Global Trade Knowledge with Customs Administration

Hear ye!

We are proud to present to you our partnership with eKonek Pilipinas Inc. for the Summer Internship Program 2021!

Want a glimpse of the field of Customs Administration?

Have you caught the circulating issue on gift importation by a certain personality? If so, this article is for you!

According to the law, Customs Modernization and Tariff Act (RA 10863), Sec. 104, first par. “When Duty and Tax are Due on Imported Goods. —Except as otherwise provided for in this Act or in other laws, ALL goods, when imported into the Philippines, shall be subject to duty upon Importation, including goods previously exported from the Philippines.”

For wider public information, the Bureau of Customs have published an infomercial for Frequently Asked Questions on Importation of Gifts:

Here is the text of the FAQs as published:

1. Do I have to pay taxes for packages sent as gifts?

Duties and taxes are imposed on ALL imported goods, regardless of the mode of acquisition or how these were acquired, except those with value not exceeding P10,000.00 and those exempted by other laws. (RA 10863, Sec 104 and 423)

2. When is proof of payment needed for the importation of gifts?

The Bureau of Customs has the rights to ascertain the truth or accuracy of any statement, document, or declaration presented for customs valuation purposes, thus, it may ask the importer or receiver to provide further explanations, including documents or other evidence that the declared value represents the actual price of the item. (RA 10863, Sec 707)

3. What are the other options if proof of payment, such as a receipt, cannot be submitted because the item(s) is/are gifts?

The value of the goods will be determined based on the established or reference value of the same or similar goods. (RA 10863, Sec. 701 par. 2, 702 and 703)

4. Why do I still have to pay tax when the sender already paid at the country of origin?

The payment made to the country of origin is referred to as “Export Duties and Taxes” subject to their own rules and regulations. On the other hand, “Import Duties and Taxes” are payable in the Philippines, as enforced by the Bureau of Customs.

5. Do I still have to pay tax when the sender already paid for the shipping cost?

The shipping cost is charged by the nominated courier for the delivery and handling of packages from abroad to the Philippines and is different from the import duties and taxes due to the Bureau of Customs.

6. If I will not pay duties and taxes, what will happen to my package?

When the duties and taxes have not been paid within the prescribed period, the parcels will be considered abandoned and forfeited in favor of the government. Thereafter, it will be sold at auction or disposed accordingly. If the goods are regulated, these will be turned over to the concerned regulatory agency. (RA 10863, Sec. 1129 (c), 1141 and 1148)

Be globally competent! Be an International Trade Specialist!

Enroll Customs Administration in Midway Colleges, Inc.!


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