SECTION 800 OF RA 10863

CONDITIONALLY TAX AND/OR DUTY EXEMPT IMPORTATION

Exempt from the payment of import duties
Upon compliance with the formalities prescribed in the regulations
Promulgated by the Commissioner
With the approval of the Secretary of Finance
Conditioned:
1. That goods sold, bartered, hired or used for purposes other than what they were
intended for and without prior payment of the duty, tax or other charges which
would have been due and payable at the time of entry if the goods had been
entered without the benefit of this section, shall be subject to forfeiture and the
importation shall constitute a fraudulent practice against customs laws
2. That a sale pursuant to a judicial order or in liquidation of the estate of a
deceased person shall not be subject to the preceding proviso, without prejudice to
the payment of duties, taxes and other charges
3. That the President may, upon the recommendation of the Secretary of Finance,
suspend, disallow or completely withdraw, in whole or in part, any
conditionally free importation

SUB SECTION A
AQUATIC PRODUCTS CAUGHT OR GATHER BY PHIL. REG. VESSEL

Requirements:
AFFIDAVIT of the captain/master of the vessel, that:
The fishing vessels is of Philippine registry;
They are imported in such vessels or in crafts attached
thereto
They have not been landed in any foreign territory
If so landed, that they have been landed solely for
transshipment without having been advanced in
condition (such as CANNING or other packaging, except
salting or freezing for preservation purposes)

SUB SECTION B
SALVAGE EQUIPMENT
Requirements:
AFFIDAVIT of the owner or agent of the vessel or aircrafts, that Equipment
for use in the salvage is not available locally
Certificate of Identification upon importation
Submission of Security (Re-Export Bonds) in an amount equal to one
hundred percent (100%) of the ascertained duties, taxes and other charges
thereon
Conditioned for the exportation thereof or Payment of corresponding
duties, taxes and other charges within six (6) months from the date of
acceptance of the goods declaration
Provided, that the Bureau may extend the time for exportation or
payment of duties, taxes and other charges for a term not exceeding six
(6) months from the expiration of the original period

SUB SECTION C
REPAIRS OF VESSEL OR AIRCRAFTS

Requirements:
Cost of repairs, excluding the value of the goods used, made in
foreign countries upon vessels or aircraft documented
registered or licensed in the Philippines (Philippine Registered)
Marine Protest, of the Master or Captain, upon proof satisfactory to
the Bureau:
(1) that adequate facilities for such repairs are not afforded in the
Philippines; or
(2) that such vessels or aircrafts, while in the regular course of their
voyage or flight, were compelled by stress of weather or other
casualty to put into a foreign port to make such repairs in order to
secure the safety, seaworthiness, or airworthiness of the
vessels or aircrafts to enable them to reach their port of destination;

SUB SECTION D
GOODS BROUGHT FOR REPAIR (RETURNED SHIPMENT)

Requirements:
Goods brought into the Philippines for repair, processing or
reconditioning to be re-exported upon completion of the repair,
processing or reconditioning (Temporary Importation under
Bond)
Security (Re-Export Bonds) equal to one hundred percent
(100%) of the duties, taxes and other charges thereon
Conditioned for the exportation thereof or payment of the
corresponding duties, taxes and other charges within six (6)
months from the date of acceptance of the goods declaration

SUB SECTION E
MEDALS, BADGES, CUPS, ETC:

Requirements:
Medals, badges, cups, and other small goods bestowed:
As trophies or prizes, or
Those received or accepted as honorary distinction
Affidavit of Undertaking or certificate issued

SUB SECTION F
PERSONAL AND HOUSEHOLD EFFECTS RETURNING RESIDENTS

Requirements: AFFIDAVIT OF UNDERTAKING, PASSPORT and Shipping Docs.

Personal and household effects belonging to returning residents including
household appliances, jewelry, precious stones, and other goods of luxury
which were formally declared and listed before departure and identified
under oath before the District Collector when exported from the Philippines by
such returning residents upon their departure therefrom or during their
stay abroad;
Personal and household effects including wearing apparel, goods of personal
adornment, toilet goods, instruments related to one's profession and
analogous personal or household effects, excluding luxury items, vehicles,
watercrafts, aircrafts 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
sixty (60) days after the owner's return.

SUB SECTION F
PERSONAL AND HOUSEHOLD EFFECTS RETURNING RESIDENTS

RETURNING RESIDENTS: Meaning

Shall refer to nationals who have stayed in a foreign country
for a period of at least six (6) months.
Shall have tax and duty exemption on personal and household
effects:Provided, That:
(1) It shall not be in commercial quantities;
(2) It is not intended for barter, sale or for hire
(3) Limited to the FCA or FOB value (Php150,000;
Php250,000; Php350,000)

SUB SECTION F
PERSONAL AND HOUSEHOLD EFFECTS RETURNING RESIDENTS

FCA or FOB Threshold value of:

(i) Three hundred fifty thousand pesos (350,000.00) for those who have
stayed in a foreign country for at least ten (10) years and have not availed
of this privilege within ten (10) years prior to returning resident's arrival;
(ii) Two hundred fifty thousand pesos (250,000.00) for those who have
stayed in a foreign country for a period of at least five (5) but not more
than ten (10) years and have not availed of this privilege within five (5)
years prior to returning resident's arrival; or
(iii) One hundred fifty thousand pesos (150,000.00) for those who have
stayed in a foreign country for a period of less than five (5) years and
have not availed of this privilege within six (6) months prior to returning
resident's arrival.
Any amount in excess of the above-stated threshold shall be subject to
the corresponding duties and taxes under this Act.

SUB SECTION F
PERSONAL AND HOUSEHOLD EFFECTS RETURNING OFWS
Privileges: same with Returning Residents (Php150,000.00)
To bring in, tax and duty-free, home appliances and other durables,
Limited to one of every kind
Once in a given calendar year
Accompanying them on their return, or arriving
Within a reasonable time which, barring unforeseen and fortuitous events, in no case
shall exceed sixty (60) days after every returning
Upon presentation of their original passport at the port of entry
Provided, that any amount in excess of FCA value of one hundred fifty thousand
pesos (150,000.00) for personal and household effects or of the number of duty-free
appliances as provided for under this section, shall be subject to the corresponding
taxes and duties;
Provided,Further, That every three (3) years after the effectivity of this Act, the
Secretary of Finance shall adjust the amount herein stated to its present value using
the CPI as published by the PSA (Philippine Statistical Authority)

SUB SECTION G
BALIKBAYAN BOXES
Residents of the Philippines, OFWs or other Filipinos while residing abroad
or upon their return to the Philippines
Shall be allowed to bring in or send to their families or relatives in the
Philippines balikbayan boxes which shall be exempt from applicable
duties and taxes imposed under the NIRC of 1997, as amended
That balikbayan boxes shall contain personal and household effects
ONLY
Shall neither be in commercial quantities nor intended for barter,
sale or for hire
That the FCA value of which shall not exceed one hundred fifty thousand
pesos (150,000.00)
That residents of the Philippines, OFWs or other Filipinos can only avail of
this privilege up to three (3) times in a calendar year
Any amount in excess of the allowable non-dutiable value shall be
subject to the applicable duties and taxes

SUB SECTION G-1 & 2

OFWS

Refer to Holders of valid passports duly issued by the

Department of Foreign Affairs (DFA)
Certified by the Department of Labor and Employment
(DOLE) or the Philippine Overseas Employment Administration
(POEA) for overseas employment purposes.
Cover all Filipinos, working in a foreign country under
employment contracts, regardless of their professions, skills
or employment status in a foreign country
Calendar Year refers to the period from January 1 to
December 31.

SUB SECTION H
FOREIGN TRAVELERS OR TOURISTS
Wearing apparel, goods of personal adornment, toilet goods, portable tools and
instruments, theatrical costumes and similar effects accompanying
Arriving within a reasonable time before or after their arrival in the
Philippines,
Necessary and appropriate for the wear and use of such persons according to the
nature of the journey, their comfort and convenience
Exemption shall not apply to goods intended for other persons or for barter,
sale or hire:
Written commitment (Affidavit of Undertaking)
Security (Re-Export Bonds) in an amount equal to one hundred percent (100%) of
the ascertained duties, taxes and other charges thereon
Conditioned for the exportation thereof or payment of the corresponding duties,
taxes and other charges within three (3) months from the date of acceptance of the
goods declaration
Provided that, the Bureau may extend the time for exportation or payment of duties,
taxes and other charges for a term not exceeding three (3) months from the
expiration of the original period.

SUB SECTION H
FOREIGN CONSULTANTS AND EXPERTS HIRED BY PHIL GOVT
Personal and household effects and vehicles
Hired by, or rendering service to, the government, and their staff or personnel
and families
Accompanying them or arriving within a reasonable time before or after their
arrival in the Philippines
In quantities and of the kind necessary and suitable to the profession, rank or
position of the person importing said items, for their own use and not for barter,
sale or hire
The Bureau may require either a written commitment or a security in an
amount equal to one hundred percent (100%) of the ascertained duties, taxes and
other charges thereon
Conditioned for the exportation thereof or payment of the corresponding duties,
taxes and other charges within three (3) months after the expiration of their
term or contract
That the Bureau may extend the time for exportation or payment of duties, taxes
and other charges for a term not exceeding three (3) months from the expiration
of the original period;

SUB SECTION I
PERSONS COMING TO SETTLE OVERSEAS FILIPINOS
(RESIDENT OR CITIZENS OF OTHER COUNTRIES)

Professional instruments and implements, tools of trade, occupation or

employment, wearing apparel, domestic animals, and personal and household
effects
belonging to persons coming to settle in the Philippines or Filipinos or their families
and descendants who are now residents or citizens of other countries, such parties
hereinafter referred to as overseas Filipinos
In quantities and of the class suitable to the profession, rank or position of the
persons importing said items, for their own use and not for barter or sale
Accompanying such persons, or arriving within a reasonable time (60 days)
Upon the production of satisfactory evidence (Affidavit of Undertaking) that such
persons are actually coming to settle in the Philippines and that the goods are
brought from their former place of abode, exempt such goods from the payment of
duties and taxes
That vehicles, vessels, aircrafts, machineries and other similar goods for use in
manufacture, shall not fall within this classification and shall therefore be subject to
duties, taxes and other charges

SUB SECTION J
GOODS FOR PUBLIC ENTERTAINMENT, DISPLAY, EXPOSIITONS, EXHIBITION
OR COMPETITION PRIZES AND DEVICES

Goods used exclusively for public entertainment, and for display in public expositions,
or for exhibition or competition for prizes, and devices for projecting pictures and
parts and appurtenances thereof
Upon identification (Certificate of Identification), examination, and appraisal
Giving of a security (Re-Export Bonds) in an amount equal to one hundred percent
(100%) of the ascertained duties, taxes and other charges thereon
Conditioned for exportation thereof or payment of the corresponding duties, taxes
and other charges within three (3) months from the date of acceptance of the
goods declaration
Provided, That the Bureau may extend the time for exportation or payment of duties,
taxes and other charges for a term not exceeding three (3) months from the expiration
of the original period
Technical and scientific films when imported by technical, cultural and scientific
institutions, and not to be exhibited for profit
Provided,Further, That if any of the films is exhibited for profit, the proceeds
therefrom, shall be subject to confiscation, in addition to the penalty provided
under this Act;

SUB SECTION K
FOREIGN AND FILIPINO FILMS PRODUCERS
Goods brought by foreign film producers directly and exclusively used for making or
recording motion picture films on location in the Philippines
Upon their identification, examination and appraisal
Giving of a security in an amount equal to one hundred percent (100%) of the
ascertained duties, taxes and other charges thereon
Conditioned for exportation thereof or payment of the corresponding duties, taxes
and other charges within three (3) months from the date of acceptance of the goods
declaration, unless extended by the District Collector for another three (3) months
Photographic and cinematographic films, underdeveloped, exposed outside the
Philippines by resident Filipino citizens or by producing companies of
Philippine registry where the principal actors and artists employed for the
production are Filipinos
Affidavit by the importer and identification that such exposed films are the same
films previously exported from the Philippines
As used in this paragraph, the terms actors and artists include the persons
operating the photographic camera or other photographic and sound recording
apparatus by which the film is made

SUB SECTION L
FOREIGN EMBASSIES OR GOVERNMENTS IMPORTATIONS

Importations for the official use of foreign embassies, legations and

other agencies of foreign governments
That those foreign countries accord like privileges to
corresponding agencies of the Philippines
Goods imported for the personal or family use of members and
attaches of foreign embassies, legations, consular officers and other
representatives of foreign governments
That such privilege shall be accorded under special agreements
between the Philippines and the countries which they represent
That the privilege may be granted only upon specific
instructions of the Secretary of Finance pursuant to an official
request of the DFA on behalf of members or attaches of foreign
embassies, legations, consular officers and other representatives of
foreign governments;

SUB SECTION M
FOREIGN DONATIONS

Imported goods donated to or, for the account of the

Philippine government
Any duly registered relief organization
Not operated for profit,
For free distribution among the needy
Upon certification by the (Import Permits)
DSWD (Used Clothing)
Department of Education (DepED) (Educational Materials)
Department of Health (DOH)

SUB SECTION N
CONTAINERS, BAGS, BOXES, SIMILAR RECEPTACLES

Containers, holders and other similar receptacles of any material

including kraft paper bags for locally manufactured cement for
export
Corrugated boxes for bananas, mangoes, pineapples and other fresh
fruits for export

Except other containers made of paper, paperboard and textile fabrics,

which are of such character as to be readily identifiable and/or
reusable for shipment or transportation of goods shall be delivered to
the importer thereof
Upon identification, examination and appraisal
Giving of a security in an amount equal to one hundred percent (100%)
of the ascertained duties, taxes and other charges thereon, within six
(6) months from the date of acceptance of the goods declaration

SUB SECTION O
SUPPLIES OF VESSEL OR AIRCRAFT

Supplies which are necessary for the reasonable requirements

of the vessel or aircraft in its voyage or flight outside the
Philippines,
Including goods transferred from a bonded warehouse in any
Customs District to any vessel or aircraft engaged in foreign
trade
for use or consumption of the passengers or its crew on
board such vessel or aircraft as sea or air stores;
goods purchased abroad for sale on board a vessel or
aircraft as saloon stores or air store supplies;
Provided, That any surplus or excess of such vessel or aircraft
supplies arriving from foreign ports or airports shall be
dutiable;

SUB SECTION P
SALVAGE CARGO OR GOODS

Goods and salvage from vessels recovered after a period of two

(2) years (Exempted from payment of Duties and Taxes)
From the date of filing the marine protest
From the time when the vessel was wrecked or
abandoned,
Parts of a foreign vessel or its equipment, wrecked or
abandoned in Philippine waters or elsewhere
Provided, That goods and salvage recovered within the said
period of two (2) years shall be dutiable;

SUB SECTION Q
COFFINS OR URNS

Coffins or urns containing

Human remains, bones or ashes
Used personal and household effects (not merchandise) of
the deceased person
Except vehicles
The FCA value of which does not exceed one hundred fifty
thousand pesos (150,000.00)
Upon identification as such
Provided, That every three (3) years after the effectivity of this
Act, the value herein stated shall be adjusted to its present
value using the CPI as published by the PSA;

SUB SECTION R
IMPORTATION OF SAMPLES, MODELS & SAMPLE MEDICINE
Samples of the kind, in such quantity and of such dimension or construction as
to render them unsaleable, and No commercial value;
Models not adapted for practical use;
Samples of medicines, properly marked sample-sale punishable by law
For the purpose of introducing new goods in the Philippine market
Imported only once in a quantity sufficient for such purpose by a person
duly registered and identified to be engaged in that trade
Provided, That importations under this subsection shall be previously authorized
by the Secretary of Finance (Tax Exempt Certificate)
Provided,However, That importation of sample medicines shall have been
previously authorized by the Secretary of Health, and that such samples
are new medicines not available in the Philippines
Provided,Further, That samples not previously authorized or properly
marked in accordance with this section shall be levied the corresponding
tariff duty.

SUB SECTION R
COMMERCIAL SAMPLES
Commercial samples, except those that are not readily and easily identifiable as in the
case of precious and semi-precious stones, cut or uncut, and jewelry set with precious or semiprecious stones,
The value of any single importation of which does not exceed FCA value of fifty thousand
pesos (50,000.00)
Upon the giving of a security in an amount equal to the ascertained duties, taxes and other
charges thereon
Conditioned for the exportation of said samples within three (3) months from the date of
the acceptance of the goods declaration
In default thereof, the payment of the corresponding duties, taxes and other charges
Provided, That if the FCA value of any single consignment of such commercial samples exceeds
fifty thousand pesos (50,000.00), the importer thereof may select any portion of the same
not exceeding the FCA value of fifty thousand pesos (50,000,00) for entry under the provision
of this subsection (Informal Entry), and the excess of the consignment may be entered in
bond (warehousing), or for consumption (Formal Entry), as the importer may elect
Provided,Further, That every three (3) years after the effectivity of this Act, the Secretary of
Finance shall adjust the amount herein stated to its present value using the CPI as published by
the PSA.

SUB SECTION S
IMPORTATIONS OF ANIMALS AND PLANTS
Animals, except race horses, and plants
For scientific, experimental propagation or breeding
For other botanical, zoological and national defense purposes
Provided, That no live trees, shoots, plants, moss and bulbs, tubers and seeds for
propagation purposes may be imported under this section, except by order of the
government or other duly authorized institutions
Provided,However, That the free entry of animals for breeding purposes shall be
restricted to animals of recognized breed, duly registered in the record or
registry established for that breed, and certified as such by the Bureau of Animal
Industry (BAI)
Provided,Further, That the certification of such record, and pedigree of such animal duly
authenticated by the proper custodian of such record or registry, shall be submitted
to the District Collector, together with the affidavit of the owner or importer that
such animal is the animal described in said certificate of record and pedigree
Provided,Finally, That the animals and plants are certified by the NEDA as necessary
for economic development;

SUB SECTION T
IMPORTATIONS OF BOOKS
Economic, technical, vocational, scientific, philosophical, historical and cultural
books or publications, and religious books like Bibles, missals, prayer books, the
Koran, Ahadith and other religious books of similar nature and extracts
therefrom, hymnal and hymns for religious uses
Provided, That those which may have already been imported but are yet to be
released by the Bureau at the effectivity of this Act may still enjoy the privilege
herein provided upon certification by the DepED that such imported books
and/or publications are for economic, technical, vocational, scientific,
philosophical, historical or cultural purposes or that the same are educational,
scientific or cultural materials covered by the International Agreement
(Florence Agreement) on Importation of Educational Scientific and Cultural
Materials (XAESCM) signed by the President of the Philippines on August 2,
1952, or other agreements binding upon the Philippines.
Educational, scientific and cultural materials covered by international
agreements or commitments binding upon the Philippine government so
certified by the DepED.

SUB SECTION U
EXPORTED GOODS, TOOLS OF TRADE USED ABROAD, FOREIGN GOODS
AND CONTAINERS IMPORTED

Philippine goods previously exported from the Philippines and returned

without having been advanced in value, or improved in condition by any
process of manufacturing or other means, upon which no drawback or bounty
has been allowed
Including instruments and implements, tools of trade, machinery and
equipment, used abroad by Filipino citizens in the pursuit of their business,
occupation or profession
Foreign goods previously imported when returned after have been exported
and loaned for use temporarily abroad solely for exhibition, testing and
experimentation, for scientific or educational purposes
Foreign containers previously imported which have been used in packing
exported Philippine goods and returned empty if imported by or for the
account of the person or institution who exported them from the Philippines
and not for sale, barter or hire subject to identification

Provided, That Philippine goods falling under this subsection upon which drawback
or bounty have been allowed shall, upon re-importation thereof, be subject
to a duty under this subsection equal to the amount of such drawback or bounty;

SUB SECTION V
AIRCRAFT EQUIPMENT, SPARE PARTS AND SUPPLIES

Aircraft, equipment and machinery, spare parts, commissary

and catering supplies, aviation gas, fuel and oil, whether crude
or refined except when directly or indirectly used for domestic
operations, and such other goods or supplies imported by and
for the use of scheduled airlines operating under
congressional franchise
Provided, That such goods or supplies are not locally
available in reasonable quantity, quality and price and are
necessary or incidental to the proper operation of the
scheduled airline importing the same;

SUB SECTION W
MACHINERIES AND EQUIPMENT OF MINES
Machineries, equipment, tools for production, plans to convert mineral ores into
saleable form, spare parts, supplies, materials, accessories, explosives, chemicals,
and transportation and communications facilities imported by and for the use of:
New mines and Old mines which resume operations
Certified by the Secretary of the Department of Environment and Natural
Resources (DENR)
Upon the recommendation of the Director of Mines and Geosciences Bureau
For a period ending five (5) years from the first date of actual commercial
production of saleable mineral products
Provided, That such goods are not locally available in reasonable quantity,
quality and price and are necessary or incidental in the proper operation of the mine
Aircrafts imported by agro-industrial companies to be used by them in their
agriculture and industrial operations or activities, spare parts and accessories
thereof, when certified to as such by the Secretary of the Department of
Agriculture (DA) or the Secretary of the Department of Trade and Industry
(DTI), as the case may be;

SUB SECTION X
SPARE PARTS OF FOREIGN VESSELS OR AIRCRAFT

Spare parts of vessels or aircraft of foreign registry engaged in

foreign trade when brought into the Philippines exclusively
As replacements
For the emergency repair thereof
Upon proof satisfactory to the District Collector that such spare
parts shaft he utilized to secure the safety, seaworthiness or
airworthiness of the vessel or aircraft, to enable it to continue its
voyage or flight

Affidavit of Undertaking (Agent/Captain or Master)

Transshipment Permit (Ship Spare transshipment)
Boatnote
Inward Transit Manifest
Telegram
Shipping docs

SUB SECTION Y
REPAIR SHIPMENT

Goods exported from the Philippines for

Repair,
Processing
Reconditioning
without having been substantially advanced in value,
and subsequently reimported in its original form and in the
same state
Provided, That in case the reimported goods advanced in value,
whether or not in their original state, the value added shall
be subject to the applicable duty rate of the tariff heading
of the reimported goods; and

SUB SECTION Z
TRAILER CHASSIS
Trailer chassis when imported by shipping companies for their exclusive
use in handling containerized cargo
Upon posting a security in an amount equal to one hundred percent
(100%) of the ascertained duties, taxes and other charges due thereon, to
cover a period of one (1) year from the date of acceptance of the entry,
which period, for meritorious reasons, may be extended by the
Commissioner from year to year, subject to the following conditions:
(1) That they shall be properly identified and registered with the Land
Transportation Office (LTO);
(2) That they shall be subject to customs supervision fee to be fixed by
the District Collector and subject to the approval of the Commissioner;
(3) That they shall be deposited in the customs territory when not in
use; and
(4) That upon the expiration of the period prescribed above, duties and
taxes shall be paid unless otherwise re-exported.

SUB SECTION aa
OFFICER OR EMPLOYEE OF DFA
Any officer or employee of the DFA, including any attache, civil or military or member of the staff
assigned to a Philippine diplomatic mission abroad by the Department or any similar officer or
employee of other departments assigned to any Philippine consular office abroad, or any AFP military
personnel accorded assimilated diplomatic rank or on duty abroad
Who is returning from a regular assignment abroad
For reassignment to the home office,
Who dies, resigns, or is retired from the service, after the approval of this Act
Shall be exempt from the payment of all duties and taxes on personal and household effects,
including one (1) motor car which must have been ordered or purchased prior to the receipt
by the mission or consulate of the order of recall, and which must be registered in the name of
the officer or employee
Provided, That this exemption shall apply only to the value of the motor car and to the
aggregate assessed value of the personal and household effects, the latter not to exceed
thirty percent (30%) of the total amount received by the officer or employee in salary and
allowances during the latest assignment abroad, but not to exceed four (4) years
Provided, However, That this exemption shall not be availed of more than once every four (4)
years
Provided, Further, That the officer or employee concerned must have served abroad for not less
than two (2) years.

The provisions of general and special laws, to the contrary

notwithstanding, including those granting franchises
There shall be no exemption whatsoever from the payment of
duties except as provided for in this Act;
Those granted to government agencies, instrumentalities or
government-owned or -controlled corporations (GOCCs) with
existing contracts, commitments, agreements, or obligations with
foreign countries requiring such exemption;
Those granted to international institutions, associations or
organizations entitled to exemption pursuant to agreements or
special laws; and
Those that may be granted by the President upon prior
recommendation of the NEDA in the interest of national economic
development.