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.