Saturday, September 27, 2008

Customs Duties and VAT Calculator

Thank God, I finished it!! I made a customs duties and vat calculator using Visual Basic 6.0. It was not as easy as I imagined since I forgot some of the codes and syntaxes. The last time I used VB6 is in 4th year high school and with todays crazy life that is like gazillion years ago.

It is just an ordinary calculator. It can compute up to 4 items (shipped together). You need to input the cost, shipping cost (total shipping cost of all items), rate of exchange, rate of duty for each item and the total excise tax if there is any. The calculator is only applicable on importations through mail (ems, naia, post office).

Click the link below to download the file (.exe file):
Customs Duties and VAT Calculator

If there are any bugs, suggestions or you want more features to be added (please nothing too ambitious for my powers), please write it on the comments section.

Hope it helps :)

Tax and Duty-Free Importations

Tax and Duty-Free Importations - refers to the bringing of goods from the country of origin through a normal business transaction process wherein the payment of the corresponding duties on the goods involved as well as the value added tax (VAT) for the said transaction, are waived.

What kind of articles included and certain conditions to be met:

Duty-free importations:
Section 105 of Tariff and Customs Code of the Philippines as amended

VAT exemptions:
Section 109 of the National International Revenue Code

Other provisions: (to be updated)
Republic Act No. 8502 - Jewelry Industry Development Aft of 1998
Annex "A" and "B" of the implementing rules and regulations covering raw materials and capital equipment eligible for duty-free and excise tax-free importation by qualified jewelry enterprise.

Executive Order No. 209
Guidelines and procedures for the availment by commercial fishers of the tax and duty exempt importation of fishing vessels, equipment and paraphernalia and tax and duty rebates on fuel consumption provided for under section 35 of RA 8550 otherwise known as the Philippine Fisheries Code of 1998

About This Blog

Welcome to my blog!

I am a 4th year college student studying B.S. Customs Administration. The primary aim of this blog is to share my knowledge about customs administration. Some people (mostly ebayers) has a hard time dealing with the BOC since they have little knowledge about the customs and tariff laws. Most of them gets into a predicament that can be avoided if only they know better.

On my next posts, I will put up some faqs, guidelines and maybe a duties and taxes calculator as soon as I finished programming it.

I hope through this blog, I will be able to help lots of people.

Friday, September 26, 2008

Importation 101

What articles are subject to duty?

According to Section 100 of the Tariff and Customs Code of the Philippines as amended:

"All articles, when imported to the Philippines, are subject to duty upon each importation, even though previously exported there except as otherwise specifically provided for in the Tariff and Customs Code, as amended, or in other laws."

What are the different kinds of imported goods?

Kinds of Imported goods
  1. freely importable goods - importable goods that are neither regulated or prohibited. These goods can be imported without clearance or permit from corresponding government agencies.
  2. regulated importations - imported goods that requires clearances or permit from corresponding government agencies upon each importation.
  3. prohibited importations - imported goods that cannot be brought in the country under existing laws and regulations except otherwise permitted under strict conditions and regulations from corresponding government agency (conditionally prohibited).

Are there articles subject to duty and vat exemptions?

Yes, there are. Articles under Section 105 of TCCP as amended are duty-free importation but certain conditions (e.g. posting of re-exportation bond, permits, clearances) must be met to avail of this privilege; while vat-exempted articles are listed under Section 109 of the National Internal Revenue code of the Philippines (NIRC).

Aside from customs duties and vat, what other duties, taxes and other charges that can be levied on imported goods or during importation of goods?

Excise Tax- tax imposed on luxury goods and non-essential goods like spirits, wines, cigarettes, some petroleum products, yachts, motored vehicles etc.

Anti-dumping duty - additional duty levied aside from normal customs duties to counter the effects of "dumping". Dumping is a form of price discrimination between two national markets. It occurs when foreign producers sell their products to an importer in the domestic market at prices lower than in their own national markets , or at prices below cost of production which causes injury or threatens to injure the domestic industry producing like or comaprable products or retards the establishment of a potential industry.

Countervailing duty - a special duty levied, in addition to the regular duty and other charges, by an importing country on its imports which have been found to be subsidized in the country of origin or exportation.

Customs Documentary Stamps - fee collected for the affixing of customs documentary stamps (250 pesos).

BIR stamp - fee collected for the affixing of BIR stamp (15 pesos)

Import Processing Fee - fee collected for the prcoessing of imported goods. It depends on the total dutiable value (CIF value) of imported goods.

Warehouse storage fee - fee collected on imported goods that are not expeditiously removed and cleared from the customs bonded warehouse.

Fines and surcharges - penalties imposed on goods violating tariff and customs laws and regulations.

Other fees - fees that are normally assessed against items that require review or examination, certifications, quarantine or similar services that are required upon import by the corresponding government agency.