CUSTOMS DUTIES: CHINA TO PHILIPPINES

Overview of Customs Duties from China to Philippines

Exporting goods from China to the Philippines involves navigating a relatively straightforward customs process supported by favorable trade conditions. The Philippines maintains an average import duty rate of 5.7%, which is considered low compared to global standards. As a World Trade Organization (WTO) member, the Philippines applies the most-favored-nation (MFN) clause, ensuring that Chinese exporters receive competitive tariff treatment. The country's ease of importing goods score of B reflects efficient customs procedures and reasonable landed costs for international traders.

The Philippines does not require foreign business registration for imports, and the nation is party to at least ten international trade agreements. This regulatory environment, combined with accessibility to major courier services, makes the Philippines an attractive market for Chinese exporters. Understanding the duty structure, de minimis thresholds, and documentation requirements is essential for successful customs clearance and cost-effective shipments.

General Duty Rates and Tariff Information

Tariff Component	Rate	Application Basis
Average Import Duty Rate	5.7%	Applied to CIF value (Cost, Insurance, Freight)
Value-Added Tax (VAT)	12%	Applied to CIF value when FOB exceeds 10,000 PHP
Standard Import Tax	12%	Applied to CIF value of the order
Duty Range	0-65%	Varies by product HS code classification
De Minimis Threshold	10,000 PHP	Based on FOB (Free on Board) value

Important Note on De Minimis: Shipments with a FOB value below 10,000 PHP are exempt from both duties and VAT. This threshold is calculated on the product price only, excluding shipping and insurance costs.

Product Categories with Excise Tax

The Philippines levies additional excise taxes on specific product categories beyond standard duties and VAT:

• Alcohol products (distilled spirits, wines, fermented liquor)
• Tobacco products (cigars and cigarettes)
• Petroleum products
• Automobiles
• Sweetened beverages
• Non-essential goods and services

Required Documentation for Customs Clearance

Always Required:

• Bill of Lading or Air Waybill
• Packing List (itemized contents)
• Commercial Invoice
• Supplemental Declaration of Valuation (SDV) Form

Sometimes Required (depending on product type):

• Import Permit (for regulated items)
• Customs Import Declaration (for certain controlled items)
• Certificate of Origin (for preferential tariff treatment eligibility)

Important Regulations and Restrictions

The Philippines Bureau of Customs enforces strict regulations on prohibited, restricted, and controlled imports. Exporters must verify that their products comply with Philippine import regulations before shipment. Certain items may be prohibited entirely, while others require special permits or certifications.

Valuation methods are critical for duty calculation. The Philippines uses the CIF (Cost, Insurance, Freight) method for calculating most duties and taxes, though the de minimis threshold is based on FOB (Free on Board) valuation. Accurate product classification using Harmonized System (HS) codes is essential, as duty rates vary significantly by product category, ranging from 0% to 65%.

Trade Agreements and Preferential Tariffs

The Philippines is a member of the World Trade Organization and maintains at least ten international trade agreements that offer zero or significantly discounted duty rates for goods originating from participating countries. Chinese exporters may qualify for preferential tariff treatment under these agreements if products meet rules of origin requirements. A Certificate of Origin should be obtained to claim these benefits and reduce landed costs substantially.

For specific duty rates on your product category, consult with customs brokers or contact the Philippines Bureau of Customs directly, as rates vary considerably by HS code classification.