DOF, BOC raise de minimis value to P10,000

The value of small items that may be shipped tax-free to the Philippines was raised from P10 to P10,000 after the Bureau of Customs (BOC) and the Department of Finance (DOF) approved an administrative order implementing a salient feature of the Customs Modernization and Tariff Act (CMTA).

Customs Administrative Order (CAO) No. 02-2016 was signed by BOC Commissioner Nicanor Faeldon and DOF Secretary Carlos Dominguez III on September 28, Finance Department said on Wednesday.

The order implements Section 423 of the CMTA, which provides that, “No duties and taxes shall be collected on goods with freight on board (FOB) or free carrier (FCA) value of P10,000.00 or below.”

De minimis is the value of goods for which no duty or tax is collected. Goods with de minimis value are considered importations with negligible amount and entitled to immediate release from the port of entry.

De minimis importations shall be subject to non-intrusive examinations, such as X-rays or other equivalent devices on a purely random basis, Finance Undersecretary Antonette Tionko said.

The adjustment on the value of de minimis is an upgrade after 59 years, when the RA 1937 or Tariff and Customs Code of the Philippines imposed a P10 threshold.

The Customs order also noted the de minimis value “shall be adjusted by the Secretary of Finance every three years after the Customs Modernization and Tariff Act (CMTA) takes effect.

To reflect the present value of de minimis, the department will use the Consumer Price Index published by the Philippine Statistics Authority.

The administrative order takes effect on October 25 or 15 days after its publication in the Official Gazette.

In a separate statement, BOC said the CAO aims to make the bureau "responsive to the growing liberalization and facilitation thrust in consonance with the different applicable international trade agreements."

Importations of tobacco goods, wines and spirits within the de minimis value are still subject to the excise tax under the provisions of the National Internal Revenue Code. — Ted Cordero/VDS, GMA News