P.R. Laws tit. 13, § 32442
(a) The taxes prescribed in this part shall not be imposed on those alcoholic beverages dispatched by or withdrawn from a rectifying, bottling or canning plant, or factory to be used in laboratories for analytical or experimental purposes. Neither shall the taxes prescribed by this part be imposed on such distilled spirits or alcoholic beverages dispatched by a factory or distillery to be used in:
(1) Laboratories for analytical or experimental purposes.
(2) The manufacture of products during the elaboration of which distilled spirits are changed into another chemical substance or do not appear in the end product.
(3) The manufacture of rubbing alcohol, insecticides, or perfumes.
(4) The manufacture of medicinal products.
(5) The official service of hospitals, clinics, and laboratories.
(6) The fortification of wines.
(7) The production of concentrates or essences for the manufacture of soft drinks provided that the end product does not have more than half of one percent (½ of 1%) of alcohol per volume.
(8) The preparation, canning, or packaging of fruits in syrup and other food products, provided that the product that is prepared, canned, or packaged does not contain a volume of distilled spirits in excess of that which is established by the Secretary for such use, in each case.
(9) Research and development.
(b) Absolute alcohol produced, introduced, or imported to Puerto Rico shall also be exempt from taxation under this part when said absolute alcohol is used in the preparation of medicinal products, or in laboratories for analytical or experimental purposes.
(c) The taxes imposed by this part shall not be collected on distilled spirits contained in products imported, introduced, or manufactured in Puerto Rico other than alcoholic beverages, provided they do not contain a volume of distilled spirits in excess of what is established by the Secretary in each case.
(d) Any person who wishes to obtain alcohol or distilled spirits under the provisions of this section shall submit conclusive evidence to the Secretary of his/her right to obtain such products free of tax, post the bonds, and provide warehousing facilities required by the Secretary.
History —Jan. 31, 2011, No. 1, § 5023.02, retroactive to Jan. 1, 2011.