Normally, together with section 1201 of the Tariff and Customs Code of the Philippines (TCCP) that states - all imported article whether subject to duty or not, shall be entered at Customhouse, section 100 also states - when imported from any foreign country into the Philippines, shall be subject to duty upon each importation, even though previously exported from the Philippines, except as otherwise specifically provided.
Equipment for salvage of vessels or aircraft imported into the Philippines can be one of those mentioned in section 1201 (whether subject to duty or not), as classified as "not subject to duty", only if conditions stated in section 105b of the same code (the TCCP), below quoted.
"Equipment for use in the salvage of vessels or aircrafts, not available locally, upon identification and the giving of a bond in an amount equal to one and one half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of corresponding duties, taxes and other charges within six (6) months from the date of acceptance of the import entry: Provided, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six (6) months from the expiration of the original period".
Generally, "Equipment" refers to things / tools used as an instrument to perform or supply something; while "Salvage" is an act or process of saving, rescue or repair of vessels or aircraft from wreck, accident or any form of trouble / damage, disabling her continue the operation: flight or voyage.
To enumerate and simplify these conditions:
- The equipment will only be use for salvage.
- Not available locally, i.e. the local market of the Philippines.
- Able to post a bond of 150% of the total duties, taxes and other charges, supposed to be paid (depending the value, origin, weight and quantity)
- Subject for exportation or payment of taxes within 6 months reckoned from the date of filing the import entry at the BOC
- If so require, can be extendible for another 6 months.
For
vessel, needs corresponding clearance from Maritime Industry Authority
(MARINA) or Civil Aviation Authority of the Philippines (CAAP) for
aircraft.
Note: If you are reading this article few years later than below date posted, it is highly recommended to further browse for possible amendment or you may contact us here and let us know how we can help you.
Note: If you are reading this article few years later than below date posted, it is highly recommended to further browse for possible amendment or you may contact us here and let us know how we can help you.