Philippines Customs Duties and Taxes on Imports

Philippines Customs Duties and Taxes on Imports

Customs threshold (from which tariffs are required)Officially set at PHP 10 of duty amount payable. In practice, shipments valued under USD 75 and under 10 kg in weight receive duty free clearance. Average Customs Duty (Excluding Agricultural Products)6.7% Products Having a Higher Customs TariffThe highest rates apply to products derived from sugar (65%) and cereals and cereal products (50%).

 Preferential RatesWithin the framework of the AFTA, the ASEAN free trade agreement, the Philippines apply to other members a system of tariff preferences (Common Effective Preference Tariff Scheme - CEPT). For further details, see the Tariff Commission, here.

As a general rule, imported manufactured goods in competition with locally produced goods face higher tariffs than those without strong local competition. Customs ClassificationThe Philippine Customs system is based on the Standard International Trade Classification (SITC) of the United Nations (Revision 2). Duties are usually calculated ad valorem, and specified in the Philippines Customs Code. There is a program of reduction and simplification of the duties in conformity with the liberalization policy of the Philippine Government.

 A Customs system which will classify imported products into only two categories is envisaged: raw materials and finished products. For these categories, fixed rates of respectively 3% and 10% duty will be applied. 

For the calculation of import duties, the Philippines currently use the system of value based on the price of domestic consumption. Besides, the Philippine government has a contract with the services of SGS SA (Société Générale de Surveillance), a Swiss company providing inspection and valuation of imported goods with value higher than 500 USD, so as to avoid any over-invoicing or under-invoicing. Method of Calculation of DutiesThe Philippine Customs system is based on the Standard International Trade Classification (SITC) of the United Nations (Revision 2). Duties are usually calculated ad valorem, and specified in the Philippines Customs Code.

For the calculation of import duties, the Philippines currently use the system of value based on the price of domestic consumption. Method of Payment of Customs DutiesA system of electronic payment has been developed to facilitate the transmission of information and the speed of transactions.  Import Taxes (Excluding Consumer Taxes)