VAT Imposed on Imported Liquid Glucose Feedgrade and Sulfadamine Feed Additives

April 21, 1988 BIR RULING NO. 160-88 101 (a) 113-88 160-88 Gentlemen : In reply to your letters dated April 5 and 6, 1988 please be informed that your imported Liquid Glucose Feedgrade and Sulfadamine feed additives which are raw materials in the manufacture of poultry feeds are subject to value-added tax equivalent to 10% based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise taxes, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody, pursuant to Section 101(a) of the Tax Code as amended by Executive Order No. 273. This is so because under Section 103(c) of the same Code, the exemption covers only the importation of manufactured fish, animal and poultry feeds but not the raw materials used in the manufacture of said feeds. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner