BIR Ruling [UN-331-95]

September 12, 1995 BIR RULING [UN-331-95] Chemcenter Enterprises 65 M.H. del Pilar Street San Francisco del Monte Quezon City Attention: Mr . Joseph Liao Gentlemen : This refers to your letter dated June 13, 1995 requesting for a confirmation of your opinion that your importation of aliphatic solvents of low aromatic content (less than 1% aromatic content) is exempt from excise tax. It is represented that aliphatic solvents having less than 1% aromatic content are less toxic and more environmentally friendly; that this type of solvents are not produced locally but are increasingly used in paints, adhesives, insecticides solvents, dry-cleaning, ink solvents and maintenance chemicals formulations; and that your importation of said chemicals are scrutinized by the Energy Industry Administration Bureau (formerly Energy Regulatory Board) for compliance with regulations and for special duty exemption. In reply, please be informed that aliphatic solvent (or solvent in its generic sense) is not included in the list of petroleum products which are subject to excise tax under Section 145 of the Tax Code, as amended. In view thereof, it is our opinion that its importation is subject only to 10% VAT pursuant to Section 101 (a) of the Tax Code, as amended, but exempt from excise tax Under Section 145 of the same Code. (BIR Ruling No. 106-95 dated July 14, 1995) aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)