VAT Ruling No. 052-90

February 23, 1990 VAT RULING NO. 052-90 101-00-000-052-90 Cane and Grapes, Inc. 23 Jamacca Street Forest Hills Subdivision Novaliches, Quezon City Attention: Mr . Wilson Sy Import Manager Gentlemen : This refers to your letter dated January 25, 1990 requesting for the issuance of the Authority to Release Imported Goods (ATRIG) on your importation of frozen potato fries covered by B/L Nos. 009571886 and 009572176. In this connection, you also request for the confirmation that pursuant to BIR Ruling No. 135-88 the importation of frozen sliced potatoes is exempt from VAT since they are still considered in their original state. As represented in the product label, the ingredients involved are potatoes, a blend of beef fat and cotton seed oil, dextrose, sodium acid pyrophosphate added to maintain natural color. For preservation purposes, the sliced potatoes are blanched in shortening and are frozen. The laboratory report from the Bureau of Plant Industry states that, on the basis of the analysis of the chemical contents of the aforecited products, these have already undergone processing; hence these are not considered in their original state anymore. Such being the case, their importation is already subject to the 10% VAT pursuant to Section 101 of the Tax Code, as amended. This revokes BIR Ruling No. 135-88. aisadc Very truly yours, JOSE U. ONG Commissioner of Internal Revenue