Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 60-62

1960-1 C.B. 423

Caution: Superseded by Rev. Rul. 69-113

IRS Headnote

Sales by an importer of tires of foreign manufacturer, which are factory `seconds' and `rejects,' are subject to the manufacturers excise tax on tires, imposed by section 4071(a) of the Internal Revenue Code of 1954.

Full Text

Rev. Rul. 60-62

Advice has been requested whether sales by an importer of tires of foreign manufacture are subject to the manufacturers excise tax on tires under the circumstances described below.

A company imports and sells rubber tires which are factory `seconds' and `rejects.' The serial numbers and the name of the foreign manufacturer have been buffed off the tires and each factory `reject' must be repaired in this country before it can be used.

Section 4071(a) of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of tires made wholly or in part of rubber.

The manufacturers excise tax on tires is applicable to sales by the importer of tires of foreign manufacture regardless of their condition. So long as the tires retain their identity as tires, it is immaterial that they must first be recapped or repaired before being usable on vehicles or equipment.

Accordingly, it is held that the tires described above are subject to the manufacturers excise tax on tires when sold by the importer thereof.