How can the goods imported to the Philippine go through customs smoothly? And how to ensure the smooth customs clearance of goods is a very important issue. Below are some tips that need you to pay attention to the customs clearance of import from China to the Philippines. Let’s take a look.
A: Import documents:
Commercial invoice used to calculate customs duties. Invoices shall include:
- Name and address of exporter.
- Mode of shipment, including Sea boat (name and country of the ship) and air transportation (name of the airline).
- Shipping date of the Sea or airplane.
- Shipping country and port of departure.
- The port of discharge in the Philippines.
- Shipping Mark, quantity, and type of parcels.
- Gross weight and net weight.
- Terms of supply (FOB, CFR, CIF price).
- Value: the value of the sale must be stated in the same monetary unit.
- If there is a country of origin, the country of origin should be indicated.
B: Bill of lading:
Bill of lading is divided into sea bill of lading and air bill of lading. The transportation cost and weight must be indicated. The instruction bill of lading can be used. But need to indicate the address of a notified person.
The import duties of the Philippines are levied partly on a volume basis and partly on a value basis. Specific duties are levied on products on a volume basis: such as alcoholic beverages, fireworks, tobacco products, watches, minerals, cartoons, saccharin, poker, and so on. Value basis tariff rates range from 10% to 100%. The Philippines has established a value-added tax system with a tax rate of 10% from January 1, 1998. Imports of agricultural products, seafood, chemical fertilizers, agricultural flowers and herbicides, some petroleum products, some books, and paper are exempted from VAT.
The Philippine Customs offers free import duties on the following situations: (1) printed materials, pictures, photographs, labels, catalogs, price books, small books, etc., provided that it is marked with the words “samples not for sale or advertising materials”; 2 samples of commercial value, but the value does not exceed the US $1500; 3 samples that are not used for sale or have no commercial value, and medical samples marked with the word “health care”.
C. Import license.
The main products that require import licenses are automobiles, tractors, cars, diesel engines, gasoline engines, motorcycles, consumer durables, news pages and printing equipment, cement, health-related, and public security-related products. For restricted imports, prior approval from the central bank is required, as such products are not basic products, and all such products are divided into two categories: non-basic consumer goods (Non-Essential Consumer Goods) and classless consumption (Unclassified Consumer Goods).
Generally speaking, imported goods with a value of more than the US $1000 need to be issued the RC by the authorized bank (The Authorized Agent Banks, or AABs) (Release Certificate, or RC). The requirements for issuing RC are: (1) the importer pays customs duties and taxes and complies with other regulations; (2) copies of the original shipping documents, such as commercial invoice, packing list, bill of lading, etc., should be submitted to the authorized agent bank.
The above is all about the customs clearance of import goods into the Philippines. If you have any questions about shipping from China to the Philippines, pls feel free to contact us for more information.