Request for Tax Exemption on Importation of Fishmeal, Meat and Bone Meal, Soya Beans and Other Raw Materials

April 29, 1986 BIR RULING NO. 053-86 162-c 139-82 053-86 Gentlemen : This refers to your letter dated March 22, 1986, requesting exemption from the payment of advance sales tax and other taxes on your importation of fishmeal, meat and bone meal, soya beans and other raw materials. Documentary evidence submitted shows that LIMCOMA Marketing Cooperative, Inc. is a duly registered cooperative with Certificate of Registration No. R-IV-77-047 dated December 1, 1978 having complied with the requirements of the Bureau of Cooperative Development; that it was organized primarily to engage in the purchase or procurement and sale of all kinds of farming in-puts, such as supplies, materials, tools and equipment needed in farming, orchard growing, poultry and livestock raising, including fertilizers, seeds, veterinary drugs and farm chemicals; to engage in the purchase, processing and sale of all kinds of products from farms, orchards, poultry and livestock farms, especially of its members; to represent and act for and on behalf of any/or all of its members in securing adequate allocations for them from any and all institutions, private or governmental, of any or all farm in-puts, such as subsidized fertilizers, seeds, seedlings and other supplies and materials, tools and equipment that may be needed in connection with farming, orchard growing, poultry and livestock raising, and to distribute the same to its members in accordance with the rules and regulations prescribed for such contributions. In reply, I have the honor to inform you that your interest is hereby granted, provided that the imported articles are sold exclusively to members of that Cooperative. Since that cooperative is registered with and certified as in good standing by the Bureau of Cooperatives Development, it is exempt from income and sales taxes until December 31, 1991 pursuant to Section 5(a) of P.D. No. 175, as amended by P.D. No. 2008. Such exemption from the sales tax includes the advance sales tax on imported articles imposed by Section 162(c) of the Tax Code. (See BIR Ruling No. 013-85) However, the above importation is subject to the payment of the 5% internal revenue tax pursuant to Section 1 of P.D. No. 1352, as amended by P.D. No. 1395. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner