Buyandship established a network of self-operating(US, JP, CA and UK) and dedicated(KR, CN, TW, AU, IT, TH and ID) warehouses for users to ensure fast and efficient delivery services. But every country has different taxation that has to be considered. Find the taxation for Philippines below.

When importing goods into the Philippines, there will be an import duty and tax charge, no matter if imported by a private individual or a commercial entity.

Refer to Section 5.5a of the Customs Administrative Order (CAO) No. 02-2024, shipment imported into Philippines with a de minimis value of less than PHP 10,000 will be subject to an Import Processing Charge amounting to a net rate of PHP 380. A “De Minimis Processing Fee” of PHP70 will be implemented for all de minimis import shipments. This fee will be subject to 12% value-added tax (The VAT). The total charge for shipments with a de minimis value of less than PHP 10,000 is 380+70+70*0.12= PHP 458.4

“Shipments covered by one Master Bill of Lading (MBL) or Master Airway Bill of Lading (MAWB) but with several House Bill of Ladings (HBLs) or House Airway Bills (HAWBs) , single or multiple invoices with the same consignee and shipper , are considered as a single consignment and are subject to duties and taxes should the total value exceed the de minimis value.”

For the under PHP 10,000 of fixed duty and tax rule, it is the combined shipment value on the same day when it passes through Philippines Customs. Even if you create separate shipment orders, Customs will combine the value of all orders that sent to the same consignee or address on the same day to assess the de minimis value. To be eligible of the fixed duty and tax rule for every shipment, make sure the total value of your shipments will not exceed PHP 10,000 when they arrive at Philippines Customs in one day. Even if you have create separate shipment orders, Philippines Customs will combine the value of all orders that is sent to the same consignee on the same day to determine de minimis value.

To be eligible for the fixed duty and tax rule, please make sure the total value of your shipments does not exceed PHP 10,000. You are strongly advised to track your shipments and wait until the shipments pass the Philippines Customs before sending the next batch of shipment(s). That is also given that your declaration is correct and approved by Philippines Customs valuation. Philippines Customs has the final decision on taxation and Buyandship is not liable for any taxation problem or government policy changes.

DDP is only applicable for a shipment with a declared value of PHP 95,000 or below. If it is above PHP 95,000, you will not be able to choose DDP when checking out and instead can only choose DDU. Please note that the foreign currency may vary which could affect the availability of choosing the DDP option.

Reminder
Kindly remember that you have to declare your shipments properly based on your invoice and receipt. Please ensure you declare according to the warehouse currency you shipped to and that the unit price per item is as is in your invoice and receipt. For more information, please refer to "How to declare your shipment in Buyandship Philippines".

Please note if you are using DDP, you do not have to wait until goods have passed PH customs before sending the other. If you have two orders, one is DDP and one is DDU, there is no effect of DDP to the DDU total value at the time of assessment of PH customs.

Customers should have to pay for the duty of the shipment (if any), and also VAT (Value Added Tax) of the total value of shipments. This is represented with the calculation of Duty Tax + VAT.

Philippines customs will charge duty fees for all personal shipments. The average duty fee has a range of 3-30% (normally at around 15%), wherein the shipments will be cleared after clients have settled the duty.

VAT stands for Value Added Tax. VAT is a type of sales tax which is levied on consumption on the sale of goods, services or properties, as well as importation in the Philippines. The tax rate is 12%.

CIF is the valuation method the customs use to define a shipment's value and use this value to calculate tax.

• CIF = Product price + Cost of Shipping (Freight) + Cost of Insurance
• Duty Tax = Duty % x CIF
• VAT = 12% x (CIF + Duty + excise taxes if any)
• Import Tax & Custom Fees = Duty Tax + VAT

* There may be a processing fee by the local courier and Philippines Customs storage fee. Buyandship is not responsible for these charges incurred.

Purchased a luggage in PHP 15,000, and the weight is 5lb. The pricing plan is DDU.

• Tax Threshold: PHP 10,000
• Product price = PHP 15,000
• Cost of Shipping = PHP 620 + PHP 380 x 4lb = PHP 2,140
• Cost of Insurance = 0
• CIF = 15,000 + 2,140 + 0 = PHP 17,140

If the the total CIF value is PHP 17,140, and the duty rate of the luggage is 15%

• Duty Tax = 15% x 17,140 = PHP 2,571
• VAT = 12% x (17,140 + 2,571) = PHP 2,365.3
• Import Tax & Custom Fees = 2,571 + 2,365.3 = PHP 4,936.3

The following information is subject to change at any time.

• Accessories(W/WO Battery) 15%
• Health & Beauty 3%
• Fashion 15%
• Supplements 15 %
• Toys 3%
• Sports 5%
• Luggage 15%
• Gaming 0%
• Books & Collectibles 0%