Import: Special Provisions

Special provisions allow importers greater flexibility in the import process.

Temporary Import

In the Philippines, temporary imports fall within the category of conditionally free imports. Under this category, certain articles are permitted to be imported for specific purposes without the stipulated payment of duties. Goods consigned for temporary import or exclusively for use in trade shows (to be exported immediately after their use) can be entered into the Philippines under a Temporary Importation Bond (TIB). However, these articles are subject to a bond equivalent to 150 percent of the ascertained taxes and duties due in case of the re-exportation of the same within a specified period, or the payment of taxes and duties as ascertained under a TIB. Once goods are exported, the proof is tendered to BOC. The liability for duties is terminated as the bond is cancelled or liquidated by BOC.

Temporary imports in the Philippines can be initiated by filling an application with the Department of Finance. The application must cover the following:

• Articles brought into the country for repair, processing, or reconditioning that are to be re-exported upon completion of the repair, processing, or reconditioning within six months from acceptance of the entry.
• Personal and household articles and vehicles that belong to the foreign experts and consultants hired by and/or rendering service to the Government, their staff, personnel, and families accompanying them or arriving within a reasonable time in the Philippines. The articles, both in kind and quantity, must be in coherence with the profession and rank or position of the person importing them. The articles must be re-exported within six months. On its expiration, the term of contract is extendable by another six months on meritious grounds.
• Articles used exclusively for public entertainment, public display, exhibition, competition for prizes, devices for projecting pictures, and parts and appurtenances that are to be re-exported within six months from acceptance of the entry.
• Articles brought by foreign film producers that are directly and exclusively used for making or recording motion picture films in a Philippines location. These articles are to be re-exported within six months from acceptance of entry, extendable by another six months.

ATA Carnet for Temporary Admission

The Philippines is a party to the ATA Carnet convention. The ATA Carnet is a multipart document facilitating duty-free temporary importation of goods to any number of participating countries over the course of one year. Between two green covers, it contains color-coded vouchers used for domestic and foreign customs and for transit operations. 

The acronym ATA is a combination of French and English phrases "Admission Temporaire / Temporary Admission." Carnets can be used for most ordinary goods. They are designed by the ATA Carnet convention to cover:

• Commercial samples and advertising films
• Goods for international exhibitions
• Professional equipment

Items excluded from the ATA Carnet system are the following:

• Items already sold or offered for sale
• Theatrical makeup
• Consumables, such as food, alcoholic beverages, tobacco, and fuels
• Goods intended for processing or repair

The validity of carnets extends for 12 months from the date of issue for commercial samples, exhibition goods, and professional equipment. If the validity period is exceeded, duty and penalty charges will be incurred, even if the goods are proven to have been exported thereafter. Any such charges incurred will be the liability of the ATA Carnet holder.

Goods imported under ATA Carnet must be exported within the period approved for their admission. They are not to be sold or transferred. Failure to observe these requirements would result in the ATA Carnet holder or guarantor becoming liable to the payment of duty and penalty charges. Contact data for issuing agencies can be found on the International Chamber of Commerce website at www.iccwbo.org/ata/id2965/index.html.

The Philippine government has taken several initiatives to comply with the ATA Carnet Convention. The 10th Congress amended the Philippine Tariff and Customs Code to reduce the bond requirement for the temporary release of conditionally free shipments from 150 percent to not more than 100 percent of the ascertained taxes and duties.

Customs Warehouse

In the Philippines, the Warehouse Entry Regime is used to import commodities that are sent to a public or private customs-bonded warehouse for temporary storage. These goods can be withdrawn later for a number of reasons, such as home consumption, transportation to another port in Philippines, or exportation. In addition, the temporarily stored import commodities can also be withdrawn for delivery on board a vessel or aircraft that is engaged in foreign trade and is used as on-board sea stores or aircraft stores.

The Warehousing Entry Regime is also used in the following cases:

• To import articles to a bonded manufacturing warehouse where they are used in processing or manufacturing
• Where the semi finished or finished products are exported or released for sale in the domestic market

Accreditation

According to the revised rules and regulations on accreditation of importers, a number of imports that are exempted from the accreditation requirements are covered by separate rules and regulations. The imports are as follows:

• First and last import for the year
• Imports by parcel post
• Imports covered by special laws
• Imports by enterprises covered by the Bases Conversion Development Authority
• Imports of the Philippine government, its agencies, and instrumentalities
• Imports by foreign embassies, consulates, legations, agencies of other foreign governments, and international organizations with diplomatic status and recognized as such by the government of the Philippines, i.e. the Asian Development Bank, or the World Health Organization

Samples

Samples or goods that are provided free of charge for purposes of obtaining orders are allowed for import. These goods are documented as samples on the Air Waybill or Bill of Lading and Commercial Invoice provided for customs. Samples may be subject to duties and taxes.

Examples of qualifying samples are:

• Only one of a kind, style number is acceptable for entry under sample provisions
• Properly marked with this or similar wordings "samples, not for sale"
• Garments tendered as gifts should not be in commercial quantities

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.

Article written for World Trade Press by Taylor Holloran, Jennifer Goheen, and Nina Bellucci.
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