BIR Ruling [DA-374-00]

October 25, 2000 BIR RULING [DA-374-00] 109 (c) 116-88; 393-88; 044-96 Asia Golden Sun, Inc. 45 Pinatubo Street Mandaluyong City Attention: Mr . Henry G . O Treasurer/Manager Gentlemen : This refers to your letter dated February 29, 2000 requesting that your importation of fresh fruits and fresh, chilled and frozen meat of swine be exempt from the payment of the value-added tax. You have represented that you are a domestic corporation primarily dealing with the sale of fresh fruits, vegetables and of fresh, chilled and frozen meat of swine for your local market; and that you would like to avail the exemption from VAT in accordance with the import liberalization program under Central Bank Circular Nos. 1127 and 1128 and pursuant to Section 109(C) of the Tax Code of 1997. In reply, please be informed that such importation is exempt from VAT pursuant to Section 109(C) of the Tax Code of 1997 which states, viz: "SEC. 109. Exempt Transactions . The following shall be exempt from the value-added tax: "(a) . . . "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; . . . "Products classified under this paragraph . . . 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. . . ." (VAT Ruling Nos. 116-98 dated April 30, 1988 and 393-88 dated August 25, 1988) Further, as an importer, you are required to secure ATRIG for every importation especially if the imposition of any internal revenue tax is at issue or protested. The provision requiring the taxpayer to secure an ATRIG before release of imported goods from customs custody is merely a procedure of collecting tax payments as provided under Section 6(H) of the Tax Code of 1997. (BIR Ruling No. 044-96) This ruling is issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different from that as represented, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group