All imported articles invite import taxes, even those having been previously exported (except special mention envisaged in the Tariff and Customs Code or another regulation). The entry form must be filled in at the Customs Office in the 30 days following the unloading of the last package, failing to do which amounts to an abandonment of the goods and ipso facto confiscation of the cargo.

1. IMPORT PROCEDURES AND DOCUMENTATION

2. Customs
PROCEDURES
The importation of certain commodities is
regulated or prohibited. Imports are
classified as follows:
All imported articles invite import taxes, even those
having been previously exported (except special
mention envisaged in the Tariff and Customs Code or
another regulation). The entry form must be filled in at
the Customs Office in the 30 days following the
unloading of the last package, failing to do which
amounts to abandonment of the goods and ipso facto
confiscation of the cargo.
 Freely Importable Commodities – imported
good or commodities without securing the
approval from the Bangko Sentral ng Pilipinas
(BSP) or any government regulatory agencies.
 Regulated Commodities – goods or
commodities requiring clearance/permits from
different government agencies but not
requiring a prior approval from BSP.
 Prohibited or Banned Commodities – goods or
commodities whose importation are prohibited,
and requires a prior BSP approval.

3. STEP 1. REGISTRATION
OF BUSINESS
Sole Proprietorship is to be registered in DTI
(Department of Trade and Industry)
Partnerships and Corporations is to be registered in SEC
(Securities and Exchange Commission)

4.  ARMD (Accounts Receivables Monitoring Division)
- Bureau of Internal Revenue – Import Clearance Certificate
 AMO (Accounts Management Office) Formerly Interim Customs
Accreditation Registration Unit (ICARE)
- CPRS (Client Profile Registration System)
- Customs Client Number
STEP 2.
ACCREDITATION OF THE
IMPORTER
SECURING PERMITS AND OTHER
REQUIRED DOCUMENTS
 Value-Added Service Providers (VASPS)
- CARGO DATE EXCHANGE CENTER, INC. (CDEC)
www.cdec.com.ph
Tel. 851-8978 and 853-9434
- E-KONEK PILIPINAS, INC. www.ekonek.com
Tel. 879-8310 and 879-8485
- INTERCOMMERCE NETWORK SERVICES, INC. (INS)
www.intercommerce.com.ph
Tel. 843-2792 and 845-0509
 Cargo Surveying Companies
- Load Port Surveys

5. STEP 3. CLASSIFICATION OF
GOODS
 Freely imported commodities
 Regulated Commodities Circular 794
Series of 2013 BSP
 Prohibited or Banned Commodities Sec.
101 TCCP
STEP 4.
LODGEMENT
 Lodgment of IEIRD Entry (SAD), at
CEDEC, EKONEK or I-Commerce
(VASP)
ELECTRONIC TO MOBILE (E2M)

6. STEP 5. PROCEDURES
TO BUREAU OF
CUSTOMS
 Electronic Receipt of Goods declaration and
Manifest data
 Selectivity and Assessment
- Super Green Lane
- Yellow Lane
- Red Lane
 Final Assessment of Duties and Taxes
 Issuance of Release Instructions
 Payment processing for Port charges and
Issuance of Gate Pass (ARRASTRE CHARGES)
 Cargo Release from port/airport

7. IMPORT DOCUMENTS
REQUIRED IN ALL
SHIPMENTS TO THE
PHILIPPINES
 Commercial Invoice
 Bill of Lading or Airway Bill for air
shipments
 Certificate of Origin, if requested
 Packing List
 Applicable special certificates required due
to the nature of goods being
shipped/requested by
importer/bank/letter of credit clause, such
as the Bureau of Food and Drugs (BFAD)
license
 Commercial Invoice of Returned Philippine
Goods and Supplemental Declaration on
Valuation
 For Letter of Credit (L/C) Transaction, a
duly accomplished Letter of Credit (L/C)
including Proforma Invoice and Import
Entry Declaration for Advance Customs
Import Duty (ACID)
 For non-L/C Transactions, either Draft
Documents against Acceptance (D/A),
Documents Against Payment (D/P),
Open Account (OA) or self-funded, a
Proforma Invoice
 Single Administrative Document
(SAD)
 Other additional documents as may
be required, such as
- ATRIG (VAT- exempt goods)
- Certificate of Origin (CO)
- Import Permit for regulated
items
- Health Certificate

8. 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
tariff
- The highest rates apply to
products derived from sugar
(65%) and cereal products
(50%).

9. PREFERENTIAL
RATES
Within 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). As a
general rule, imported manufactured goods in
competition with locally produced goods face
higher tariffs than those without strong local
competition.

10. TYPE OF IMPORT ENTRY
 Consumption Entry – import entry for the immediate use of the
imported materials. For this type of entry, the lawful duties, taxes and
other charges are collected before the goods are allowed to be
released from the custom zone
 Warehousing Entry – import entry wherein the imported articles are
transferred out of the custom zone and entered into a custom bonded
warehouse without prior payment of duties and taxes
TYPES OF WAREHOUSING
FACILITIES
 Bonded Manufacturing Warehouse – (BMW) privately owned facility
which store the importation only of the operator of said warehouse
 Common Bonded Manufacturing Warehouse – (CBMW) privately
owned facility which store the importation of several firms that can
not afford to operate its own warehouse, as such they pay a
corresponding service fee/charge for its use to the operator of such
facility

11. METHOD OF
CALCULATION
OF DUTIES
The 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.

12. METHOD AND MODES OF
PAYMENT OF CUSTOM
DUTIES
A system of electronic payment has been developed to
facilitate the transmission of information and the speed of
transactions.
 Documents Against Acceptance (D/A)
- the shipping documents are released to the
importer by the local bank concerned thru the seller's
bank upon the importer's acceptance of the seller's bill
of exchange obligating the importer to pay for the
shipment at some future date.
 Letter of Credit ( L/C)
- A financial device developed by
merchants as a convenient and relatively safe
mode of dealing with sales of goods to satisfy
the seemingly irreconcilable interests of the
seller, who refuses to part with his goods
before he is paid, and a buyer, who wants
to have control of the goods before paying.
 Open Account (O/A)
- The shipping documents are sent and released
by the seller directly to the importer without coursing the
documents thru the banks, upon the importer's promise
to pay at some future date after shipment.
 Importation on Consignment
- All articles imported into the Philippines shall be
held to be the property of the person to whom the same
are consigned; and the holder of a bill of lading duly
indorsed by the consignee therein named, or, if consigned
to order, by the consignor, shall be deemed the consignee
thereof. The underwriters of abandoned articles and the
salvors of articles saved from a wreck at sea, along a coast
or in any area of the Philippine may be regarded as the
consignees (Sec. 1203. Owner of Imported Articles)

13. IMPORT TAXES
(EXCLUDING
CONSUMER TAXES)
Import taxes vary from 3 to 50% according to the product.
CUSTOMS BROKER
 An expertise of tariff and customs laws, rules and
regulations for the clearance of imported or
exported goods or merchandise from customs
authority
 Preparation of import or export documents
including computation and payment of duties,
taxes and other charges accruing thereon
 Representing clients before any government
agency concerning classification or valuation of
imported or exported goods
 Bona fide holder of a valid license as such by the
Professional Regulatory Board for Custom
Brokers.

14. CUSTOMS
BROKER’S ROLES
AND DUTIES
 Consultation on matters
- tariff and customs law
- rules and regulations thereof and all other
law
- rules and regulations in connection with
activities of importation and exportation
 Preparation of customs requisite documents for
import and export
 Declaration of customs duties and taxes
 Preparation, signing, filing, lodging and
processing of import and export entries and
documents required
 Representing the importer and exporter
before any government agency and private
entities
 Rendering of other professional services
relating to customs and tariff laws, its
procedures and practice

15. Cristobal, Mary Anne
Donayre, Chastine
Mejares, Alfonso Abbe
Reyes, John Christian
IMPORT PROCEDURES AND
DOCUMENTATIONS