CUSTOMS DUTIES: INDONESIA TO PHILIPPINES

Overview of Customs Duties from Indonesia to Philippines

Exporting goods from Indonesia to the Philippines involves navigating a well-established customs framework governed by the Philippine Bureau of Customs. The Philippines maintains relatively favorable import conditions with an average duty rate of 5.7% and is part of multiple international trade agreements. As a member of the World Trade Organization (WTO), the Philippines applies the most-favored-nation (MFN) clause, ensuring consistent treatment across trading partners. The ease of importing goods into the Philippines scores a B rating, making it an accessible market for Indonesian exporters.

De Minimis Thresholds and Tax Treatment

Understanding the de minimis value is critical for calculating landed costs. The Philippines sets a de minimis threshold of 10,000 PHP based on FOB (Free on Board) value. Shipments with a FOB value below this threshold are exempt from both duty and import tax. For shipments exceeding this threshold, a standard import VAT rate of 12% is applied to the CIF (Cost, Insurance, Freight) value of the order. This favorable threshold structure can significantly reduce costs for smaller shipments.

General Duty Rates

The following table outlines duty information for exports to the Philippines. Duty rates are applied to the CIF value of the order:

Product Category	Duty Rate	Notes
Consumer Electronics	Varies by HS code - contact our experts	Leading import category in Philippines
Fashion and Apparel	Varies by HS code - contact our experts	Leading import category in Philippines
Personal Care Products	Varies by HS code - contact our experts	Leading import category in Philippines
Alcohol Products	Varies by HS code - contact our experts	Subject to excise tax
Tobacco Products	Varies by HS code - contact our experts	Subject to excise tax
Petroleum Products	Varies by HS code - contact our experts	Subject to excise tax
Automobiles	Varies by HS code - contact our experts	Subject to excise tax as non-essential goods
Average Duty Rate	5.7%	Rates range from 0-65% depending on product

Required Documentation

All shipments from Indonesia to the Philippines must include the following documentation:

• Bill of Lading or Air Waybill: Essential shipping document depending on transportation method
• Packing List: Detailed inventory of all items in the shipment
• Commercial Invoice: Official invoice showing product descriptions, quantities, unit prices, and total value
• Supplemental Declaration of Valuation (SDV) Form: Required for all imports to declare the CIF value
• Certificate of Origin: Required when claiming preferential tariff treatment under trade agreements
• Import Permit: Required for certain regulated items
• Customs Import Declaration: Required for certain regulated items

Important Regulations

• VAT Application: A standard 12% import VAT is applied to the CIF value for shipments exceeding 10,000 PHP
• Excise Tax: Additional excise taxes apply to alcohol, tobacco, petroleum products, automobiles, and sweetened beverages
• Valuation Method: The Philippines uses CIF valuation for calculating duties and taxes, which includes the cost of goods, insurance, and freight
• WTO Compliance: As a WTO member, the Philippines applies MFN treatment to all member countries
• Prohibited and Restricted Items: Certain items may be restricted or prohibited; verify with the Philippine Bureau of Customs before shipping

Trade Agreements and Preferential Rates

The Philippines is party to at least 10 international trade agreements that may offer zero or significantly discounted duty rates for goods originating from participating countries. Indonesian exporters should verify whether their products qualify for preferential treatment under existing bilateral or multilateral agreements. To claim preferential rates, a valid Certificate of Origin must be provided with the shipment. The Philippines' membership in the WTO ensures that any concessions granted to one member are extended to all members under the most-favored-nation clause.

Shipping and Carrier Options

Major international couriers offering services to the Philippines include DHL Express, FedEx, UPS, USPS, and EMS Parcel Post. Additional shipping fees may apply for tracking, insurance, fuel surcharges, remote delivery, signature requirements, overweight/oversized items, special handling, and dangerous goods.