Practice question
A nonresident buyer purchases packaging for delivery to a resident export-oriented processor to pack the buyer’s goods. The acceptable foreign-currency and BSP-accounting conditions are established. A collector rejects that specific route solely because the supplier does not itself ship the packaging overseas. Which is correct?
- Every local delivery is ineligible under every route
- The processor must become a foreign corporation
- The statutory delivery language must be ignored
- The specified raw-material/packaging route expressly contemplates local delivery to the export-oriented enterprise
- The supplier’s personal preference creates zero-rating
Legal references
- RA 12066, Sections 6-9, amended NIRC Sections 106, 108, 109 and 112(C): https://lawphil.net/statutes/repacts/ra2024/ra_12066_2024.html
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