BIR Ruling [DA-003-05]

January 11, 2005 BIR RULING [DA-003-05] Sec. 109 (d) VAT Ruling Nos. 073-02 & 002-2004 Sytengco Enterprises Corp . No. 10 Resthaven St., SFDM Quezon City Attention: Mr. Esmeraldo Tepace General Manager Gentlemen : This refers to your letter dated October 26, 2004 requesting for a ruling that your importation of veterinary raw materials, feed ingredients, additives/supplements purely for livestock and poultry, is exempt from value-added tax pursuant to Section 109(d) of the Tax Code of 1997. It is represented that Sytengco Enterprises Corporation is a regular importer of veterinary raw materials, feed ingredients, additives/supplements purely for livestock and poultry use; that it regularly apply for import permits from the Bureau of Animal Industry and Fertilizer and Pesticide Authority for all the aforementioned goods covered by Section 109(d) of the Tax Code of 1997, namely: LIST OF IMPORTED GOODS REGISTERED UNDER FERTILIZERS AND PESTICIDES AUTHORITY Assorted Chemical For Packing Registration FPA Ctrl. Fertilizers No. No. Ammonium Chloride 20/25 kgs bag/drum 1-11F-189 01-50-04 Borax Decahydrate 20/25 kgs bag/drum 1-11F-909 01-51-04 Copper Sulfate Pentahydrate 20/25 kgs bag/drum 1-11F-1050 01-1582 Ferrous Sulphate Monohydrate 20/25 kgs bag/drum 1-41F-059 01-13-04 Magnesium Sulfate Hepahydrate 20/25 kgs bag/drum 1-41F-083 01-31-04 Potassium Chloride 20/25 kgs bag/drum 1-11F-182 01-127-03 Zinc Sulfate Hepahydrate 20/25 kgs bag/drum 1-11F-661 01-21-03 LIST OF IMPORTED PRODUCTS REGISTERED UNDER BUREAU OF ANIMAL INDUSTRY Assorted Bulk Feed Use Packing BAI Registration Ingredients/Additives/ No. Supplements Amoxicillin Trihydrate Feed additives/ 20/25 kgs bag/drum VRI 99-926 100% Compacted Powder Antibiotics Ampicillin Trihydrate Feed additives/ 20/25 kgs bag/drum VRI-00-1010 100% Compacted Pureform Antibiotics Powder Ascorbic Acid Pureform Feed additive/ 20/25 kgs bag/drum VRI-01-1125 Powder Supplement BHA Feed Ingredient 20/25 kgs bag/drum IM-201 BHT Feed Ingredient 20/25 kgs bag/drum IM-201 Biotin 2% Feed Grade Powder Feed Additive/ 20/25 kgs bag/drum VRI-01-1142 Supplement Calcium Carbonate Light Feed Ingredient 20/25 kgs bag/drum IM-201 Calcium Gluconate Feed Additive/ 20/25 kgs bag/drum VRI-04-2063 Pureform Powder Supplement Calcium Hypochlorite Feed Additive 20/25 kgs bag/drum VRI-03-2014 Pureform Powder Calcium Lactate Pureform Feed Additive/ 20/25 kgs bag/drum VRI-03-2012 Powder Supplement Calcium Pantothenate Feed Additive/ 20/25 kgs bag/drum VRI-01-1228 Supplement Calcium Propionate Feed Ingredient 20/25 kgs bag/drum IM-201 Cephalexin Feed Additive/ 20/25 kgs bag/drum VRI-01-1304 Antibiotic Chlortetracycline 15% Feed Feed Additive/ 20/25 kgs bag/drum VRI-99-908 Grade Antibiotic Chlortetracycline Feed Additive/ 20/25 kgs bag/drum VRI-01-1143 Hydrochloride Antibiotic Cholecalciferol Pureform Feed Additive/ 20/25 kgs bag/drum VRI-03-1785 Powder Supplement Choline Chloride 50% corn Feed Additive/ 20/25 kgs bag/drum VRI-01-1279 cob Supplement Choline Chloride 50% silica Feed Additive/ 20/25 kgs bag/drum VRI-01-1260 carrier Supplement Choline Chloride 60% corn Feed Additive/ 20/25 kgs bag/drum VRI-01-1259 cob Supplement Choline Chloride Feed Additive/ 20/25 kgs bag/drum VRI-03-1987 75% liquid Supplement Cobalt Sulfate Pureform Feed Additive/ 20/25 kgs bag/drum VRI-04-2201 Powder Antibiotic Colistin Sulfate Pureform Feed Additive/ 20/25 kgs bag/drum VRI-04-2056 Powder Antibiotic Copper Sulfate Feed Grade Feed Additive/ 20/25 kgs bag/drum VRI-99-923 Supplement Crude Iodine Feed Ingredient 20/25 kgs bag/drum IM-201 Deproteinized Whey Feed Ingredient 20/25 kgs bag/drum IM-201 Dextrose Anhydrous Feed Ingredient 20/25 kgs bag/drum IM-201 Dextrose Monohydrate Feed Ingredient 20/25 kgs bag/drum IM-201 Dicalcium Phosphate Feed Ingredient 20/25 kgs bag/drum IM-201 Dimetridazole Pureform Feed Additive/ 20/25 kgs bag/drum VRI-03-2031 Powder Antibiotic DL-Methionine Grade 99% Feed Ingredient 20/25 kgs bag/drum IM-201 Doxycyline Hydrochloride Feed Additive/ 20/25 kgs bag/drum VRI-02-1353 Pureform Powder Antibiotic Ecuadorian Fish Meal Feed 20/25 kgs bag/drum IM-201 Erythromycin Base Feed Additive/ 20/25 kgs bag/drum VRI-04-2045 Pureform Powder Antibiotic Erythromycin Ethylsuccinate Feed Additive/ VRI-04-2044 Pureform Powder Antibiotic Erythromycin Stearate Feed Additive/ 20/25 kgs bag/drum VRI-04-2203 Pureform Powder Antibiotic Ethoxyquin 60% powder Feed Ingredient 20/25 kgs bag/drum IM-201 Ethoxyquin 95% liquid Feed Ingredient 20/25 kgs bag/drum IM-201 Ferrous Sulfate Pureform Feed Additive/ 20/25 kgs bag/drum VRI-02-1427 Powder supplement Folic Acid Pureform Feed Additive/ 20/25 kgs bag/drum VRI-02-1507 Powder Supplement Fumaric Acid Feed Ingredient 20/25 kgs bag/drum IM-201 Halquinol Powder Feed Additive/ 20/25 kgs bag/drum VRI-03-203 Antibiotic Inositol Pureform Powder Feed Additive/ 20/25 kgs bag/drum VRI-02-1425 Supplement Kanamycin Acid Sulfate Feed Additive/ 20/25 kgs bag/drum VRI-04-2043 Antibiotic Lactose Powder Feed Grade Feed Ingredient 20/25 kgs bag/drum IM-201 Levamisole Hydrochloride Feed Additive/ 20/25 kgs bag/drum VRI-03-2016 Pureform Powder Antibiotic L-Lysine Feed Ingredient 20/25 kgs bag/drum IM-201 L-Theonine Feed Ingredient 20/25 kgs bag/drum IM-201 Magnesium Oxide Pureform Feed Additive/ 20/25 kgs bag/drum VRI-04-2200 Powder Supplement Magnesium Sulfate Feed Additive/ 20/25 kgs bag/drum VRI-03-1791 Pureform Powder Supplement Manganous Oxide Pureform Feed Additive/ 20/25 kgs bag/drum VRI-01-1200 Powder Supplement Mebendazole Pureform Feed Additive/ 20/25 kgs bag/drum VRI-02 Powder Antibiotic Metronidazole Pureform Feed Additive/ 20/25 kgs bag/drum VRI-03-1786 Powder Antibiotic Mineral Oil Feed Ingredient 20/25 kgs bag/drum IM-201 Monocalcium Phosphate Feed Ingredient 20/25 kgs bag/drum IM-201 Anhydrous Monosodium Phosphate Feed Ingredient 20/25 kgs bag/drum IM-201 Feed Grade Niacin Pureform Powder Feed Additive/ 20/25 kgs bag/drum VRI-03-1729 Supplement Norfloxacin Pureform Feed Additive/ 20/25 kgs bag/drum VRI-01-1165 Powder Antibiotic Oxytetracycline Pureform Feed Additive/ 20/25 kgs bag/drum VRI-02-1367 Powder Antibiotic Oxytetracycline Hydrochloride Feed Additive/ 20/25 kgs bag/drum VRI-02-1366 Pureform Powder Antibiotic Penicillin V Potassium Feed Additive/ 20/25 kgs bag/drum VRI-03-1784 Pureform Powder Antibiotic Peruvian Fish Meal Feed Ingredient 20/25 kgs bag/drum IM-201 Piperazine Phosphate Feed Additive/ 20/25 kgs bag/drum VRI-04-2206 Pureform Powder Antibiotic Polyvinylpyrrolidone Iodine Feed Additive/ 20/25 kgs bag/drum VRI-03-1745 Pureform Powder Supplement Potassium Iodide Pureform Feed Additive/ 20/25 kgs bag/drum VRI-03-1788 Powder Supplement Potassium Permanganate Feed Additive/ 20/25 kgs bag/drum VRI-04-2207 Crystals Antibacterial Protein Mixture (Fine Grade) Feed Ingredient 20/25 kgs bag/drum IM-201 Protein Mixture (Premium Feed Ingredient 20/25 kgs bag/drum IM-201 Grade) Protein Mixture (Standard Feed Ingredient 20/25 kgs bag/drum MI-201 Grade) Pyridoxine Hydrochloride Feed Additive/ 20/25 kgs bag/drum VRI-02-1402 Pureform Powder supplement Pyrimethamine Pureform Feed Additive/ 20/25 kgs bag/drum VRI-02-1664 Powder Antibiotic Riboflavin Pureform Powder Feed Additive/ 20/25 kgs bag/drum VRI-02-1306 Supplement Selicose Liquid Feed Ingredient 20/25 kgs bag/drum IM-201 Sesquikarb Feed Grade Feed Ingredient 20/25 kgs bag/drum IM-201 Sodium Benzoate Feed Ingredient 20/25 kgs bag/drum IM-201 Sodium Bicarbonate Feed Additive/ 20/25 kgs bag/drum VRI-01-1119 Pureform Powder Supplement Sodium Caseinate Type Feed Ingredient 20/25 kgs bag/drum IM-201 EM6 Sodium Chloride 99.8% Feed Ingredient 20/25 kgs bag/drum IM-201 PVD Iodized Sodium Selenite Pureform Feed Additive/ 20/25 kgs bag/drum VRI-04-2202 Powder Supplement Sodium Sulphadiazine Feed Additive/ 20/25 kgs bag/drum VRI-04-2205 Pureform Powder Antibiotic Sorbitol Feed Ingredient 20/25 kgs bag/drum IM-201 Soy Lecithin Feed 20/25 kgs bag/drum IM-201 Spectinomycin Sulfate Feed Additive/ 20/25 kgs bag/drum VRI-04-2199 Pureform Powder Antibiotic Steam Dried Fish Meal Feed Ingredient 20/25 kgs bag/drum IM-201 Streptomycin Sulfate Feed Additive/ 20/25 kgs bag/drum VRI-03-1988 Pureform Powder Antibiotic Sulfadiazine Pureform Powder Feed Additive/ 20/25 kgs bag/drum VRI-02-1401 Antibiotic Sulfadimethoxine Sodium Feed Additive/ 20/25 kgs bag/drum VRI-02-1666 Pureform Powder Antibiotic Sulfadoxine Watersoluble Feed Additive/ 20/25 kgs bag/drum VRI-03-2015 Powder Antibiotic Sulphamethazine Feed Additive/ 20/25 kgs bag/drum VRI-01-1280 Antibiotic Sulphamethoxazole Pureform Feed Additive/ 20/25 kgs bag/drum VRI-02-1400 Powder Antibiotic Synaphos Feed Ingredient 20/25 kgs bag/drum IM-201 Tetracycline Hydrochloride Feed Additive/ 20/25 kgs bag/drum VRI-04-2058 Pureform Powder Antibiotic Thiamine Hydrochloride Feed Additive/ 20/25 kgs bag/drum VRI-01-1288 Pureform Powder Supplement Tricalcium Phosphate Feed Ingredient 20/25 kgs bag/drum IM-201 Trimethoprim Pureform Feed Additive/ 20/25 kgs bag/drum VRI-02-1665 Powder Antibiotic Tylosin Phosphate 25% Feed Additive/ 20/25 kgs bag/drum VRI-01-1326 Powder Premix Supplement Tylosin Tartrate Pureform Feed Additive/ 20/25 kgs bag/drum VRI-01-1321 Powder Supplement Veterinary Cod Liver Oil Feed Ingredient 20/25 kgs bag/drum IM-201 Vitamin A 500 Powder Feed Additive/ 20/25 kgs bag/drum VRI-03-1327 Supplement Vitamin A Palmitate Feed Additive/ 20/25 kgs bag/drum VRI-04-2198 Pureform Powder Supplement Vitamin A Powder Feed Additive/ 20/25 kgs bag/drum VRI-04-2057 Supplement Vitamin B12 1% Pureform Feed Additive/ 20/25 kgs bag/drum VRI-01-1322 Powder Supplement Vitamin E Feed Additive/ 20/25 kgs bag/drum VRI-02-1508 Supplement Vitamin K3 Powder Feed Additive/ 20/25 kgs bag/drum VRI-02-1667 Supplement Wheat Flour Feed Ingredient 20/25 kgs bag/drum IM-201 Whey Powder Feed Ingredient 20/25 kgs bag/drum IM-201 Zinc Bacitracin Feed Additive/ 20/25 kgs bag/drum VRI-02-1668 Antibiotic Zinc Oxide Pureform Feed Additive/ 20/25 kgs bag/drum VRI-01-1126 Powder Antibiotic that Sytengco Enterprises has always been granted an ATRIG by the Bureau of Internal Revenue: that the imported goods registered under BAI License To Operate VDAPDI 0029 has been found to conform with the standards and have complied with the rules and regulations governing registration of veterinary/pharmaceutical products by the Bureau of Animal Industry in pursuant to the provisions of Republic Act No. 3720 as amended, known as the Foods, Drugs and Devices and Cosmetics Act R.A. 6675, otherwise known as Generics Act of 1998 and R.A. No. 1556 as amended, known as the Livestock and Poultry Feed Act; that the imported goods registered under License No. 047, FPA Control No. 01-01L-2004 and warehouse under Registration No. W-206, PPA Control No. 05-21-F has also been found to conform in accordance with the provisions of Presidential Decree No. 1144; and that rulings involving similar products has been previously issued by the BIR. CDHSac In reply thereto, please be informed that Section 109(d) of the Tax Code of 1997 provides that the sale or importation of fertilizers; seeds, seedlings and fingerlings; fish prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds (except specially feed for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets) shall be exempt from value-added tax. Considering that the aforementioned products are for the sole consumption of farmers which are purely for livestock, poultry and aqua use and have been registered with the Bureau of Animal Industry and Fertilizer and Pesticide Authority as required in Section 4 of Republic Act No. 1556, the importation of the same shall be exempt from value-added tax pursuant to Section 109(d) of the Tax Code of 1997. ESTCDA Finally, inasmuch as the importation of the above-mentioned products is exempt from value-added tax, this will therefore serve as an authority for you to release the same from the customs custody without the necessity of applying for ATRIG on your every importation of the above-referred products from the Revenue District Office where you are registered. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group