It is indeed fundamental to anything is to do things wisely. Not just the basics of anticipating risks, loss, damage or any irregularities, but also the things to consider to have a high cost efficient undertakings, meaning - to have the least possible money involve in the same level of transaction, lawfully.
What is importation?
Generally,
importation is an act or practice of importing. Effecting the transport
of anything from one place (foreign territory) to another (the home
country: herein referred to as the Philippines).
When importation begins and deemed terminated?
In
accordance to the Tariff and Customs Code of the Philippines (TCCP),
Importation begins when the carrying vessel or aircraft enters the
jurisdiction of the Philippines with intention to unlade therein and
deemed terminated upon payment of duties, taxes and other charges due
upon the articles, or secured to be paid, at the port of entry and the
legal permit for withdrawal shall have been granted, or in case said
articles are free of duties, taxes and other charges, until they have
legally left the jurisdiction of the customs.
Ways to reduce cost
Shipping via air or sea
Provided
that, shipping via air is explicitly faster than via sea or vessel, of
course, charges also correspondingly higher. If the situation doesn't
require the urgency of such article, much recommended to utilize the
shipping via sea or vessel, other than, the reason of it's size and
volume. Hence, to attain the time of considering the arrival, proper
coordination and advance preparation matters, like consulting
a legitimate customs broker whom knowledgeable in dealing the processing and releasing.
Containerized or Loose cargo
Provided
further, as the usual budget / financial experts says, wholesale form
of order are most advantage to avail discounts, so in terms of
importation, it is much recommended to have your shipment be
containerized, if the size and volume allows, for possible discount from
your supplier and both time and transaction efficiency, than in loose
cargoes (LCL), like in cartons, cases, pallets for security reasons and
possibilities of minimizing the actual cost, during the releasing, as it
may vary due to the facilitation done by the outside customs supervised
warehouses.
Country of origin
Provided
finally, considering that Philippines had entered various International
trade commitments, like Association of Southeast Asean Nation (ASEAN),
Japan Philippines Economic Partnership (JPEPA), ASEAN Australia New
Zealand Free Trade Area (AAZFTA), and others, these enables traders to
import into the Philippines free of duty for almost all qualified
products.
Therefore, if you don't have enough idea pertaining all these stuff, again, look for a legitimate customs broker
to explain you how to avail, considering that "In quota and Out quota"
also matters, as some products needs prior permit before importation.
Ultimately, in looking for a possible supplier abroad, you should
firstly consider those from participating ASEAN Counties, as aside from
the possible 0 duty that you will be availing, in return you'll also
contributing the ASEAN countries' economic development.
Conditionally free importation
In
addition, there are items which are classified as conditionally free
importation. Meaning, they just become duty free if conditions are being
satisfied, to be applied at Department of Finance, like personal
household effects and home appliances of returning residents
(balikbayan), articles for public exhibition to mention some.
VAT Exempt
Aside
from the zero duty, as to what country of origin your importation was
and for articles under conditionally free importation, also a lot of
products are Value added tax (VAT) exempt upon proper application of
permit required.
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.
[Manila, Philippines | Posted: December 2013]