Import Regulations in the Philippines

Importations Subject to Goods Declaration

• All imported goods require a goods declaration unless stated otherwise.
• Goods declarations can be for consumption, customs bonded warehousing, admission, conditional importation, or customs transit.

Owner of Imported Goods

• The consignee or holder of the bill of lading/airway bill is deemed the owner of goods imported into the Philippines
• This is if the transport document is properly endorsed.
• If goods are consigned to order, endorsement by the consignor is required.
• Underwriters of abandoned goods and salvors are considered consignees.

Liability of Importer for Duties and Taxes

• Importers are personally liable for duties, taxes, fees, and other charges upon importation, unless relieved by law.
• This liability is a personal debt to the government, discharged only upon payment.
• There is also a lien on the imported goods while under customs' custody.

Importations by the Government

• Government importations, including those by subordinate branches, instrumentalities, corporations, and agencies, are subject to duties, taxes, fees, and charges.
• An exception is made under Section 800.

Lodgement and Amendment of Goods Declaration

• The Bureau of Customs allows electronic lodgement of goods declarations at any designated customs office.
• Amendments to lodged goods declarations are permitted by the Bureau for valid reasons under specific regulatory terms.
• Requests for amendments must be received before final assessment or examination.

Advance Lodgement and Clearance

• The Bureau can allow the lodgement and clearance of goods declarations and supporting documents before the goods arrive.
• Terms and conditions for this are set by rules and regulations.

Entry of Goods for Consumption and Warehousing

• Goods under one bill of lading or airway bill meant partly for consumption and partly for warehousing can be entered simultaneously for release at the port of entry.

Goods Declaration for Consumption

• All goods require a formal entry process except:
  • Goods with a commercial nature valued less than P50,000.00 (FOB or FCA value).
    • After this Act, The Secretary of Finance adjusts this amount every three years using the Consumer Price Index (CPI).
  • Personal/household effects or goods not in commercial quantity, imported in passenger's baggage or mail.
• The Commissioner has the power to adjust the value of commercial goods that can be cleared informally, without disturbing the periodic adjustments.
• Formal entry processes require a letter of credit or verifiable commercial document as payment evidence.
• If no sale exists for export, any commercial document should indicate the goods' commercial value.

Provisional Goods Declaration

• The lodging of a provisional goods declaration is allowed if the declarant lacks all required information or documents.
• The declaration must substantially contain the necessary Bureau information.
• The declarant must undertake to complete the information within 45 days, with a possible 45-day extension for valid reasons.
• Goods under provisional declaration receive the same duty treatment as those with complete declarations.
• These goods can be released upon posting required security.

Goods Declaration and Period of Filing

• Goods declaration formats should conform to international standards.
• The required data is limited to what’s needed for duty/tax assessment, statistics, and compliance.
• Electronic lodgement of goods declarations is required by the Bureau.
• Supporting documents are only required if needed for customs control and legal compliance
• Translations of supporting documents are not typically required.
• Goods declarations must be lodged within 15 days of the last package's discharge from the vessel/aircraft.
• A 15-day extension can be granted if requested before the original period expires.
• The Commissioner can adjust the lodgement period.

Contents of Goods Declaration

• A goods declaration must include:
  • Consignee name
  • Importing vessel/aircraft
  • Port of departure, port of destination and arrival date
  • Number/marks of packages (or quantity if in bulk)
  • Nature, correct commodity description
  • Value (from proper invoice)
  • Other information as required
• Provisional or incomplete declarations may be allowed if the declarant lacks required information
• It must contain particulars deemed necessary by the Bureau for entry acceptance.
• The declarant must commit to completing the declaration within 45 days per Section 403.

Description of Goods

• The goods are described sufficiently and specifically enough for:
  • Customs valuation
  • Statistical purposes
  • Tariff classification purposes
• Use invoice currency with other particulars for duty/tax assessment and collection.
• The quantity and value of each class of goods must be declared separately.
• Totals for each heading/subheading must be duly shown.

Mode of Payment and Terms of Trade

• Accepted international standards and practices for payment/remittance are recognized.
• Subject to foreign currency exchange laws and rules.
• Includes standards like Incoterms (ICC) and UCPDC.

Forwarding of Cargo and Remains of Wrecked Vessel or Aircraft

• For vessels/aircraft wrecked in the Philippines, cargo owners/consignees or underwriters can seek Bureau approval.
• It allows forwarding goods saved from the wreck to destinations without customs office intervention in the district where goods were unloaded.
• Approved goods are forwarded with manifests certified by customs officers.
• Vessel/aircraft owners can export the wreck remains after examination/inspection.
• Wreck remains include the hull, rigging, sea stores, goods, and equipment like sails, ropes, and chain anchors.

Statements to be Provided in the Goods Declaration

• Imported goods cannot be entered without lodging a goods declaration with the Bureau.
• The goods declaration must contain statements, under penalties of falsification or perjury:
  • The invoice and goods declaration contains accurate prices paid/payable, with all price adjustments, and no omissions that could defraud the government of lawful taxes.
  • All invoices, bills of lading, or airway bills are the only ones related to the importation, are in their original state, and the declaration is genuine.

Electronic Submission of Goods Declaration

• Goods declarations must be submitted electronically per Republic Act No. 8792 (Electronic Commerce Act of 2000).
• A certified printout of an electronic submission is considered actionable for prosecuting fraudulent declarants.

Commercial and Noncommercial Invoice

• Commercial invoices of imported goods must include:
  • Agreed price
  • Adjustments to the price as defined in Section 701(1)
  • Names of buyer and seller, and the sale's time/place
  • Port of entry
  • Sufficient description for accurate identification, tariff classification, customs valuation, and statistical purposes.
    • This includes: commodity description, commercial designation, grade/quality, numbers, marks/symbols, and package details
  • Quantities in weights/measures
  • Other facts for examination, customs valuation, and tariff classification as determined by rules/regulations.
• The above requirements also apply to goods imported without sale.
  • Goods on consignment/lease, samples, donations, covered by a consignment, pro forma or other noncommercial invoice

Derelicts and Goods from Abandoned Wrecks

• Derelicts and goods recovered from sea/wrecks are under the jurisdiction of the port of arrival and retained in the Bureau's custody.
• Unclaimed goods are deemed government property.
• Vessels bringing such goods must submit a manifest of their cargo.
• The nearest customs officer takes charge of saved goods.
  • They provide notice to the District Collector or customs office.
• The District Collector is represented at the cargo salvage by customs officers, who examine and receive the inventory.
• Derelicts and goods salvaged from foreign vessels/aircraft are prima facie dutiable.
  • May be entered for consumption/warehousing. -If claimed as Philippine production, proof must be submitted.
• Foreign goods landed from a vessel/aircraft in distress are dutiable if sold/disposed of.
• Goods taken from a recent wreck must be appraised before admission to the customs territory.
• The owner/importer has appeal rights as in ordinary importation.
• No duty applies to any part of a Philippine vessel/aircraft or its equipment wrecked in Philippine or foreign waters.

Relief Consignment

• Goods like food, medicine, equipment, and shelter materials are donated/leased to government and accredited private entities.
  • These are for free distribution/use of calamity victims treated and entered as relief consignments.
• Clearance of relief consignments is a priority during a declared state of calamity.
  • Subject to a simplified customs procedure.
• The Bureau is to provide for:
  • Simplified/provisional goods declaration, completed later.
  • Lodging, registering, and checking documents before arrival, and release upon arrival.
  • Clearance beyond business hours/away from customs offices with waived charges.
  • Examination/sampling only in exceptional cases.
• The Department of Finance (DOF) and DSWD (Department of Social Welfare and Development) jointly issue implementation rules.

General Provision on Relief Consignment

• Donated/leased relief consignments entered during a national/local calamity are exempt from D&T (Duties and Taxes).
• For food, medicines, medical supplies, clothing, or other in-kind donations:
  • Donated only to a Qualified Donee.
    • This refers to any government institution or private entity licensed/accredited by DSWD, DFA, DOH and Office of Civil Defense (OCD).
    • The Donee is the consignee and must registered with CPRS (except in extreme cases per PIHARC).
  • Imported only during a national/local calamity.
  • For free distribution/use by the affected population/calamity victims.
• For equipment/materials for shelter:
  • Intended for specific calamity/affected area during relief/rescue operations.
  • Leased only to government institutions or registered/accredited private entities.
• Regulated relief consignments are allowed with clearance from the concerned agency.
• Prohibited/restricted importations are automatically seized and forfeited.

Prohibited Donations

• Used clothing, unless authorized by DSWD.
• Infant formula and breast milk substitutes (except for therapeutic uses, must have DOH approval).
• Items from tobacco industries (cash or in-kind).
• Vehicles except special purpose vehicles for relief.
• Goods ineligible for donation under existing laws/regulations.

Establishment of One-Stop Shop (OSS)

• A one-stop shop (PIHARC-OSS) facilitates release of relief consignments.
• It ensures permits, licenses and tax exemption and is responsible for customs release.
• Unless activated by the NDRRMC, processing follows regular procedures.
• Operations run 24/7; agencies must send representatives to the OSS within 24 hours via activation.

Customs Clearance of Accompanied Baggage

• Travelers are those who temporarily enter or leave a country where they don't normally reside.
• Crew refer to individuals assigned by an operator to work on an aircraft or vessel during a flight or voyage.

Baggage Classification

• Baggage includes articles, effects and personal property for wear, use, comfort, or convenience during a trip.
  • Includes items conveniently carried ("BBB") and accepted by the carrier.
• Accompanied baggage is checked-in or hand-carried baggage brought by travelers/crew.
  • Travels via same means of transport
• Unaccompanied baggage is checked-in baggage arriving/leaving before/after the traveler due to delay/misrouting/other cause.
• Interline baggage is baggage received/handled/placed in the Interline Baggage Room (IBR).
  • It includes miss tagged, erroneously off-loaded, advanced/delayed, left behind/unclaimed, and transit baggage.
• In-bound baggage is baggage received/handled/placed in the Customs In-Bound Baggage Room (CBR):
  • It happens when there are insufficient funds, when there is lack of permit, or violations of rules.

General Provisions

• Arriving travelers/crew must submit a Customs Baggage Declaration Form (CBDF) to the assigned Customs Officer.
• Additional documents like Owner’s Pre-Departure Declaration Form, Foreign Currency Declaration (for amounts over US$10,000.00), BSP authorization (for amounts over P50,000.00), and regulatory agency permits may be required.
• Foreign travelers with diplomatic status retain applicable privileges.
• BOC implements an advanced information and traveler record system for risk management.
• BOC creates separate lanes for OFWs, returning residents, non-resident Filipinos, foreign diplomats, airline crew, and travelers with commercial goods.
• Baggage is subject to non-intrusive inspection; scanned baggage may be physically examined if necessary.
• Travelers, crew, and baggage may be inspected based on derogatory information/random selection.
  • BOC restricts unauthorized personnel from entry into customs areas, including baggage carousels.
• Excisable goods in accompanied baggage are subject to NIRC provisions, even if within the de minimis value.
  • Purchases at Philippine Duty-Free Stores upon arrival within limits are not subject to duty or tax.
• Dutiable goods for re-exportation may be released via:
  • Cash bond or temporary deposit in a safekeeping facility (re-exportation within 3 months).

Storage Fees

• Rates for storage are subject to review/revision.
• Inventory of items placed in storage must be signed by the traveler and customs officer
• Failure to re-export within the agreed period forfeits cash bond/goods.
• The deposit facility may be owned/controlled by the BOC or outsourced.
• Baggage brought in by Qualified Filipinos While Abroad with value of more than P10,000 (governed by Section 800).
• Availment is subject to a processing fee reviewed by the Commissioner.
• Departing travelers with goods for export must file a Special Permit to Load (SPL).
• Goods for return require a simplified Owner’s Pre-Departure Declaration or CI.

Separate Goods Declaration Required

• Required if the goods commissioner has deemed the goods taxable.
• Also, the declaration is required for prohibited and regulated goods.
• It is required if goods need an export certification.
• Imported goods under a non-consumption customs procedure need the declaration.