Good news! At last, the BOC or Bureau of Customs is now implementing the salient feature of the Customs Modernization and Tariff Act (CMTA). This means that imported goods not exceeding the limit will no longer be subject to taxes, according to customs.gov.ph.
Source: www.gov.ph
The CAO No. 02-2016 RE: IMPORTED GOODS WITH DE MINIMIS VALUE NOT SUBJECT TO DUTIES AND TAXES) was signed by Customs Commissioner Nicanor Faeldon and approved by Finance Secretary Carlos Dominguez III last September 28, 2016.
Furthermore, the implementations state that that “[n]o duties and taxes shall be collected on goods with freight on board (FOB) or free carrier (FCA) value of P10,000.00 or below.”
What does ‘de minimis’ mean?
As defined in this CAO, it is the value of goods for which no duty or tax is collected. Goods with de minimis value are considered importations with a negligible amount and entitled to immediate release.
However, the following items are excluded from the said policy: (1) Tobacco good and (2) wines and spirits. These restricted items are still subject to excise tax, as provided by the National Internal Revenue Code (NIRC).
This Customs Administrative Order (CAO) is effective on October 25, 2016, 15 days after its publication in the Official Gazette. Should you want to read the full text, you may do so here. It is also expected for the bureau to release other information materials like infographics for stakeholders and public soon.
What do you think of the new implementation? Share your thoughts with us!
