Import: Basic Process

Customs Entry

The customs authority in the Philippines is known as the Philippine Bureau of Customs (BOC).

Documentation Package

Shipments entering the Philippines by sea and air require the importer to submit an Inward Foreign Manifest (IFM) to the BOC upon the arrival of the carrier. The registered importer or its agent then submits a documentation package to the BOC consisting of a notarized Single Administrative Document (SAD) and other supporting documentation. The documents can be filed either manually or electronically (see Electronic Filing below).

Documentation Review

The BOC reviews the documentation to check for:

• Authority of the entity to import
• Consistency of information across documents
• Legality of the proposed import
• Proper product classification and valuation

The BOC also:

• Establishes whether to order an inspection of the shipment
• Computes duties, taxes, and other fees
• Refers documentation to other governmental agencies for imports of controlled products
• Establishes any special requirements for final clearance of the shipment

Common Customs Entries

The following are the most common customs entries:
Consumption Entry
Articles are released from customs custody for immediate sale or use within the country.
Transit Entry
The consignee is granted permission to transport a shipment through the country solely for the purpose of export to another country.
Temporary Entry
The consignee is granted permission to import articles on a temporary basis without the payment of duties and taxes. Examples include sales samples, race cars for temporary use in a specific event, motion picture cameras for temporary use in the making of a specific film, etc. A bond is usually required to ensure that goods are either exported or that duties and taxes are paid.
Warehouse Entry
The consignee is granted permission to transfer a shipment to a customs bonded warehouse where it is stored without payment of import duties and taxes until it is formally imported for consumption or re-exported.
Foreign Trade Zone (FTZ) Entry
The consignee is granted permission to transfer a shipment into a Foreign Trade Zone (FTZ) without payment of duties or taxes where it is either stored or processed and then imported for consumption or re-exported.

Most importers engage the services of a logistics firm or a customs broker to handle import documentation and procedures.

Time to File

The SAD must be filed in the customhouse within 30 days of the date of discharge of the last package from the vessel, which time shall not be extendable. Failure to file the entry constitutes implied abandonment and may result in the ipso facto forfeiture of the articles/shipment.

Electronic Filing

The BOC currently uses an online system for filing, tracking, payments, and notifications called Electronic-to-Mobile (E2M). After encountering difficulties with the E2M system, the BOC hired a Dubai-based company to create a new online interface called the Integrated Enhanced Customs Processing System (IECPS), with the goal of making the IECPS more secure, integrated, and user-friendly. As of 2022, however, the E2M system is still in effect for all online customs transactions and no date has been set for the launch of the IECPS.

Import License, Clearance, Permit

As a general rule, all kinds of imported articles are allowed into the Philippines. For freely-importable articles the BOC does not require prior approval or clearance from any governmental agency. Some restricted articles, however, require an import license, clearance, or permit. See the Restricted and Prohibited page.

Tariff Regimes

The Philippines, like other members of the Association of South East Asian Nations (ASEAN), uses the ASEAN Harmonized Tariff Nomenclature (AHTN) to classify goods imported from other ASEAN countries. The AHTN is based on the Harmonized Commodity Description and Coding System (Harmonized System or HS). The HS, used by more than 180 countries, is an internationally-standardized system of names and numbers for classifying traded products and is maintained by the World Customs Organization (WCO).

Additionally, the Philippines is a signatory to a number of trade agreements that provide for reduced-duty or duty-free import of certain articles from certain countries. Some of the major trade agreements include:

• Asia-Pacific Economic Cooperation (APEC)
• Association of Southeast Asian Nations (ASEAN)
• Generalized System of Preferences (GSP)

For a list of trade agreements to which the Philippines is a party, see the Trade Agreements page.

Import Documentation

All imports of physical articles require the following basic documentation:

• Single Administrative Document (SAD)
• Internal Revenue Declaration (IEIRD-BOC Form No. 236)
• Freight Document: Bill of Lading (B/L), Air Waybill (AWB), Rail Waybill, or Road Waybill
• Certificate of Origin (CoO)
• Pro Forma Invoice (not allowed for buyer-seller transactions; allowed for importation of samples, articles for repair, returned articles previously exported, articles sent on consignment, and similar) or Commercial Invoice (CI) (for all buyer-seller transactions)
• Packing List (P/L)

Some imports may require specialized documentation:

• Inward Foreign Manifest (IFM) (for shipments entering by air and sea)
• Health Certificate
• Phytosanitary Certificate
• Insurance document
• Import Licenses, Permits, Certifications
• Documents as may be required by the terms of a bank letter of credit (L/C) or documents against payment (D/P) provision

Restricted and Prohibited Articles

For restricted and prohibited articles an import license, clearance, or permit must be obtained from the Philippine governmental agency that regulates that article. This document must be submitted to the BOC upon filing of the SAD or prior to release of the regulated articles from the BOC’s custody. See the Restricted and Prohibited page for more detailed information.

Inspection

The submitted documents are processed through the Automated Customs Operating System (ACOS), which validates the submission and routes it through one of the following:
Red Channel
Shipments are subject to both physical inspection and documentary review.
Yellow Channel
Shipments are subject to documentary review only.
Green Channel
No inspection is required.

Imported articles may be subject to inspection when:

• The seal on the shipping container has been tampered with
• The container is leaking
• The shipment’s details in the shipping documents differ from that in the manifest
• An alert or a hold order has been put on the shipment
• The BOC has knowledge that there is a variance between the declared and true quantity, measurement, weight, and/or tariff classification of the shipment.

The BOC may also perform random spot inspections.

Payment of Duties and Taxes

In general, unless exempted by law, all articles imported into the Philippines are subject to duty and taxes, which accrue upon the arrival of a shipment into the customs territory. Whether subject to duty or not, the articles shall be entered through a customhouse at a port of entry, where BOC examination, tariff classification and appraisal are made. Release of the shipment does not happen until all taxes and duties are paid or secured to be paid.

Clearance and Release of Shipment

Once the importer accepts the duties and taxes as assessed by the BOC and payment is completed, a Final Assessment Notice is issued and the SAD is validated by machine-generated text with the name of the bank and amount paid by the importer printed on it. The BOC electronically receives confirmation of the payment. After any necessary inspection is completed, the importer presents a copy of the validated SAD at the BOC facility where the shipment is held, which acts as proof of customs clearance and approval for release.

Note that taxes and other charges due shall be paid (or secured to be paid) prior to release from BOC custody even if the articles were previously exported from the Philippines.

Import Support

The Bureau of Import Services (BIS) (Tel: [63] (2) 896 4430) facilitates imports, administers import regulation on selected items, and monitors the importation of liberalized and sensitive items. It initiates and conducts preliminary investigations on dumping, countervailing, and safeguard protests. For general customs concerns or help, contact the Bureau of Customs directly at help.desk@customs.gov.ph.

Note: The above information is subject to change. Importers are advised to obtain the most current information from a customs broker, freight forwarder, or the local customs authorities.

Sources: Philippine Bureau of Customs, Philippine Department of Trade and Industry 

Article written for World Trade Press by Taylor Holloran and Brittony Hubbard.
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