Rev. Rul. 64-53

Advice has been requested whether sales by the manufacturer, producer, or importer of still camera `zoom lenses' having a variable focal length ranging from 120 millimeters or less to more than 120 millimeters are exempt, under the provisions of section 4173(2) of the Internal Revenue Code of 1954, from the manufacturers excise tax on certain photographic equipment.

Section 4171 of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated articles of photographic equipment (including in each case parts or accessories of such articles sole on or in connection therewith, or with the sale thereof). Included among the articles enumerated as camera lenses.

However, section 4173(2) of the Code provides, in part, that the manufacturers excise tax on photographic equipment shall not apply to still camera lenses having a focal length of more than one hundred and twenty millimeters.

The still camera `zoom lenses' described above are deemed to come within the scope of the exemption provided by section 4173(2) of the Code even though they may be adjusted to focal lengths of 120 millimeters or less.

Therefore, it is held that sales of these lenses by the manufacturer, producer, or importer are not subject to the manufacturers excise tax on photographic equipment imposed by section 4171 of the Code.