M. Yuhico Enterprises

May 7, 2010 BIR RULING [DA-(VAT-010) 061-10] Section 109 (A); VAT Ruling Nos. 058-01 & 014-03 M. Yuhico Enterprises No. 182 Shaw Blvd. Pasig City, Metro Manila Attention: Mr. Manuel C. Yuhico General Manager Gentlemen : This refers to your letter dated September 8, 2009 requesting, in effect, for a ruling that ATRIG is not a pre-requisite in the release of your importations from the Bureau of Customs. HcTEaA As represented, you have been importing meat products and their edible offals in their fresh and unprocessed, frozen condition from America, Canada, Europe, Australia, New Zealand and Brazil since 2001. You have been enjoying VAT free/exempt importations and were not required to present ATRIG from this Office as a pre-requisite for the release of your importations from the Bureau of Customs. Recently, however, the Bureau of Customs, under their E2M, has required you to present ATRIG before lodging of entries (code 4000 N00) in box 37 of EIRD (procedure code). In reply, please be informed that pursuant to Section 109 (c) [now Section 109 (1) (A)] of the National Internal Revenue Code, 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, are exempt from value added tax. Your importation of the above meat products and their edible offals in their fresh and unprocessed, frozen condition may be exempt from the imposition of the VAT pursuant to Section 109 (1) (A) of the Tax Code. However, it is required that in all cases of importation of VAT-exempt items, the same shall not be released from Customs custody unless a duly approved Authority to Release Imported Goods (ATRIG) is secured from the Revenue District Officer where the port of entry is located (VAT Ruling No. 013-07 dated October 22, 2007). 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 as null and void. Very truly yours, (SGD.) GREGORIO V. CABANTAC Deputy Commissioner