Purchases of shipping labels and printer ribbons by a manufacturer of medical devices did not qualify for an exemption from Indiana use tax since the labels and the ribbons did not constitute an integral and material part of the finished product. Indiana has a sales and use tax exemption for tangible personal property which is to be incorporated as a material or integral part into the final tangible personal property by a purchaser in the business of manufacturing, assembling, refining or processing.The printed labels purchased by the manufacturer were placed on the outside of shipping containers used to package the finished products that were then shipped to customers. The labels were used only for shipping and inventory control and were not a component part of the finished product. Therefore, they did not qualify for the state’s manufacturing exemption. Although the labels were required by the customer, the fact that something is essential does not mean the property has an immediate effect on the article being produced which is required for the exemption. (Letter of Findings No. 04-20160010, Indiana Department of Revenue, August 31, 2016)