The ₱10,000 de minimis rule is under pressure

The threshold has not changed. But in 2026 it is being argued about publicly for the first time in years, and if you have built a business model on it, you should understand what is being proposed before it lands.

Where the rule stands today

Under the Customs Modernization and Tariff Act, goods with an FOB value of ₱10,000 or less per consignment enter free of duty and VAT. That figure was set by the CMTA in 2016 — raising it from ₱10, a limit that had stood for roughly 59 years. As of now it remains in force.

What changed in 2026

The Philippine Retailers Association has publicly urged government to revisit the rule, arguing the ₱10,000 threshold is now among the highest in Asia and outdated given the scale of the e-commerce boom. Retailers have cited figures in the tens of billions of pesos of imports entering tax-free under the provision annually, and framed it as a competitive disadvantage for local sellers.

Nothing has been enacted. This is lobbying and public argument, not a new rule. But it is the first serious pressure on the threshold in years, and the direction of travel elsewhere in the region has been downward — several markets have cut or scrapped their low-value exemptions recently.

Why this matters more than it looks

A lot of small Filipino importers quietly depend on this rule — and many misunderstand it. Two things people get wrong:

It is per consignment, not per item. Splitting one order into several small parcels to stay under the line is a well-known pattern, and consolidation rules exist precisely to catch it. Detail in our duties and taxes guide.

It is a duty and VAT exemption, not a clearance exemption. Prohibited and regulated goods are still prohibited and regulated below ₱10,000. The threshold does not make an FDA or NTC requirement disappear.

How to plan if you are exposed

If your margins only work because shipments land under the threshold, your business is one policy change from a rebuild. Three things worth doing now, none of which are wasted if nothing changes:

Know your real landed cost with duty included. If a duty-paying scenario destroys your margin, better to find out on a spreadsheet than on a billing statement. The formula, worked.

Learn the origin certificates. Form E, Form D and RCEP can take duty on qualifying goods to zero or near it — a far more durable advantage than a threshold that can be legislated away.

Consolidate properly rather than splitting. One correctly declared consolidated shipment on an all-in rate is cheaper and safer than a stream of parcels engineered around a number that may not survive the year.

Related reading

• Philippine import duties and the ₱10,000 rule
• RCEP: the third certificate
• How to compute landed cost