Exemption of the Importation of Sliced/or Stripped Potato from VAT

April 12, 1988 BIR RULING NO. 135-88 103 (b) 000-00 135-88 Gentlemen : This refers to your letter dated April 8, 1988 requesting a ruling that your importation of sliced/or stripped potato is exempt from value-added tax. It is represented that you have an importation of frozen sliced potato covered by Bill of Lading Nos. 006529 and 006527; that said importation consists of raw potato cut into appropriate sizes and frozen without any chemical content in the preparation. The customs appraiser's report states that the importation is perishable; that the sample and label submitted shows that said importation contains potatoes, beef fat, and may have contained hydrogenated vegetable shortening (soybean, palm and/or cottonseed oil), disodium dihydrogen pyrophosphate (to promote retention), dextrose; and that apparently said shipments of sliced potato are blanched in shortening and then frozen. cdti In reply, please be informed that your importation of frozen sliced potato is still in its original state, hence, exempt from value-added tax pursuant to Section 103(b) of the Tax Code, as amended by Executive Order No. 273. This serves as your authority to secure the release of the aforesaid importation from customs custody without the payment of the value-added tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner