a. Weapons of war
b. Immoral/obscene or insidious articles
c. Articles for treason
d. Prohibited drugs/narcotics e. Gambling paraphernalia/devices f. Those prohibited under Special Laws
(Sec 102 TCC) 2. Qualifiedly prohibited
o Where such conditions as to warrants a lawful importation do not exist, the legal effects of the importation of qualifiedly prohibited articles are the same as those absolutely prohibited articles. (Auyong Hian v. CTA, 59 SCRA 110) Conditionally-free from tariff and customs duties
• Certain imported articles are exempt from import taxes upon compliance with certain requirements. These are
1. Those provided for in Sec. 105 of the TCC;
2. Those granted to government agencies, GOCC with agreements with foreign countries;
3. Those given to international institutions entitled to exemption by agreement or special law; and
4. Those that may be granted by the President upon Neda’s recommendation.
• Exempt articles under Sec. 105 •
Article Conditions
Animals and plants • For scientific, experimental, propagation, botanical, breeding, zoological and national defense purposes Aquatic products o caught or gathered by
vessels of Philippine registry o Not have landed in foreign
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territory, or if landed, solely for transshipment
Equipment used for the salvage of vessels or aircraft not available locally
o Bond= 1 ½ x of ascertained duties, taxes and charges o Must be exported within 6
months Costs of repair
made in foreign country of Phil vessels or aircraft
o Phil must not have adequate facilities to make repair
o Vessel was compelled by weather or casualty to go to a foreign port of repair
o Excludes value of article used for repair
Articles brought into the Philippines
for repair, processing, or reconditioning
o to be re-exported upon completion of the repair, processing or reconditioning o Bond = 1 ½ x of ascertained
duties, taxes and charges Trophies, prizes ( medals, badges, cups) Those received as honorary distinction Samples in such quantity and of such dimensions or constructions as to render them unsaleable or of no appreciable commercial value,
o models not adopted for practical use, and
o samples not for sale
o marked sample sale punishable by law
o for purpose of introducing new product
o imported by person duly registered and identified to be engaged in that trade o Importations authorized by Sec of Finance Personal and household effects of returning Phil residents
o formally declared and listed before departure and identified under oath before the Collector of Customs when exported from the Phil by such returning residents upon their departure therefrom or during their stay abroad
o personal and
household effects including wearing apparel, articles of personal adornment (except luxury items)
toilet articles, instruments related to
one’s profession and
analogous personal or household effects, excluding vehicles, watercraft, aircraft and animals, purchased in foreign countries by residents of the Philippines which were necessary, appropriate and normally used for their comfort and convenience during their stay abroad, accompanying them on their return or arriving within a reasonable time which, barring unforeseen and fortuitous events, in no
case shall exceed 60 days after the owner’s return, subject however to the following provisions:
1. That the personal and household effects shall neither be in commercial quantities nor intended for barter, sale or hire and that the total dutiable value of which shall not exceed P10,000
2. That the returning resident has not previously availed of the privilege under this section within 365 days prior to his arrival 3. That a 50% ad valorem
duty across the board shall be levied and collected on the personal and household effects in excess of P10,000 Wearing apparel, articles of personal adornment, toilet articles, portable tools and instruments, theatrical costumes and similar personal effects • arriving within a reasonable time, before or after the owners, • in use of and necessary
and appropriate for the wear or use of such persons according to their profession or position
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travelers or tourists in their baggage
purposes of their journey and their present comfort and convenient. Personal and household effects, vehicles of foreign consultants and experts hired or rendering service to gov’t, including staff and families
• Accompany them or arrive at a reasonable time
• In quantities and kind necessary and suitable to the profession, rank or position
• For their own use, NOT for sale, barter, hire • Collector may require:
written commitment or bond Professional instruments, tools of trade, wearing apparel, domestic animals, personal and household effects belonging to persons coming to settle in the Phil and OFW
• In quantities and kind necessary and suitable to the profession, rank or position
• For their own use, NOT for sale, barter, hire • Change of residence is
bona fide
• Privilege of free entry was never granted to them before or qualifies under LOI 105, 163, 210 Articles used exclusively for public entertainment; display in public expos; exhibition or competition for prizes; devices for projecting picture
• Must file bond
• Exported within 6 months
• Not exhibited for profit • Otherwise, confiscation
+penalty
Brought by foreign film producers for
making or recording motion pictures on location in Phil. Photographic and cinematographic films, undeveloped, exposed outside Phil by resident Filipinos or Phil. producing companies
• Must file a bond
• Exported within 6 months (unless extended by the Collector for another 6 months)
• Principal actors are Filipinos
• Affidavit by importer that the exposed films are same films previously exported
Importations used Reciprocity: such foreign
by foreign embassies,
legations,
agencies of foreign gov’t
country must grant same privilege to Phil. agencies Articles for personal or family use of members and attaches of foreign embassies, legations, consular officers and other reps of foreign gov’t
Such privileges must be accorded in a special agreement between Phil and the foreign country
Privilege may be granted only upon specific instructions of Sec. of Finance which will be given only upon request of the DFA
Articles donated to or for account of relief organization
• Org not for profit
• For free distribution to the needy
Containers, holders and similar receptacles
• Except those that are reusable for shipment or transportation of goods
Supplies of vessel
or aircraft • For use or consumption of passengers on board • Any surplus or excess
shall be dutiable Articles and
salvage after 2 years from filing protest
• Vessels must have been wrecked or abandoned in Phil waters Coffins or urns containing human remains, bones ashes. Personal and household effects of deceased except vehicles • Not exceed P10,000 Economic, technical, vocational, scientific, philosophical, historical, and cultural books and publications Phil articles previously exported and returned without increasing value or improved condition. Foreign articles
Note that if a drawback or bounty was allowed to any Phil article under this subsection, upon re-importation article shall be subject to duty equal to the bounty or drawback
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exported when returned after having been exported and loaned for use temporarily abroad solely for exhibition Foreign container used in packing exported Phil products Articles and supplies imported by and for use of scheduled airlines operating under congressional
franchise
• Such articles are not available locally in reasonable quantity, quality and price
• Necessary or incidental to proper operations Machineries, equipments, tools for production, plants to convert mineral ores into saleable form, spare parts, supplies, materials, accessories, explosives, chemicals, transpo and communications facilities imported by and used by new mines and old mines Aircrafts imported by agro industrial companies, spare parts and accessories
• Such articles are not available locally in reasonable quantity, quality and price
• Necessary or incidental to proper operations • Used in their agri and
industrial operations Spare parts of vessels or aircrafts of foreign registry engaged in foreign trade • Brought to Phil as replacement or for emergency repair
• Spare parts utilized to
secure safety, seaworthiness, or airworthiness, enable it to continue voyage or flight
Articles for easy
identification • Cannot be repaired locally
exported from Phil for repair and subsequently
reimported
• Cost of repair made on article shall pay 30% ad valorem Trailer chassis imported by shipping companies for handling containerized cargo • Bond (1 ½ x) to cover 1 year • Must be properly identified and registered with the LTO
• Subject to customs supervision fee
• Deposited in Customs zone when not in use • Upon expiration of
period (1 year or as
extended by Commissioner) duties
and taxes shall be paid Personal and
household effects (including one car)
officer or employee of DFA, attaché, staff assigned to Phil diplomatic mission abroad, personnel of Reparations Missions in Tokyo, AFP military personnel in SEATO, AFP military personnel accorded diplomatic rank on duty abroad = returning from regular assignment, reassignment, dies, resigns or retires
• Car must have been purchased or ordered before the mission or consulate received his order of recall
• The value of personal and household effects shall not exceed 30% of his total salary.
Free from tariff and customs duties
• Imported goods must be entered in the customhouse at their port of entry otherwise they shall be considered as contraband and the importer shall be liable for smuggling (sec 1201)
• Port of entry means a domestic port open to both foreign and coastwise trade including “airport of entry”. (Sec. 3514)
• All articles when imported from any country into the Philippines shall be subject to duty upon
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each importation, even though previously exported from the Phils. except as otherwise specifically provided for in the TCC or other laws. (sec 1201)