VAT Ruling No. 095-90

April 27, 1990 VAT RULING NO. 095-90 103 (d)-193-88-095-90 Three Young Master Import Export 62 Tuazon Ave., Caloocan City S i r s : This has reference to your Application for the Release of Imported Goods (ATRIG) on your importation of 1050 cartons of Turkey raisins covered by B/L No. VL SIN MNL-1275. In connection thereto a ruling is sought on whether the importation of the aforesaid products is subject to or exempt from the value-added tax. In reply, please be informed that raisins are still fruit (grapes) products in their original state since the process of drying under which they have undergone is still classified as a simple process of preparation or preservation for the market. Such being the case, the importation thereof is exempt from VAT pursuant to Section 103(b) of the Tax Code as amended, provided that said products are packed in bulk or in big unsealed cartons or sacks. On the other hand, if they are packed in sealed marketable small packages, they are already subject to VAT. This finds support in VAT Ruling No. 193-88. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue