FedEx and the insane Philippines Customs Taxes
I ordered this digital media player worth USD$169 (Php8180) online from Singapore late last month thinking that since it’s door to door delivery via FedEx, any additional charges is already included in the shipping fee.
Well it’s true in a way ’cause according to some of my peers who’ve experienced international shipping, if you’re lucky it won’t pass Customs and you won’t be charged a penny. Well guess which side of the lucky coin I’m on?
I paid a whopping Php3621.84 for Customs Duties and Taxes. That’s insane! It’s almost 50% of the cost of the package!!
Wanna see how we arrived on that total?
Custom Form & Stamps – P315.00
According to TCCP. Sec. 3301 – Customs fees and charges:
“For each Entry Filed an Import Processing fee of two hundred fifty pesos (250Php) shall be charged as indicated in the Official Receipt”.
I guess the amount increased (couldn’t get in customs.gov.ph at the moment.) and the P15 is for the BIR Stamp.
Duties & Taxes – P2480.00
Ahhh the bulk of my charges. Here’s the breakdown of it (click image to enlarge).
First let’s tackle the value under Tariff Heading which is the category my items falls into. In my case, 8521.90.99 which falls under Video recording or reproducing apparatus which has a rate of duty of 5%. (Source)
According to TCCP. Sec. 201 – Basis of Dutiable Value
Value of the Article in ($)
+ Commission & Brokerage Fees
+ Cost of Containers
+ Cost of Packing
+ Amount of Royalties
+ Cost of Transportation (shipping)
+ Value of Resale
+ Loading and Handling Charges
+ Cost of Insurance
Let’s add 4% for insurance (fixed) and cost of shipping which is $10 because it’s from Singapore. 4% of $169 = $175.76 + $10 = $.185.76
Let’s round up the exchange rate at that time to $49. $185.76 * 49 = Php9102 is my dutiable value.
Now let’s compute for the Customs Duty. It’s basically the dutiable value (Php9102) * Rate of Duty which they pegged at 5%.
9102 * 5% = P455.1. How did they arrive at P592???
Now for the Advance Sales Tax. The Advance Sales Tax has been replaced by VAT and is calculated as such (according to NIRCP. as amended by R.A. 8424 Sec.101):
Dutiable Value + Customs Duties + Doc Stamps + Import Processing Fee
(9102 + 592 + 250 + 250) * 12% = P1233.38. How did they arrive at P1638???
They also charged me P250 for surcharge whatever that means.
Storage Fee – P826.84
Well since they had to process it in Customs, they have to store it somewhere for safekeeping right? But P826.84 just for 1 day?!? I talked to the courier and they told me that I was still lucky that the package only took 1 day to process.
Here’s the breakdown:
Who came up with these fees? P336 just to release something that they don’t own?
For my research, I went to this page because Customs web site is not available. So anybody know the exact details about computation of Customs Tax? Did I get ripped off?
Well I just have to charge it to experience. Next time I would recommend thinking hard and thinking twice to have something shipped here from overseas.
If I’d known that I would be paying such fees I would’ve just asked it to be delivered to my uncle’s place in Singapore and have it brought over here if somebody’s coming home.
Oh well, guess I’ll just forget about it and enjoy my new toy.