Importing into the Philippines runs through the Bureau of Customs (BOC), which applies the Customs Modernization and Tariff Act (CMTA, Republic Act 10863). An accredited importer, usually acting through a licensed customs broker, lodges a goods declaration in the BOC's electronic system, the customs value is built up to a CIF-style figure, duty and 12% import VAT are paid, and any goods that other agencies regulate need that agency's clearance before the BOC will release them. The mistakes that cost real money are almost always the same three: a wrong HS code, an undervalued invoice and a missing permit. As of November 2026 the BOC's legacy e2m system is still the system in daily use; a replacement has been announced but not switched on. This guide covers the whole path. For the neighbouring picture of who moves cargo into Manila and Cebu, see our list of logistics companies in the Philippines, and for the general process see customs clearance explained.
Who regulates imports into the Philippines?
The Bureau of Customs sits under the Department of Finance and collects duties and taxes, examines cargo and enforces the import rules. The legal base is the CMTA (RA 10863, 2016), supplemented by Customs Administrative Orders (CAOs, signed by the Finance Secretary) and Customs Memorandum Orders (CMOs, issued by the BOC). The tariff rates themselves are set through executive orders on the recommendation of the Tariff Commission, which publishes the schedules in an online tariff finder.
Two points are worth knowing early. First, the BOC does not decide whether most regulated goods may enter: food, plants, animals, medicines and products under mandatory standards are controlled by other agencies, and the BOC simply checks that the clearance exists. Second, CMTA Sections 118 and 119 separate prohibited importations (never allowed) from restricted ones (prohibited unless authorised by law or regulation), so a restricted item is not a banned item, but it is a held item until the paperwork is in place.
Which customs system do importers use in 2026?
Declarations are lodged in the BOC's Electronic-to-Mobile system, known as e2m, usually through the broker's own software or an accredited value-added service provider. The BOC has said it wants to replace it. According to a report of Commissioner Ariel Nepomuceno's remarks at the ASEAN Growth Forum (published 15 June 2026), the planned Integrated Customs Processing System (CPS) is an AI-enabled platform intended to handle imports, exports, transits, risk assessment and digital payments end to end. A separate May 2026 report (Context.ph) says the BOC is targeting a full modernisation by 2027, and trade press has reported that the CPS proposal was still under assessment as a public-private partnership in early 2026.
What this means in practice: as of November 2026, plan around e2m and your broker's current instructions. We could not find a confirmed go-live date or contract award for the replacement, and older project names (such as the Integrated Philippine Customs System) appear in earlier coverage, so treat any rollout date you hear as unconfirmed until the BOC issues a memorandum.
Do you need to be accredited to import?
Yes. Importers register and are accredited with the BOC before they can lodge declarations. Applications go through the BOC's Accounts Management Office (AMO) and the online client portal, and the BOC's own knowledge base points to CMO 08-2022 for regular importers, CMO 11-2014 for the accreditation procedure and CMO 46-2019 for non-regular importers who import only once in a 365-day period. Some older material refers to a Customs Accreditation and Registration Unit; the BOC pages we could read name the AMO as the office that takes applications, so check with it which office handles your file.
There was a notable change in April 2026. Press reports (SunStar and GMA News, 14 April 2026) say a new Customs Administrative Order signed by Finance Secretary Frederick Go extends importer accreditation from one year to three, cuts the fee to a one-time P5,000 (from P2,000 a year), keeps an Annual Reportorial Compliance due within 30 days of the accreditation anniversary, and allows automatic renewal for importers with six consecutive compliant years. The reports also say the policy covers Authorized Economic Operators and Super Green Lane importers. The reports did not give the CAO number or effective date, so confirm both with the BOC before you rely on the new terms.
Customs brokers are licensed separately by the Professional Regulation Commission under the Customs Brokers Act of 2004 (RA 9280), and the BOC also accredits them. Under the CMTA a licensed broker may process the goods declaration (Section 106) and is responsible for its accuracy but not for paying the duties (Section 107). If you are weighing a broker against filing yourself, our guide on whether you need a customs broker sets out the trade-offs.
What is the import entry, and what is an IEIRD?
The CMTA speaks of a goods declaration. Goods are treated as entered for consumption when the declaration is lodged (Section 115). The older name you will still hear is the Import Entry and Internal Revenue Declaration (IEIRD), the paper form that e2m replaced; in current practice the declaration is lodged electronically on the Single Administrative Document (SAD), together with a notarised Supplemental Declaration on Valuation (SDV). The US International Trade Administration's Philippines import requirements page (last published 30 June 2026) lists the usual supporting set: a properly endorsed bill of lading or air waybill, the commercial invoice or other payment document, a packing list and the SDV, plus permits, proof of origin or a copy of an advance ruling where they apply.
There are two routes:
- Formal entry is the default for goods for consumption. The declaration is due within 15 days of discharge of the last package, extendable by another 15 days on timely request (Section 407), and a provisional declaration can be allowed with 45 days to complete it (Section 403).
- Informal entry covers commercial goods with a FOB or FCA value under P50,000 and personal effects not in commercial quantity (Section 402). Trade press describing CMO 06-2020 says small-value importers register in the BOC's client profile system and have every informal declaration tagged for documentary review and inspection, and that an entry found to exceed the threshold is processed once and then has to move to formal entry. Those details come from secondary coverage, so read the current order.
The BOC then assigns a risk-based lane to each declaration (its own guidance refers to colour-coded lanes such as green and red), and the lane decides whether the goods are released on documents or sent for examination. Under Section 420 the Commissioner may exempt the goods of Authorized Economic Operators from physical examination.
How is customs value calculated?
The CMTA follows the WTO valuation system. The primary method is transaction value (Section 701): the price actually paid or payable, plus specified additions to the extent the buyer bears them and they are not already in the price. Those additions include the cost of transport from the port of exportation to the port of entry in the Philippines, loading, unloading and handling charges tied to that transport, and the cost of insurance. In effect the dutiable value is a CIF-type value at the Philippine port of entry. If transaction value cannot be used, Sections 702 to 706 provide fallback methods in sequence: identical goods, similar goods, deductive value, computed value and a last-resort method.
Two practical consequences follow. An invoice sold on FOB terms still needs freight and insurance added to reach the customs value, and royalties, assists and commissions the buyer pays can also count. For the mechanics, see how the dutiable value is calculated and assists and royalties. The SDV exists precisely so the importer states these items in writing.
What duty and tax will you pay?
| Charge | Basis | What to check |
|---|---|---|
| Customs duty | Rate for the HS line in the Philippine tariff, applied to the customs value | MFN or preferential rate, and whether proof of origin is required |
| Excise tax | Specified goods only (for example alcohol, tobacco, vehicles, petroleum) | Rate set in the Tax Code, charged on top of duty |
| Import VAT | 12% under Section 107 of the National Internal Revenue Code | Base is customs value plus duty, excise and other charges before release; VAT-registered importers can usually claim it as input tax |
As of November 2026 the import VAT rate is 12%, but the base wording comes from practitioner guides rather than the Tax Code text we could read, so ask your broker to show the computation on the first entry. For orientation on duty levels, the US International Trade Administration reports a simple average MFN applied tariff of 6.0% for 2023 (9.6% agricultural, 5.5% non-agricultural). Rates on goods that compete with local production are generally higher.
Preferential rates come from the ASEAN Trade in Goods Agreement (ATIGA) and from RCEP, whose Philippine tariff commitments were implemented by Executive Order 25 (7 May 2023) with preferential rates for originating goods and a proof-of-origin requirement. The Tariff Commission's online finder carries the ATIGA and RCEP schedules, and the same source notes that the Philippines tariff is built on the ASEAN Harmonized Tariff Nomenclature. Sources disagree on whether the 2017 or 2022 edition is current, so look up your line in the finder rather than in a guide. A preference is never automatic: you must hold the right certificate and the goods must satisfy the origin rule, which our guides on free trade agreement certificates and finding the right HS code cover.
Which goods need permits from other agencies?
This is where otherwise clean shipments get stuck. The agency, not the BOC, issues these clearances, and you normally need them before the cargo arrives. The table lists the usual ones; exact product lists and fees change, so confirm each against the agency.
| Goods | Agency and document |
|---|---|
| Plants, fresh produce, seeds, plant products | Bureau of Plant Industry: Sanitary and Phytosanitary Import Clearance (SPSIC), applied for before shipment; products undergo pest risk analysis and the clearance is presented on arrival |
| Live animals, meat and other animal products | Bureau of Animal Industry and the National Meat Inspection Service: veterinary quarantine clearance and, for meat, importer accreditation |
| Processed food, drugs, cosmetics, medical devices | Food and Drug Administration: licence to operate for the importer and product registration, presented for release at ports |
| Products under mandatory standards (electronics, appliances, steel, plastics and others) | DTI Bureau of Philippine Standards: Philippine Standard licence or Import Commodity Clearance (ICC) |
| Chemicals, hazardous waste and other controlled substances | Department of Environment and Natural Resources and its Environmental Management Bureau, under the chemical and waste control regimes |
Some rules are in flux. A 2017 Bureau of Animal Industry memorandum reportedly stopped it issuing import clearances for processed animal-origin food, leaving the FDA as the main gatekeeper, but older trade guides still list both, so ask the agencies which applies to your product. For plant cargo, our guide to phytosanitary certificates and plant import permits explains the exporting-side certificate that the BPI clearance depends on.
What is the Authorized Economic Operator programme?
The BOC runs a Philippine Authorized Economic Operator (AEO) programme, with applications handled by an AEO office and accreditation in levels (Level 1 and Level 2 accreditations have been reported for named importers). The practical benefits are lower examination rates and faster release; the CMTA itself only provides in Section 420 that AEO goods may be exempted from physical examination. The BOC has also reportedly looked at moving members of its older Super Green Lane facility into the AEO programme. It is a status for companies with strong compliance records, not a shortcut for a first shipment. For the general idea and how it compares with C-TPAT, see AEO and C-TPAT explained.
Where do Philippine imports go wrong, and what are the penalties?
The CMTA is blunt about declaration errors. Under Section 1400, a misdeclaration or misclassification that produces a duty and tax discrepancy carries a surcharge of 250% of the duty and tax due, and undervaluation established outside a formal dispute process carries the same 250%. No surcharge applies when the discrepancy is under 10%, when a difficult classification or valuation question is rejected through a formal dispute, or when you relied on an official government ruling. A discrepancy above 30% is prima facie evidence of fraud, and intentional or fraudulent conduct draws a 500% surcharge, with the goods subject to seizure.
Other points that matter:
- Late payment: Section 1425 adds a 10% surcharge if duties are not paid within 15 days of final assessment, rising to 25% if the delinquency runs past a year.
- Post-clearance audit: the BOC may audit within three years of final payment or clearance (Section 1000), and parties must keep clearance records for three years from the declaration (Section 1003).
- Advance rulings: Section 113 and Title XI let you request a binding classification or valuation ruling in advance, which is the safest way to remove doubt on a high-value line.
The common failure points follow directly: a code chosen by the supplier rather than checked, an invoice that omits freight, royalties or assists, a split invoice that understates the real price, and a regulated product shipped before its clearance. Penalty rules for other countries differ; our customs audit readiness guide covers the records habits that help anywhere.
Importing into the Philippines checklist
- BOC accreditation is active and the annual compliance report is filed.
- HS code checked in the Tariff Commission finder, with the duty line and any preference noted.
- Invoice, packing list, bill of lading or air waybill match on parties, quantities and values.
- Freight, insurance, royalties and assists are in the customs value, and the SDV is signed.
- Agency clearances (BPI, BAI, FDA, DTI-BPS, DENR) are held before arrival.
- Proof of origin is in hand if you are claiming ATIGA or RCEP rates.
- Duty, excise and 12% VAT are budgeted on the full landed value.
What to do next
- Confirm your HS code and duty rate in the Tariff Commission's tariff finder, and ask your broker to show the duty and VAT computation before the goods ship.
- Check which agency regulates your product and start the clearance application early, since it must be in place before arrival.
- Ask the BOC's Accounts Management Office to confirm your accreditation status and the current renewal terms, including the April 2026 changes.
- For a repeat or high-value line, request an advance ruling instead of relying on a supplier's classification.
If you need a customs broker or freight forwarder for the Philippines, you can search more than 29,300 logistics companies by country and service in the CargoLinked directory, and the public requests board lists freight that shippers have posted for forwarders to quote on directly.
This article is general information as of November 2026 and is not legal, tax or customs advice. Philippine customs rules, tariff rates, agency requirements and BOC procedures change, and several details above come from press coverage of orders we could not read in full. Confirm the current requirements with the Bureau of Customs, the Tariff Commission, the relevant permit-issuing agency or a licensed customs broker before you ship.
