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Requesting for Taxes and Duty Exemption for Personal Effects brought to the Philippines

January 16th, 2009 · 9 Comments

If you plan to ship your goods from abroad it is possible to get exemption from import taxes and duties when you are moving here permanently. As a former Filipino or Dual Citizen with intent on living here indefinitely, one can apply for full exemption from duty and taxes pursuant to Section 105 of the Tariff and Customs Code, as amended, and Section 109 of RA No. 8424 now Section 109 (d) of Republic Act No. 9337, subject to certain conditions. The shipment must not include commercial quantity but should only consist of used household goods or personal effects. These household goods or personal effects are only for personal use and not for sale or hire and should be brought from the applicant’s former place of abode. The privilege of free-entry should have never been granted before which means this must be the first time it was ever availed. Motor vehicles, vessels or aircraft or machineries and other similar articles for use in manufacture are not eligible for exemption.

In order avail of this, I had to submit the following:

  • Letter of Request for Exemption of Duty and Tax addressed to the Director of the Department of Finance / Legal Affairs (currently it is Thelma A. Mariano). This letter must mention the bill of lading number, pier, and registration number, packing list total weight, the date of arrival of the shipment and the invoice value in dollars written at the bottom of the document. This serves as the cover letter of the whole application package.
  • Affidavit of Ownership: the declaration must mention port of origin, name of shipping carrier, date of departure, number of pallets, number of packages and total value in US Dollars. Also, mention the reason for your return. The following statement is also required in the affidavit:

    The Department of Finance is not liable for any misdeclaration made by the consignee.

    I execute the affidavit to avail for the first time of the exemption from customs duties and taxes on goods brought in abroad into the country under Section 105 and in relation to Section 6 of the Tariff and Customs Code of the Philippines.


    This document must of course, be notarized.

  • A Personal Letter addressed to the Department of Finance requesting for exemption of duties and taxes mentioning the destination Port, date of arrival and Bill of Lading number and that the goods are personal effects.
  • Photocopy of your Passport data pages(if you are Dual Citizen, then include also your foreign passport) and the page that shows your arrival stamp
  • For dual citizen applicants only: Order of Approval of Citizenship Retention and Re-Acquisition, Oath of Allegiance, and Identification Certificate and Birth Certificate
  • Packing list with value declaration and individual weight of the goods you shipped
  • Photocopy of your Bill of lading
  • We submitted all of the above at the 8th Floor of the Department of Finance building located at the Central Bank Compound next to Harrison Plaza. When you arrive, mention that your destination is the “Mabuhay Lane”. And before I forget, have at least 3 copies of all the documents I mentioned and bring all the originals if possible, especially your passport and birth certificate.

    Initially, we hired the services of a Customs Broker but it turned out that they were incompetent in handling this part of the process so I took the initiative to process it myself. When we first visited DOF, we found out that we were missing so much of the requirements that the officer even scolded our broker. The broker did not properly do their homework and our visit was then wasted! Well, looking back at it now I am glad I accompanied the broker. The letters and affidavit they prepared for me had many important missing information, typographical and stupid mistakes putting in the wrong country of origin! However, for the customs part, I am leaving this to them and I hope they wouldn’t make the same sloppy job as they did for the DOF Exemption. They did mention to me that this wasn’t in their regular service offering so I guess I can overlook this for now. However, I am utterly frustrated for their attitude in handling it in general. I had to follow them up daily otherwise they would not really call me up and inform me of what documents were missing or needed. That’s one thing I am warning all of you to make sure when you hire your broker that they are reliable or maybe have some good references.
    So in the end, I was lucky to be able to get my letter of approval on the same day. I submitted it at around 10AM and was able to pick it up around 1:30PM. But I had to watch them like a hawk and be present most of the time. Otherwise, you’ll never know. I had to do this because I didn’t want to leave both my passports there. The next step would be to submit this to the Customs officers at the Port. I left the documents today and they said they will work on it on Monday. Our goods arrived five days ago and she said that they have not yet stripped the goods yet. We only start paying for warehouse storage after the goods are stripped. So anyway, I’m crossing my fingers that everything will work out well. Stay tuned for the next part of the story!

    Tags: Relocation

    9 responses so far ↓

    • 1 zylla // Jan 18, 2009 at 4:39 am

      This is good information, and thanks for posting it.

    • 2 mixxy // Jan 19, 2009 at 5:44 am

      hi zylla, nice to hear from you again. your welcome. As soon as I got through with it I wanted to dump all my thoughts somewhere so at least others could at least have less painful experience as we did. It wasn’t really that bad actually.

    • 3 michelle // Mar 2, 2009 at 7:44 pm

      Thank you so much for this article.
      Six months from now I will be moving for good in the Philippines.
      And I will be exactly doing what you have stated here.And will surely stay tunned for more helping tips.
      By the way,do you have a pro-format for the Letter of Request for Exemption and maybe the Affidavit of Ownership.
      Mabuhay!!

    • 4 mixxy // Mar 2, 2009 at 11:51 pm

      hi Michelle, I don’t have an exact pro-format but I can send you the outline of the letter I used.

    • 5 michelle // Mar 3, 2009 at 1:34 pm

      Oh yes mixxy that is even beter.
      That’s indeed another great help from you.
      Thank you.

    • 6 Don // Mar 20, 2009 at 12:06 am

      Hi Mixxy,

      This article is extremely helpful. Thanks. One question though….did you bring any large screed TV’s and other electronics? I will be going back about the same time as Michelle and not really bringing anything but electronics (all home use for sure) and possibly a car. Other articles I know are covered by the exemption so no problem on those. Planning to use a broker myself but its good to know and prepare for these things.

      Don

    • 7 mixxy // Mar 20, 2009 at 1:23 am

      Hello Don,
      Our stuff included a 27 inch LCD tv and some other electronics, such as desktop PC’s, and game consoles. You just need to be specific that all of those are personal effects and / or for home use. I am not so sure if bringing a car is a good idea, first of all I think they would only allow newer models and there is no duty exemption for cars. I expect the customs duty for cars to be almost the price you paid for it but I guess you could confirm that by calling the DOF.

      Mixxy

    • 8 michelle // Mar 28, 2009 at 11:25 pm

      you’re abosolutely right,mixxy.
      my broker did not know about this thing.
      he ask me if this document (article) of yours was approved by the embassy?
      so i might as well ask our embassy to give me a signed document.
      what do you think?
      he told me,even though you have that letter you need to give something…….for your papers to be release asap.
      oh well….

    • 9 mixxy // Mar 30, 2009 at 6:22 am

      Hi Michelle,

      I am not sure about the whole situation of your travel/immigration to the Philippines. Please let me know which article/document you are referring to.
      I really encourage you to visit or call the DOF on the place I mentioned above they are a good starting point to know the correct steps.

      Mixxy

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