Importation of Magnesium Sulphate Anhydrous in 1994 and 1995 Exempt from the 10% Value-Added Tax

March 6, 1996 BIR RULING NO. 034-96 103 000-00 034-96 DOLE Philippines, Inc. 14th Floor, BA-Lepanto Building 8747 Paseo de Roxas Makati City, Metro Manila Attention: Mr . B . L . Perez Manager, Gov't Services Gentlemen : This refers to your letter dated November 24, 1995, requesting for a ruling to the effect that your importation of Magnesium Sulphate Anhydrous (chemical formula MgSO4) is exempt from the value-added tax. It is represented that Magnesium Sulphate Anhydrous, which has been certified as a special fertilizer by your foreign supplier, KALI and Salz Gmbh, is used by you to fertilize your pineapple plants to correct MG deficiencies and increase fruit yields; that the same is registered with the Fertilizer and Pesticide Authority (FPA) as fertilizer necessary to enhance/maximize agricultural production as per certifications issued by the said Office; and that laboratory analysis conducted by our Standard & Classification Laboratory Section is to the effect that Magnesium Sulphate Anhydrous is for use, among others, as fertilizer. In reply, please be informed that your aforesaid importation of Magnesium Sulphate Anhydrous in 1994 and 1995 is exempt from the 10% value-added tax pursuant to Section 103(c) of the Tax Code, as amended by E. O. No. 273 and as implemented by Section 9(b) (3) of Revenue Regulations No. 5-87. Further, this ruling holds true on your importation of Magnesium Sulphate Anhydrous for 1996 and subsequent years, pursuant to Section 103(d) of the Tax Code as amended by R. A. No. 7716 and as implemented by Revenue Regulations No. 7-95. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue