Guide
How Philippine Import Tax Works
A plain-English explanation of how the Bureau of Customs computes duties and VAT on international shipments — and how the ₱10,000 de minimis rule protects most small online purchases.
What is CIF value?
CIF stands for Cost + Insurance + Freight. It is the total value of your goods plus any shipping and insurance charges, all converted to Philippine Peso.
Philippine customs duties and VAT are computed based on the CIF value — not just the price you paid for the item. So if you buy a ₱3,000 item and pay ₱800 for shipping, the CIF is ₱3,800.
The ₱10,000 de minimis threshold
Under the Customs Modernization and Tariff Act (CMTA) and CAO No. 02-2025 (effective May 7, 2025), shipments with a goods value at or below ₱10,000 are fully exempt from customs duty and VAT.
This is called the de minimis threshold. It means most small online purchases from Temu, Shein, AliExpress, Lazada, Shopee, and similar platforms arrive in the Philippines without any import taxes.
Important: the threshold is based on FOB value, not CIF
The ₱10,000 check applies to the FOB/FCA value — the price of the goods alone, excluding freight and insurance. If the goods value is ₱10,000 or below, the shipment is exempt even if the total CIF (with shipping) exceeds ₱10,000. If the goods value exceeds ₱10,000, duty and VAT are then computed on the full CIF value.
- FOB value ≤ ₱10,000 → exempt from duty AND VAT (courier fees may still apply)
- FOB value > ₱10,000 → duty and VAT are computed on the full CIF value
The consolidation rule
CAO No. 02-2025 introduced a same-day consolidation rule: if multiple packages addressed to the same recipient arrive on the same day, the Bureau of Customs may treat them as a single shipment and add up their values.
This is designed to prevent tax avoidance through deliberate order splitting. If your combined shipments exceed ₱10,000 after consolidation, duties and VAT will apply to the total.
Practical tip: If you regularly order from multiple platforms and expect several packages to arrive the same day, be aware that your combined value may exceed the threshold.
How duty and VAT are computed
For shipments above the de minimis threshold, the Bureau of Customs applies:
- Customs duty— a percentage of the CIF value, determined by the product's HS/AHTN tariff code. Rates range from 0% (many electronics, books) to 15% (clothing, footwear).
- VAT (12%) — applied to the CIF value plus the duty amount (i.e., the duty-inclusive value).
Duty = Duty rate × CIF value
VAT base = CIF value + Duty
VAT = 12% × VAT base
Total taxes = Duty + VAT
Landed cost = CIF value + Total taxes
HS/AHTN codes and duty rates
Every imported product is classified under the Harmonized System (HS) or the ASEAN Harmonized Tariff Nomenclature (AHTN). The specific code determines the exact duty rate — and rates can vary significantly even within the same product category.
For example, many consumer electronics (smartphones, laptops) are assessed at 0%, while some peripherals may be 5–10%. Clothing is typically 15%, but some technical fabrics may differ.
Important: The duty rates in this calculator are representative estimates based on common product categories. They are not official rates. Always verify using the official Tariff Commission tariff finder or by consulting the Bureau of Customs.
Official sources
- Bureau of Customs Philippines ↗ — official assessments and regulations
- BOC Tariff Finder ↗ — look up official HS/AHTN duty rates
- Tariff Commission of the Philippines ↗ — tariff schedules and rulings
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Customs rules are subject to change. Always verify with the Bureau of Customs or a licensed customs broker for official determinations.