REVENUE MEMORANDUM CIRCULAR NO. 10-2006 issued on February 7, 2006 suspends until further notice the implementation of the following provisions of Revenue Regulations No. 3-2006:

a. Section 20 B in which it is specifically prescribed that only heads and tails of ethyl alcohol shall be used in denaturing of ethyl alcohol and the proviso prescribing that medicinal preparation, using denatured alcohol as raw material in the manufacture thereof, shall be subject to excise tax as distilled spirits;

b. The term “rectification” provided under Section 14; and

c. The provisions of sub-paragraph (3) of Section 25 pertaining to the payment of excise tax on under-bond ethyl alcohol in the possession of rectifiers and rectifierscompounders that do not fall squarely under the prescribed definition of the term “rectification” as of the effectivity of the said Regulations, as well as the prescribed submission of inventory list and the issuance of notice of disqualification to affected rectifiers or rectifier-compounders.