Tapioca hard pellets

San Miguel (Iloilo) Livestock Farm, Inc. imported 1,000 metric tons of tapioca hard pellets under bill of lading no. PP-02 on board the vessel M/V "Golden Valley". San Miguel requests the importation be exempt from the payment of the value-added tax and the refund of whatever VAT taxes have already been paid.

The following documents were submitted:

• Certification from the Bureau of Animal Industry that San Miguel (Iloilo) is duly registered as a feeds/feeds importer under Registration Certificate No. IM-510;

• Certification dated April 17, 1997, also from BAI, that imported tapioca hard pellets from Thailand are feed ingredients intended for trading purposes;

• Import permit from the Department of Agriculture; and

• Bureau of Customs receipt no. 64073715 dated April 25, 1997 for VAT payment in the amount of P393,369.

Under then Section 103(d) of the Tax Code, as amended (now Section 109(d) of the Tax Code of 1997), there are three transactions which are exempt from VAT. These are:

• the sale or importation of fertilizers, seeds, seedlings and fingerlings;

• the sale or importation of fish, prawn, livestock and poultry feeds, and

• the sale or importation of feed ingredients used in the manufacture of finished feeds (fish, prawn, livestock and poultry feeds), except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets.

It is the BAI which certifies the classification of such items for VAT exemption. (BIR Ruling No. 028-98 dated September 15, 1998). This Office has also previously ruled that the importation of tapioca hard pellets as a feed ingredient is exempt from VAT (VAT Ruling No. 064-97 dated October 17, 1997).

While your importation of 1,000MT of tapioca hard pellets is, therefore, VAT exempt, your claim for a refund equivalent to 10% VAT paid on the said importation cannot be granted. Your claim was refund was filed out of time.

Based on Section 204(c) of the Tax Code, amended by Republic Act 7716 and further amended by RA 8241 (also Section 204(c) of the Tax Code of 1997), the taxpayer must file his/her claim or refund in writing with the Commissioner of the Bureau of Internal Revenue and within two years after the payment of the tax or penalty. Records showed that you paid the amount of P393,369 on April 25,1997 and that you filed your claim for refund on October 24, 2000, clearly beyond the two-year prescriptive period.

(VAT ruling No. 043-2001 dated July 9, 2001. This ruling is issued on the basis of represented facts. However, if upon investigations, it will be disclosed that the facts are different, then this ruling shall be considered null and void).