VAT Ruling No. 011-04

April 26, 2004 VAT RULING NO. 011-04 Sec. 109 (d) 073-02 002-04 United Pharmachem Agrivet, Inc. Peony-202, Galleria de Binondo Corporation Meulle de Industria Street Manila Attention: Atty. Biddy Tin Tan Gentlemen : This refers to your letter of even date requesting for the modification of VAT Committee Ruling No. 002-2004 dated February 6, 2004 through the withdrawal of its penultimate paragraph quoted as follows: "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 for applying for an ATRIG on your every importation of the above-referred products from the Revenue District Office where your are registered." This request is triggered by your allegation that the Bureau of Customs (BOC) does not want to release your imported items of veterinary raw materials, feed ingredients/additive/supplements, and feed premix purely for poultry, livestock and aqua use, which were enumerated and held as exempt from the VAT pursuant to BIR Ruling No. 002-2004, thus, the BOC still requires that said importation be covered by an Authority to Release Imported Goods (ATRIG). On the other hand, Revenue District Office No. 33, the BIR office tasked to process an ATRIG in this instance does not want to act on your application in view of the above-quoted portion of VAT Ruling No. 002-2004. In reply, please be informed that the BOC and the BIR has entered an agreement through BIR-BOC Joint Memorandum Circular No. 1-2002 dated September 16, 2002 as circularized through RMC No. 48-02 dated November 6, 2002 whereby it was agreed that no ATRIG shall be required on the importation of tax-exempt articles enumerated therein. However, said Joint Circular provides that "Pending resolution on the taxability of certain imported articles and issuance of clear policies and procedures on the issuance of certifications from concerned regulatory agencies, the appropriate ATRIG shall still be secured from the BIR on the following articles until such time that a supplementary circular expanding the coverage of the above list shall have been secured: 1. Feed and feed ingredients, 2. . . ." Such being the case, your aforesaid importation of feed and feed ingredients still requires the issuance of an ATRIG. Accordingly, the penultimate paragraph of VAT Ruling No. 002-2004 dated February 6, 2004 is hereby withdrawn. This will serve as an instruction to and authority for Revenue District No. 33 to process your application for ATRIG on the instant importation. DAETHc Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group