Online orders and parcels entering the Philippines pass through three gates: the ₱10,000 de minimis exemption, the customs duty on the CIF value at your product’s HS-line rate, and the 12% import VAT computed on CIF plus that duty. This guide walks all three with worked numbers you can reproduce in our import duty calculator.
Gate 1: the ₱10,000 de minimis exemption
The Customs Modernization and Tariff Act (§423, implemented by CAO 02-2016; §800) exempts goods with an FOB or FCA value of ₱10,000 or less from all import taxes — no duty, no VAT, no excise. Three practical points:
- The test keys on the goods’ value, not the shipping. A ₱9,500 gadget with ₱2,500 express shipping still qualifies — freight and insurance do not push it over.
- One shipment, one threshold: the value tested is the shipment’s FOB/FCA as declared; splitting a ₱30,000 order into three parcels to fit under ₱10,000 each is misdeclaration when it misstates reality. The Bureau of Customs also applies a consolidation rule: parcels consigned to the same recipient and address arriving the same day are aggregated — a combined FOB above ₱10,000 taxes the whole shipment.
- Limits exist: commercial quantities and restricted/regulated goods do not qualify regardless of value.
Not to be confused with the BIR’s de minimis benefits for employees (rice subsidy, uniform allowance caps under RR 29-2025) — same Latin phrase, unrelated law and agency.
Gate 2: duty on the CIF value
Above de minimis, duty is CIF × the HS-line rate. CIF = cost, insurance, freight — the declared price of the goods plus shipping and insurance to the port. The binding rate comes from the Tariff Commission’s TCC finder by HS code; the national simple average MFN rate is around 6%, consumer goods closer to 10%, with famous zeros for books and computer equipment and peaks up to 65% for protected lines:
- 0%: books and most printed material; laptops, phones, and most computer equipment.
- ~15%: clothing, garments, footwear — the classic pasalubong categories.
- Varies widely: foodstuffs, cosmetics, appliances — check the line.
- 0% via ATIGA: goods qualifying as ASEAN-originating with a Certificate of Origin (Form D).
Gate 3: the 12% VAT stack
| ₱20,000 item + ₱1,500 freight, 15% duty | Amount |
|---|---|
| CIF value (&duty base) | ₱21,500.00 |
| Customs duty (15% × CIF) | ₱3,225.00 |
| Import VAT (12% × CIF + duty) | ₱2,967.00 |
| Total taxes | ₱6,192.00 |
Check the VAT line: it is 12% of ₱24,725 (CIF plus duty), not of ₱21,500 — the same tax-on-tax stacking as fuel. The calculator reproduces this ₱6,192 total for the same inputs — run it yourself to see both layers.
What the courier actually collects
On top of duties and VAT, expect service charges, not taxes: brokerage/processing fees, arrastre and storage at the port, and the courier’s own advance-and-collect fee. These are contractual costs of getting the parcel cleared — legitimate, but they are not remitted to the government as tax. Our calculator deliberately computes only the tax layers so you can audit the courier’s breakdown line by line.
Out of scope, on purpose
- Excisable imports — vehicles, alcohol, tobacco, fuel carry excise on top of duty, inside the VAT base.
- Balikbayan boxes and personal effects — relief shipments have their own value/quantity limits under BOC rules.
- Anti-dumping, safeguards, and countervailing duties — exceptional measures keyed to specific findings.
- VAT-registered importers may credit the import VAT as input tax — see our VAT guide.
Run your own numbers
Enter your parcel’s declared value, shipping, and HS-line rate — the calculator applies de minimis, duty, and the VAT stack.
Open the Import Duty CalculatorFrequently Asked Questions
When do imports pay no tax at all?
When the goods’ FOB or FCA value is ₱10,000 or less — the CMTA de minimis exemption collects no duty, VAT, or excise. The threshold keys on the value of the goods themselves, so shipping charges don’t disqualify a qualifying parcel; commercial quantities and restricted goods are excluded regardless of value.
What is CIF and why does it matter?
CIF — cost, insurance, and freight — is the customs valuation base: the declared price of the goods plus shipping and insurance to the Philippine port. Duty is computed on CIF, and the 12% import VAT follows on CIF plus the duty. Undervaluing declarations is customs fraud, and bonds apply to suspicious low declarations.
How do I find my exact duty rate?
Look up your product’s HS code in the Tariff Commission’s online TCC finder, which shows the MFN rate and any preferential rates. Ballpark: books and printed material 0%, computers and most electronics 0%, clothing and footwear around 15%. Goods originating from ASEAN with a Certificate of Origin (Form D) enter at 0% under ATIGA.
Why is the import VAT bigger than 12% of the item price?
Because the VAT base is wider than the price: it is CIF (which adds freight and insurance) plus the customs duty — and plus any excise. A ₱20,000 item with ₱1,500 shipping at 15% duty pays 12% × ₱24,725, not 12% × ₱20,000.
Is this de minimis related to the employee de minimis benefits?
No. Customs de minimis (CMTA) exempts low-value imports from duties and taxes; the BIR’s de minimis benefits (RR 29-2025) exempt small employee fringe benefits like rice and uniform allowances from income and withholding tax. Same Latin phrase, different laws, different agencies.
This guide summarizes the Customs Modernization and Tariff Act (RA 10863), CAO 02-2016, and the NIRC as amended, as of September 2026. The TCC is the binding source for duty rates. It is not tax advice — consult the Bureau of Customs or a licensed customs broker for specific shipments.