BIR Ruling [DA-083-98]

March 18, 1998 BIR RULING [DA-083-98] J.T. Customs Brokers Meliton Subdivision Sucat Road, Paraaque Metro Manila Attention: Ms . Elinore E . Tolentino Licensed Customs Broker Gentlemen : This refers to your letter dated January 11, 1996 requesting for a ruling to the effect that the importation of 15,000 kgs. of frozen boneless beef fat by Foodsphere, Inc. is exempt from value-added tax. LLjur In reply, please be informed that pursuant to Section 109(c) of the Tax Code of 1997, pertinent portion of which reads: "SEC. 109. Exempt Transactions . The following shall be exempt from the value-added tax: "(a) . . . "(b) . . . "(c) Sale or importation of agricultural and marine food products in their original state, livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption; and breeding stock and genetic materials therefor. xxx xxx xxx" Section 4.103-1(B) of Revenue Regulations No. 7-95, as amended by Revenue Regulations No. 6-97, implementing Republic Act No. 8241, provides that meat, fruit, fish, vegetables and other agricultural and marine food products, shall be considered in their original state even if they have undergone the simple processes of preparation or preservation for the market, such as freezing, drying, salting, broiling, roasting, smoking or stripping, including those using advanced technological means of packaging, such as shrink wrapping in plastic, vacuum packing, tetra pak, and other similar packaging methods. In view of the foregoing, the importation by Foodsphere, Inc. of frozen boneless beef fat shall be exempt from the value-added tax pursuant to Section 109(c) of the Tax Code of 1997, as then implemented by Section 4.103-1(B) of Revenue Regulations No. 7-95, and as amended by Revenue Regulations No. 6-97. (BIR Ruling No. 94-97 dated August 26, 1997) LLphil Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)