Tax Code. It is regretted, therefore, that your request for reconsideration has to be, as it is hereby, denied. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue