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Chapter III. Duty-Free Shopping

1.    WHAT ARE DUTY FREE STORES?
2.    WHERE ARE THESE STORES LOCATED?
3.    WHAT ARE SPECIAL ECONOMIC ZONES?
4.    WHO ARE ENTITLED TO DUTY FREE SHOPPING PRIVILEGES?
5.    WHAT ARE THE LIMITS TO DUTY FREE PRIVILEGES?
6.    CAN A FREQUENT TRAVELLER AVAIL OF THE PRIVILEGE EVERYTIME HE/SHE TRAVELS?
7.    WHAT ARE THE CONDITIONS ATTACHED TO DUTY FREE SHOPPING?

1. WHAT ARE DUTY FREE STORES?

Duty free stores are retail establishments licensed by the government to sell duty and tax free merchandise for the convenience of travelers. Government earns revenues from the operation of these stores which are utilized to defray tourism and other related projects.

2. WHERE ARE THESE STORES LOCATED?

Those operated by the Philippine Tourism Authority (PTA) are generally located at Fiesta Mall Shopping Center and NAIA. The following are the existing stores:

  •  Ninoy Aquino International Airport, Pasay City Departure Lounge Arrival Area, Arrival Ramp Extension
  • Fiesta Mall Shopping Center, Ninoy Aquino Ave., Paranaque

3. WHAT ARE SPECIAL ECONOMIC ZONES?
Special Economic Zones are selected areas of the country with highly developed infrastructure or which have the potential to be developed into agri-industrial tourist/recreational, commercial, banking, investment, financial centers. Duty and tax-free flow of goods are allowed provided such goods are consumed therein. Once these goods are brought out of the eco zones, they become subject to applicable duties and taxes.

4. WHO ARE ENTITLED TO DUTY FREE SHOPPING PRIVILEGES?

All passengers arriving from abroad are entitled, subject to the limitation in A2.6 and the conditions in A2.7.
All passengers arriving from abroad can avail of the privilege within forty-eight (48) hours from date of arrival, upon presentation of valid passport, flight ticket and boarding pass.

5. WHAT ARE THE LIMITS TO DUTY FREE PRIVILEGES?

Limits as to amount:

  • Balikbayans: 18 years old & above = US$2,000; Minors (below 18 years) = US$250.
  •  All other Passengers: 18 years old & above = US$1,000; Minors (below 18 years) = US$250.

Limits as to quantity:

  • Cigarettes: two (2) reams
  • Tobacco: two (2) tins
  • Liquor and/or wine: two (2) bottles
  • Non-consumable items of each kind whose value exceeds US$200.00: only one (1)

6. CAN A FREQUENT TRAVELLER AVAIL OF THE PRIVILEGE EVERYTIME HE/SHE TRAVELS?

Yes, but the total purchase for any calendar year must not exceed Ten Thousand US Dollars (US$10,000.)

7. WHAT ARE THE CONDITIONS ATTACHED TO DUTY FREE SHOPPING?

The duty-free shopping shall be subject to the following conditions:

1.    Purchase shall only be made in the United States dollars (US$) or other acceptable foreign currencies;
2.    Purchases shall be made within forty-eight (48) hours from date of arrival;
3.    The privilege is non-transferrable. Purchases shall be made personally by the passenger himself;
4.    The Balikbayan privilege can be availed of only once a year and if the Balikbayan arrives again within the year, he/she will              be considered a regular passenger for shopping purposes;
5.    A minor can purchase consumable items only. A minor cannot purchase liquors, wines, cigarettes, electronics, and home              appliances;
6.    A tourist can purchase electronics and home appliances but the purchases shall be subject to payment of duties and taxes.

Chapter IV. Motor Vehicles, Boats & Yachts

1.    CAN ANYONE BRING IN A MOTOR VEHICLE?
2.    WHEN IS A MOTOR VEHICLE BRAND NEW?
3.    HOW ABOUT MOTOR VEHICLES NOT OF CURRENT OR ADVANCE YEAR MODEL?
4.    WHAT ABOUT USED MOTOR VEHICLES?
5.    WHO IS QUALIFIED TO IMPORT USED MOTOR VEHICLES?
6.    IS PERSONAL PRESENCE OF THE CAR-OWNER NECESSARY?
7.    IS THERE ANY OTHER RESTRICTION ON THE MOTOR VEHICLE THAT MAY BE BROUGHT IN?
8.    IS THE IMPORTED VEHICLE SUBJECT TO TAXES AND DUTIES?
9.    ARE SPARE PARTS SENT WITH THE MOTOR VEHICLE ALSO TAXABLE?
10.  HOW CAN WE INQUIRE THE TAXES AND DUTIES PAYABLE?
11.  ARE THERE OTHER CHARGES ASIDE FROM TAXES AND DUTIES?
12.  HOW IMPORTANT IS THE PRIOR IMPORT AUTHORITY (PIA)?
13.  HOW IS PIA OBTAINED?
14.  WHERE IS THE BIS LOCATED?
15.  IS DEPRECIATION IN VALUE ACCORDED TO IMPORTED VEHICLES?
16.  IS THE IMPORTATION OF MOTOR VEHICLE SUBJECT TO PRE-SHIPMENT INSPECTION (PSI) BY SGS IN THE COUNTRY        OF EXPORTATION?
17.  HOW LONG DOES IT TAKE TO CLEAR MOTOR VEHICLE IMPORTATIONS FROM CUSTOMS?
18.  ARE IMPORTATIONS OF BOATS, YACHTS AND MOTORIZED FARM IMPLEMENT ALLOWED?

1. CAN ANYONE BRING IN A MOTOR VEHICLE?

Yes, provided that the motor vehicle is brand new. Under BangkoSentralngPilipinas (BSP) Circular 92, Series of 1995, dated October 15, 1995, the importation of a brand-new motor vehicle of all types, including motorcycles has been liberalized and would no longer thus require prior authority to import.

2. WHEN IS A MOTOR VEHICLE BRAND NEW?

A motor vehicle is brand new if and only if the following criteria are satisfied:
1.    That the motor vehicle is of current or advance year model;
2.    It has never been registered or used;
3.    It is covered by a certificate of first ownership;
4.    Of the year of the immediate preceding year in the country of origin and/or manufacture provided that: 

    1.    The motor vehicle has a mileage of not more than 50 kilometers and;
    2.    The motor vehicle has been acquired by the importer from the dealer as first owner.

3. HOW ABOUT MOTOR VEHICLES NOT OF CURRENT OR ADVANCE YEAR MODEL?

They shall be processed as in used motor vehicle.

4. WHAT ABOUT USED MOTOR VEHICLES?

Only qualified individuals may bring in a used motor vehicle which shall be duly covered by a prior authority to import. Under appendix 1-D of BSP Circular-Letter, Series of 1995, dated October 19, 1995, the importation of used vehicles continue to be regulated and would therefore require prior authority from the Bureau of Import Services (BIS), Department of Trade and Industry (DTI).

5. WHO IS QUALIFIED TO IMPORT USED MOTOR VEHICLES?

Pursuant to Sec.3 of E.O.156 and Sec.1,Part II of the  Implementing Guidelines thereof, the following individuals are allowed to import used motor vehicle under the No-Dollar Import Program:

1.    Returning Resident- a Filipino citizen who has stayed in a foreign country for at least one (1) year and which residency shall be accumulated within the three (3) year period immediately preceding the date of filing of the application.
2.    Immigrant-a person issued any of the following types of visa under the Philippine Immigration Act of 1940,as amended:
    1.    A Filipino citizen and a holder of 13G Visa under Sec.13, Sub g(13g);or
    2.    A foreign national married to a Filipino and a holder of 13A Visa under Sec.13,Sub a (13a);
   3.    A Filipino citizen and holder of 47A and 47A2 issued to awardees of Special Government Project/s (SPG).e.g. Philippine Retirement Authority and Balik-Scientist Program.

Provided that:

1.    The vehicle has a gross vehicle weight (GVW) not exceeding three (3) tons;
2.    It is covered by an authority to import (Certificate of Authority to Import) issued under the No-Dollar Importation Program by          the Bureau of Import Services (BIS) ;
3.    It is personally owned and registered under the name of a returning resident or immigrant at least six (6) months prior to                the date of application for permit to import with the BIS ;
4.    It is for personal use;
5.    It cannot be resold for at least three (3) years.

6. IS PERSONAL PRESENCE OF THE CAR-OWNER NECESSARY?

Personal presence by the car-owner of the used motor vehicle is required.

7. IS THERE ANY OTHER RESTRICTION ON THE MOTOR VEHICLE THAT MAY BE BROUGHT IN?

Yes. Whether brand-new or not, the motor vehicle should be left-hand drive.

8. IS THE IMPORTED VEHICLE SUBJECT TO TAXES AND DUTIES?

Yes. Whether brand-new or used, purchased or donated, the imported vehicle is subject to 40% Customs duty, 10% VAT and Ad Valorem Tax from 15% to 100% depending on its piston displacement. Its book value serves as the tax base and not the purchase price nor the acquisition cost. The book value is sourced from universally accepted motor vehicle reference books such as the Red Book, Blue Book, World Book depending on the origin of the imported vehicle.

9. ARE SPARE PARTS SENT WITH THE MOTOR VEHICLE ALSO TAXABLE?

Yes. These are taxed separately.

10. HOW CAN WE INQUIRE THE TAXES AND DUTIES PAYABLE?

By writing and providing information about the vehicle as to the make, brand, year model, piston displacement, Vehicle Identification Number (VIN) or chassis number or sending a copy of the registration to:
Valuation Center & Library
Bureau of Customs
South Harbor, Manila

and

One Stop Processing Center
Motor Vehicle
Manila International
Container Port
North Harbor, Manila

11. ARE THERE OTHER CHARGES ASIDE FROM TAXES AND DUTIES?

Yes. There are other non-customs charges that may be due on the shipment such as: storage and arrastre fees which may be collected by the privately-owned arrastre operator; by the shipping line and wharfage dues by the Philippine Ports Authority (PPA).

12. HOW IMPORTANT IS THE PRIOR IMPORT AUTHORITY (PIA)?

It is very important if the vehicle would not qualify as brand-new as herein defined. A used motor vehicle not covered by PIA shall be seized and may only be released upon payment of heavy penalties on top of the taxes and duties due thereon.

13. HOW IS PIA OBTAINED?

By submitting to BIS a duly accomplished application form which may be obtained from it and the following documents duly authenticated by the nearest Philippine Consulate abroad where the car-owner resides:

    1.    Proof of his continuous stay abroad for at least one (1) year;
    2.    Copy of the registration papers showing that the vehicle is registered in his name for at least six (6) months;
    3.    Proof that the car was acquired out of the earnings abroad.

14. WHERE IS THE BIS LOCATED?

The address is as follows:

Bureau of Import Services
3rd Flr., Welding Industries of the Philippines Building
349 Sen. Gil Puyat Avenue Makati City, Metro Manila
Tel. No. (632)895-7466

15. IS DEPRECIATION IN VALUE ACCORDED TO IMPORTED VEHICLES?

Yes, if the imported motor vehicle is an older model or an earlier than the current year model. The depreciation schedule is 10% per year counted downwards from current year which has a depreciation rate of zero percent (0%). Motor vehicles with a piston displacement of 2000 cc and above may be given a maximum depreciation of 50%, while those below 2000 cc, up to the maximum of 70%.

16. IS THE IMPORTATION OF MOTOR VEHICLE SUBJECT TO PRE-SHIPMENT INSPECTION (PSI) BY SGS IN THE COUNTRY      OF EXPORTATION?

Under Joint-Order 1-91, individually owned motor vehicle is not subject to pre-shipment inspection by SGS. The importation thereof need not be covered by a Clean Report of Findings (CRF) issued by SGS. Non-individually-owned vehicles or those imported for commercial purposes should therefore undergo PSI and their importation should be covered by CRF.

17. HOW LONG DOES IT TAKE TO CLEAR MOTOR VEHICLE IMPORTATIONS FROM CUSTOMS?

Given a complete documentation, clearance for the release of the imported vehicle in the One Stop Processing Center (OSPC) takes place within forty-eight (48) hours from the filing of Customs entry.

18. ARE IMPORTATIONS OF BOATS, YACHTS AND MOTORIZED FARM IMPLEMENT ALLOWED?

Yes, subject to payment of taxes and duties.

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