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How Much Is The Import Tax In The Philippines?

Posted on by Dominic Santiago
30
Aug

Understanding the cost of importing goods into the Philippines is important. Import taxes and duties are factors that can impact the total cost of your goods. Here’s how you can handle import taxes. All to make sure you have all the information you need to import.

What are Import Taxes and Duties?

Import taxes and duties are the fees imposed by the Philippine government on goods brought into the country. These fees include:

  1. Customs Duties: This is the primary tax on imported goods. The rate varies depending on the type of product and its classification. This is determined under the Harmonized System (HS) code. Customs duties are calculated based on the customs value of the goods. This usually includes cost, insurance, and freight (CIF value).
  2. Value-Added Tax (VAT): Imported goods are also subject to a 12% VAT in the Philippines. This tax is applied on top of the customs duties. It is also calculated on the total value of the goods, including the customs duty.
  3. Excise Tax: Certain products like alcohol, tobacco, and fuel are subject to excise tax. This tax is applied in addition to customs duties and VAT and is based on either the quantity or value of the goods.
  4. Additional Fees: You may also need to pay additional fees. This includes processing fees, storage fees, and administrative charges. All of these can add to the total import cost.

Common Issues with Calculating Import Tax and Duty

Calculating import taxes and duties can be complicated. The great thing is that ImportAnything.ph is here to help you through the process. Click here to start shipping now https://importanything.ph/ship-now

But to make sure you got it all right, here are some common issues you should avoid:

  1. Incorrect Classification of Goods: Misclassifying your goods under the wrong HS code can be a disaster. This can result in a wrong payment amount. It’s important to ensure your goods are classified correctly. Check out the Philippine Tariff and Customs Code for better guidance.
  2. Inaccurate Customs Valuation: Properly determining the customs value of your goods is important. Under-valuation can lead to penalties. While over-valuation means you’re paying more than necessary.
  3. Overlooking Additional Fees: Importers sometimes forget to account for other fees. This includes warehousing or administrative charges. All of these can significantly increase the total cost of importing goods.

Documents Required for Importing Goods

To successfully import goods into the Philippines, you’ll need to have these documents:

  1. Bill of Lading or Airway Bill: This document provides proof of shipment. Including details about the goods being transported.
  2. Commercial Invoice: This is a document issued by the seller to the buyer. This outlines the price, quantity, and description of the goods.
  3. Packing List: This document provides detailed information about the goods. Such as weight, dimensions, and packaging details.
  4. Import Permit: Depending on the type of goods, you may need to have an import permit. But fortunately, at ImportAnything.ph, you can import even without these documents. Got more questions to get started? Click here https://importanything.ph/importation-faqs/
  5. Customs Import Declaration: This document is submitted to the customs authorities. It contains details about the product, including its value and classification.

How to Make Importing Easy with ImportAnything.ph

If you’re looking for a fast and easy way to start shipping, ImportAnything.ph is here to make it simpler for you. Here’s how to get started with the import process:

  1. The first thing you have to do is to get a Client ID. It’s quick and easy. You only need an email address. You can get your Client ID at https://importanything.ph/register/
  2. The second thing you have to do is to forward your Client ID to your supplier. Along with the appropriate Shipping Link from below, https://importanything.ph/import/. You have to copy the URL and forward it to them. 
  3. You can also choose from our specialty and non-specialty countries to make it easier for you.

With ImportAnything.ph, importing goods into the Philippines is straightforward and stress-free. Get a quote today to get started! https://importanything.ph/get-a-quote/

Dominic Santiago