Customs Clearance for Imports from China to the Philippines: A Step-by-Step Guide

Customs clearance for imports from China to the Philippines is the completion of customs and other government formalities necessary to allow goods to enter for consumption, warehousing, transit or transshipment, or to be exported or placed under another customs procedure. Under the Customs Modernization and Tariff Act (CMTA), Republic Act No. 10863, importation begins when the carrying vessel or aircraft enters Philippine territory with the intention to unload, and is deemed terminated once duties, taxes and other charges are paid or secured and a legal permit for withdrawal is granted, or when duty-free goods legally leave the Bureau of Customs' jurisdiction.

What clearance and importation mean under the CMTA

The CMTA defines clearance as the completion of customs and other government formalities necessary to allow goods to enter for consumption, warehousing, transit or transshipment, or to be exported or placed under another customs procedure. Importation is defined in the same law as the act of bringing goods from a foreign territory into Philippine territory, whether for consumption, warehousing, or admission.

The CMTA also fixes the timeline: importation begins when the carrying vessel or aircraft enters Philippine territory intending to unload. It is deemed terminated when the duties, taxes and other charges are paid or secured at the port of entry and a legal permit for withdrawal is granted — or, for goods free of duties and taxes, when they have legally left the Bureau's jurisdiction.

Who may file the goods declaration

Under the CMTA, the declarant may be the consignee or a person who has the right to dispose of the goods. The declarant lodges the goods declaration and may be:

• The importer, being the holder of the bill of lading;
• The exporter, being the owner of the goods to be shipped out;
• A customs broker acting under the authority of the importer or holder of the bill; or
• A person duly empowered to act as agent or attorney-in-fact for the holder.

If the consignee is a juridical person, it may authorize a responsible officer to sign the goods declaration on its behalf. The CMTA makes the declarant responsible for the accuracy of the declaration and for paying all duties, taxes and other charges. A licensed customs broker who assists is likewise responsible for accuracy but not for payment.

Step-by-step: clearing goods shipped from China

1. Confirm whether the goods are freely importable. Under the CMTA, all goods may be freely imported unless otherwise provided by law or regulation.
2. Check for regulated or prohibited goods. The CMTA requires regulated goods to be imported only after securing the necessary goods declaration, clearances, licenses and other requirements prior to importation; submission after arrival but before release is allowed only in cases provided by law or regulation. The law also lists prohibited goods, including infringing goods and adulterated or misbranded food or drugs.
3. Lodge the goods declaration electronically. The CMTA provides that imported goods are deemed "entered" in the Philippines for consumption when the goods declaration is electronically lodged, together with any required supporting documents, with the pertinent customs office.
4. Pay or secure duties and taxes. Under the CMTA, all goods imported into the Philippines are subject to duty upon importation, except as otherwise provided. Unpaid duties, taxes and other charges incur legal interest of twenty percent (20%) per annum computed from the date of final assessment, when payment becomes due and demandable.
5. Obtain release. The CMTA defines release of goods as the Bureau's action permitting goods undergoing clearance to be placed at the disposal of the party concerned.

Duties, taxes and the rate that applies

The CMTA provides that imported goods are subject to the import duty rates under the applicable tariff heading effective at the date of importation, or upon withdrawal from the warehouse for consumption. For goods withdrawn from free zones into the customs territory, the duty rate at the time of withdrawal applies.

If an assessment is disputed and pending review, the CMTA allows tentative release: the importer may put up a cash bond equivalent to the duties and taxes due so the goods can be released.

If a ruling or decision goes against the importer

The CMTA allows an interested party to request a binding advance decision or ruling on matters pertaining to importation or exportation. The Bureau must issue its ruling within thirty (30) days from submission of the necessary documents and information. A party adversely affected by a decision or omission of the Bureau may appeal within fifteen (15) days from receipt of the questioned decision or order.

Frequently asked questions

Do I need an import license for goods from China? Generally no. The CMTA states that, unless otherwise provided by law or regulation, all goods may be freely imported into the Philippines without need for import and export permits, clearances or licenses. Regulated goods, however, require the necessary clearances and licenses.

Who can file the customs declaration for my shipment? The declarant may be the importer as holder of the bill of lading, a customs broker acting under the importer's authority, or a person duly empowered as agent or attorney-in-fact.

What happens if I do not pay the duties on time? The CMTA imposes legal interest of twenty percent (20%) per annum on unpaid duties, taxes and other charges, computed from the date of final assessment, once payment becomes due and demandable.

Practical takeaways

• Importation begins when the carrying vessel or aircraft enters Philippine territory intending to unload.
• Lodge the goods declaration electronically to have the goods deemed entered for consumption.
• The declarant is responsible for the accuracy of the declaration and for paying duties, taxes and other charges.
• Regulated goods need clearances and licenses before importation; prohibited goods cannot be imported at all.
• Unpaid duties incur 20% legal interest per annum from final assessment, and adverse Bureau decisions may be appealed within 15 days.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• REPUBLIC ACT NO. 10863 - AN ACT MODERNIZING THE CUSTOMS AND TARIFF ADMINISTRATION

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.