SEC. 133. Removal of Wines and distilledSpirits for Treatment of Tobacco Leaf.
- Uponissuance of a permit from the Commissioner andsubject to the rules and regulations prescribedby the Secretary of Finance, manufacturers of cigars and cigarettes may withdraw from bond,free of excise local and imported wines anddistilled spirits in specific quantities and gradesfor use in the treatment of tobacco leaf to b usedin the manufacture of cigars and cigarettes; butsuch wines and distilled spirits must first besuitably denatured.
SEC. 134. Domestic Denatured Alcohol.
-Domestic alcohol of not less than one hundredeighty degrees (180
) proof (ninety percent(90%) absolute alcohol) shall, when suitablydenatured and rendered unfit for oral intake, beexempt from the excise tax prescribed in Section141: Provided, however, That such denaturedalcohol shall be subject to tax under Section106(A) of this Code: Provided, further, That if such alcohol is to be used for motive power, itshall be taxed under Section 148(d) of thisCode: Provided, finally, That any alcohol,previously rendered unfit for oral intake after denaturing but subsequently rendered fit or oralintake after undergoing fermentation, dilution,purification, mixture or any other similar processshall be taxed under Section 141 of this Codeand such tax shall be paid by the person inpossession of such reprocessed spirits.
SEC. 135. Petroleum Products Sold toInternational Carriers and Exempt Entities or Agencies. -
Petroleum products sold to thefollowing are exempt from excise tax:(a) International carriers of Philippine or foreign registry on their use or consumption outside the Philippines:Provided, That the petroleum productssold to these international carriers shallbe stored in a bonded storage tank andmay be disposed of only in accordancewith the rules and regulations to beprescribed by the Secretary of Finance,upon recommendation of theCommissioner;(b) Exempt entities or agencies coveredby tax treaties, conventions and other international agreements for their use of consumption: Provided, however, Thatthe country of said foreign internationalcarrier or exempt entities or agenciesexempts from similar taxes petroleumproducts sold to Philippine carriers,entities or agencies; and(c) Entities which are by law exemptfrom direct and indirect taxes.
SEC. 136. Denaturation, Withdrawal and Useof Denatured Alcohol
. - Any person whoproduces, withdraws, sells, transports or knowingly uses, or is in possession of denaturedalcohol, or articles containing denatured alcoholin violation of laws or regulations now or hereafter in force pertaining thereto shall berequired to pay the corresponding tax, inaddition to the penalties provided for under TitleX of this Code.
SEC. 137. Removal of Spirits Under Bond for Rectification
.- Spirits requiring rectification maybe removed from the place of production toanother establishment for the purpose of rectification without prepayment of the excisetax: Provided, That the distiller removing suchspirits and the rectifier receiving them shall filewith the Commissioner their joint bondconditioned upon the payment by the rectifier of the excise tax due on the rectified alcohol:Provided, further, That in cases where alcoholhas already been rectified either by original andcontinuous distillation or by redistillation, no lossfor rectification and handling shall be allowedand the rectifier thereof shall pay the excise taxdue on such losses: Provided, finally, Thatwhere a rectifier makes use of spirits upon whichthe excise tax has not been paid, he shall beliable for the payment of the tax otherwise duethereon.
SEC. 138. Removal of Fermented Liquors toBonded Warehouse
. - Any brewer may removeor transport from his brewery or other place of manufacture to a bonded warehouse used byhim exclusively for the storage or sale in bulk of fermented liquors of his own manufacture, anyquantity of such fermented liquors, not less thanone thousand (1,000) liters at one removal,without prepayment of the tax thereon under apermit which shall be granted by theCommissioner. Such permit shall be affixed toevery package so removed and shall becancelled or destroyed in such manner as theCommissioner may prescribe. Thereafter, themanufacturer of such fermented liquors shallpay the tax in the same manner and under thesame penalty and liability as when paid at thebrewery.
SEC. 139. Removal of Damaged Liquors Freeof Tax.
- When any fermented liquor hasbecome sour or otherwise damaged so as to beunfit for use as such, brewers may sell and after securing a special permit from theCommissioner, under such conditions as may beprescribed in the rules and regulationsprescribed by the Secretary of Finance, removethe same without the payment of tax thereon incask or other packages, distinct from thoseordinarily used for fermented liquors, eachcontaining not less than one hundred seventy-five (175) liters with a note of their contentspermanently affixed thereon.
SEC. 140. Removal of Tobacco Productswithout Prepayment of Tax.
- Products of tobacco entirely unfit for chewing or smokingmay be removed free of tax for agricultural or industrial use, under such conditions as may beprescribed in the rules and regulationsprescribed by the Secretary of Finance.Stemmed leaf tobacco, fine-cut shorts, therefuse of fine-cut chewing tobacco, scraps,cuttings, clippings, stems, or midribs, andsweepings of tobacco may be sold in bulk asraw material by one manufacturer directly toanother without payment of the tax, under suchconditions as may be prescribed in the rules andregulations 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 includebroken leaf tobacco.
EXCISE TAX ON CERTAIN GOODS