VAT Ruling No. 029-99

March 18, 1999 VAT RULING NO. 029-99 Section 109 (d) 448-88 029-99 Pioneer Hi-Bred Philippines, Inc . Strata 200 Building, Emerald Avenue Ortigas Center, 1605 Pasig Metro Manila Attention: Jet Marcial G . Parma Country Manager Gentlemen : This refers to your letter dated 4 March 1999 requesting for confirmation of your opinion that your importation of Pioneer brand commercial corn seeds is exempt from Value-Added Tax (VAT). cdll It is represented that Pioneer Hi-Bred Philippines, Inc. (PHPI) is a domestic corporation engaged in the manufacture, sale and distribution of agricultural products; that in the course of its operations, PHPI imports Pioneer brand commercial corn seeds from Indonesia and Thailand; that for importations covering the period August to December 1997, PHPI erroneously paid VAT which payments are now subject of a claim for refund; that subsequent importations were however exempted from VAT; that nevertheless, the Bureau of Customs requires an "Authority to Release Imported Goods" for every importation made; that to avoid the tedious process of having to secure exemption for every similar importation, you now request for a ruling or confirmation on the exempt status of such importation. In reply, please be informed that the sale or importation or seeds or seedlings is exempt from VAT pursuant to Section 109(d) of the Tax Code of 1997 (BIR Ruling 488-88 dated September 13, 1988). Hence, we confirm your opinion that your importation of Pioneer brand commercial corn seeds is VAT-exempt pursuant to said section. However. we could not do away with the Authority to Release Imported Goods" (ATRIG) for every importation you made since the same is employed as the administrative mechanism for the Bureau of Customs not to collect the VAT on exempt importations. Thus, the general rule is that the customs authority will collect VAT on all importation of goods, except exempt importations as evidenced by a duly-issued ATRIG. cdll Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal and Enforcement Group