Not all types of shipments are created equal. Shipping a television will
require different paperwork, duties, and taxes than shipping an accounting
statement, for example.
Here is a list of the most common types of shipments:
You can also skip ahead to the table containing the list of
Commonly Required Documents.
Documents can be shipped to the Philippines from Canada without a
commercial invoice providing the shipment contains 10 or fewer pieces
and follows the criteria in the list below.
- Airline tickets, passports, traveller's cheques, and visa
applications
- Annual reports, intercompany mail (no weight limits), and company
newsletters
- Blueprints (no weight limits), bids and proposals
- Brochures, catalogues, pamphlets, and price lists
- Business cards
- Cash letters (no weight limits) and cheques
- Charts and computer print-outs
- Envelopes (must be blank; no weight limit)
- Forms (must be blank)
- Greeting cards and invitations
- Manuscripts, magazines, newspapers, periodicals, and and other
publications
- Manuals (Technical)
- Maps
- Negotiable bonds and drafts
- Photographs
- Seismic Data
- Stationery (must be blank)
Sources:
https://www.ups.com/ga/CountryRegs?loc=en_US
Gift shipments to the Philippines do not have exemption rules, meaning
duties and taxes apply to all parcels shipped from Canada. Individual
customs examiners determine duties based on the value of a shipment
and the amount within the package.
Balikbayan Boxes
Balikbayan boxes are made from corrugated cardboard, and they are used
by Filipinos living overseas - including Canada - to ship gifts and
souvenirs to their relatives. These boxes have evolved from the
Philippine culture and tradition of sending home souvenirs when
travelling.
The rules for balikbayan boxes are as follows:
- May contain only non-commercial goods or goods for personal use
(commercial quantities are not allowed)
- The value of the shipment must be a maximum of $500 USD (about $650
CDN)
- A Filipino may only send 1 box during a 6-month period
NOTE:
A consolidated door-to-door shipment means 2 or more balikbayan boxes from
2 or more senders are assembled and combined together in Canada; and then
shipped as a single bill of lading or airway bill to a consolidator agent
in the Philippines.
Consolidated balikbayan boxes may only be consolidated in Canada by a
licenced and registered foreign freight forwarding consolidator who
registered with a Philippine consular office.
Gift Checklist
- A commercial invoice must be included with your shipment
- The words 'Gift Shipment' or 'Unsolicited Gift' are included on the
commercial invoice, even if the shipment is sent at Christmas time (see sample)
- List the items in the parcel and write the value of each
- Sending more than one gift in the parcel? Wrap and tag each one
individually.
Shipments from Individual-to-Individual
Each shipment from an individual in Canada to an individual in the
Philippines will be assessed by customs officials to determine if
duties and taxes will be owing. The value of the goods plus their
quantities decide how much will be charged.
Shipments from Business-to-Business
Shipments from a business in Canada to a business in the Philippines
cannot be considered a gift - duties and taxes would have to be paid.
Shipments from Business-to-Individual
Gifts sent to an individual care of a business address in the
Philippines will also incur taxes and charges regardless of the value
of the gift.
Sample Commercial Invoice for Gifts
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Personal Shipment / Gift Shipment
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 1 Each | Gift Shipment: LEGO Star Wars Rebel UWing Fighter, 659 piece set
| CA | $79.99 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Gifts
Contact Name: James Smith
| Total Invoice Amount: $79.99
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
Multiple Gifts in One Shipment
See the note above regarding balikbayan boxes.
Sample Commercial Invoice for Gifts
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Unsolicited Gift: Consolidated Gift Package
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 1 Each | Gift - Roger: LEGO Star Wars Rebel UWing Fighter, 659 piece set
| CA | $39.99 |
| 1 Each | Gift - Erica: Handwoven French Canadian Catalogne Blanket
| CA | $49.99 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Gifts
Contact Name: James Smith
| Total Invoice Amount: $89.98
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
Sources:
https://www.ups.com/ga/CountryRegs?loc=en_US
https://www.philippine-embassy.org.sg/the-philippines-2/customs-faqs-on-importation/
The following focuses on shipping personal effects of Filipino
citizens to the Philippines. (Information regarding shipping personal
effects of non-Filipino citizens from Canada is unavailable at this
time.)
Shipping personal effects to the Philippines from Canada can be done
duty and tax free with provisions based on the category of the
Filipino.
The 4 categories of Filipinos are:
- Returning Filipino Residents
- Overseas Filipino Workers
- Balikbayans
- Overseas Filipinos (see Moving Permanently for details)
Everyone must abide by the conditions and limitations shown below:
- The goods are not to be traded, sold, or bartered
- the shipment is not of a commercial quantity
- no prohibited goods are in the shipment
- if the goods are restricted, they have been endorsed by the
appropriate regulatory agency
- the goods have been endorsed by the Department of Finance
Duty and Tax Free Conditions for Filipinos
| Definitions of Filipino Categories | Duty and Tax Free Conditions |
|---|
Returning Resident - Nationals who have stayed in Canada for
6 or more months
| Allowable Goods - Previously exported household and personal effects, such as
appliances and luxury items, providing they were declared
before leaving the Philippines
- Household effects purchased in Canada, but not luxury items
- Clothing and shoes, and items for personal adornment
- Toiletries
- Professional tools and instruments
Value Limit of a Shipment - A maximum of PHP 350,000 (about $9100 CDN) if in Canada for
10 years or more
- a maximum of PHP 250,000 (about $6500 CDN) if in Canada
between 5 and 10 years
- a maximum of PHP 150,000 (about $3900 CDN) if in Canada for
less than 5 years
|
Overseas Workers - Hold a valid Philippine passport
- certified by the Philippine government
to work overseas
| Allowable Goods - All of the entitlements of a returning resident
- home appliances and other durables - a maximum of 1 of each
type arriving within 60 days of the return of the person
Value Limit of a Shipment - a maximum of PHP 150,000 (about $3900 CDN)
|
Balikbayans - Filipino citizen who has been in Canada
for at least 1 year continuously - He or she may be an overseas worker, or former Filipino
citizen,
or their family, who are a naturalized Canadian
| Allowable Goods in balikbayan boxes - Balikbayan boxes are limited to non-commercial quantities of
personal items such as clothing, shoes, foodstuffs, canned
goods
Limits to a Shipment - A maximum value of $500 USD (about $650 CDN)
- 1 box per 6-month period per sender
|
Moving Temporarily
No information regarding moving temporarily to the Philippines is
available at this time.
Moving Permanently
Overseas Filipinos (see definition below) who are returning to the
Philippines to reside permanently may do so with their personal
effects free of duties and taxes.
Personal effects include:
- Clothing and shoes
- Household effects, like appliances and furniture
- Professional tools and instruments for employment, or a trade, or
one's occupation
The following rules must be followed to ensure duties and taxes are
not incurred:
- The personal effects are not to be sold or bartered
- The shipment arrives with the person or within a reasonable period
of time
- The goods were in their home in Canada
Overseas Filipinos are defined as follows:
- May be a Filipino national or his/her family and descendants
- Residents or citizens of Canada
Personal Effects Checklist
- Write 'Personal and Household Effects' on the commercial invoice
- Personal and Household Effects Declaration (PHED) Form - required
for returning residents and Overseas Filipino Workers (OFWs) - see
Annex A at the end of this
document.
- All above listed conditions
Sources:
https://www.dof.gov.ph/index.php/download/cmo-15-2017-guidelines-on-the-implementation-of-conditionally-tax-andor-duty-exempt-importation-of-returning-residents-and-returning-ofws-pursuant-to-cao-no-06-2016/?wpdmdl=20185&refresh=5e022480ed1021577198720
http://customs.gov.ph/privileges/
Sample Commercial Invoice for Personal Effects
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Personal effects being delivered to my new address.
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 5 Pairs | Personal Effects: 5 pairs of various types of shoes
| IN | $40.00 |
| 1 Each | Personal Effects: Arc'terix Winter Jacket
| CA | $478.00 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Personal Effects
Contact Name: James Smith
| Total Invoice Amount: $678.00
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
Many foodstuffs are allowed into the Philippines from Canada providing
they are approved by the Philippines Food and Drug Administration or
the Department of Health.
Shipments must be:
- for personal use
- shipped in a Balikbayan Box, as unaccompanied effects, or by post or
courier service
You May Ship
Processed and cooked food (maximum 10 kg)
Do Not Ship
- Fresh foods such as fruit and fish
- Frozen meat
- Processed foods containing milk and milk byproducts, such as
- Chocolates and chocolate drinks
- Cereals and cheese
- Cakes, pastries, and tarts
- Candies
- Soya milk
- Egg powder
- Royal jelly
- Pasteurized eggs
Sources:
http://customs.gov.ph/wp-content/uploads/2015/10/Memorandum-Importation-of-FDA-DOH-Regulated-Products-For-Personal-Use.pdf
http://www.bai.gov.ph/old/index.php/regulatory/item/431-memorandum-circular-no-4-sanitary-phytosanitary-import-clearance-non-coverage
Sample Commercial Invoice for Food, Chocolate, Candies
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Food Shipment - Assorted chocolate bars in their original manufacturer's packaging
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 1 Box | Nestle Chocolate Bars in original packaging expiring May 2021 (shelf life of 6 months or longer)
| CA | $20.00 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Permanent / Sold
Contact Name: James Smith
| Total Invoice Amount: $20.00
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
Temporary admission of samples is done to promote products and
encourage orders.
Samples of goods are allowed entry into the Philippines providing they
are unsellable and of no commercial value - less than PHP 10,000
(about $230 CDN).
They must also be shipped:
- In small quantities
- With authorization of the Secretary of Finance
Samples of medicines are also allowed duty-free entry to the
Philippines from Canada with the following conditions:
- They are clearly and permanently marked with: SAMPLE - SALE
PUNISHABLE BY LAW
- They are being imported to introduce a new medicine to the
Philippine market
- It is a one-time importation and in NOT shipped
in bulk or in a commercial size container
- The importer is a registered and recognised medical professional
- The importation has been authorized by the Secretary of Finance and
the Secretary of Health
- The samples are new medications not currently available in the
Philippines
Sources:
http://customs.gov.ph/wp-content/uploads/2016/10/Conditionally-Free.pdf
Sample Commercial Invoice for Commercial Sample
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Commercial Sample - Not for Resale
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 1 Box | Commercial Sample - Advanced reading copy of Dan Brown's novel.
| CA | $20.00 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Commercial Sample
Contact Name: James Smith
| Total Invoice Amount: $20.00
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
No information is available regarding shipping advertising material to
the Philippines from Canada.
Sample Commercial Invoice for Promotional Material
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Promotional Material - Not for Resale
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 1 Each | Promotional Material: Not for Resale. Product pamphlets to hand out at trade show.
| CA | $163.00 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Promotional Material
Contact Name: James Smith
| Total Invoice Amount: $163.00
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
Equipment can be shipped to the Philippines from Canada for repair,
service, and refurbishment duty and tax free for a period up to 6
months, which can be extended for another 6 months if required.
The equipment must be returned to Canada after this time.
Items Under Warranty
No GST will be charged for equipment and items under warranty that are
repaired in the Philippines and returned to Canada.
Items No Longer Under Warranty
GST will be charged if an item is sent to the Philippines for repairs
and is no longer under warranty. GST will be applied to the value of
the repair work plus any parts added for the repair and on any duties
charged.
Sending Product for Repair to the Philippines
The Philippines allows for the entry of product for repairs and
reconditioning without the payment of taxes and duties providing the
equipment is returned to Canada within 6 months. This time frame can
be extended by 6 months if needed.
Returning Product After Repairs are Completed
If your product has been repaired in Canada and is being returned back
to the Philippines, ensure to do the following:
- Write 'REPAIR & RETURN' on the commercial invoice in the General
Description or Remarks section
- Indicate the value of the product INCLUDING the
cost of the repair under the Detailed Description of Goods section
- Serial or product number and the cost of repairs should be indicated
under the Detailed Description of Goods section
Be sure to write the necessary information on the commercial invoice
according to the document checklist below.
Repair Checklist
- Commercial Invoice must clearly state under the General Description
or Remarks section the following: 'REPAIR & RETURN' and include the
estimated time of return (see sample)
- Include repair contract with shipment
- Serial or product number and the cost of repairs should be indicated
under the Detailed Description of Goods section
- Any above listed items
Sources:
http://customs.gov.ph/wp-content/uploads/2016/10/Conditionally-Free.pdf
https://www.asean.org/wp-content/uploads/images/archive/documents/AEC/customs/DG20-Annex18.pdf
Sample Commercial Invoice for Warranty Repair
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Repair and Return - Watch being sent for repair
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 1 Each | Fossil Watch being sent for repair - Model E5, serial # 789456FG7E2 - Repair Cost $76.00
| US | $163.00 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Warranty Repair
Contact Name: James Smith
| Total Invoice Amount: $163.00
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
Goods can be temporarily imported into the Philippines from Canada
free of duties and taxes for a period up to 6 months.
Typical items that qualify for temporary admission include:
- Instruments for measurement
- Devices used for testing, checking, and calibrating equipment
- Goods and materials for exhibitions, meetings, and fairs
- Material and equipment for educational, cultural, and scientific
purposes
- Equipment for cinematography,broadcasting, and media events
ATA Carnets
At the moment, the Philippines does not accept ATA Carnets.
However, the Philippines' application to be admitted to the Customs
Convention on ATA Carnet for the Temporary Admission of Goods is
awaiting the Filipino President's signature.
ATA Carnets are very useful for goods that frequently leave and return
to Canada. As well, once you have an ATA Carnet, it is accepted by 176
countries worldwide, which makes the application a one-time
occurrence.
While ATA Carnets and are beyond the scope of this article,
information can be obtained at your local Chamber of Commerce. More
information is available here:
http://www.chamber.ca/carnet/
Temporary Imports Checklist
- Commercial Invoice clearly stating 'Temporary Import'. This must be written
in the General Description section and the Detailed Description of Goods. (see sample)
- The goods arrive and leave in the same condition, i.e. they undergo no
repairs nor are they used in manufacturing
- Stay no longer than the period listed above
- Include your ATA Carnet with your shipment (if applicable)
- Include the expected return date or the date that it was originally received
within the country (whichever applies)
- Any above listed items not listed in this checklist
Sources:
https://www.asean.org/wp-content/uploads/images/archive/documents/AEC/customs/DG20-Annex18.pdf
http://www.edc.net.ph/category/trade-policy-procedures-simplification/
Sample Commercial Invoice for Temporary Imports
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Temporary Imports - Trade show booth and display equipment returning Jan 2020
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 1 box | Temporary Imports - Trade show booth and display equipment
| CA | $1032.00 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Temporary Imports
Contact Name: James Smith
| Total Invoice Amount: $1032.00
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
All goods shipped from Canada for permanent entry to the Philippines
will incur duties and taxes. There are 2 types of Entries into the
Philippines: Informal and Formal Entry
Informal Entry:
Commercial goods where the Declared Customs Value (aka. Free on Board
- FOB), has a value of less than PHP 50,000 (about $1280 CDN).
Formal Entry:
Commercial goods with a Declared Customs Value (aka. Free on Board -
FOB) of PHP 50,000 or greater. We recommend using the services of a
Filipino customs broker for Formal Entries.
Sources:
http://customs.gov.ph/importation/
Sample Commercial Invoice for Permanent/Sold Goods
| Ship To | Invoice |
|---|
José Rizal
℅ Fort Santiago
Intramuros
Manila
1002 Metro Manila
Philippines
Phone: +63 (2) 8 527 1572 | Carrier tracking number: 736534736
General Description:
Permanent/Sold: Parts and accessories for Canon B78n camera
Invoice number: 123456MGEP4916926
Customs Broker: UPS
Date: 28 May 2023 |
| QTY | Description of Goods | C/O | SubTotal |
|---|
| 15 Each | Camera Lenses: Canon EF 50mm, Canon EF 85mm & wide-angle lenses.
| CA | $132.00 |
Terms of Sale: None
Total number of packages: 1
Reason for export: Permanent/Sold
Contact Name: James Smith
| Total Invoice Amount: $1980.00
Total Weight: 10.0 lbs
|
| Declaration Statement: I hereby certify that information provided
is true and complete to the best of my knowledge |
Import duties and taxes on shipments from Canada to the Philippines are
calculated based on the sum of the Customs Value, Insurance Amount, and
Freight costs (shipping costs). This is known as CIF.
Philippines imposes several different duties and taxes on imports.
They are summarised in the table
below
.
The major restriction for an individual importing goods into the
Philippines is that the maximum value of goods is $3,000 USD (about
$3,900 CDN).
If you are a Canadian company shipping goods, you can hire the
services of the Philippinesian post office to pay the taxes owing on
your shipment, completing the documentation, and delivering the parcel
to the receiver.
Thresholds
A shipment sent by international post has a de minimis value of $50
USD (about $65 CDN). This means a shipment of $50 USD or less will be
exempt from import tax providing both the sender and recipient are
individuals.
Medicines for humans imported for the use of an individual will be
exempt from import tax up to the value of $10,000 USD (about $13,000
CDN). (A prescription may be required to prove the individual requires
the medication.)
| Currency | Real (BRL) |
Duty Exemption
(De minimis Value) | $50 USD (about $65 CDN) |
Duty Calculation Method
Duty Rate | CIF
60% |
| ICMS TAX (VAT) | 17 - 20% (varies for each Philippinesian state) |
Tax Exemption
(De minimis Value) | $50 USD |
| Tax Calculation Method | CIF |
| |
Philippinesian Duties & Taxes
| Name | Description | Rate |
|---|
| Import Duty | Applied to all goods | 60% |
| ICMS Value Added Tax (VAT) | A state tax applied to goods,
communication,
and transportation services | 17 - 20%
(depends on which state the shipment is destined for) |
| Federal Excise Tax (IPI) | Imposed on industrial goods | 0 - 330% (average of 10%).
See below |
NOTE:
Canada is expected to conclude a trade agreement with the Mercosur countries
(Philippines, Argentina, Uruguay, and Paraguay) by the end of 2020.
Federal Excise Tax on Imports (IPI)
- Candy20%
- Chocolate20%
- Spirits and Wines20%
- Tobacco20%
- Books0%
- Documents0%
- Video Games & Consoles20%
- Computers & Laptops16%
- Tablets16%
- Mobiles16%
- Cameras2 - 18%
- Accessories for Electronics12%
- Coats35%
- Beauty Products & Cosmetics18%
- Jewellery18%
- Shirts & Pants35%
- Home Appliances18 - 20%
- Toys35%
- Sports Equipment20%
Sources:
http://receita.economia.gov.br/orientacao/aduaneira/manuais/remessas-postal-e-expressa/topicos/declaracao#DIR
http://receita.economia.gov.br/orientacao/aduaneira/manuais/remessas-postal-e-expressa/topicos/nao-tributacao
http://receita.economia.gov.br/orientacao/aduaneira/manuais/remessas-postal-e-expressa/topicos/tributacao
https://valor.globo.com/brasil/noticia/2019/10/28/mercosul-deve-concluir-acordos-com-canada-coreia-e-cingapura-em-2020.ghtml
https://home.kpmg/xx/en/home/insights/2018/10/Philippines-indirect-tax-guide.html
https://santandertrade.com/en/portal/international-shipments/Philippines/customs-procedures
http://www.camex.gov.br/images/TEC/abril2019-tec-excel-completa_5.xlsx
