Order a lot of stuff overseas? We have good news for you: the Bureau of Customs have announced that they have raised the minimum dutiable value of items from the ancient amount of Php 10 (which ensured that almost everything that you ordered overseas will be taxed) to a more realistic Php 10,000.
According to a post in the BOC’s website, Customs Administrative Order (CAO) No. 02-2016 signed by current Customs Commissioner Nicanor Faeldon and Finance Secretary Carlos Dominguez III states 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.”
This means that orders from overseas that do not pass the 10K value will NOT be taxed by customs, and customers will only have to pay the required documentary and handling fees.
Importations of tobacco goods, wines and spirits within the de minimis value shall still be subject to payment of excise tax, as provided by the National Internal Revenue Code (NIRC).
The CAO will take effect on October 24, 15 days after its publication in the Official Gazette. The full text of the CAO can be found here.
Now to start shopping online…
What about VAT? It said that no there are no more duties and taxes will be collected, but BIR and BoC are two different taxing authorities, which means that a resolution by one, will not effect the other. It makes more sense that VAT will still be collected for this purchases, but I am still unsure.
*It is said that no duties and taxes will be collected,
halimbawa umorder ako sa gearbest ng converted to 7k Pesos na phone. tapos free shipping. ano yun wla na ko babayaran bukod dun sa price ng phone?
In theory, yes. Wanna test it?
I dont get it.. I bought a headphone for 2.3k pesos sa Aliexpress , item came from china and free shipping sya.
but then i had to pay 112 pesos for the post office fee.. every single purchase from overseas nasisingil ako ng 112 sa post office…
so tax pala yung 112 na fee? kasi kung hindi.,.. edi wala palang tax yung headphones ko..
ung 112 hindi yan tax. Its a BOC presentation fee. Its 112 for every package.
unfortunately, this is not yet implemented so hold your purchases unless it will delivered within the effectivity. Sabi dun sa circular after 15 days upon posting. So kahapon pa lang to. para sure November na tayo umorder.
Finally. yung mga mobile cases na inoorder kong halos $ 2.00 lang mas mahal pa binabayaran sa post office.
Does this mean a maximum of 10k per item? or with the overall items valued at 10k?
[…] that occur in the US and it happens every November. And speaking of import duties, in 2016, the Bureau of Customs enacted a policy that states that items priced less than Php10,000 (~USD 166.70) are free from […]