Customs Duty

• Bureau Of Customs Philippines Rules And Regulations
• Philippine Bureau Of Customs

The Cash Bond could be acquired through payment of a certain premium, which would be based on 150% of the appraised value as assessed by the Bureau of Customs. The same is only valid for a period of 90 days from the date of filing of the Customs Permit with the Bureau of Customs from which it could be extended only for another 90 days.

To compute customs duty, you need two things: the total dutiable amount of the package plus the duty rate.

In the second column and row, you need to convert the total dutiable amount of the package consisted of the total goods cost, shipping fee, and insurance (if there is) to Philippine Peso using the Exchange Rates Bulletin of Bureau of Customs.

You can get the rate of duty of an item from The Tariff and Customs Code of the Philippines which is available for viewing on the Official Gazette. The document is very long so use find function (Ctrl + F) to search keywords, for example, watch. In our example, the duty rate of CDs and DVDs is 10%.

Now, here’s how to compute VAT (Value-Added Tax)

Value-Added Tax

To compute VAT, you’ll need again the total dutiable amount of the package, plus the customs duty, customs documentary stamp and import processing fee. See formula below.

Once you get the VAT and customs duty, add it to Customs Documentary Stamp and Import Processing Fee to get the total duty. Refer to the Summary of Duties on Page 2.

And as promised, here’s a scanned copy of the form, Informal Entry to be specific, which the assessor wrote the summary of duties of our example package:

I crop some parts of it because it contains personal and sensitive information.

In line with the mandate by the Bureau of Customs on balikbayan boxes sent by overseas Filipino workers, a ranking official of the agency answered the common question being asked by concerned individuals traveling to the Philippines.

“Which items in my luggage are considered taxable?”

In a news report by GMA 7, no tax is imposed on balikbayan box if it is accompanied by the passenger, and its worth does not exceed P10,000 equivalent, according to the Bureau of Customs.

Traveling Filipinos and foreign visitors into the Philippines are exempt from paying tax duties:

1. Used personal effects in non-commercial quantity
2. Wine and spirits not exceeding two bottles
3. Tobacco and cigarettes not exceeding 200 sticks
4. Cosmetics and perfumery not exceeding one bottle

But more specifically, OFWs traveling to the Philippines are also entitled to tax-free of used electric or electronic appliances for one item of each kind.

Once the value of content in a balikbayan box exceeds the prescribed amount, an ad valorem tax worth 50% of each item i is charged to the passenger.

“The policy of Bureau of Customs is a bit liberal,” said Deputy Commissioner Art Lachica, referring to how the agency charges items that are seen as obviously worth above the P10,000 tax-free limit.

For unacompanied balikbayan boxes or those sent through consolidators abroad, tax duty is imposed if the value exceeds US$500. BoC currently charges freight forwarders with tax charges for every container filled with these balikbayan boxes. In return, these companies pass on tax charges to customers who avail of their freight services.

Referring to the Philippine Consulate General in Sydney’s website, the Tariff and Customs Code of the Philippines (TCCP) mandates that all items brought into the Philippines are subject to import duties. Items, including used items, brought to the Philippines as parcels mailed through the Australian Post or sent through courier services (LBC, DHL, Fedex, etc.) are subject to tax.

The rate of import duty varies depending on the commodity imported, ranging from 3 to 50%. The schedule of rates is listed under Section 104, Tariff and Customs Code of the Philippines (TCCP), as amended.

While it is uncommon, according to BoC, that balikbayan boxes are charged after it arrives at their consignees in the Philippines, those that are deemed to exceed the US$500 value are slapped additional tax duties.

Lachica said the rates depend on the type, as well as the condition of items.

These models are also suitable for deep pile carpets or ground-in dirt. Some also have a long battery life of up to 40 minutes, meaning you'll have plenty of time to blitz through the cleaning.and both have a range of cordless vacuums that are just as powerful as traditional ones, with the added benefits of being lightweight, super portable and easy to store. Will help you get into those small corners. A combines the traditional upright vaccum with a portable, handheld vacuum that can be used on stairs or tight spaces.Often find yourself picking up crumbs by hand? Dewalt cordless vacuum cleaner. If you've got a four-legged friend in the house, a quickly picks up hair and fur from the floor.

Items are tax-free if they fall under de minimis, or items whose declared value falls at P10, a very low value under the law that has not been changed since 1957.

Currently, the Philippines has the lowest de minimis threshold, or the minimal volume of declaration of goods in the customs for consignments, in the ASEAN, at PhP10 or US$0.23. The ASEAN average threshold is at a hundred dollars.

To address the issue, BoC is pushing for the Customs modernization act which proposes to adjust de minimis to P10,000, according to Lachica.

With the moratorium of random opening of balikbayan boxes, the BoC admits it becomes more difficult to assess the value of items inside each balikbayan box.

Bureau Of Customs Philippines Rules And Regulations

(adsbygoogle = window.adsbygoogle []).push({});

Philippine Bureau Of Customs

Nonetheless, the Bureau of Customs advises the public to report instances of violation (Email: [email protected], Twitter: @customsPH, Facebook: Bureau of Customs Public Assistance and Complaint Desk)