Export to Philippines - Fedex

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Philippines Country Profile

* Country Information
* Trade Group Member
* General Import Clearance Information
* Philippines Import Prohibitions
* General Import Restrictions
* Philippines Import Restrictions
* Special Import Provisions
o Personal Effects
o Samples
o Gifts
* Standards
* General Export Clearance Information
* Philippines Export Prohibitions
* General Export Restrictions
* Philippines Export Restrictions
* Regulatory Contact Information

Country Information
Capital: Manila
Population: 91,077,287 (July 2007 est.)
Language: Filipino, English, Spanish, Chinese and other local dialects
Weights and Measures: International Metric System and British Imperial System
Currency: Philippine Peso (PHP)
Time Zone Operates on Greenwich Mean Time
Philippines GMT+8



Trade Group Member

Multilateral Organizations

The Philippines is a member of the

* World Trade Organization (WTO) (The Republic of the Philippines is a founding member.)

* The WTO is the successor organization of the GATT (General Agreement on Tariffs and Trade) - a multilateral treaty that provides a code of agreed rules for international trade embodying rights and obligations of legal character and was the negotiating forum on reduction of trade barriers and the improvement of world trade. GATT was the international "court" wherein governments settled trade disputes with other GATT members.

* The WTO entered into force on 1 January 1995 and, as of 31 May 2001, 141 countries have ratified their acceptance of the WTO, which now includes the People's Republic of China and Taiwan as its new members.

* The three (3) main objectives of the WTO are

* To help trade flow as freely as possible;

* To achieve further liberalization of trade through negotiations; and

* To set up an impartial means of settling disputes.

The Philippines participates as a WTO beneficiary nation of the GSP "Generalized System of Preferences" program. Qualifying products originating in GSP countries can be exported to major developed countries and receive lower or zero tariff rates, which aid in the promotion of exports for the GSP country. For additional information on the GSP program and participating countries see http://www.unctad.org/gsp/.



* World Customs Organization (WCO)
The WCO is a successor organization of the CCC (Customs Co-operation Council) established in 1952, is an independent intergovernmental body of worldwide membership whose mission is to enhance the effectiveness and efficiency of customs administration. It provides a forum where delegates representing a large variety of members can tackle customs issues on equal footing. It is the only international organization dealing exclusively with customs matters.

* The main functions of the of the WCO are as follows:



1. To examine the technical aspects of customs systems, as well as the economic factors related thereto, with a view to proposing practical means of attaining the highest possible degree of harmony and uniformity;

2. To prepare draft Conventions on customs matters;

3. To recommend measures that would ensure the uniform interpretation and application of Conventions;

4. To make recommendations for the settlement of disputes concerning the interpretation or application of the Conventions (however, the WCO is not a court and cannot side with one party or the other);

5. To furnish interested governments, on its own initiative or upon request, information or advice on customs matters; and

6. To cooperate with other intergovernmental organizations as regards matters within its competence.

The WCO works mainly through its technical committees that are divided into different fields, to wit:

1. Nomenclature and Classification - comprises the Harmonized System Committee, Harmonized System Review Sub-Committee and Scientific Sub-Committee.

2. Valuation - consists of the Technical Committee on Customs Valuation (GATT) Agreement.

3. Customs Technique - composed of the Permanent Technical Committee, Enforcement Committee and ADP Sub-Committee; and

4. Origin- constitutes the Technical Committee on Rules of Origin

The Harmonized Commodity and Coding System or simply Harmonized System (HS) is an international product nomenclature based on the Customs Co-operation Council Nomenclature (CCCN) and the Standard International Trade Classification (SITC) Revision 2 drafted by the United Nations.

The HS comprises the following:



1. General Rules for the interpretation of the System;

2. Section and Chapter Notes, including Subheading Notes; and

3. A list of headings arranged in systematic order (i.e., degree of processing) and where appropriate, subdivided into subheadings.

The General Rules are provided to ensure that a given product is always classified in one and the same heading (and subheading), to the exclusion of any others which might appear to merit consideration.

The Section and Chapter Notes (including Subheading Notes) form an integral part of the HS and have the same legal force as the general Rules.

The 1,240 headings are arranged in 96 chapters, which are themselves grouped into 21 Sections.

The HS comprises a total of 5,108 separate groups of goods by a 6-digit code.

The Philippines is using the 8-digit and not the 6-digit HS to accommodate specific nomenclature for the purpose of reflecting its national requirements (e.g., for tariff protection, incentives).

Regional Organizations

* ASEAN Preferential Trading Arrangement (ASEAN- PTA)

The ASEAN PTA is an arrangement entered into by the ASEAN Member Countries in 1977 to offer preferential tariff treatment to products originating from ASEAN states. Under the arrangement, an ASEAN-based importer will pay a lower tariff rate on a product if it originated from another ASEAN Member Country than if the same product was obtained from a non-ASEAN source.

* Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA).

The CEPT is a cooperative arrangement among ASEAN Member States that will reduce intra-regional tariffs and remove non-tariff barriers over a 10-year period commencing 1 January 1993, the goal of which is to reduce tariffs on all manufactured goods to 0-5% by the year 2003.

All manufactured products, including capital goods and processed agricultural products, and the CEPT Scheme covers those falling outside the definition of "unprocessed agricultural products".

There are three (3) conditions for a product to be eligible for concessions under the CEPT Scheme, to wit:



1. The product has to be included in the Inclusion Lists of both the exporting and the importing countries and must belong to the same tariff band (i.e., above 20% or 20% and below).

2. It has to have a program of tariff reduction approved by the AFTA Council.

3. It has to be an ASEAN product (i.e., it has to satisfy the local content requirement of at least 40%).

* Difference between the PTA and CEPT

The CEPT Scheme is the major instrument in moving ASEAN to its goal of a free trade area. Hence, the CEPT Scheme requires that the tariff rates of those products included in the Scheme be ultimately reduced to 0-5%. The ASEAN PTA, on the other hand, does not require a reduction of tariffs of this magnitude. It only requires that, whatever tariff rates are applied by an ASEAN country on imports from the rest of the world, an MOP (margin of Preference) be given to ASEAN partners. Concessions offered under the PTA are on ASEAN MFN (Most Favored Nation) basis. The number of products included in the CEPT is also much larger than that covered in the PTA.

* ASEAN Industrial Cooperation (AICO) Scheme The AICO scheme superseded the ASEAN Industrial Joint ventures (AIJV) and the Brand-to-Brand Complementation (BBC) Schemes. It seeks to promote the sharing of industrial activities between and among ASEAN-based companies. A minimum of two (2) companies in two different ASEAN countries is required to form an "AICO Arrangement."

An "AICO Arrangement" is a cooperative arrangement involving a minimum of two (2) participating countries from two (2) different ASEAN countries. It involves not only the Physical movement of products between the participating companies and countries but also resource sharing, industrial complementation or other industrial cooperation activities.

* Asia-Pacific Economic Cooperation (APEC)

APEC is an association of economies that share the boundaries of the Pacific Ocean. Under APEC, member economies work together to reduce barriers to trade, ease the exchange of goods & services, resources and technical know-how, and strengthen economic and technical cooperation between and among them.

APEC was created in 1989 with twelve (12) founding member-countries. Subsequently, the following were accepted as members: People's Republic of China, Hong Kong, Chinese Taipei, Mexico, Papua New Guinea, Chile, Peru, Vietnam and Russia.

* Association of Southeast Asian Nations (ASEAN)



* Information Technology Agreement (ITA)



* Member of the United Nations (UN)



* Participant in United Nations Educational, Scientific and Cultural Organization (UNESCO)

Environmental Agreements

The Philippines is party to the following environmental and conservation agreements:



* Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

* Member of the Montreal Protocol






General Import Clearance Information

Clearance Process
There are approximately 14 approved ports of entry throughout the Philippines:



Principal Ports of Entry Jurisdiction

Port of Manila Customs District II-A
Manila International Container Port Customs District II-B
Port of Subic Customs District XIII
Port of Batangas Customs District IV
Port of Davao Customs District XII
Port of Iloilo Customs District VI
Port of Cagayan de Oro Customs District X
Port of Legaaspi Customs District V
Port of San Fernando Customs District I
Port of Tacloban Customs District VIII
Port of Surigao Customs District IX
Port of Zamboanga Customs District XI

Document Requirements
All imports must be covered by the following basic documentations:

1. International air waybill (for airfreight) or Bill of Lading (for sea freight) Bill of lading or Airway bill must be presented with the shipment denoting the shipper, point of origin and means of transportation utilized to move the goods to the Philippines. The bill of lading should provide a brief description of goods consigned under the bill of lading and the description of the articles imported must match as much as possible the description on the Commercial or Pro-forma Invoice.



2. Commercial Invoice or Pro-Forma Invoice

A Commercial Invoice must be provided for all goods presented for import into the territory of the Republic of the Philippines. The invoice must contain, among others, a description of all articles and commodities being imported. Each article/commodity must be described in sufficient detail to accurately identify it for tariff classification and statistical purposes and where applicable model, serial and or related markings, country of origin, number and value of goods (as well as cost of insurance and transportation), should be provided. The shipper's intent must be clearly stated on the invoice and the air waybill or bill of lading to avoid improper classification and the kind of entry to be used, especially where duties and taxes are payable. Invoices prepared for the importation of samples, articles for repair, processing, or reconditioning, the return of goods previously exported, goods temporarily imported on consignment and other similar cases must contain sufficient description to allow Customs processing. The Importers TIN or Taxpayer Identification Number should be provided on the documents tendered for export to avoid delays in processing. Incomplete or deficient invoices will not be acceptable for customs processing and will cause delays in customs clearance.

A Pro Forma Invoice will not be accepted by Customs where there is a buyer-seller transaction. Such an invoice may be used for importation of samples, articles for repair, processing or reconditioning, returned articles previously exported, articles sent on consignment and other similar cases.



3. Packing List

Although not mandatory, Customs normally require a Packing List to expedite Customs clearance process especially in the case of shipments containing several commodities and multiple package shipments. It is also useful when making insurance claims for missing, lost or damaged articles or when a discrepancy is found upon customs inspection.

Supporting Documentation Requirements

In addition to the basic documentation mentioned above, import clearance/permit must be obtained from the concerned governmental agency in the Philippines or from a recognized non-governmental organization from the country of export for regulated commodities. This document is required for reasons of public health and safety, national security or to satisfy international commitments for the protection or development of the local industry, and must be submitted to customs upon filing of the import entry or prior to release of the regulated commodity or article from customs custody.

Supporting Documentation required for Imports of the following commodities:

Fertilizers


* Permit for Imported Fertilizer Product Registration

* Permit for Experimental Use Permit for Fertilizer Efficacy Trial

Animal Products


* Veterinary Certificates (clean report of findings)

* CITES Import Permit (Export Permit from shipper) for endangered species

* Certificate of Product Registration

Motor Vehicles


* Permit to No-Dollar Importation of Used Motor Vehicle and Affidavit of Undertaking

* Authority to Import Under EO 782 As Amended By EOs 354 and 361 (Used Trucks, Engines, special Purpose Vehicles) and Joint Affidavit of Undertaking

* Permit for Spare Parts Importation (for Motorcycles and Motor Vehicles) and Affidavit

Movie and TV Products


* Import Permit (for Movie and TV Products)

Pesticides


* Registration of a Pesticide Active Ingredient

* Registration of a Pesticide Product

Plants and Plant Products


* Permit to Import Plants and Plant Products

o Plants and Plant Products derived from or that include GMO Genetically Modified materials are subject to permit control per AO2002.

* Phytosanitary Certification

Radio Transmitter(s), Transceiver(s)


* Permit to Purchase/Possess Radio Transmitter(s), Transceiver(s)

Videograms (DVDs, Video-CDs, VHS Tapes)


* Permit for Videogram Import Clearance

General Customs Practices As the primary agency in charge of import control, Bureau of Customs (BOC) verifies that all applicable permits and or approvals necessary for import as deemed by law are obtained and are in proper order.

BOC also verifies that proper agency approvals per commodity are provided or identified where they may be required in situations outside the norm (restricted importations).

BOC administers the collection of duties and taxes and assures that they take place at the time of entry.



Customs Valuation
The primary basis for determining customs value in the Philippines is "Transaction value." The transaction value is the price actually paid or payable for the goods when sold for export to a country. The price actually paid or payable is the total payment made or to be made by the buyer to or for the benefit of the seller for the imported goods. The payment may take the form of a transfer of money or can be made by way of letters of credit or negotiable instruments. Payment may be made directly or indirectly. Certain costs must be added to that price (e.g. commissions and brokerage) and certain other costs must not be included in the customs value (e.g. the cost of transport after importation). The Transaction value shall be adjusted by allowing the 'adjustments' as referred by the World Trade Organization (WTO) valuation code.

Other Methods of Valuation
Whenever the value of the goods is in doubt, Customs may apply the following methods at its discretion to determine the value of the goods and allow for proper assessment of duty as defined by the WTO Valuation Code.

1. Transaction value of identical goods

2. Transaction value of similar goods

3. Deductive value

4. Computed value

5. Fallback value

Accuracy of the Declared Value
The Customs Law stresses the proper use of the valuation methods and the need for accuracy of the declared value. Direct enforcement includes the seizure of the imported goods when the declared value is disproportionate vis-a-vis the transaction value of identical or similar goods. Other rules emphasize the truthful declaration of traceable components of the international transaction, such as the importer's and the exporter's names and addresses.



Import Duties
Imported articles are subject to the rate or rates of duty in force at the time of entry when entered as a consumption entry or at the time of withdrawal (for consumption) from the warehouse for articles covered by a warehousing entry. Articles are considered 'entered' or 'withdrawn' when the following conditions are met:



1. The specified entry form, with related required documents, have been filed and accepted;

2. The duties, taxes and/or other charges have been paid or secured (i.e. by deposits).

3. The article has arrived at the port/airport of entry.

Liability for Duties and Taxes
Unless relieved by laws or regulations, the liability for duties, taxes, fees and other charges attaching on importation constitutes a personal debt due from the consignee/importer to the government. This debt can only be terminated by payment in full of all duties, taxes and other charges accrued from the time that the article has entered Customs. Any such debt is considered a lien upon the article.

Value-Added Tax (VAT)
Vat is levied and collected on every importation of goods equivalent to 12% based on the total value used by customs in determining tariff and customs duties, plus customs duties, excise tax (if any) and other charges. Where customs duties are determined on the basis of quantity or volume of the goods, the Vat shall be based on the landed cost plus excise taxes, if any.

Classification of Imports
As a general rule, all kinds of imported merchandise are allowed in the Philippines. However, for reasons of public health and safety, national security, international commitments, and development/rationalization of local industry, the importation of certain commodities are regulated or prohibited. In the Philippines, imports are classified as follows:



1. Freely Importable Commodities -Commodities the importation of which is neither regulated nor prohibited and may be imported without prior approval or clearance from any government agency.

2. Regulated Commodities -- Commodities the importation of which requires import clearances/permits from appropriate government agencies including the Bangko Sentral ng Pilipinas or recognized non-governmental organization (NGO).

3. Prohibited Commodities -- Commodities the importation of which is not allowed under existing laws or rules and regulations.

Registration Requirements
A company seeking to import goods into the Philippines must have a tax identification number and be registered as a regular importer with the Customs Intelligence and Investigation Service (CIIS). The registration procedure is relatively simple but may take some weeks. The application for CIIS Registration and the Request to update a Taxpayers Identification Number (TIN) are available in our Forms Library, where you may print copies of each.

Import Entry

As a general rule, all articles imported into the Philippines shall be entered through a customhouse at a port of entry, whether subject to duty/tax or not, where customs inspection, tariff classification and appraisement will be done and where duties, taxes and other charges due on importation shall be paid or secured to be paid prior to release from customs custody.

Importations are entered under Informal Entry or Formal Entry using an official form prescribed therefore.



1. INFORMAL ENTRY- An Informal Entry is allowed for the following Imports:



1. Articles of a commercial nature intended for sale, barter or hire; the dutiable value of which is PHP 2,000 or less; and

2. Personal and household effects or articles imported in passenger's baggage, mail or otherwise which are for personal use and not in commercial quantity.



2. FORMAL ENTRY - A formal Entry is required for imports not allowed to be processed and cleared under Informal Entry and a Letter of Credit (L/C) or any other verifiable document evidencing payment shall cover such importations. There are two (2) types of formal entries, as follows:



1. Consumption Entry - Generally, a consumption entry is used for articles/commodities imported for consumption or immediate use; specifically for articles/commodities that are commercial in nature intended for sale, barter or hire whose dutiable (CIF) value is more than PHP2, 000.00, as well as for personal and household effects or articles for personal use but are in commercial quantity regardless of its total value.

If the importation is financed through a letter of credit, an importer must first file an Import Entry Declaration (IED) with an authorized agent bank prior to importation and pay the estimated duties at same bank except when the consignee/importer is entitled to duty exemption pursuant to law.



2. Warehousing Entry - Generally, a warehousing entry is used for imported articles to be brought after customs clearance to a customs bonded manufacturing warehouse for processing or manufacture into semi-finished or finished products for export or sale in the domestic market. The same entry type is likewise used for imported articles which will be brought to a public or private customs bonded warehouse for temporary storage to be withdrawn at any time for consumption, for transportation to another port in the Philippines, for exportation, or for delivery on board a vessel or aircraft engaged in foreign trade for use on board as sea stores or aircraft stores.

In all cases, an irrevocable domestic letter of credit, bank guarantee or warehousing bond is required to be posted upon filing of a warehousing entry in an amount equivalent to the duties, taxes and other charges determined upon customs inspection conditioned upon the withdrawal of the warehoused articles within the period prescribed by law or payment of duties, taxes and other charges due and upon compliance with all legal requirements regarding their importation.

Modes of Payment for Imports
All contracts (import and export) are subject to control and oversight by the Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Importers and exporters alike should make the necessary arrangement with the International Trade Department of the Bangko Sentral ng Pilipinas, http://www.bsp.gov.ph



1. Through the Philippine banking system:



1. Letter of Credit (L/C)

2. Documents Against Acceptance (D/A)

3. Documents Against Payment (D/P)

4. Open Account Arrangements (O/A); and

5. Direct Remittance



2. Outside the banking system:



1. Self-Funded/No-Dollar Imports

2. Importations on Consignment Basis



Antidumping
Dumping occurs when foreign producers sell their products to an importer in the domestic market at prices lower than their own national markets or at prices below cost of production, the sale or importation of which injures or threatens to injure a domestic industry producing like or comparable products or retards the establishment of a potential domestic industry. It is a form of price discrimination between two national markets, hence subject to anti-dumping duty in the Philippines pursuant to law. This duty shall be equal to the margin of value between the imported price and the ordinary market price of the product, commodity or article. However, the anti-dumping duty may be less than the margin of value between the imported price and the ordinary market price of the product if such lesser duty will be adequate to remove the injury to the domestic industry. Articles found to be 'dumped' can have anti-dumping duties that are in effect for a short period (to be determined by the DTI) or up to a period of 5 years unless terminated by an act of law.

In such cases where products are not shipped directly from the country of origin but are transported to the Philippines through an intermediate country the price at which the product is sold in the Philippines shall be compared with the normal price of the commodity in the country of export. However, the price may also be compared with the price in the country of origin if the commodity was merely transshipped through the intermediate country.

An anti-dumping protest may cover any specific kind or class of a foreign product which is being imported, sold or is likely to be sold into the Philippines at a price less than its normal value, the importation of which might injure, or retard the establishment of, or is likely to injure and industry producing like products in the Philippines.

Any person representing a domestic industry may initiate an anti-dumping investigation with a written application. Such application must include evidence of the dumping, the injury, and the causal link between the dumped imports and the alleged injury along with information about the applicant, the shipper, and the country of origin of the goods. A complete description of the dumped goods including the quantity and how these goods will injure the domestic industry must also be included. If claims are substantiated by the investigation by the Department of Trade and Industry (DTI) additional duties may be enacted on these goods based on the country of origin and or specific manufacturers in one or more countries as deemed necessary to protect the domestic market.



Excise Duties

Excise Taxes
Excise taxes are assessed against certain commodities normally associated with luxury goods, such as spirits, wine, beer, tobacco products, jewelry, perfumes, yachts and some petroleum products. Excise is assessed at a specific percentage of the quantity or number of units (per liter of alcohol) of the goods being imported

Additional Duties
Countervailing Duty
A "countervailing duty" is a special duty levied, in addition to the regular duty and other charges, by an importing country (Philippines) on its imports which have been found to be subsidized in the country of origin or exportation. It is equal to the ascertained amount of subsidy, calculated in terms of subsidy per unit of the subsidized exported product and is imposed following an affirmative final determination.

A countervailing protest may cover any product which is granted, directly or indirectly, by the government in the country of export or origin, any kind or form of specific subsidy upon the exportation or manufacture of such product and the importation of such subsidized product is causing or threatening to cause material injury to a domestic industry, or materially retarding the growth, or preventing the establishment of a domestic industry.

Warehouse Storage Fees
Warehouse storage fees may be applied to goods that are not expeditiously cleared and removed from the bonded Customs warehouse. Normal storage is assessed for goods that are processed and released same day.



Import Taxes
Import duties are assessed based on the CIF value of the goods. Depending on the country of origin and any trade preferences being extended to a specific country the normal duty ranges currently between 3-15% with some commodities having as much as 60% duty associated with them.

Presently there are no duties imposed for exports.

Customs Fees
Customs and Agency Fees
The Philippines has a variety of import processing fees that are normally assessed against items that require review or examination, certifications, quarantine or similar services that are required upon import. The fees are payable at time of service to the agency or agencies responsible for the control of the goods being inspected.

In most cases the fees are nominal, intended only to cover the cost of processing the applications and permit issuance. Some fees can be higher as the agency may require reimbursement for costs incurred in performance of the services based on the size of the shipment or commodity involved. Each agency has specific fees and charges, which can be determined by contacting the agency directly. In many cases the fees are listed on the applications that the importer completes.

The Philippines also has some import and export processing fees such as for items that must be examined or require certifications and quarantines that are required upon import or export. In most cases the fees are nominal intended only to cover the cost of processing the applications and permit issuance. Each agency has specific fees and charges that are levied based on the services required of the agency.

Exchange Controls
Generally; there is no foreign exchange control in the Philippines, which have adopted the floating exchange rates in currency trading. However, no person may import or export nor bring with him into or out of the Philippines, or electronically transfer legal tender Philippine Notes and coins, checks, money order and other bills of exchange drawn in pesos against banks operating in the Philippines in an amount exceeding PHP 10,000.00 without authorization by the Bangko Sentral ng Pilipinas. (Central Bank of the Philippines) (Sec. 4,CB Circular 1389)

Furthermore, any person who brings into or out of the Philippines foreign currency in excess of USD 10,000.00 or its equivalent in foreign currency is required to declare the same in writing and furnish information on the source and purpose for bringing such amount of currency. (CB Circular 308)



Technical Barriers to Trade (TBT's)
Technical barriers to trade are normally intended to protect human, animal or plant life or health, the environment or consumers. They include testing requirements, packaging requirements, marketing standards, certification requirements, origin marking requirements, health and safety regulations, and sanitary and phytosanitary regulations. Labeling requirements are a species of technical barriers to trade.



Consular Fees
No consular fees are charged for imports and exports.



Import Clearance Process
Working with Customs officials throughout the world, FedEx has developed innovative technology to eliminate many paperwork-handling steps and expedite the movement of international shipments. This is the FedEx Express Clear Electronic Customs Clearance System. Starting at the origin, state-of-the-art technology allows the processing of shipment paperwork and electronic transmission of documents to the designated FedEx Hub and destination clearance location. The Express Clear system also keeps a database of regulatory information, which includes importers registration numbers, broker designation, corporate contact names and telephone numbers. At a FedEx hub, international shipments are sorted, scanned and loaded on to an international flight. Vital shipment information is keyed into a worldwide manifest database, which is linked to computer systems operated by brokers and Customs officials in many countries. Even before the plane takes off, or while it is in the air, Customs agents and brokers at the destination airport of entry can begin examining shipping manifests, querying air waybill data if they need more details, assessing duties and taxes and selecting which shipments they wish to examine. International shipments are scanned at all key points throughout the process and allows for up-to-date status reports including when Customs clearance is obtained.

When your shipment arrives in the Philippines, FedEx (Licensee Airfreight 2100, Inc.) completes and obtains all required documents such as the Import Entry and Internal Revenue Declaration, the Supplemental Declaration on Valuation (SDV) and other regulatory permits on behalf of the importer. AF2100 then lodges and processes these documents at the Bureau of Customs. . The duties and taxes are computed, and if selected by Customs, the shipment is examined. AF2100 notifies the consignee of the final results and stated amounts of duties and taxes assessed the shipment Once the importer approves the duties and taxes and payment is completed, the shipment is released from the Customs warehouse.

Inspection of Imported Articles - For the protection of government revenue and public interest and to prevent the entry into the country of smuggled or contraband goods, the Commissioner of Customs shall promulgate the rules and regulations that shall prescribe the procedure in accordance with which the examination of goods shall be undertaken on the importation and the required quantity or percentage thereof: provided that the imported articles shall in any case be subject to the regular examination when:



1. The government seal on the container is tampered;

2. The container is leaking;

3. The shipments details in the shipping documents differ from that in the manifest;

4. The shipment has alert or hold order

5. If airfreight, where the Commissioner or Collector has knowledge that there is a variance between the declared and true quantity, measurement, weight and tariff classification.

Introduction
In the Philippines the Bureau of Customs (Customs, for brevity) is the governmental agency charged with the enforcement of the tariff and Customs laws and regulations and all other laws or regulations which are subject to enforcement by the Customs or otherwise within its jurisdiction.

Importation of goods into the Philippines is governed by a myriad of import regulations, which, basically, are not much different from those prescribed in other countries. These laws, regulations and document requirements have to be observed and complied with either by the consignee/importer or shipper/exporter as well as air carriers concerned to expedite and facilitate the Customs clearance of imported goods.

Importations in General
In general, unless exempted by law, all articles imported into the Philippines, are subject to Customs duty and internal revenue taxes and whether subject to duty or not, shall be entered through a customhouse at a port of entry, where Customs examination, tariff classification and appraisal are made. Taxes and other charges due shall be paid (or secured to be paid) prior to release from Customs custody even though the goods may have been previously exported from the Philippines. Duty and taxes accrue upon arrival of a shipment into the customs territory of the Republic of the Philippines, unless the goods are exempted from such duties and taxes by process of law.

Owner of Imported Articles
By law, all such articles imported shall be held to be the property of the consignee shown on the air waybill (AWB) or Bill of Lading (B/L) and deemed the owner thereof.

All importations are entered under Informal Entry (goods normally not regulated or controlled by an agency) or Formal Entry (goods that are regulated or controlled by an agency and usually high in value) except the following, which may be entered duty- and tax-free:



1. Importations for the official use of foreign embassies, legations, and other agencies of foreign governments, and

2. Importations for the personal and family use of the members and attaches of foreign embassies, legations, and other agencies of foreign governments

3. Miscellaneous articles that are exempt by law or process.




Philippines Import Prohibitions

Articles intended for use in performance of unlawful abortions, classifiable but not limited to the following HS numbers:

HS Description of Prohibited and Restricted Articles

3006.60 Medications
4901.10 Printed Matter, in form of books, brochures, pamphlets
4901.99 Printed Matter, other, color illustrations
9018.-- Medical devices
9301.00 Dynamite, gunpowder, firearms, weapons of war
4901.10 Rebellious or seditious materials (printed matter)
4911.10 Obscene or immoral articles
Lottery & sweepstakes tickets
9504.10 Gambling articles/equipment
7113.11 Jewelry not marked with actual fineness
Various Adulterated articles of food and drugs
2939.10 Cocaine, heroin, morphine, opium
6309.00 Used clothing
6310.10 Used rags, sorted
6310.90 Used rags
9503.90 Toy guns (replicas of firearms)
5302.90 Marijuana (Cannabis Sativa L.)
9614.20 Opium pipes and parts thereof



General Import Restrictions

The following items are not acceptable for carriage to any international destinations unless otherwise indicated. (Additional restrictions may apply depending on destination. Various regulatory clearances in addition to customs clearance may be required for certain commodities, thereby extending the transit time.)

* APO/FPO addresses.

* C.O.D. shipments.

* Human corpses, human organs or body parts, human and animal embryos, or cremated or disinterred human remains.

* Explosives (Class 1.4 explosives are acceptable for carriage to Canada, Germany, Japan, Sweden, United Arab Emirates and United Kingdom. Note: United Arab Emirates only allows Class 1.4 explosives to be shipped hold- for- pick-up to the FedEx Express facility in Dubai.)

* Firearms, weaponry, and their parts (acceptable between the U.S. and Puerto Rico).

* Perishable foodstuffs and foods and beverages requiring refrigeration or other environmental control.

* Live animals (including insects) except via our Live Animal Desk (1.800.405.9052).

* Plants and plant material, including cut flowers (cut flowers are acceptable from the U.S. to selected points in Canada and from Colombia, Ecuador and the Netherlands to the U.S.).

* Lottery tickets and gambling devices where prohibited by local, state, provincial or national law.

* Money (coins, cash, currency, paper money and negotiable instruments equivalent to cash such as endorsed stocks, bonds and cash letters).

* Collectible coins and stamps.

* Pornographic and/or obscene material.

* Hazardous waste, including, but not limited to, used hypodermic needles or syringes or other medical waste.

* Shipments that may cause damage to, or delay of, equipment, personnel or other shipments.

* Shipments that require us to obtain any special license or permit for transportation, importation or exportation.

* Shipments whose carriage, importation or exportation is prohibited by any law, statute or regulation.

* Shipments with a declared value for customs in excess of that permitted for a specific destination.

* Dangerous goods except as permitted under the Dangerous Goods section of these terms and conditions.

* Processed or unprocessed dead animals, including insects and pets. Taxidermy-finished hunting trophies or completely processed (dried) specimens of whole animals or parts of animals are acceptable for shipment into the U.S.

* Packages that are wet, leaking or emit an odor of any kind.

* Wildlife products that require U.S. Fish and Wildlife Service export clearance by FedEx prior to exportation from the U.S.

* Shipments* being processed under:

Duty drawback claims unless advance arrangements are made.

Temporary Import Bonds - acceptable under the FedEx International Broker Select option, for initial import only.

U.S. State Department licenses.

Carnets.

U.S. Drug Enforcement Administration export permit.

Shipments destined to or being withdrawn from a Foreign Trade Zone.

Letters of Credit (however, shipments covered by a Letter of Credit calling for a "Courier Receipt" as defined by Article 25 of UCP 600 may move via FedEx International Priority).

Certificate of Registration shipments (CF4455).

Shipments moving into or out of Foreign Trade Zones or bonded warehouses.

*You may be able to ship these items via FedEx International Premium, FedEx International Express Freight (IXF), FedEx International Airport-to-Airport (ATA) or FedEx International Controlled Export. For information on FedEx International Premium, IXF and ITA, call FedEx Express Freight Services at 1.800.332.0807. For information on FedEx International Controlled Export, call International Customer Service at 1.800.247.4747or your local FedEx customer service representative.






Philippines Restrictions

N/A




Special Import Provisions

Temporary Imports
Articles consigned to the Philippines for import on a temporary basis, not to be entered into the commerce for sale in the Philippines are acceptable. Goods consigned for temporary import must be identified as such on the bill of lading and invoices tendered with the goods by the exporter, and require additional processing upon arrival in the port of entry. Goods consigned for temporary import or exclusively for use in trade shows, etc. (to be exported immediately after their use) can be entered into the Philippines under a Temporary Importation Bond (TIB). The exporter should contact the importer in the Philippines prior to the export of any goods consigned that qualify for entry via TIB. Temporary Import Bonds are surety bonds that allow for the import process to be completed (and release goods from customs) with monies guaranteed to customs in the amount determined by law to cover duties, taxes normally assessed upon commodity being imported. A refundable bond must be posted equal to one and one-half the ascertained duties, taxes and other charges for the goods imported under a TIB. The bond is canceled or liquidated by Customs and liability for duties is terminated when goods are exported and proof is tendered to Customs.

Typically goods that are entered as Temporary Imports are

* Articles imported exclusively for public entertainment, competitions and expositions.

* Articles imported for trade shows.

* Articles imported by film companies to be used while recording motion picture films in the Philippines.

Carnet (ATA Carnet)
Carnets (ATA Carnets) are not accepted for processing of goods as temporary imports into the Philippines. Goods consigned for temporary import or exclusively for use in trade shows, etc. can be entered into the Philippines under a Temporary Importation Bond (TIB). Exporters should contact the importer in the Philippines prior to export of any goods consigned for Temporary Import and that that should be processed via TIB. Temporary Import Bonds are surety bonds that allow for the import process to be completed with monies guaranteed to Customs in the amount determined by law to cover duties, taxes normally assessed upon the commodity being imported. A refundable bond must be posted equal to one and one-half times the ascertained duties, taxes and other charges for the goods imported under a TIB.

Drawbacks
Drawback refers to the customs process that allows for a partial refund or tax credit for duties and taxes paid on raw materials, imported into the Philippines, that are to be further processed or manufactured and then exported as a finished product. To qualify for drawback processing the importer or his agent must certify the goods qualify and meet the criteria for drawback:

* Exportation of qualifying goods must occur within one year after the importation of the raw materials, proof of export is required.

* The claim for drawback must be filed within 6 months of the date of export

* Claims may include the cost of packing, covering, putting-up, marking, labeling; in whole or in part.

* Claims are not to exceed 100% of the initial duties and taxes paid when the raw materials were imported into the Philippines.

Abandonment
All shipments not released within 30 days are considered abandoned, as follows:

Implied Abandonment


* Failure by the importer to file an entry within 30 days from the date of arrival of the goods

* Entry filed, but failure to claim goods within 15 days from the date of posting of the notice to claim.

Express Abandonment


* Consignee expressly states in writing that he wishes to abandon his shipment, thereby relinquishing all his interests and property rights to the goods, liability for duty and taxes, and requesting Customs to assume ownership.

* Goods that are deemed abandoned by Customs become the property of the Government and shall be disposed of in accordance by law, unless the goods are perishable at which time they are disposed by means of immediate auction or if practical, to be distributed to various government agencies or public institutions for use. All goods are to be used to offset the loss of revenue presented in the amount of duties and taxes that would normally be assessed like goods imported in the Philippines.



Personal Effects
Personal effects or goods that have been used by or obtained by importer of record while living abroad and that have been in use for at least 6 months are acceptable for importation and may qualify for duty and tax exemption depending on the importers status and residency. Goods consigned as personal effects must not be mixed with non-qualifying goods and the importer may be required to provide proof of ownership and sales receipts at the discretion of Customs. Personal effects are subject to physical examination and the importer is required to provide a detailed commercial invoice and a packing list to expedite customs processing. All documents prepared for the shipment should identify the contents as Personal Effects, including the bill of lading or Air waybill used for transport to avoid improper presentation and processing with customs. There are no value limitations on the goods being imported but duties and taxes may be assessed if the amount of goods presented as personal effects is excessive.

Returning Philippine residents, who have stayed abroad for 6 months, or more receive tax exemption for goods valued at 10,000 PHP or below. Any excess of PHP10, 000.00 is subject to 50% across the board ad valorem duty.



Samples
Samples or goods that are provided as free of charge for purposes of obtaining orders are allowed for import documented as samples on the air waybill/bill of lading and commercial invoice provided for customs and meet the following requirements into the Philippines. Samples may be subject to duties and taxes. Qualifying samples must be properly:

* Only one of a kind, style number is acceptable for entry under sample provisions

* Samples must be properly marked, with this or similar wordings "Samples, not for sale."

* Garments tendered as gifts should not be in commercial quantities



Gifts
Goods that are consigned as Unsolicited Gifts, and are not intended for commerce, sold, exchanged, etc. are acceptable for import into the Philippines. Gifts are generally defined as goods tendered to an individual from an individual where no exchange of monies occurs and the sender does not expect compensation. Importers are subject to the normal provisions associated with the commodity that is shipped as a gift, which may require that the necessary permit or certificates be obtained as a condition of release from customs. Importers who receive gifts are responsible for all duties and taxes assessed by Customs.

Exemptions:
Donations to duly registered relief organizations are exempt from duties and taxes




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Standards

Local inspection for standards compliance is required for 75 products subject to mandatory Philippine national standards, including cosmetics, medical equipment, lighting fixtures, electrical wires and cables, cement, pneumatic tires, sanitary wares, and household appliances. For goods not subject to mandatory standards, U.S. manufacturers' self-certification of conformance is accepted.

Labeling Requirements

Labeling is mandatory for textile fabric, ready-made garments, households and institutional linens, and garment accessories. Mislabeling, misrepresentation, or misbranding may subject the entire shipment to seizure and disposal. The "Generic Act" of 1988 aims to promote the use of generic drugs by requiring that the generic name of a particular pharmaceutical appear above its brand name on all packaging.

The following commodities have labeling/marking requirements:

*
Jewelry of precious metals must have the fineness markings denoting the appropriate quality symbol
*
Samples, must be properly marked and documented
*
Prepared foodstuffs, with specific ingredients, addresses of manufactures per the Bureau of Food and Drugs (BFAD) of the Department of Health (DOH)
*
Beverages, as per the Bureau of Food and Drugs (BFAD)
*
Pharmaceuticals, as per the Bureau of Food and Drugs (BFAD)
*
Toilet preparations, as per the Bureau of Food and Drugs (BFAD)
*
Clothing, proper sizing, gender, fabric content, care instructions, as per the Garments and Textiles Export Board (GTEB)
*
Department of Trade and Industry (DTI) Philippine National Standards (PNS) requirements for consumer goods
*
Food and food products that contain GMO Genetically Modified Agricultural products.




General Export Clearance Information

Clearance Process

Document Requirements
All exports require the following documentation:

International Air Waybill
Bill of lading or Airway bill must be presented with the shipment denoting the shipper, ultimate destination and means of transportation being utilized to move the goods from the Philippines. The bill of lading should provide a brief description of goods consigned under the bill of lading and the description should match details provided on the Commercial or Pro Forma Invoice.

Commercial or Pro Forma Invoice
The Commercial Invoice must contain, among other things, a complete detailed description of all articles being exported, its quantity, value for customs and statistical units of measure as applicable. Each article must be described in sufficient detail to accurately identify it for tariff classification and statistical purpose; if possible the proper tariff number should be included where known. When exporting samples, articles for repair, processing, or reconditioning, or *returning goods previously imported, etc. this must be clearly stated on the commercial invoice and the exporter must comply with the import documentation requirements of the destination country. The exporters TIN or Taxpayer Identification Number should be provided on the documents tendered for export to avoid delays in processing.

*Note: Goods being exported that were manufactured in the Philippines from previously imported goods may be eligible for duty drawback and or credit towards duty paid and may require additional documentation.

Pro Forma Invoices must contain, among other things, a description of all articles being exported. Each article must be described in sufficient detail to accurately identify it for tariff classification and statistical purposes and to allow the importer to use as a basis for seeking import permits required at the destination, etc. Pro Forma Invoices should only be used for initial solicitation of orders or to facilitate the importer's entry processing as required by Customs.

Packing List
Although not expressly required by law, Customs normally requires a Packing List to help expedite the Customs clearance process and it is especially helpful for shipments containing several commodities and multi-piece shipments.

Export of Temporary Imports
Exports of goods that were previously entered into the Philippines as temporary imports of raw materials that are being re-exported, as finished goods require that the shipment be presented to customs at the time of export for processing.

If the goods are being exported after a trade show or exhibition where a Temporary Importation Bond has been issued the exporter must present the goods to Customs, along with proper export declarations, commercial invoice, packing list, bill of lading and copies of the original entry documentation. These export documents shall be used for the cancellation of Temporary Importation Bond previously posted by the importer in the Philippines. Failing to process and secure the documentations prior to export may result in the invalidation of the temporary import bond and may lead to forfeiture of the monies placed in bond.

In addition to the above, the exportation of regulated commodities requires supporting documents.

1. Supporting Documentation Requirements
These include documents that must be obtained from a governmental agency or recognized non-governmental organization in the country of export or from the appropriate governmental agency in the Philippines. This documentation must be submitted to Customs prior to the export of certain regulated commodities. These documents are required for reasons of public health and safety, national security, in order to satisfy international commitments and to protect or for development local industry.



2. Examples of Export Supporting Documentation


Animals/Animal Products, Plants/Plant Products


* Veterinary Quarantine Clearance (Export Certificate)

* Commodity Clearance Certificate for Animals/ Animal Products (for Export Purposes)

* Application for Inspection and Phytosanitary Certification

* Export/Import Convention on International Trade of Endangered Species, Flora and Fauna, (CITES) Permit

* Certificate of Exemption (Non-CITIES Certificate)



Coffee


* Application for Coffee Export Clearance (CEC) and International Coffee Organization Certificate of Origin

Cultural Properties


* Application for Permit to Export Cultural Properties

General and Miscellaneous


* Application for Certificate of Origin

* Application for a Fumigation Certificate

* Application for Issuance of a Firm Code/Strictly for Shipment of Personal Effects/One Time Shipment

Fiber


* Fiber Industry Development Authority (FIDA) Commodity Clearance for Fiber

Fish


* Commodity Clearance (from the Bureau of Fisheries and Aquatic Resources)

* Application for Permit to Export Fresh/Chilled/Frozen Fish and/or Aquatic Products

Handicrafts


* Certificate for Handmade Products

* Certificate in Regard to Certain Handicraft Products

Sugar


* Affidavit to Export Sugar to the USA

Textiles


* Special Export License (for Textile Exports to Canada)

* Export License for Textile Products (for EU countries)

* Application for Export Authorization for Garments and Textile (for EU, CA, US)

Videograms (CDs, DVDs, video-CDs)


* Application for Videogram Export Clearance



General Export Process
When you give your shipment to FedEx (Licensee Airfreight 2100, Inc.) we prepare and complete all required export documents such as the Export Declaration, and assist in obtaining any additional export regulatory permits required based on the commodity being exported. Depending on the commodity being tendered and regulatory controls placed on the commodity most permits can be obtained within (48) forty-eight hours of application to the various agencies. Once all documents needed for export processing with Bureau of Customs (BOC) have been provided, the shipment is prepared for customs review and approval of export. We then lodge and process these documents at the BOC's, Export Department if the shipment is approved for export, we get the express authority to load the shipment. The shipment is then loaded into a container and can be transported to the designated aircraft or vessel for export from the Philippines.

Customs Procedures
Exporters are required to register with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC). Additionally they should be similarly registered with the city or the municipality where the business will operate, as well as with the Bureau of Internal Revenue in order to be able to offer goods for export from the Philippines. All exporters must provide their TIN or Taxpayer Identification Number for all exports tendered.






Philippines Export Prohibitions

HS Description of Prohibited and Restricted Articles

0301.99 Bangus fry, Mother bangus (Sabalo)
0306.23 Prawn spawner and fry
0508.00 Capiz shells (semi-finished, semi-processed)
Trumpet shells (Triton)
Helmet shells (Cassis)
Live specimen, raw shells
Meat and by-products of giant clams (Tridacnidae)
Undersized raw shells of Trocas, Gold lip, Black lip, Turbo Mamoratus & Kapis
1209.91 Abaca and ramie seeds
4403.41 Bakawan (mangrove)
2530.90 Stalactites & Stalagmites
Raw materials for cottage industries



HS Description of Prohibited and Restricted Articles

1401.10 Bamboo
1401.90 Monkey pod (acacia)
1401.20 Rattan (including poles)
5305.99.1 Buri fibers
Textiles and Textile Products
All articles that are presented for export from the Philippines consisting of textiles or textile products must be pre-approved for export by the Garment and Textile Export Board (GTEB) and Textile Export Clearance (TEC) issued. Goods consigned for export from the Philippines must be presented with complete documentation including an Export Authorization (EA) application to the GTEB. Authorization and or related license will be issued within four (4) hours by the GTEB provided all documentation is correct and existing quotas etc are not closed. Customs will not grant release for export of any textile shipment unless EA has been issued by the GTEB.

Textiles consigned to the following countries require the following under the terms of existing bi-lateral agreements currently in force in order to be allowed import in the destination country:

Country Documentation
European Union (EU) Export License (EL) Certificate of Origin (CO)
Mexico Certificate of Origin (CO)
United States Textile Visa (VISA)
SOCPEC Countries
Nations identified by the Philippines International Trading Corp (PITC) as being socialist or having a centrally planned economy are subject to both import and export controls in the Philippines. Goods originating from these SOCPEC countries or exported to these countries must be approved by the PITC, pursuant to Section V of Letter of Instruction No.444. Importers and exporters wishing to import or export from these countries must seek approval and submit an application for each shipment. The application shall be accomplished on the PITC Form No. M-1002 for import and the PITC Form No. M-1005 for export shipments.

Export Approval Required
The following commodities are always subject to export controls and may require permits in addition to agency approval:

* Copper Concentrates

* Rice, Grains and grain products

* Sugar Molasses and Muscavado

* Coffee

* Live Animals

* Antiques, Cultural Properties

* Aquatic products; fish, shrimp, shells

* Cement

* Gold

* Logs and Lumber, processed Forest Products

* Raw materials used in Cottage Industries






General Export Restrictions

The following items are not acceptable for carriage to any international destinations unless otherwise indicated. (Additional restrictions may apply depending on destination. Various regulatory clearances in addition to customs clearance may be required for certain commodities, thereby extending the transit time.)

* APO/FPO addresses.

* C.O.D. shipments.

* Human corpses, human organs or body parts, human and animal embryos, or cremated or disinterred human remains.

* Explosives (Class 1.4 explosives are acceptable for carriage to Canada, Germany, Japan, Sweden, United Arab Emirates and United Kingdom. Note: United Arab Emirates only allows Class 1.4 explosives to be shipped hold- for- pick-up to the FedEx Express facility in Dubai.)

* Firearms, weaponry, and their parts (acceptable between the U.S. and Puerto Rico).

* Perishable foodstuffs and foods and beverages requiring refrigeration or other environmental control.

* Live animals (including insects) except via our Live Animal Desk (1.800.405.9052).

* Plants and plant material, including cut flowers (cut flowers are acceptable from the U.S. to selected points in Canada and from Colombia, Ecuador and the Netherlands to the U.S.).

* Lottery tickets and gambling devices where prohibited by local, state, provincial or national law.

* Money (coins, cash, currency, paper money and negotiable instruments equivalent to cash such as endorsed stocks, bonds and cash letters).

* Collectible coins and stamps.

* Pornographic and/or obscene material.

* Hazardous waste, including, but not limited to, used hypodermic needles or syringes or other medical waste.

* Shipments that may cause damage to, or delay of, equipment, personnel or other shipments.

* Shipments that require us to obtain any special license or permit for transportation, importation or exportation.

* Shipments whose carriage, importation or exportation is prohibited by any law, statute or regulation.

* Shipments with a declared value for customs in excess of that permitted for a specific destination.

* Dangerous goods except as permitted under the Dangerous Goods section of these terms and conditions.

* Processed or unprocessed dead animals, including insects and pets. Taxidermy-finished hunting trophies or completely processed (dried) specimens of whole animals or parts of animals are acceptable for shipment into the U.S.

* Packages that are wet, leaking or emit an odor of any kind.

* Wildlife products that require U.S. Fish and Wildlife Service export clearance by FedEx prior to exportation from the U.S.

* Shipments* being processed under:

Duty drawback claims unless advance arrangements are made.

Temporary Import Bonds - acceptable under the FedEx International Broker Select option, for initial import only.

U.S. State Department licenses.

Carnets.

U.S. Drug Enforcement Administration export permit.

Shipments destined to or being withdrawn from a Foreign Trade Zone.

Letters of Credit (however, shipments covered by a Letter of Credit calling for a "Courier Receipt" as defined by Article 25 of UCP 600 may move via FedEx International Priority).

Certificate of Registration shipments (CF4455).

Shipments moving into or out of Foreign Trade Zones or bonded warehouses.

*You may be able to ship these items via FedEx International Premium, FedEx International Express Freight (IXF), FedEx International Airport-to-Airport (ATA) or FedEx International Controlled Export. For information on FedEx International Premium, IXF and ITA, call FedEx Express Freight Services at 1.800.332.0807. For information on FedEx International Controlled Export, call International Customer Service at 1.800.247.4747 or your local FedEx customer service representative.






Philippines Restrictions

N/A




Regulatory Contact Information

Branch or Agency Name


Areas of Responsibility
Bangko Sentral ng Pilipinas
Roxas Blvd. Pasay City / Mabini St.
Malate, Ermita,
Manila, PH

* Administers Philippine monetary policy, acts as clearinghouse for all import and export trade.

Board of Investment
385 Gil Puyat Ave.
Makati, PH

* Administers programs and controls related to the registration of importers and reviewing requests for tax exemptions.

Bureau of Animal Industry (BAI)
One-Stop Export Documentation Center
Int'l. Trade Center, Roxas Blvd.
Pasay