VAT Ruling No. 005-01

February 16, 2001 VAT RULING NO. 005-01 Sec. 109 (d) 000-00 United Pharmachem Agrivet, Inc . Rm. 315 Federation Center Building Muelle de Binondo Street Binondo, Manila Attention: Mr . Elpidio Duca President Gentlemen : This refers to your letter dated July 28, 2000 requesting for a ruling that your importation of the hereunder mentioned products per certificates duly issued by the Bureau of Animal Industry (BAI), are veterinary raw materials, feed additive/supplements, feed premix, water soluble powder, oral solution which are 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. The following are the imported animal feed ingredients together with the corresponding date of Certificates of Registration issued by the BAI. PUCHENG CHIA TAI BOICHEMISTRY 1. Shihao CTC 10% F.G. Powder (BAI Certificate dated September 7, 2000) 2. Shihao CTC 15% Powder - do - 3. Shihao CTC 15% Granulated - do - 4. Shihao CTC 20% Powder - do - 5. Chlotetracycline HCI 95% minimum - do - INTERNATIONAL NUTRITION, INC. 1. Biovitacon (BAI Certificate dated September 7, 2000) 2. In-Stress F.G. - do - 3. Microferm 24 - do - 4. Powder Premix - do - 5. Multiferm 40 - do - 6. Multivitamins + Minerals - do - 7. Potassium, Sodium, Chloride - do - 8. Spectralyte Water Soluble - do - 9. SpectralytePlus - do - 10. Sweet Iron F. G. - do - 11 Sweet Iron Oral Feed Grade Premix (BAI Certificate, September 7, 2000) 12. Swine Milk Maker - do - 13. Swine Trace Mineral - do - 14. Vitamin ADE - do - DOXAL ITALIA S.p.A 1. Albendazole 12.5% (BAI Certificate dated September 7, 2000) 2. Ampicillin trihydrate - do - 3. California CSP 250 - do - 4. California CSP 500 - do - 5. Diaveridine, Sulfadimethoxine Sulfaquinoxaline - do - 6. Doxamyxin - do - 7. Doxatrim - do - 8. Doxycycline 20% - do - 9. Eritrodox 200 - do - 10. Flumequine 20% Oral Solution - do - 11. Flumequine 500 - do - 12. Iodine - do - 13. Maxidox - do - 14. Maxifort - do - 15. Metem 6.6% - do - 16. Monensin 100 - do - 17. Moxalene - do - 18. Multidox - do - 19. Nicarbazin - do - 20. Oxiter 200 - do - 21. Selenium 1% BMP Powder Premix - do - 22. Sequam Oral Solution - do - 23. Sodium Salinomycin - do - 24. Sulfamethazine 200 BMP - do - 25. Tiamulin - do - 26. Trace Mineral Oral Solution - do - 27. Tylosin 20% - do - 28. Unigramin Milk - do - 29. Vitamin ADE - do - 30. Vitamin ADEC - do - 31. Vit., Min. + Nat. Extracts - do - 32. Vitaquin Plus 10% - do FARVET LABORATORIES 1. Amoxicillin 15% Injection (BAI Certificate dated October 6, 2000) 2. Ampicillin (BAI Certificate dated September 7, 2000) 3. Chlortetracycline 20% - do - 4. Dexamethasone 2mg/ml (BAI Certificate dated October 6, 2000) 5. Doxycol Water Soluble Powder (BAI Certificate dated September 7, 2000) 6. Erythromycin Thiocyanate - do - 7. Far Ampicoli Injection - do - 8. Far-amject Injection (BAI Certificate dated October 6, 2000) 9. Far-G-50 Injection - do - 10. Far-streptomycin Sulfate 200mg/ml - do - 11. TMP Oral Solution (BAI Certificate dated September 7, 2000) 12. Oxytetracycline (BAI Certificate dated October 6, 2000) 13. Fartrim 200mg/40 mg per ml - do - 14. Ferridex 100 - do - 15. Ferridex 200 - do - 16. Gentamycin Sulfate (BAI Certificate dated September 7, 2000) 17. Lincomycin/Spectinomycin (BAI Certificate dated October 6, 2000) 18. Multivitamin - do - 19. Multivitamin (B-complex) - do - 20. Norfloxacin Oral Solution (BAI Certificate dated September 7, 2000) 21. Oxytocin (BAI Certificate dated October 6, 2000) 22. Oxyvet Aerosol Spray - do - 23. Pen L.A. - do - 24. Phenylbutazone + Isopropyl-aminophenazone - do - 25. Vitamin ADE - do - APHARMO B.V. 1. Amoxicillin + Colistin Injection (BAI Certificate dated October 6, 2000) 2. Colistin Sulfate (BAI Certificate dated September 7, 2000) 3. Doxycycline 10% (BAI Certificate dated October 6, 2000) 4. Gentamycin 10% - do - 5. Trimethoprim + Colistin - do - 6. Vitamin ADE - do - FEED INGREDIENT UNDER RA 1556 1. United Sodium Cyclamate (BAI Certificate dated September 7, 2000) 2. Quanzhou Daquan L-Lysine Monohydrochloride - do - 3. Soya Bean Meal - do - In reply thereto, please be informed that Section 109(d) of the Tax Code of 1997 provides that 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. Considering that the aforementioned products are for the sole consumption of farmers 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, it is therefore safe to conclude that the importation of the same shall be exempt from value-added tax pursuant to Section 109(d) of the Tax Code, supra . 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.) RENE G. BAEZ Commissioner of Internal Revenue