Importation of Listerine Essence, Boric Acid, Essential Oil and Aluminum Carbohydrate

October 22, 1958 BIR RULING NO. 599-58 Muller & Phipps Manufacturing Corporation Bonifacio Drive corner 25th Street Port Area, Manila Gentlemen : With reference to your letter dated October 14, 1958, requesting the reconsideration of the ruling contained in our letter to you dated October 10, 1958 subjecting to the advance sales tax your importation of listerine essence, boric acid, essential oil and aluminum carbohydrate which will be used in your manufacture of Listerine Antiseptic and Odorono Spray Deodorant, products containing alcohol as chief ingredient, I have the honor to inform you that, this Office is not inclined to reconsider the ruling in question. cdll It must be observed that Sections 183(b) and 190 of the Tax Code exempts from the sales or compensating tax articles imported for use in the manufacture of articles subject to the specific tax and are to form part thereof. Logically, the importer himself must be the manufacturer of the manufactured articles which are subject to the specific tax. The distiller of the alcohol used in your manufacture, for instance, is exempt from both sales or compensating tax on raw materials imported by him and used in his manufacture of alcohol. But you are not yourselves the producers of the alcohol you use in your manufacture of Listerine Antiseptic and Odorono Spray Deodorant. If you were, you are certainly exempt from the sales or compensating tax on the importation in question. As a matter of fact, pursuant to the provisions of Section 127 of the Tax Code, your sale of antiseptic and deodorant is no longer subject to tax because the alcohol content thereof had already been subjected to the specific tax which was paid by the distiller of the alcohol you used. Hence, as stated in our letter of October 10, 1958, the antiseptic and deodorant manufactured by you are not actually subject to the specific tax. In the light of the foregoing, your request has to be, as it is hereby, denied. llcd Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue