How to Export to the Philippines in 2026: Duty, 12% VAT, BOC and Permits

Duty and VAT: how the import cost is calculated

The Philippines follows the WTO Valuation Agreement: the declared invoice price is the starting point, and the cost of transport and insurance to the Philippine port of entry is added to give the dutiable value. Customs duty is charged at the rate for the tariff line; trade agreements have reduced many rates, while some sensitive agricultural products keep rates of 20% to 50%.

VAT of 12% is charged on the value used by the Bureau of Customs plus customs duties, excise taxes, if any, and other charges. Example with an illustrative 5% duty and no excise: dutiable value PHP 500,000, duty PHP 25,000, VAT 12% of PHP 525,000 = PHP 63,000, before other charges such as the brokerage fee, import processing charge and documentary stamps, which also enter the VAT base (the landed cost).

Who imports: BOC accreditation and permits

Importers must be accredited with the Bureau of Customs through its client registration and be registered with the Bureau of Internal Revenue; the import entry is lodged electronically, usually by a licensed customs broker. In practice the importer is a Philippine business, so a foreign seller that wants to sell DDP needs a local importer of record.

Regulated goods need a permit or clearance from the agency concerned before or at import: the Food and Drug Administration (FDA) for food, cosmetics, drugs and medical devices, the Department of Trade and Industry's Bureau of Philippine Standards (DTI-BPS) for products under mandatory standards, and agencies such as the Bureau of Plant Industry and the Bureau of Animal Industry for agricultural goods.

Product rules

• Food and cosmetics: the importer holds an FDA licence to operate and registers or notifies each product; for cosmetics, see Triplicate's note on FDA Philippines notification.
• Products under mandatory Philippine standards, such as many electrical and electronic products, need DTI-BPS certification or Import Commodity Clearance.
• Labels must be in English and/or Filipino, with the importer's or distributor's name and address where required.

Small shipments and trade agreements

Under the Customs Modernization and Tariff Act (CMTA), the de minimis value was raised to PHP 10,000: goods valued at or below it are not subject to duties and taxes. Check the current rule with your courier, as low-value e-commerce imports are under review in many countries.

The Philippines' agreements include ATIGA and the ASEAN agreements with China, Korea, Japan, Australia and New Zealand, India and Hong Kong, RCEP (in force for the Philippines since 2 June 2023), and bilateral FTAs with Japan (PJEPA), EFTA and Korea. To claim a preferential rate, the importer needs the proof of origin the agreement requires, such as Form D, E, AK, JP or RCEP.