S.C. Code Regs. 117-312.3 — Packaging Materials

Section 12-36-120 excludes from the measure of the sales or use taxes the gross proceeds of the sale
of '' TTT materials, containers, cores, labels, sacks or bags used incident to the sale and delivery of
tangible personal property, or used by manufacturers, processors, and compounders in shipping
tangible personal property.''
The term ''materials'' is deemed 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 for shipment or sale; also excelsior, cellulose
wadding, paper stuffing, sawdust and other packing materials used to protect products in transit.
Materials such as dry ice and rust preventives used to preserve property during shipment do not come
within the exemption. Also excluded from the exemption are materials such as strapping and
dunnage (e.g. lumber used to block up equipment for shipment) to temporarily brace or block tangible
personal property within trucks and railroad cars as a protection during shipment.
''Containers'' 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.
The term ''cores'' is defined to include spools, spindles, cylindrical tubes and the like on which
tangible personal property is wound.
Labels affixed to manufactured articles to identify such products are exempted from the tax only
when such labels are passed on to the ultimate consumer of such products.