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Bureau of
Internal Revenue |
(National Internal Revenue Code)
Chapter
I |
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SEC. 133. Removal of Wines
and distilled Spirits for Treatment of Tobacco Leaf. - Upon issuance
of a permit from the Commissioner and subject to the rules and regulations
prescribed by the Secretary of Finance, manufacturers of cigars and cigarettes
may withdraw from bond, free of excise local and imported wines and distilled
spirits in specific quantities and grades for use in the treatment of
tobacco leaf to b used in the manufacture of cigars and cigarettes; but
such wines and distilled spirits must first be suitably denatured.
SEC.
134. Domestic Denatured Alcohol. - Domestic alcohol of not less than
one hundred eighty degrees (180O) proof (ninety percent (90%)
absolute alcohol) shall, when suitably denatured and rendered unfit for
oral intake, be exempt from the excise tax prescribed in Section 141:
Provided, however, That such denatured alcohol shall be subject to tax
under Section 106(A) of this Code: Provided, further, That if such alcohol
is to be used for motive power, it shall be taxed under Section 148(d)
of this Code: Provided, finally, That any alcohol, previously rendered
unfit for oral intake after denaturing but subsequently rendered fit or
oral intake after undergoing fermentation, dilution, purification, mixture
or any other similar process shall be taxed under Section 141 of this
Code and such tax shall be paid by the person in possession of such reprocessed
spirits.
SEC. 135. Petroleum Products Sold to International Carriers and Exempt Entities or Agencies. - Petroleum products sold to the following are exempt from excise tax:
(b) Exempt entities or agencies covered by tax treaties, conventions and other international agreements for their use of consumption: Provided, however, That the country of said foreign international carrier or exempt entities or agencies exempts from similar taxes petroleum products sold to Philippine carriers, entities or agencies; and
(c) Entities which are by law exempt from direct and indirect taxes.
SEC. 137. Removal of Spirits
Under Bond for Rectification.- Spirits requiring rectification may
be removed from the place of production to another establishment for the
purpose of rectification without prepayment of the excise tax: Provided,
That the distiller removing such spirits and the rectifier receiving them
shall file with the Commissioner their joint bond conditioned upon the
payment by the rectifier of the excise tax due on the rectified alcohol:
Provided, further, That in cases where alcohol has already been rectified
either by original and continuous distillation or by redistillation, no
loss for rectification and handling shall be allowed and the rectifier
thereof shall pay the excise tax due on such losses: Provided, finally,
That where a rectifier makes use of spirits upon which the excise tax
has not been paid, he shall be liable for the payment of the tax otherwise
due thereon.
SEC. 138. Removal of Fermented
Liquors to Bonded Warehouse. - Any brewer may remove or transport
from his brewery or other place of manufacture to a bonded warehouse used
by him exclusively for the storage or sale in bulk of fermented liquors
of his own manufacture, any quantity of such fermented liquors, not less
than one thousand (1,000) liters at one removal, without prepayment of
the tax thereon under a permit which shall be granted by the Commissioner.
Such permit shall be affixed to every package so removed and shall be
cancelled or destroyed in such manner as the Commissioner may prescribe.
Thereafter, the manufacturer of such fermented liquors shall pay the tax
in the same manner and under the same penalty and liability as when paid
at the brewery.
SEC. 139. Removal of Damaged
Liquors Free of Tax. - When any fermented liquor has become sour or
otherwise damaged so as to be unfit for use as such, brewers may sell
and after securing a special permit from the Commissioner, under such
conditions as may be prescribed in the rules and regulations prescribed
by the Secretary of Finance, remove the same without the payment of tax
thereon in cask or other packages, distinct from those ordinarily used
for fermented liquors, each containing not less than one hundred seventy-five
(175) liters with a note of their contents permanently affixed thereon.
SEC. 140. Removal of Tobacco Products without Prepayment of Tax. - Products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use, under such conditions as may be prescribed in the rules and regulations prescribed by the Secretary of Finance. Stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, scraps, cuttings, clippings, stems, or midribs, and sweepings of tobacco may be sold in bulk as raw material by one manufacturer directly to another without payment of the tax, under such conditions as may be prescribed in the rules and regulations prescribed by the Secretary of Finance.
'Stemmed leaf tobacco,' as herein used, means leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco.
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Chapter
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