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Chapter I. Importation

1.    WHAT ARTICLES ARE SUBJECT TO DUTY?
2.    WHEN DOES IMPORTATION BEGIN AND DEEMED TERMINATED?
3.    WHO ARE AUTHORIZED TO MAKE IMPORT ENTRY?
4.    WHEN TO FILE AN ENTRY?
5.    WHAT ARTICLES ARE SUBJECT TO DUTY?

1. WHAT ARTICLES ARE SUBJECT TO DUTY?

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.

2. WHEN DOES IMPORTATION BEGIN AND DEEMED TERMINATED?

Importation begins when the carrying vessel or aircraft enters the jurisdiction of the Philippines with the intention to unlade therein. Importation is deemed terminated upon payment of the duties, taxes and other charges due upon the articles, or secured to be paid, at a port of entry and the legal permit for withdrawal shall have been granted, or in case said articles are free of duties, taxes and other charges, until they have legally left the jurisdiction of Customs.

3. WHO ARE AUTHORIZED TO MAKE IMPORT ENTRY?

The following are authorized to make import entry:
       1.    Importers and other persons who are holders of the bill of lading.
       2.    Licensed Customs broker acting under authority from a holder of the bill.
       3.    A person duly empowered to act as agent or attorney-in-fact for each other.

(The duly notarized power of attorney should be approved by the Port Collector and no more than such continuing power may be accepted or recognized)

4. WHEN TO FILE AN ENTRY?

Entry must be filed in the Customhouse within 30 days from the date of discharge of the last package from the vessel, which shall not be extendible. Failure to file the entry constitutes implied abandonment and will result in the ‘ipso facto’ forfeiture of the goods/shipment.

5. WHAT ARTICLES ARE SUBJECT TO DUTY?

There are two kinds of import entry, to wit: Formal and the Informal Entry.

Informal Entry

  • Articles of a commercial nature intended for sale, barter or hire, the dutiable value of which does not exceed P2,000.00
  • Personal and household effects or articles, not in commercial quantity, imported in passenger’s baggage, mail, or otherwise for personal use.

Formal Entry

  • Articles of a commercial nature intended for sale, barter, or hire, the dutiable value of which is more than P2,000.00
  • Articles for, which the Collector may, upon the recommendation of the Tariff Commission for the protection of a local industry, or the revenue, require formal entry regardless of value and whatever purpose and nature of the importation.

All imported articles are subject to Formal and Informal entry except importation admitted free of duty for the official use of embassies, legation and other agencies of foreign governments who accord like privileges to corresponding agencies of the Philippines.

Chapter II. Privileges

1.    WHO ARE ENTITLED TO DUTY AND TAX FREE PRIVILEGES?
2.    ARE BALIKBAYANS ALSO ENTITLED TO CERTAIN DUTY AND TAX FREE PRIVILEGES?
3.    WHAT IS THE EXTENT OF DUTY AND TAX FREE PRIVILEGE OF RETURNING FILIPINOS/BALIKBAYANS?
4.    ARE FAMILY MEMBERS OF RETURNING RESIDENTS, OFWs AND FORMER FILIPINOS ALSO ENTITLED TO CERTAIN              PRIVILEGES?
5.    WHAT ARE THE CONDITIONS AND LIMITATIONS ATTACHED TO TAX EXEMPTION PRIVILEGES?

1. WHO ARE ENTITLED TO DUTY AND TAX FREE PRIVILEGES?

Section 105 of the Tariff and Customs Code of the Philippines as amended by Executive Order No. 206 provides duty and tax free privileges to the following individuals, the extent of which depends on their particular status:

1.    Returning Resident. A Returning Resident is a Filipino national who has gone abroad and is now returning. Only those Returning Residents who have an uninterrupted stay abroad for at least six (6) months prior to their return to the Philippines are entitled to duty and tax free privileges.
2.    Overseas Filipino Worker (OFW) is a Filipino national who worked in a foreign country under an employment contract. Only OFWs who have an uninterrupted stay abroad for more than six (6) months are entitled to duty and tax free privileges.
3.    Former Filipino. A Filipino national who has acquired foreign citizenship abroad and is now returning. Only former Filipinos who are coming to settle permanently in the Philippines and have stayed abroad for at least six months are entitled to the duty and tax exemption privileges.

2. ARE BALIKBAYANS ALSO ENTITLED TO CERTAIN DUTY AND TAX FREE PRIVILEGES?

BALIKBAYAN is another term for an OFW or a former Filipino. A returning resident is also a BALIKBAYAN when he has stayed abroad for at least one year. Balikbayans are entitled to duty and tax free privileges.

3. WHAT IS THE EXTENT OF DUTY AND TAX FREE PRIVILEGE  RETURNING FILIPINOS/BALIKBAYANS?

The extent varies as follows:

1.    Returning Resident. Personal effects and household goods used by him abroad for at least six (6) months and the dutiable value of which is not more than Ten Thousand Pesos (10,000.00) are exempt from duties and taxes. Any amount in excess of P10,000.00 is subject to 50% duty to the first P10,000.00 exemption across the board as provided for under Section 105 (F) of the TCCP.

2.    Overseas Filipino Worker (OFW). In addition to the privileges granted to Returning Residents as described above, an OFW may be allowed to bring in, duty and tax free Ten Thousand (P10,000.00) of USED home appliances, provided:
the quantity is limited to one of each kind;
1.    the privilege has not been enjoyed previously during the calendar year which fact must be declared under oath by the owner;
2.    the owner’s passport is presented at the port/airport of entry;
3.    any amount in excess of P10,000.00 will be subject to duty and tax.

3.   Former Filipino. Professional instruments and implements, tools of trade occupation or employment, wearing apparel, domestic animals, and personal household effects shall be exempt from payment of Customs duties and taxes. Provided that the change of residence was bonafide, the privilege of free entry was never availed of before and that the articles are brought from their former place of abode.

4. ARE FAMILY MEMBERS OF RETURNING RESIDENTS, OFWs AND FORMER FILIPINOS ALSO ENTITLED    TO CERTAIN       PREVILLEGES?

Yes, provided they themselves satisfy FAQs Chapter 1′s first three points

5. WHAT ARE THE CONDITIONS AND LIMITATIONS ATTACHED TO TAX EXEMPTION PRIVILEGES?

The following are the conditions for availment of duty and tax privileges;

1.    Presentation to the Bureau of Customs of a favorable written endorsement which department controls the availment of duty          and tax free exemptions.
2.    The goods extended duty and tax free privilege are not to be sold, bartered nor traded.
3.    The quantity is not commercial.
4.    The goods are not prohibited importations. (See Chapter VI. Prohibited/Restricted Importations)
5.    For regulated items, endorsements from the proper regulatory agency. (See Chapter V. Pet/Animals & Household Plants)

Contact Information

ADDRESS:

Suite 121, Sky Freight Bldg. B. Aquino Ave. Brgy. Sto. Nino, Paranaque City 1704 Philippines

TELEPHONE NUMBER:

  • (+632) 802 - 4529
  • 802 - 4536
  • 802 - 9954