BIR Ruling No. 107-19

January 14, 2019 BIR RULING NO. 107-19 Sec. 109 (A), Tax Code; 000-00 AAA __________, Dane International Commodities, Inc. 168 Hillside St.,Pasadena, San Juan City Dear AAA, This refers to your letter dated October 25, 2017 requesting for a confirmatory ruling that the sale by Dane International Commodities, Inc. of pistachio kernels (shelled),raw almonds, raw walnuts, raw macadamias, raw pecans, raw cashews, raw hazelnuts, dried raisins, dried prunes, dried dates, dried cranberries, dried blueberries, dried cherries, dried apricots, dried figs, sesame seeds, sunflower seeds, pumpkin seeds and chia seeds to its local customers are exempt from value-added tax (VAT). HTcADC As represented, Dane International Commodities, Inc. with Tax Identification Number 000-000-000-000, is a local company engaged in the wholesale and retail trade of confectionery products. The company imports a number of agricultural products and repacks the same in wholesale quantities for sale to its local customers which are mostly hotels, restaurants, supermarkets, cake and pastry shops. There is no additional processing done to alter the state of the said products nor are there additives introduced or incorporated in the repackaging. The agricultural products are as follows: List of Products Country of Origin Pistachio Kernels (shelled) USA Raw Almonds USA Raw Walnuts USA Raw Macadamias Australia Raw Pecans USA Raw Cashews USA/Vietnam Raw Hazelnuts USA Dried Raisins USA Dried Prunes USA Dried Dates USA Dried Cranberries USA Dried Blueberries USA Dried Cherries USA Dried Apricots USA Dried Figs USA Sesame Seeds Mexico Sunflower Seeds China Pumpkin Seeds USA/China Chia Seeds Mexico In reply, please be informed that Section 109 (1) (A) of the National Internal Revenue Code of 1997, as amended by Republic Act (R.A.) No. 9337 provides, viz. : " SEC. 109. Exempt Transactions . (1) Subject to the provisions of Subsection (2) hereof, the following transactions shall be exempt from the value-added tax: (A) 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. 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. Polished and/or husked, rice, corn grits, raw cane sugar and molasses, ordinary salt, and copra shall be considered in their original state; xxx xxx xxx" In view of the foregoing, this Office confirms that the sale by Dane International Commodities, Inc. of the following items to its local customers are exempt from value-added tax (VAT) provided that there is neither additional processing done to alter the state of said products nor additives introduced or added in said products: Imported Items Quality BPI Import Clearance No. PUMPKIN SEED KERNELS (Dried/Raw/Conventional/Shineskin) 120 BAG/ 3000 Kilogram ICDABPI181733017 HULLED SUNFLOWER KERNELS (Dried) 120 BAG/ 3000 Kilogram ICDABPI181733017 FLAXSEED (Brown/Raw/Conventions/Dried) 80 BAG/ 2000 Kilogram ICDABPI181733017 PINE NUT KERNEL 30 CASE/ 1500 Kilogram ICDABPI181733017 DRIED RAISINS 1600 CASE/ 20000 Kilogram ICDABPI181726242 PISTACHIOS 250 CASE/ 3407.5 Kilogram ICDABPI181724604 ALMONDS 1200 CASE/ 13608 Kilogram ICDABPI181726600 CRANBERRIES (Dried) 300 CASE/ 3402 Kilogram ICDABPI181726598 DATES (Dried/Pitted) 600 CASE/ 4086 Kilogram ICDABPI181726594 CASHEW NUTS KERNEL 800 CASE/ 18144 Kilogram ICDABPI181729799 PECANS 400 CASE/ 5452 Kilogram ICDABPI181730503 BLUEBERRIES (Dried) 120 CASE/ 1360.8 Kilogram ICDABPI181730502 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. aScITE Very truly yours, (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue