VAT Ruling No. 030-02

April 30, 2002 VAT RULING NO. 030-02 Section 109 (c) BIR Ruling No. 280-88 Ilyon Industrial Corp. 2ic St. Dominic Street, ITC Compound, Bagbaguin, Valenzuela City Attention: Mr. Benedict L. Tan President Gentlemen : This refers to your letter dated September 14, 2001 requesting that your importation of industrial salt be exempted from the Value Added Tax (VAT). It is represented that your company is engaged in importing various items supplying different industries in the Philippines; that your importation of industrial salt came from Lianyungang Port, China on board vessel M.V. Tai Hua; and that it will tentatively arrive at the PNOC Port of Batangas on September 28, 2001. In reply, please be informed that based on the aforesaid representation and in view of the Commissioner's letter to the President of the Philippine Association of Supermarket, Inc. dated November 3, 1987, your importation of industrial salt, alternatively known as table salt, which is neither iodized nor refined, is exempt from the value added tax of 10% pursuant to Section 109(c) of the Tax Code of 1997. Accordingly, this ruling shall serve as authority of the Bureau of Customs to release the above importation, which shall be in lieu of the issuance of the Application to Release Imported Goods (ATRIG). This ruling is being issued on the basis of the 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, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group