Request for Certificate of Exemption from the Payment of Excise Tax on Importation of Fungicide Banole

September 10, 1998 BIR RULING NO. 128-98 148 (a); 107 (A)-000-00-128-98 The Shell Chemical Co. (Philippines), Inc. Shell House, 156 Valero Street Salcedo Village 1227, Makati City Attention: Ms . Annie Dellosa Import Liaison Officer Gentlemen : This refers to your letter dated May 14, 1998 which was indorsed to this Office by the Regional Director, Revenue Region No. 8, Makati City, relative to your request for a certificate of exemption from the payment of excise tax on your importation of BANOLE. LLphil It appears from documents submitted that Rhone-Poulenc Agrochemicals Phils., Inc. has registered Banole with the Fertilizer & Pesticide Authority (FPA) as an agricultural chemical for use as co-adjuvant that improves the penetration of fungicide to control banana sigatoka diseases; that the aforesaid Application for Pesticide Registration of Banole as co-adjutant on banana for the control of black sigatoka was approved by FPA on April 15, 1997; that the FPA Guidelines on Registration of Pesticide Products list Banole as under agricultural chemicals similar to surfacants, synergest, wood preservatives, etc. which fall under HS 3808; and that Laboratory analysis conducted by this Office shows that Banole is a paraffinic mineral oil classified as petrolatum (liquid form) and is used as one of the ingredients in the formulation of fungicides. Based on the foregoing, it is the opinion of this Office as it hereby holds that your importation of Banole which is to be used as fungicide to combat banana sigatoka diseases and not to generate power or energy or to be used as fuel, is not subject to the excise tax imposed under Section 148 (a) of the Tax Code of 1997. It goes without saying that the certification of the Fertilizer & Pesticide Authority to the effect that Banole is an agricultural chemical is entitled to great respect it being the competent government agency to determine the proper classification of Banole. However, your importation of Banole is subject to the 10% value-added tax imposed under Section 107 (A) of the Tax Code of 1997. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue