Philippine Import Duties and Taxes: What You Actually Pay
This is the part of importing that causes the most anxiety and the most surprise bills. Here's how it works.
The short answer: shipments worth ₱10,000 or less (FOB) pay no duty or VAT. Above that, you pay customs duty of 3%–30% depending on the product, plus 12% VAT on the CIF value and duty. A ₱50,000 order with ₱8,000 freight at 10% duty pays ₱13,456 to customs, about 27% on top of the supplier price.
The ₱10,000 de minimis threshold
Shipments with a dutiable value not exceeding ₱10,000 are exempt from customs duties, VAT, excise taxes and other Bureau of Customs charges.
Two details people miss:
- The threshold applies to the FOB value of the goods — the price you paid the supplier — excluding freight and insurance.
- It is per shipment or consignment, not per item.
The consolidation rule that catches people out
This is the single most misunderstood rule in Philippine importing, and it costs people real money.
The BOC aggregates multiple shipments sent to the same recipient on the same day. If the combined FOB value of those consolidated shipments exceeds ₱10,000, full duties and VAT apply to every parcel in that group — not just the amount above the threshold.
So splitting a ₱30,000 order into four ₱7,500 parcels arriving together does not keep you under the threshold. It creates one ₱30,000 consignment that is fully dutiable.
What you pay above the threshold
- Customs duty: depends on your product's HS code, typically 3%–30%, with most consumer goods landing in the 5%–15% band.
- VAT: 12%, applied on top.
Valuation uses the CIF method — Cost, Insurance and Freight. Customs values your goods including what you paid to ship them, not just the supplier invoice. This surprises people whose freight cost is a large share of a low-value shipment.
A worked example
A ₱50,000 order of homeware, ₱8,000 freight, duty rate 10%:
| Item | Amount |
|---|---|
| CIF value (goods + freight) | ₱58,000 |
| Duty at 10% | ₱5,800 |
| VAT at 12% of (CIF + duty) | ₱7,656 |
| Total payable to customs | ₱13,456 |
That's about 27% on top of your supplier price. If your retail pricing didn't account for it, your margin is gone.
Why this matters when choosing a forwarder
Everything above is what an "all-in rate" is supposed to cover. When Angkat quotes an all-in rate, taxes and tariffs, port fees in China and the Philippines, sea freight and warehouse fees are already included — you are not settling a separate customs bill at release.
The question worth asking any forwarder: is your quote all-in, or does customs bill me separately? The difference is often 20–30% of the goods value.
Reducing duty legitimately
- Correct HS classification. Misclassification can mean paying a higher rate than you owe. Get it right rather than optimistic.
- Trade agreements. For goods from China, a valid Form E under the ASEAN–China FTA can take qualifying goods to 0% duty. From ASEAN countries such as Vietnam, the equivalent is Form D under ATIGA, and RCEP covers more origins. VAT still applies either way.
- Accurate declared value. Under-declaring is illegal, and BOC valuation databases catch it. Penalties and seizure cost far more than the duty.
Frequently asked questions
How much is import tax in the Philippines?
Above the ₱10,000 threshold you pay customs duty, usually 3% to 30% depending on the product's HS code (most consumer goods are 5% to 15%), plus 12% VAT. VAT is charged on the CIF value plus the duty, not on the goods price alone.
Do I pay import tax on shipments under ₱10,000?
No. Shipments whose FOB value is ₱10,000 or less are exempt from duty and VAT. The limit is per consignment, and the Bureau of Customs adds together shipments to the same recipient on the same day, so splitting an order doesn't keep you under it.
How is VAT on imports computed?
12% of the CIF value plus the customs duty. On a ₱58,000 CIF shipment with 10% duty (₱5,800), VAT is 12% of ₱63,800, which is ₱7,656.
Can I pay 0% duty on goods from China?
Often, yes. Goods that qualify under the ASEAN–China Free Trade Agreement can enter at 0% duty with a valid Form E certificate of origin from the supplier. VAT still applies. See our Form E guide.
Do I pay customs separately if I ship with Angkat?
No. Our rates are all-in: duties, taxes, port fees in the origin country and the Philippines, freight and warehouse fees are included, so there's no separate customs bill at release.
Want to see duty and freight together for a real order? Our landed cost guide works through one, and the shipping cost calculator gives you an all-in freight figure.
Related reading
- Form D: the ASEAN document that takes your duty to zero
- The ASEAN–Hong Kong FTA: when it actually helps
- How to import from China to the Philippines — full guide
- What you can't import from China to the Philippines
- What shipping from China actually costs
- Do you need BOC accreditation to import?
- Balikbayan box vs commercial cargo
- RCEP: the third certificate of origin
- The ₱10,000 de minimis rule in 2026
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