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Import procedures and formalities in the Philippines

Information on the procedures and formalities for importing goods into the Philippines is provided on the website of the Philippine Bureau of Customs (BOC) at the following link:

https://customs.gov.ph/guidelines-on-importation/

(Note: This link is for reference only and may change over time. In all cases, enterprises may access the official website of the Philippine Bureau of Customs directly to search for the most updated information.)

The importation of goods from overseas into the Philippine market is generally conducted through the following basic steps:

Step 1: Determine the import classification / import conditions applicable to the goods

Not all goods are permitted to be imported into the Philippines, and not all imported goods are subject to the same import regime. Accordingly, before importing goods into the Philippine market, importers should determine the applicable import category of the goods in order to identify and comply with the corresponding import procedures and requirements.

Details for step 1: https://wtocenter.vn/rcep-market/29992-determine-the-import-classification-import-conditions-applicable-to-the-goods

Step 2: Classification of goods (HS classification)

Determining the HS classification of goods is a critical step in the import process into the Philippines. Under the rules of the World Customs Organization (WCO), member countries apply a harmonized HS code structure up to the first six digits, while the subsequent digits are determined by each country, meaning they may differ across jurisdictions. Viet Nam and the Philippines currently both apply the 8-digit HS code system under the ASEAN Harmonized Tariff Nomenclature (AHTN).

Enterprises must rely on the detailed description and characteristics of the imported goods to determine the correct classification in accordance with Philippine regulations.

Details for step 2: https://wtocenter.vn/rcep-market/29991-classification-of-goods-hs-classification

Step 3: Determining applicable taxes and fees

Import tax

After identifying the HS code of the goods, the importer can determine the applicable import duty rate. Import duties are calculated as a percentage of the goods’ customs value.

For Vietnamese goods imported into the Philippines, enterprises currently have nine tariff options, with each option corresponding to a specific duty rate and eligibility conditions. Importers should assess the product’s specific circumstances to select the most suitable and advantageous tariff treatment. In particular:

  • MFN tariff (Most-Favoured-Nation): This is the tariff rate applied by the Philippines to goods originating from WTO Members. The rate is set by the Philippines but must remain within its WTO bound commitments, and it applies to goods from WTO Members without any origin-related conditions. As Viet Nam is a WTO Member, Vietnamese goods are automatically eligible for MFN treatment without having to meet any additional requirements.
  • Preferential tariffs under FTAs in which both Viet Nam and the Philippines are parties

Other taxes

  • Value-Added Tax
  • Excise tax
  • Anti-dumping duty, countervailing duty, and safeguard duty

Details for step 3: https://wtocenter.vn/rcep-market/29990-determining-applicable-taxes-and-fees

Step 4: Import declaration, tax payment, and customs clearance

All goods imported into the Philippines must be declared to the Philippine Bureau of Customs (BOC). The import entry/declaration must be filed within 15 days after the goods are discharged from the vessel/aircraft. Before the initial filing deadline expires, the importer may request an extension of an additional 15 days if there are valid grounds.

The importer will submit the electronic import declaration via the BOC’s Electronic-to-Mobile (E2M) System, and concurrently submit hard-copy supporting import documents to the Entry Processing Unit for cross-checking and verification (except in cases where fully paperless/electronic documentation has been implemented).

The Philippine Bureau of Customs updates the import declaration status in its E2M Customs System. After confirmation that tax obligations have been fulfilled, the system will automatically authorize cargo release.

Details for step 4: https://wtocenter.vn/rcep-market/29989-import-declaration-tax-payment-and-customs-clearance

Source: Center for WTO and International Trade - VCCI

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