VAT Ruling No. 002-04

February 6, 2004 VAT RULING NO. 002-04 109 (d) 073-02 United Pharmachem Agrivet, Inc. Peony-202, Galeria de Binondo Corporation Muelle de Industria Street MANILA Attention: Mr. Elpidio Duca President Gentlemen : This refers to your letter dated December 9, 2002 requesting for a ruling that your importation of the hereunder mentioned products with their corresponding certificate of registration with the Bureau of Animal Industry, which are veterinary raw materials, feed ingredients/additive/supplements, feed premix, and purely for livestock, poultry and aqua use, is exempt from the payment of value-added tax imposed under Section 109(d) of the Tax Code of 1997, to wit. Assorted Bulk Feed Ingredients/Additives/Supplements Amoxicillin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Ampicillin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Norfloxacin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Ciprofloxacin "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Gentamycin "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Doxycycline "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Niacin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Kitasamycin, "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Pen G Procaine "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Florfenicol "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Ivermectin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Whey Powder United (Feed Ingredient) 20/25 kgs bag/drum Brand" DL-Methionine "United (Feed Ingredient) 20/25 kgs bag/drum Brand" Biotin "United Brand" (Feed Supplement) 20/25 kgs bag/drum Oxytetracycline "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" L-Carnitine "United Brand" (Feed Additive) 20/25 kgs bag/drum Creatine "United Brand" (Feed Additive) 20/25 kgs bag/drum Streptomycin "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Lincomycin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Kanamycin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Norfloxacin "United Brand" (Feed Additive/Antibiotics) 20/25 kgs bag/drum Trimethoprim "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Dimetridazole "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Zinc Bacitracin "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Dextrose Anhydrous (Feed Additive) 20/25 kgs bag/drum United Brand Di-Calcium Phosphate (Feed Ingredient) 20/23 kgs bag/drum United Brand Sulfamethazine "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Choline Chloride "United (Feed Supplement) 20/25 kgs bag/drum Brand" Sodium Bicarbonate (Feed Supplement) 20/25 kgs bag/drum United Brand Zinc Oxide "United Brand" (Feed Supplement) 20/25 kgs bag/drum Sulfadiazine "United (Feed Additive/Antibiotics) 20/25 kgs bag/drum Brand" Ferrous Sulfate "United (Feed Supplement) 20/25 kgs bag/drum Brand" Manganese Sulfate "United (Feed Supplement) 20/25 kgs bag/drum Brand" Copper Sulfate "United (Feed Supplement) 20/25 kgs bag/drum Brand" Neomycin "United Brand" (Feed Additive) 20/25 kgs bag/drum Streptomycin "United (Feed Additive) 20/25 kgs bag/drum Brand" Praziquantel "United (Feed Additive) 20/25 kgs bag/drum Brand" Tylosin "United Brand" (Feed Additive) 20/25 kgs bag/drum Sulfaguanidine "United (Feed Additive) 20/25 kgs bag/drum Brand" In reply thereto, please be informed that Section 109(d) of the Tax Code of 1997 provides that the sale or importation of fertilizers; seeds, seedlings and fingerlings; fish prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds (except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets) shall be exempt from value-added tax. ACaEcH Considering that the aforementioned products are for the sole consumption of farmers which are purely for livestock, poultry and aqua use and have been registered with the Bureau of Animal Industry as required in Section 4 of Republic Act No. 1556, the importation of the same shall be exempt from value-added tax pursuant to Section 109(d) of the Tax Code of 1997. Finally, inasmuch as the importation of the above-mentioned products is exempt from value-added tax, this will therefore serve as an authority for you to release the same from the customs custody without the necessity of applying for ATRIG on your every importation of the above-referred products from the Revenue District Office where you are registered. 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. Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group