BIR Ruling [DA-267-06]

April 21, 2006 BIR RULING [DA-267-06] Sec. 109 (c); DA-184-2003 dtd June 11, 2003 Agrifisheries World, Inc . Bonuan Binloc, Dagupan City Pangasinan Attention: Mr . Eng Kiat Lim, Jr . Gentlemen : This refers to your request for a Certificate of VAT exemption in connection with your importation of Broodstock Shrimps pursuant to Section 109 (c) Title IV of the Revised Internal Revenue Code. THIAaD It could be ascertained from the documents submitted that AGRIFISHERIES WORLD INC. is registered with the Securities and Exchange Commission (SEC) on August 27, 2004 with Registration No. CS200413395, having the primary purpose of erecting, maintaining and operating hatcheries, ponds and pools, with all the necessary and convenient appurtenances and equipment, in and about which to conduct the business of producing spawn, hatching and propagating aquatic produce, and selling the same; that likewise it is registered with BIR Revenue District Office No. 4, Revenue Region No. 1, as a NON-VAT taxpayer with hatchery as its line of business; that in its attempt to conduct its primary purpose, it secured a Special Permit to Import bearing SN 07-2005 from the Bureau of Fisheries and Aquatic Resources for the importation of Pacific White Shrimp (Litopenaeus Vannamei) Live Broodstock for experimental culture purposes. In reply, please be informed that pursuant to Section 109 (c) of the Tax Code of 1997, the importation of Pacific White Shrimp (Litopenaeus Vannamei) Live Broodstock is exempt from the value-added tax imposed under Section 106 of the same Code, it being for breeding and/or experimental culture purposes, quoted as follows: "SEC. 109. Exempt Transactions . The following shall be exempt from the value-added tax: xxx xxx xxx "(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 therefore." xxx xxx xxx 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service