If a manufacturer uses another kind of tobacco or alcohol product as raw materials for the production of its tobacco or alcohol products, it shall fill out a Material Computation Form for the materials required and apply to the competent tax authority for approval. If the competent tax authority deem there is a need to prescribe an uniform standards for the use of said materials, after sending samples of the tobacco and alcohol products to a testing agency for checking, the competent tax authority should submit a request to the Ministry of Finance for the formulation of such standards.
A taxable material shall be exempted only if it constitutes an ingredient of the tobacco or alcohol product; materials used for fueling and testing purposes shall not be exempt from tobacco and alcohol tax.