Rev. Rul. 63-105

Section 4216(b)(2) of the Internal Revenue Code of 1954 provides a special rule for the computation of the manufacturers excise tax if an article is sold at retail or to a retailer. That special constructive sale price rule, which became effective January 1, 1959, was added by the Excise Tax Technical Changes Act of 1958, Public Law 85-859, C.B. 1958-3, 92. The applicability of the special rule is subject to four conditions, identified as (A) through (D).

Under the provisions of condition (C), the special rule applies to sales of articles only if "the normal method of sales for such articles within the industry is not to sell such articles at retail or to retailers, or combinations thereof." Condition (C) was amended, effective October 1, 1962, by Public Law 87-858, C.B. 1962-3, 206, so that on and after that date it does not apply in the case of automobile "parts or accessories" which are taxable under the provisions of section 4061(b) of the Code, as distinguished from automobiles, trucks, etc., which are taxable under section 4061(a) of the Code.

Based upon information available to the Internal Revenue Service, it has been determined that the automobile "parts or accessories" industry came within the scope of the quoted condition (C) during the period of its applicability to that industry from January 1, 1959, through September 30, 1962. Accordingly, in the case of articles which are taxable under the provisions of section 4061(b) of the Code, the tax may be computed under the special rule with respect to sales at retail or to retailers during that period by manufacturers, producers, or importers who qualify under conditions (A), (B), and (D).