You really want imported items because of their good quality, but you are anxious of the hefty customs duties and import taxes that you will have to pay before you could claim the item from the post office/customs. There are instances that the total custom duties and import taxes are almost half of the price of your purchase and you get frustrated.
Here's an actual sample, for you to have an idea of the charges related to your imported purchase.
 |
| The Customs Declaration |
Actual Sample:
I bought make-up products amounting to USD101.36 via online shopping.
Customs Duty:
Dutiable Value (amount of purchase) USD101.36
* Php exchange rate
40.840
Dutiable amount in Php 4,139.54
*duty rate on article (beauty product) 7%
Customs duty tax Php289.77
========
-bear in mind that duty rate may vary on the type of articles, you may use 10% as max
Other Charges and Fees:
Customs Documentary Stamp
Php250 (fixed)
Import Processing Fee Php250 (fixed)
BIR Dicumentary Stamp
Php 15 (fixed)
Other Fees and Charges Php515.00
========
-bear in mind that you will pay total fixed charges of Php515 regardless of amount of dutiable value (for imported items totaling Php250,000.00 and below)
Expanded Value-Added Tax (EVAT):
Expanded Value-Added Tax (EVAT):
Dutiable Value in Php 4,139.54
Customs Duty 289.77
Other Charges and Fees 515.00
4,944.31
*EVAT Rate 12%
EVAT Php
593.32
=========
- bear in mind that the EVAT shall depend on the total dutiable value
SUMMARY:
Customs Duty Php289.77 (Variable)
EVAT 593.32 (Variable)
Other Fees and Charges 515.00 (fixed)
Total Customs Duties and Import Taxes Php1,398.09
=======
Therefore, for the USD101.32 purchase, a total of Php1,398.09 customs duty/import taxes plus Php50.00 for post office handling, is paid.
Additional reminders:
1. Dutiable value of Php2,000 and below is not subject to customs duty/import taxes. Only Php50.00 for post office handling should be paid. In some instances, EVAT is still collected.
2. Total customs duties/import taxes on any imported items, should not exceed Php5,000.
The customs should give you a breakdown sheet of the charges/taxes they are collecting on your purchase.
Know the law and proper taxes, read R.A,. 9135 Section 1 as amended, R.A. 9135 Section 5, and TCCP Section 330.
Reminder:
I wrote this article based on my actual experience of paying import duties/taxes for my imported purchases claimed through a postal station. This article is meant to share with, inform or assist those who have had or would be in the same circumstance. In the process, I referred to certain trade laws I deemed applicable during the time of writing this article. However, for clarification of specific rules and for concerns on more complicated import transactions, I advise that you take the initiative to communicate with the proper government agencies and their authorized officials. Amendments, addenda or revisions of trade laws may occur anytime, so it is best to consult with the customs authorities.
Therefore, for the USD101.32 purchase, a total of Php1,398.09 customs duty/import taxes plus Php50.00 for post office handling, is paid.
Additional reminders:
1. Dutiable value of Php2,000 and below is not subject to customs duty/import taxes. Only Php50.00 for post office handling should be paid. In some instances, EVAT is still collected.
2. Total customs duties/import taxes on any imported items, should not exceed Php5,000.
The customs should give you a breakdown sheet of the charges/taxes they are collecting on your purchase.
Know the law and proper taxes, read R.A,. 9135 Section 1 as amended, R.A. 9135 Section 5, and TCCP Section 330.
Reminder:
I wrote this article based on my actual experience of paying import duties/taxes for my imported purchases claimed through a postal station. This article is meant to share with, inform or assist those who have had or would be in the same circumstance. In the process, I referred to certain trade laws I deemed applicable during the time of writing this article. However, for clarification of specific rules and for concerns on more complicated import transactions, I advise that you take the initiative to communicate with the proper government agencies and their authorized officials. Amendments, addenda or revisions of trade laws may occur anytime, so it is best to consult with the customs authorities.
I'm just wondering why government stamps and import processing fee are still needed to compute the EVAT???
ReplyDeleteCDS is fix..
DeleteThe IPF is depend on DV.. :) no compute for that.. Its given..
That's also my inner complaint. If you'd ask me, EVAT should only be charged on the dutiable value. It's like tax over tax collection if you add first the other fees and charges and the customs duty. But then, law is law and we have to abide. My tip, make sure that your dutiable value is Php2K or less to avoid taxes. For big-ticket purchases, just be ready for the huge taxes.
ReplyDeleteHi. I appreciate the comments from certain readers on the accuracy of the formula used.
ReplyDeleteHowever, the formula I used here is the actual formula that has been used in the local customs. I have repeatedly purchased online and this has been the formula used by the collection officers in the local customs office of Mandaluyong and Pasig. They give a computation sheet of the taxes you are paying. All the items they collected from me were listed in the sheet.
My question is--- have you tried purchasing online and claiming your parcels at a local customs office? Or are you just commenting based on write-ups from some customs websites? I advise that you go make actual purchase so you'd experience and verify for yourself the computation used by local customs offices.
I hope this clear things up.
"Hi, Yes i have but that was a few years ago and i forgot about where i put the documents and all. Also i am planning on making an online purchase again and i tried searching on how much tax i would be paying bec its going to be a big amount around USD 2,500 and these are speakers from the US. Then I came across your article. So i tried comparing it w/ the one in the Customs site and I was a bit confused bec of the difference hence i made a message to you.
ReplyDeleteAlso what do you mean by ""2. Total customs duties/import taxes on any imported items, should not exceed Php5,000.""
Does it mean that customs have a cap on the amount of taxes to be paid no matter the amount of the goods? Bec when i tried your calculations, my duties were about P25k.
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DeleteI don't buy electronic equipments and gadgets online. I buy them from local outlets. This will save me from the hassle in case the item turns out to be defective or gets damaged and I need to use the warranty.
DeleteIf I were you, just buy from a local outlet instead of buying online. Saves you from the hefty shipping charges and you are assured of the quality since the store will test it first. And if you need to use the warranty, the store is not as far as overseas.
Hi! did I get it right? 2k below is not subject for Customs Duties and Taxes? And why the heck did they ask me to pay for my 1,900+ item I bought recently? If you have time, you can check my blog post about this:
ReplyDeletehttp://www.mommytots.com/2013/10/customs-duties-and-taxes.html
Thanks
This comment has been removed by the author.
Deletehi any suggestion po, my wife is from pampanga, im here in Us, i send her a parcel using usps. and mg 2 months na po wala prin xa nattanggap na notice from our local post office.. thankyou po sa suggestions..
ReplyDeleteHi. Were you able to keep the label number? USPS has an online service that tracks parcels in transit. That should give you the status of your parcel. If you want assurance right there and then, and it has been 2 months (that's over the standard number of days delivery for most couriers), I suggest you contact directly that USPS outlet that you've transacted with. They should know the status of the parcel, whether it has reached its destination or if a problem had occurred.
Deleteyes i was able to keep the label number. i tracked it using usps and it shows that my parcel is stil for customs clearance, i know that there is nothing inside my oarcel that is prohibited, there's no way that they can hold my parcel for a long time. because i was reminded by the usps what are the items that i cannot send in the philippines.
ReplyDeletei will try to contact the usps.. thankyou..
Thank you.
ReplyDeleteAs I am getting lots of inquiries regarding specific rules on import duties and taxes, please refer to the reminder at the bottom of this article.
ReplyDeleteThank you for reading this blog post.
If items sent were hand-me down stuff,not purchased and not brand new,how much tax needs to be paid?
ReplyDeleteThe taxes are based on Dutiable Value, meaning there's cost or purchase involved. If that's a hand-me-down item, there's no dutiable value, so I don't think there should be taxes imposed on it.
DeleteI'm not sure though if there are classification of items obtained through "donation" or hand-me-down that the customs might collect taxes from. Please contact the customs authorities.
Hi! San mo nabasa yung di subject to customs import duty etc pag below 2k dutiable value? Thanks!
ReplyDeleteEvat =Dutiable Value (amount of purchase) *12% USD101.36(0.12)
ReplyDelete* Php exchange rate 40.840
Dutiable amount in Php 4,139.54(0.12)
eVAT = P496.744
Same case for me today, even Duty RAte is 0%, still you have to pay the EVAT as per above computation. The pain is the EVAT which is 12%, the Duty Rate is depend on the items as listed in TARIFF FINDER. Which is raging only 0- 10%.
Hi, do you know where can I find the Rates of Duty per item categories?
ReplyDeleteHi. I also tried looking for the rates of duty per item but nil, so I just used an approx 10% (I think this is a good average) for my sample computation. Maybe you could inquire with the local customs who collect the duties.
DeleteHow about 600$ purchase po?
ReplyDelete$600 is equivalent to Php25,800 using Php43 as exchange rate, using 10% as tariff rate and following the computation above, your total import tax duties would be Php5,696. Please make a handy excel format of the calculation above for easy computation given any amount
DeleteThanks for sharing! Very useful! By the way, for customs clearance shipping visit: http://orientfreight.com.
ReplyDeleteThanks!
DeleteHi there. I really appreciate your article and it is so informative. However, I would like to acquire your opinion as to how much will be my duties if I bought $3 worth of necktie? Thanks.
ReplyDelete$3 is equivalent to Php120+ only. No duties as it is below 2K.
DeleteI ordered Dermapen from china worth 1,900php/40usd but I had to pay 950php to get the parcel. I don't think implemented yung 2k below sa Las Pinas Post Office.
DeleteHi! Thank you for posting this. If you don't mind me asking, how much do you think is the tax if I will buy a $20 earphones with free shipping? Thanks.
ReplyDeleteHi. USD20 is approx Php880. That's less than 2K. No tax or duties to be paid. Just postal handling fee of Php50.
DeleteHopefully the no tax under 2k is true; will let you know if they ask for more, I'm about to get my item worth 22usd ;)
DeleteHi I was wondering, for items bought in bulk abroad from a reputable company that will provide an OR along with the package will the custom officer base the dutiable amount from the OR or will they base it from item type quantity and over estimate to come up with the dutiable amount? Im planning to purchase items for my online business.
ReplyDeleteHi. The basis should be the Official Receipt or Invoice. Otherwise, they are not doing the right thing.
Deletehello, just want to know if it matters if shipped via DHL and the declared amount is $25?
ReplyDeleteHi.
ReplyDeleteIf it's shipped via DHL, then I believe it's a door-to-door shipping. Plus, the USD25 is only Php1,100. No taxes to be paid..
will there be any handling fee?
ReplyDeleteHi, so i recently ordered a bag and a pair of pajama pants online worth $60.79 which was then computed to 2792.90 pesos... So how much do you think would the import tax be? I got it shipped to my house, how will I pay those taxes?How come when my mom sends me stuff from NY, there isn't import tax that I have to pay? Thanks!
ReplyDeleteHi.
DeleteIf the seller uses a door-to-door courier service (DHL, LBC, UPS, etc.) then you won't pay anymore taxes. Otherwise, even if your delivery address is your home, you will receive a notification from your local post office to pick up the parcel. There, you will pay taxes and handling fee.
Hi, I got a package from Korea. The amount is $40 but the custom collector charged me P543.00 . I have received packages from Korea twice and they usually charge me 50 or 100 pesos. But now, I was shocked when the guy texted me again that the exact charge was 543.00 . Is that even right? The item from the package are just Pepero's, ramens and a lipstick.
ReplyDeleteHi.
DeleteI believe he charged you the doc stamps and import processing fee which shouldn't be the case. Next time, you should ask for the Official Receipt with breakdown of what you paid. Be sure you bring an old OR they issued for your previous purchase and show them they did not collect fees except for the postage handling fee of P100.
hi i have a parcel to be pick up on friday sa custom. may i ask if my parcel doesnt have any declared value and it was sen as personal belong's. just the airfreight lang 25.89 us. is there any chance na ma tax pa ko. or they'lljust release it and pay 50 php? they also told me na if the parcel was address at manila need daw talaga ipick up sa pasay. thanks
ReplyDeleteHi.
DeleteTaxes are always based on dutiable value, so if items are used or personal effects, there shouldn't be any taxes. The most would be the handling fee of P100 if you claim it from the post office.
Hi, I find this blog very informative. I just went to Philpost to pick up my EMS package from South Korea. They only computed for the EVAT & CDS. The postage handling increased from P50 to P100.
ReplyDeleteHi.
DeleteThanks for the feedback. :)
Hi Maffet,
ReplyDeleteWhere did you found this information ?
Is it sure that below 2000 php / $45 has no tax to be paid ?
Thanks!
Hi.
DeleteSure! 2K and below has no taxes yet. USD45 based on exchange rate of Php44+ is still below Php2k. They should just collect the handling fee of Php100.
thank you. the customs officer in cebu is asking so much more and not giving a receipt. i wondered how they computed the customs tax. i guess i now know customs tax x 10= money in the pocket.
ReplyDelete