there shall be collected, except as hereinafter provided, specific taxes as follows: This tax shall be proportionally increased for any strength of the spirits taxed over proof spirits. "Distilled spirits" as here used, includes all substances known as ethyl alcohol, hydrated oxide of ethyl, or spirits of wine, which are commonly produced by the fermentation and subsequent distillation of grain, starch, molasses, or sugar, or of some siru p or sap, including all dilutions or mixtures; and the tax shall attach to this substance as soon as it is in existence as such whether it be subsequently separated as pure or impure spirits or be immediately or at any subsequent time transferred into any  other substances either in process of original production or by any subsequent process. caCEDA ( a ) If produced from sap of the nipa, coconut, or buri palm, or from the juice, sirup, or sugar of the cane, per proof liter, twenty-five centavos. ( b ) If produced from any other material per proof liter, seventy centavos. "Proof spirits" is liquor containing one-half its volume of alcohol of a specific gravity of seven thousand nine hundred and thirty-nine ten-thousandths at fifteen degrees centigrade. A proof liter means a liter of proof spirits. [2339-58.] S ECTION  1637 . Mode of Computing Contents of Cask or Package . — Every fractional part of a proof liter equal to or greater than a half-liter in a cask or package containing more than one liter shall be taxed as a liter, and any smaller fractional part shall  be exempt; but any package of spirits the total contents of which are less than a proof liter shall be taxed as one liter. DcITHE [2339-59.] S ECTION  1638 . Tax on Preparations Containing Distilled Spirits as Chief Ingredient . — Medicinal and toilet preparations, flavoring extracts, and all other preparations, of which, excluding the water, distilled spirits form the chief ingredient, shall be su bject to the same tax as such chief ingredient. Upon permit from the Collector of Internal Revenue and subject to the regulations of the Bureau, manufacturers of cigars may withdraw from bond free of tax imported wine in specified quantities and grades for use in the treatment of tobacco leaf to be used  in the manufacture of cigars; but such wine must first be suitably denatured. 494 Copyright 2012 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia 2011