Shipping parcels from China to the Philippines: is there tax under PHP 10,000?
Answer
Goods with an FOB/FCA value of PHP 10,000 or less are free of duty and tax (tobacco and alcohol still pay excise), under Section 423 of the Customs Modernization and Tariff Act (CMTA). Above PHP 10,000: duty and 12% import VAT are collected on arrival. Commercial goods worth under PHP 50,000 use informal entry.
- Applies to
- Postal or courier parcels sent from China to individuals in the Philippines.
Rules at a glance
| Value | Duty | VAT | Status | Source |
|---|---|---|---|---|
| PHP 10,000 or less | None | None (tobacco and alcohol still pay excise) | In force | Bureau of Customs import guidelines |
| Over PHP 10,000 | Per tariff | 12% on arrival | In force | Same |
| Commercial, under PHP 50,000 | Per tariff | 12% | In force (informal entry) | Same |
Note
The Philippines' 2024 law RA 12023 puts 12% VAT on digital services. It does not cover physical parcels, so don't confuse the two.
What you can do yourself
- Try to keep each shipment within PHP 10,000.
- Above that, state in your quote that the buyer pays duty and 12% VAT.
- Tobacco and alcohol pay excise at any value.
When to use a licensed professional
- If a shipment over PHP 50,000 needs a formal entry, or goods need an import permit, talk to a Philippine Licensed Customs Broker.
- If you receive a demand for tax or goods are held, talk to a local customs broker or lawyer.
Check before you pay, and warning signs
- Check the broker's accreditation with the Bureau of Customs.
- "Split it and it's all tax-free" or "declare a low value" are warning signs.
Unknowns
- Any extra special duty on Chinese goods: none found this time.
- Any change to the parcel threshold in the last 12 months: none found (CAO 01-2026 is about importer accreditation, not the threshold).
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