VAT Ruling No. 073-02

October 23, 2002 VAT RULING NO. 073-02 109 (d) 000-00 United Pharmachem Agrivet, Inc. Peony-202, Galeria de Binondo Corporation Muelle de Industria Street Manila Attention: Mr. Duca Gentlemen : This refers to your letter dated February 11, 2002 requesting for a ruling that your importation of the hereunder mentioned products with their corresponding certificate of registration with the Bureau of Animal Industry, 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, to wit. CPR No. A. Products manufactured by Pucheng Chia Tai-China 1. Shihao CTC 20% Granulated VRI-99-904 B. Products manufactured by International Nutrition, Inc.-USA 1. Multivitamins+Minerals Powder Premix VRI-00-1015 2. Poultry Amino Acid VRI-01-1249 3. Swine Amino Acid VRI-01-1250 4. Vitamix II VRI-92-91 5. Vitamins+Minerals WSP VRI-97-574 6. Xylanase+Protease Powder VRI-01-1266 C. Products manufactured by Doxal-Italia S.p.A.-Italy 1. Albendazole 10% Oral Suspension VRI-97-595 2. Altigall WSP VRI-96-530 3. Chloramine T WSP VRI-98-744 4. Italy CSP 250 HC Feed Grade VRI-97-596 5. Italy CSP 500 HC Feed Grade VRI-97-597 6. Sequam 12% Oral Solution VRI-98-799 D. Products manufactured by Farvet Laboratories-Holland 1. Albendazole 10% VRI-97-620 2. Ampicillin 20% WSP VRI-98-710 3. Bifarmin Oral Solution VRI-98-817 4. Coliban-S WSP VRI-93-126 5. Diasul-S WSP VRI-01-1134 6. E.L. Mix WSP VRI-93-127 7. Far Tylo 100 Premix VRI-93-102 8. Farvisol WSP VRI-96-515 9. Far Vita Oral Solution VRI-97-684 10. Far Vita Forte Oral Solution VRI-97-567 11. Far Vita ADEC Oral Solution VRI-97-638 12. Flumequine 10% WSP VRI-97-698 13. L.S. Mix WSP VRI-93-103 14. Osteovit Oral Solution VRI-97-683 15. Sodium Salicylate WSP VRI-94-249 16. Sulfadimidine Sodium WSP VRI-96-397 E. Feed Ingredients (Under RA 1556) 1. Spray Dried Plasma-INI, USA 2. DCP-Guizhou, China 3. MCP-Guizhou, China 4. MDCP-Guizhou, China 5. L-Lysine Mono HCI-Helm AG-Phil. Asiacehm, Germany 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 which are 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 of 1997. 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 custom custody without the necessity of applying for ATRIG on your every importation of the above-referred products from the Revenue District Office where you are registered. 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.) EDMUNDO P. GUEVARA Deputy Commissioner Legal & Inspection Group