No More Duties and Taxes For Items With Values 10000 PHP and Below
Hobbyists, Amazon shoppers, Balikbayans, rejoice! The Bureau of Customs just updated the value of non dutiable items at 10, 000 PHP and below as an administrative order. It has been already signed, approved, and will be implemented this October 25th 2016. You can read more about it HERE.
On 28 September, CAO No. 02-2016 (RE: IMPORTED GOODS WITH DE MINIMIS VALUE NOT SUBJECT TO DUTIES AND TAXES) was signed by Customs Commissioner Nicanor Faeldon and approved by Finance Secretary Carlos Dominguez III. It implements Section 423 of the CMTA, which provides that “[n]o duties and taxes shall be collected on goods with freight on board (FOB) or free carrier (FCA) value of P10,000.00 or below.”
It is as it is read. No duties and taxes shall be collected, or imposed on imported goods. These so called goods with values amounting equal to, or less than 10, 000 PHP are subjected to be exempted and are entitled to be released as soon as possible. This is a huge update to the notoriously old Tariff and Customs Code of the Philippines whereas items with 10 PHP value and below are only exempted.
Now for us folks that shops, and receives items from abroad on a monthly basis, this is really a good news. There’s practically no reason to devalue your items (ehem), and with it we highly suggest that you should input the necessary value of your items from now on. What’s not to like?
BACK2GAMING
Long overdue. Guess the a holes in customs got rich enough doing nothing but stealing from from hardworking poor people. scumbags.
Does this 10 k means including the shipping fee ?
Example item coat $ 130 plus $ 76 shipping.
Yes Randy, it should exclude the shipping cost.
Are precious stones like amethyst and moissanite included? Thx
I’m not quite sure if it is included at the de minimis law, but precious stones are not listed – nor exempted to such rule.
if the item is discounted does it count the original price or the discounted price? please correct me if i’m wrong the 10k means they will not look at the item + ems shipping price, only the price of the goods?
For that one, I believe you have to show the proof of purchase. I.E. an electronic receipt that shows it is indeed bought at a discounted price.
Does the 10k means that even if im buying 100 pcs from alibaba that’s worth 2,000 PHP , I’m still exempted from duties and taxes?
Yes, that should be the case :)
Have you bought already? How did it go? Did they taxed you or not? I’m also planning to buy bulk items on Alibaba. Tnx.
Does this exemption also relate to imported items carried in baggage at airport entry.
It does. Better not to disclose anything out of ordinary though.
what is taxable in exceeding 10K.. is it the excess amount only or the entire cost?
i have a shipment from young living,it contains essential oils ang a diffuser,it costs 160 dollars..why are they charging me 2,808 pesos when my shioments costs below 10,000 pesos?
Shouldn’t be the case. Point them out the prices or provide the official receipt of your purchases. That should do it.
below 10k every month?
Imported books are tax and duty-free according to the Unesco florence agreement. What if I order and import different books with the total amount of 16000. Is that package subject to tax? or the Florence Agreement still applies on this case?
Hi Kate,
If that is the case you have to make sure that your orders are for personal use alone. Make sure that it reflects on your oders too. I.E. the amount of copies if there are such.
Yes, those books are for personal use only. So I don’t need to pay for tax and duty right, since it’s all books plus 3 souvenir items. Should I pay tax for the items that are not books, since I exceeded the 10k minimis? Thanks for your help.
Im planning to buy a gate swing opener which cost 9800php and shipping cost 3800php, do they include the shipping (9800+3800) in the nax 10000php excemption?
It shouldn’t be included. Make sure to have the receipt ready though if questioned.
Hi, i received package frm malaysia worth rm400 or about 5,000 pesos and when i claim at airport post office i paid 112 pesos for philpost fee and custom fee amounted to 265 pesos (15 for tax, 250 for cds). I thought it is tax exempt?
The Philpost fee is expected and there’s still an import duty. Also, if that package contained any items out of the de minimis rule, it shall be taxed.
Hi, I am planning to purchase a pc part from aliexpress worth 20k for personal use. How much is the possible tax charge?
You may use this web app from BOC. https://customs.gov.ph/boc_tax_calc_informal.php
Hello, I saw someone comment here with the exact question as mine but with different answers. So I would like to make sure. Does the 10k value include the shipping fee? Like if I purchased something worth 9k and the shipping fee is 2k, does that mean I have to pay for taxes? Also, what amount does the 50% luxury tax take into effect?