Tax and/or duty Exemption

• All goods—including those previously exported from the Philippines—when imported into the Philippines are subject to duty and tax. (Sec. 104, CMTA)
• Goods exempt from duties and taxes

  • Conditionally tax and/or duty-exempt importations under Section 800, Chapter 1, Title VIII of the CMTA
  • De minimis importations
  • Relief consignments
  • Importations under the customs bonded warehousing system
  • Goods for admission to Free zones
  • Stores under Sections 818 to 821 of the CMTA
  • Goods granted exemption privileges under other laws ( Sec 109, NIRC; Jewelry Industry Act; International Trade Agreements; etc.)
• Conditionally tax and/or duty-exempt importations under Section 800, Chapter 1, Title VIII of the CMTA


  1. Aquatic products such as fishes, crustaceans, mollusks, marine animals, seaweeds, fish oil, roe, caught or gathered by fishing vessels of Philippine registry

  2. Equipment for use in the salvage of vessels or aircrafts, not available locally

  3. Cost of repairs, excluding the value of the goods used, made in foreign countries upon vessels or aircraft documented, registered or licensed in the Philippines

  4. Goods brought into the Philippines for repair, processing or reconditioning to be reexported upon completion

  5. Medals, badges, cups, and other small goods bestowed as trophies or prizes, or those received or accepted as honorary distinction

  6. Personal and household effects belonging to returning residents

  7. Wearing apparel, goods of personal adornment, toilet goods, portable tools and instruments, theatrical costumes and similar effects accompanying travelers, or tourists, or arriving within a reasonable time before or after their arrival in the Philippines

  8. Personal and household effects and vehicles belonging to foreign consultants and experts hired by, or rendering service to, the government, and their staff or personnel and families accompanying them or arriving within a reasonable time before or after their arrival in the Philippines

  9. Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects belonging to persons coming to settle in the Philippines or Filipinos or their families and descendants who are now residents or citizens of other countries

  10. Goods used exclusively for public entertainment, and for display in public expositions, or for exhibition or competition for prizes, and devices for projecting pictures and parts and appurtenances thereof

  11. Goods brought by foreign film producers directly and exclusively used for mailing or recording motion picture films on location in the Philippines

  12. Photographic and cinematographic films, underdeveloped, exposed outside the Philippines by resident Filipino citizens or by producing companies of Philippine registry where the principal actors and artists employed for the production are Filipinos
• Goods sold, bartered, hired or used for purposes other than what they were intended for and without prior payment of the duty, tax or other charges which would have been due and payable at the time of entry if the goods had been entered without the benefit of this section, shall be subject to forfeiture and the importation shall constitute a fraudulent practice against customs laws
• A sale pursuant to a judicial order or in liquidation of the estate of a deceased person shall not be subject to the preceding proviso, without prejudice to the payment of duties, taxes and other charges
• The President may, upon the recommendation of the Secretary of Finance, suspend, disallow or completely withdraw, in whole or in part, any conditionally free importation under this section
• For purposes of this Act, OFWs refer to holders of valid passports duly issued by the Department of Foreign Affairs (DFA) and certified by the Department of Labor and Employment (DOLE) or the Philippine Overseas Employment Administration (POEA) for overseas employment purposes. They cover all Filipinos, working in a foreign country under employment contracts, regardless of their professions, skills or employment status in a foreign country
• Calendar Year refers to the period from January 1 to December 31
• d; and technical and scientific films when imported by technical, cultural and scientific institutions, and not to be exhibited for profit: Provided, further, That if any of the films is exhibited for profit, the proceeds therefrom shall be subject to confiscation, in addition to the penalty provide under this Act;
• (k) Goods brought by foreign film producers directly and exclusively used for mailing or recording motion picture films on location in the Philippines, upon their identification, examination and appraisal and the giving of a security in an amount equal to one hundred percent (100%) of the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof or payment of the corresponding duties, taxes and other charges within three (3) months from the date of acceptance of the goods declaration, unless extended by the District Collector for another three (3) months; photographic and cinematographic films, underdeveloped, exposed outside the Philippines by resident Filipino citizens or by producing companies of Philippine registry where the principal actors and artists employed for the production are Filipinos, upon affidavit by the importer and identification that such exposed films are the same films previously exported from the Philippines, As used in this paragraph, the terms "actors" and "artists" include the persons operating the photographic camera or other photographic and sound recording apparatus by which the film is made;
• (l) Importations for the official use of foreign embassies, legations and other agencies of foreign governments: Provided, that those foreign countries accord like privileges to corresponding agencies of the Philippines. Goods imported for the personal or family use of members and attaches of foreign embassies, legations, consular officers and other representatives of foreign governments: Provided, however, That such privilege shall be accorded under special agreements between, the Philippines and the countries which they represent: Provided, further, That the privilege may be granted only upon specific instructions of the Secretary of Finance pursuant to an official request of the DFA on behalf of members or attaches of foreign embassies, legations, consular officers and other representatives of foreign governments.
• (m) Imported goods donated to or, for the account of the Philippine government or any duly registered relief organization, not operated for profit, for free distribution among the needy, upon certification by the DSWD or the Department of Education (DepED), or the Department of Health (DOH), as the case may be;
• (n) Containers, holders and other similar receptacles of any material including kraft paper bags for locally manufactured cement for export, including corrugated boxes for bananas, mangoes, pineapples and other fresh fruits for export, except other containers made of paper, paperboard and textile fabrics, which are of such character as to be readily identifiable and/or reusable for shipment or transportation of goods shall be delivered to the importer thereof upon identification, examination and appraisal and the giving of a security in an amount equal to one hundred percent (100%) of the ascertained duties, taxes and other charges thereon, within six (6) months from the date of acceptance of the goods declaration;
• (o) Supplies which are necessary for the reasonable requirements of the vessel or aircraft in its voyage or flight outside the Philippines, including goods transferred from a bonded warehouse in any Customs District to any vessel or aircraft engaged in foreign trade, for use or consumption of the passengers or its crew on board such vessel or aircraft as sea or air stores; or goods purchased abroad for sale on board a vessel or aircraft as saloon stores or air store supplies: Provided, That any surplus or excess of such vessel or aircraft supplies arriving from foreign ports or airports shall be dutiable;
• (p) Goods and salvage from, vessels recovered after a period of two (2) years from the date of filing the marine protest or the time when the vessel was wrecked or abandoned, or parts of a foreign vessel or its equipment, wrecked or abandoned in Philippine waters or elsewhere: Provided, That goods and salvage recovered within the said period of two (2) years shall be dutiable;
• (q) Coffins or urns containing human remains, bones or ashes, used personal and household effects (not merchandise) of the deceased person, except vehicles, the FCA value of which does not exceed one hundred fifty thousand pesos (P15 0,000.00), upon identification as such: Provided, That every three (3) years after the effectivity of this Act, the value herein stated shall be adjusted to its present value using the CPI as published by the PSA;
• (r) Samples of the kind, in such quantity and of such dimension or construction as to render them unsaleable or of no commercial value; models not adapted for practical use; and samples of medicines, properly marked "sample-sale punishable by law", for the purpose of introducing new goods in the Philippine market and imported only once in a quantity sufficient for such purpose by a person duly registered and identified to be engaged in that trade: Provided, That importations under this subsection shall be previously authorized by the Secretary of Finance: Provided, however, That importation of sample medicines shall have been previously authorized by the Secretary of Health, and that such samples are new medicines not available in the Philippines; Provided, further, That samples not previously authorized or properly marked in accordance with this section shall be levied the corresponding tariff duty.

  Commercial samples, except those that are not readily and easily identifiable as in the case of precious and semi-precious stones, cut or uncut, and jewelry set with precious or semi-precious stones, the value of any single importation of which does not exceed FCA value of fifty thousand pesos (P50.000.00) upon the giving of a security in an amount equal to the ascertained duties, taxes and other charges thereon, conditioned for the exportation of said samples within three (3) months from the date of the acceptance of the goods declaration or in default thereof, the payment of the corresponding duties, taxes and other charges: Provided, That if the FCA value of any single consignment of such commercial samples exceeds fifty thousand pesos (P50,000.00), the importer thereof may select any portion of the same not exceeding the FCA value of fifty thousand pesos (P50.000.00) for entry under the provision of this subsection, and the excess of the consignment may be entered in bond, or for consumption, as the importer may elect: Provided, further. That every three (3) years after the effectivity of this Act, the Secretary of Finance shall adjust the amount herein stated to its present value using the CPI as published by the PSA.
• (s) Animals, except race horses, and plants for scientific, experimental propagation or breeding, and for other botanical, zoological and national defense purposes: Provided, That no live trees, shoots, plants, moss and bulbs, tubers and seeds for propagation purposes may be imported under this section, except by order of the government or other duly authorized institutions: Provided, however, That the free entry of animals for breeding purposes shall be restricted to animals of recognized breed, duly registered in the record or registry established for that breed, and certified as such by the Bureau of Animal Industry (BAI):

  Provided, further, That the certification of such record, and pedigree of such animal duly authenticated by the proper custodian of such record or registry, shall be submitted to the District Collector, together with the affidavit of the owner or importer that such animal is the animal described in said certificate of record and pedigree: Provided, finally, That the animals and plants are certified by the NEDA as necessary for economic development;
• (t) Economic, technical, vocational, scientific, philosophical, historical and cultural books or publications, and religious books like Bibles, missals, prayer books, the Koran, Ahadith and other religious books of similar nature and extracts therefrom, hymnal and hymns for religious uses: Provided, That those which may have already been imported but are yet to be released by the Bureau at the effectivity of this Act may still enjoy the privilege herein provided upon certification by the DepED that such imported books and/or publications are for economic, technical, vocational, scientific, philosophical, historical or cultural purposes or that the same are educational, scientific or cultural materials covered by the International Agreement on Importation of Educational Scientific and Cultural Materials (IAESCM) signed by the President of the Philippines on August 2,1952, or other agreements binding upon the Philippines. Educational, scientific and cultural materials covered by international agreements or commitments binding upon the Philippine government so certified by the DepED.
• (u) Philippine goods previously exported from the Philippines and returned without having been advanced in value or improved in condition by any process of manufacturing or other means, and upon which no drawback or bounty has been allowed, including instruments and implements, tools of trade, machinery and equipment, used abroad by Filipino citizens in the pursuit of their business, occupation or profession; and foreign goods previously imported when returned after having been exported and loaned for use temporarily abroad solely for exhibition, testing and experimentation, for scientific or educational purposes; and foreign containers previously imported which have been used in packing exported Philippine goods and returned empty if imported by or for the account of the person or institution who exported them from the Philippines and not for sale, barter or hire subject to identification: Provided, That Philippine goods falling under this subsection upon which drawback or bounty have been, allowed shall, upon reimportation thereof, be subject to a duty under this subsection equal to the amount of such drawback or bounty;
• (v) Aircraft, equipment and machinery, spare parts, commissary and catering supplies, aviation gas, fuel and oil, whether crude or refined except when directly or indirectly used for domestic operations, and such other goods or supplies imported by and for the use of scheduled airlines operating under congressional franchise: Provided, That such goods or supplies are not locally available in reasonable quantity, qualify and price and are necessary or incidental to the proper operation of the scheduled airline importing the same;
• (w) Machineries, equipment, tools for production, plans to convert mineral ores into saleable form, spare parts, supplies, materials, accessories, explosives, chemicals, and transportation and communications facilities imported by and for the use of new mines and old mines which resume operations, when certified to as such by the Secretary of the Department of Environment and Natural Resources (DENR), upon the recommendation of the Director of Mines and Geosciences Bureau, for a period ending five (5) years from the first date of actual commercial production of saleable mineral products: Provided, That such goods are not locally available in reasonable quantity, quality and price and are necessary or incidental in the proper operation of the mine; and aircrafts imported by agro-industrial companies to be used by them in their agriculture and industrial operations or activities, spare parts and accessories thereof, when certified to as such by the Secretary of the Department of Agriculture (DA) or the Secretary of the Department of Trade and Industry (DTI), as the case may be;
• (x) Spare parts of vessels or aircraft of foreign registry engaged in foreign trade when brought into the Philippines exclusively as replacements or for the emergency repair thereof, upon proof satisfactory to the District Collector that such spare parts shall be utilized to secure the safety, seaworthiness or airworthiness of the vessel or aircraft, to enable it to continue its voyage or flight;
• (y) Goods exported from the Philippines for repair, processing or reconditioning without having been substantially advanced in value, and subsequently reimported in its original form and in the same state: Provided, That in case the reimported goods advanced in value, whether or not in their original state, the value added shall be subject to the applicable duty rate of the tariff heading of the reimported goods; and
• (z) Trailer chassis when imported by shipping companies for their exclusive use in handling containerized cargo, upon posting a security in an amount equal to one hundred percent (100%) of the ascertained duties, taxes and other charges due thereon, to cover a period of one (1) year from the date of acceptance of the entry, which period, for meritorious reasons, may be extended by the Commissioner from year to year, subject to the following conditions:

  (1) That they shall be properly identified and registered with the Land Transportation Office (LTO);

  (2) That they shall be subject to customs supervision fee to be fixed by the District Collector and subject to the approval of the Commissioner;

  (3) That they shall be deposited in the customs territory when not in use; and

  (4) That upon the expiration of the period prescribed above, duties and taxes shall be paid unless otherwise reexported.
• (aa) Any officer or employee of the DFA, including any attache, civil or military or member of the staff assigned to a Philippine diplomatic mission abroad by the Department or any similar officer or employee of other departments assigned to any Philippine consular office abroad, or any AFP military personnel accorded assimilated diplomatic rank or on duty abroad who is returning from a regular assignment abroad, for reassignment to the home office, or who dies, resigns, or is retired from the service, after the approval of this Act, shall be exempt from the payment of all duties and taxes on personal and household effects, including one (1) mot
• Requirements for vehicles imported by DFA officers/employees

  • Identified and registered with the Land Transportation Office (LTO)
  • Subject to customs supervision fee to be fixed by the District Collector and subject to the approval of the Commissioner
  • Deposited in the customs territory when not in use
  • Upon expiration of the period, duties and taxes shall be paid unless otherwise reexported
• Exemptions for DFA officers/employees

  • Exempt from payment of all duties and taxes on personal and household effects, including one (1) motor car
  • Exemption applies only to the value of the motor car and to the aggregate assessed value of the personal and household effects, the latter not to exceed 30% of the total amount received in salary and allowances during the latest assignment abroad, but not to exceed four (4) years
  • Exemption can only be availed of once every four (4) years
  • Officer/employee must have served abroad for not less than two (2) years
• There shall be no exemption whatsoever from the payment of duties except as provided for in this Act
• De Minimis Value


  No duties and taxes shall be collected on goods with an FOB or FCA value of ten thousand pesos (P10,000.00) or below
• Relief Consignment Clearance


  1. Lodging of a simplified goods declaration or of a provisional or incomplete goods declaration subject to completion within a specified period

  2. Lodging, registering and checking of the goods declaration and supporting documents prior to the arrival of the goods, and their release upon arrival

  3. Clearance beyond the designated hours of business or away from customs offices and waiver of any corresponding charges

  4. Examination and/or sampling of goods only in exceptional circumstances
• Relief consignment imported during a state of calamity and intended for a specific calamity area for the use of the calamity victims therein, shall be exempt from duties and taxes
• Goods duly entered for warehousing in Customs Bonded Warehouses shall be exempt from duty and tax within the allowed period for storage
• Unless otherwise provided by law and in accordance with the respective laws, rules and regulations of the free zone authorities, goods admitted into a free zone shall not be subject to duty and tax
• Stores exempted from import duties and taxes

  • Stores carried in a vessel, aircraft, or train arriving in the customs territory that remain on board
  • Stores for consumption by the passengers and the crew imported as provisions on international express vessels, aircrafts, or trains, if purchased only in the countries crossed and any duties/taxes chargeable in the country of purchase are paid
  • Stores necessary for the operation and maintenance of vessels, aircrafts, or trains which are on board these means of transport
• Vessels, aircrafts, or trains which depart for an ultimate foreign destination shall be entitled to take on board, exempted from duties and taxes, stores in such quantities as the Bureau deems reasonable and stores necessary for the operation and maintenance
• Transactions exempt from VAT

  • Sale or importation of agricultural and marine food products in their original state, livestock and poultry
  • Sale or importation of fertilizers, seeds, seedlings, fingerlings, fish/prawn/livestock/poultry feeds
  • Importation of personal and household effects belonging to residents of the Philippines returning from abroad and nonresident citizens coming to resettle
  • Importation of professional instruments and implements, wearing apparel, domestic animals, and personal household effects belonging to persons coming to settle in the Philippines
  • Transactions which are exempt under international agreements or special laws
  • Sales by agricultural cooperatives to their members and sale of their produce
  • Sale, importation, printing or publication of books and any newspaper, magazine, review or bulletin
  • Sale, importation or lease of passenger or cargo vessels and aircraft, including engine, equipment and spare parts
  • Importation of fuel, goods and supplies by persons engaged in international shipping or air transport operations
  • Sale or importation of prescription drugs and medicines for certain diseases
• Incentives for the jewelry industry

  • Entitlement to zero (0) duty on imported raw materials
  • Exemption from the imposition of excise tax on jewelry goods
  • Entitlement to zero (0) duty on imported capital equipment, including spare parts and toolings
• Executive Order No. 439 - issued on June 28, 1987, which provided guidelines for the implementation of RA 7581