S.C. Code Regs. 117-302.2 — Containers

The sale of materials, containers, cores, labels, sacks or bags used incident to the sale and delivery of
tangible personal property or used by manufacturers, processors, or compounders in shipping tangible
personal property are not subject to sales and use taxes.
''Materials'' is defined to include, among other things, wrapping paper, twine, strapping, nails,
staples, wire, lumber, cardboard, adhesives, tape, waxed paper, plastic materials, aluminum foils, and
pallets used in packaging tangible personal property incident to its sales and delivery and used by
manufacturers, processors, or compounders in shipping tangible personal property.
''Containers'' is defined to include, but are not limited to, such items as, paper, plastic or cloth sacks,
bags, boxes, bottles, cans, cartons, drums, barrels, kegs, carboys, cylinders, and crates.
''Cores'' is defined to include spools, spindles, cylindrical tubes and the like on which tangible
personal property is wound.
This exclusion applies to:
(a) labels affixed to manufactured articles to identify such products only when such labels are passed
on to the ultimate consumer of such products.
(b) excelsior, cellulose wadding, paper stuffing, sawdust and other packing materials used to protect
products in transit. Also excluded from the exemption are materials such as strapping and dunnage
to temporarily brace or block tangible personal property within trucks and railroad cars as a protection
during shipment.
(c) hogsheads, when used by a manufacturer, compounder or processor for the purpose of
packaging tobacco for shipment or sale.
This exclusion does not apply to:
(a) address stickers and shipping tags.
(b) materials such as dry ice and rust preventives used to preserve property during shipment.