Defining Raw Sugar or Raw Cane Sugar

Case Overview and Summary

Summary of Republic Act No. 10864

Definition of Raw Sugar or Raw Cane Sugar [Section 1]
- Raw sugar or raw cane sugar is defined as sugar whose sucrose content by weight, in the dry state, corresponds to a polarimeter reading of less than 99.5 degrees.

Exempt Transactions from Value-Added Tax (VAT) [Section 1]
- Sale or importation of the following are exempt from VAT:
    - Agricultural and marine food products in their original state, livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption; and breeding stock and genetic materials therefor. [Section 1(A)]
        - Products classified under this paragraph shall be considered in their original state even if they have undergone simple processes of preparation or preservation for the market, such as freezing, drying, salting, broiling, roasting, smoking or stripping.
        - Polished and/or husked rice, corn grits, raw sugar or raw cane sugar and molasses, ordinary salt and copra shall be considered in their original state. [Section 1(A)]
- Services by agricultural contract growers and milling for others of palay into rice, corn into grits and sugar cane into raw sugar or raw cane sugar are exempt from VAT. [Section 1(F)]

Implementing Rules and Regulations [Section 2]
- The Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, shall issue the implementing rules and regulations of this Act within ninety (90) days starting from the effectivity of this Act.
- The failure of the concerned agencies to promulgate the said rules and regulations shall not prevent the implementation of this Act upon its effectivity.

Repealing Clause [Section 3]
- All laws, acts, decrees, executive orders, issuances, and rules and regulations or parts thereof which are contrary to and inconsistent with any provision of this Act are hereby repealed, amended, or modified accordingly.

Separability Clause [Section 4]
- If any provision of this Act is subsequently declared unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect.

Effectivity [Section 5]
- This Act shall take effect immediately after its complete publication either in the Official Gazette or in a newspaper of general circulation in the Philippines.