Importing Vehicles into the Philippines: Tariffs, Customs Rules and Requirements

Importing a motor vehicle or its parts into the Philippines starts with a single rule: all goods brought into the country are subject to duty upon importation unless a law or regulation says otherwise. Under the Customs Modernization and Tariff Act (CMTA), or Republic Act No. 10863, imported goods — including vehicles and parts — are subject to duty, and the rate that applies is the rate in effect on the date of importation or upon withdrawal from a warehouse for consumption.

Importation begins the moment the carrying vessel or aircraft enters Philippine territory with the intention to unload the goods. From that point, the importer must lodge a goods declaration, pay or secure the duties and taxes, and obtain release of the goods from customs custody.

How the Bureau of Customs classifies and values imported vehicles

The District Collector of the port is tasked with examining, classifying and valuing imported goods, and assessing and collecting the duties, taxes and other charges due on them. Classification determines the tariff heading, and the applicable duty rate is the one in force at the date of importation.

The Bureau of Customs is also mandated to issue binding and advance rulings on matters pertaining to the importation of goods, upon the written request of an interested party. The CMTA requires the ruling or decision to be issued within thirty (30) days from submission of the necessary documents and information. For importers of vehicles or parts who want certainty on classification before shipping, this is the formal route.

Who may lodge the goods declaration

A declarant may be the consignee or any person who has the right to dispose of the goods. The CMTA lists who may lodge the goods declaration with the Bureau:

• 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 each holder.

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

Are all vehicles freely importable?

The CMTA states that, unless otherwise provided by law or regulation, all goods may be freely imported into and exported from the Philippines without need for import and export permits, clearances or licenses. However, this general rule has important exceptions.

The law governs regulated goods: these may be imported only after securing the necessary goods declaration, clearances, licenses and other requirements prior to importation. In some cases allowed by governing laws or regulations, the requirements may be submitted after the goods arrive but before release from customs custody.

The CMTA also prohibits the importation of certain goods, including infringing goods as defined under the Intellectual Property Code and related laws. It restricts the importation of items such as explosives, firearms and weapons of war, or parts thereof, except when authorized by law or regulation. Vehicles and parts that fall under these categories require the appropriate authorization before they can be brought in.

The role of the declarant and customs brokers

The goods declaration submitted to the Bureau must be processed by the declarant or by a licensed customs broker. The declarant must sign the goods declaration even when assisted by a licensed customs broker, who must likewise sign it.

The CMTA also directs the Bureau to use information and communications technology to support a paperless customs environment, and provides that electronic documents, permits, licenses or certificates have the same legal effect, validity or enforceability as any other document or legal writing when the prescribed requirements are complied with.

What happens if there is a dispute over the assessment

If an importer disputes the assessment, the CMTA defines a "tentative release" — a case where the assessment is disputed and pending review, and the importer may put up a cash bond equivalent to the duties and taxes due on the goods before obtaining their release.

Any party adversely affected by a decision or omission of the Bureau pertaining to an importation or exportation has the right to appeal within fifteen (15) days from receipt of the questioned decision or order. The appeal must be in writing and must specify its grounds.

Frequently asked questions

How much is the customs duty on imported vehicles in the Philippines? The CMTA does not fix a single rate for vehicles. Imported goods are subject to the import duty rates under the applicable tariff heading effective at the date of importation. The rate depends on the classification of the specific vehicle or part, which the District Collector examines and classifies.

Do I need a customs broker to import a vehicle? The goods declaration may be processed by the declarant or by a licensed customs broker. A customs broker may act under the authority of the importer or holder of the bill of lading. The declarant remains responsible for the accuracy of the declaration and for payment of duties and taxes.

Can any vehicle be imported into the Philippines? Not necessarily. While the CMTA allows goods to be freely imported unless otherwise provided by law or regulation, it requires clearances and licenses for regulated goods, and it prohibits or restricts certain items, including infringing goods and firearms or parts thereof.

Practical takeaways

• All goods imported into the Philippines are subject to duty upon importation unless a law or regulation exempts them.
• The duty rate that applies is the rate under the applicable tariff heading in effect at the date of importation or withdrawal from the warehouse for consumption.
• The declarant — importer, holder of the bill of lading, customs broker, or authorized agent — must lodge the goods declaration and is responsible for its accuracy and for paying duties and taxes.
• Regulated goods require clearances and licenses before importation, and some goods are prohibited or restricted outright.
• A party adversely affected by a Bureau decision may appeal in writing within fifteen (15) days from receipt of the decision.

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.