1.2 Regulatory Departments & Quality Control

The Philippines sits under the Department of Finance: Bureau of Customs website

The Bureau has the following duties under the Customs Modernization and Tariff Act (RA 10863):

(a) Assessment and collection of customs revenues from imported goods and other dues, fees, charges, fines and penalties accruing under the CMTA;

(b) Simplification and harmonization of customs procedures to facilitate movement of goods in international trade;

(c) Border control to prevent entry of smuggled goods;

(d) Prevention and suppression of smuggling and other customs fraud;

(e) Facilitation and security of international trade and commerce through an informed compliance program;

(f) Supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce;

(g) Supervision and control over the handling of foreign mails arriving in the Philippines for the purpose of collecting revenues and preventing the entry of contraband;

(h) Supervision and control on all import and export cargoes, landed or stored in piers, airports, terminal facilities, including container yards and freight stations for the protection of government revenue and prevention of entry of contraband;

(i) Conduct a compensation study with the end view of developing and recommending to the President a competitive compensation and remuneration system to attract and retain highly qualified personnel, while ensuring that the Bureau remains financially sound and sustainable;

(j) Exercise of exclusive original jurisdiction over forfeiture cases under the CMTA; and

(k) Enforcement of the CMTA and all other laws, rules and regulations related to customs administration.

The Bureau of Customs has 17 Customs Districts (as enumerated below). Each Customs District is headed and supervised by a District Collector, assisted by as many Deputy District Collectors as may be necessary. A Customs District has a designated “principal port of entry”. Generally, a principal port of entry has its “sub-port(s) of entry”.

Customs District Principal Port of Entry

Customs District I Port of San Fernando in San Fernando, La Union

Customs District II-A Port of (POM) in Port Area, Manila

Customs District II-B Manila International Container Port (MICP) in Tondo, Manila

Customs District III Ninoy Aquino International Airport (NAIA) in Pasay City

Customs District IV Port of Batangas in Batangas City

Customs District V Port of Legazpi in Legazpi City

Customs District VI Port of in

Customs District VII Port of in Cebu City

Customs District VIII Port of Tacloban in Tacloban City

Customs District IX Port Surigao in Surigao City

Customs District X Port of in Cagayan De Oro City

Customs District XI Port of in

Customs District XII Port of in

Customs District XIII Port of Subic in Subic, Zambales

Customs District XIV Port of Clark in Clark, Pampanga

Customs District XV Port of Aparri in Aparri, Cagayan

Customs District XVI Port of Limay in Bataan

Customs District XVII Port of Limay

Page 1 Please see the following link for a list of restricted items.

Please see the following link for a description of documentation requirements.

The taxing authority in the Philippines falls under Bureau of Internal Revenue.

During times of emergency humanitarian goods can receive fast track customs clearance procedures and be imported duty free. However, that is on a case by case basis and importers should not assume that humanitarian goods will always receive those privileges.

Exempt transactions

The following goods, services and transactions are exempted from VAT:

agricultural and marine food products in their original state; residential lots worth at most P1,500,000, or house and lots worth fertilizers, seeds, seedlings, fingerlings, and feeds and feed ingredients; at most P2,500,000 importation of personal and household effects of persons resettling in the monthly lease of residential units at most P15,000; Philippines; books and mass media publications (e.g. newspaper and importation of professional instruments, wearing apparel, and domestic magazine); animals; transport services by non-Philippine carriers; services subject to percentage tax; cargo vessels and aircraft; agricultural contract growers and millers; financial services; health care services; sales to senior citizens and persons with disability; educational services; from 2019, drugs prescribed for diabetes, high cholesterol and agricultural cooperatives, and cooperatives that are non-agricultural and hypertension; and, non-electric in nature; annual sales of any other goods or services not exceeding P3, 000,000.

The Bureau of Food and Drug (BFAD) and the Bureau of Agriculture and Fisheries Product Standards (BAFPS) regulate food quantity and import and export of agriculture products within the Philippines. Under the Food, Drug and Cosmetics Act, FDA was made responsible for the safety of processed food products while the Agriculture and Fisheries Modernization Act (AFMA) made BAFPS accountable for fresh and primary agricultural and fisheries products.

The Department of Agriculture is responsible for food safety in the primary production and post-harvest stages of the supply chain. The Department of Health is responsible for the safety of processed and pre-packaged foods, both locally produced and imported, and the conduct of epidemiological studies. Local government units (LGUs) will monitor the compliance with food safety standards of food businesses such as slaughterhouses, dressing plants, wet markets, supermarkets, school canteens, restaurants, catering establishments, as well as street food sales. The Department of the Interior and Local Government, in collaboration with the DA and DOH will supervise the enforcement of food safety and sanitary rules and regulations. A Food Safety Regulation Coordinating Board was created to monitor compliance with the law, coordinate management and planning during food safety emergencies, and establish policies and procedures for coordination among agencies involved in food safety.

The Department of Health is the executive department of the Philippine government responsible for ensuring access to basic public health services by all Filipinos through the provision of quality health care and the regulation of all health services and products.

Organizations wishing to import medicine and/or medical equipment must check carefully the regulations provided by the Department of Health as certain items are prohibited: Department of Health website

The Philippines Government has trade agreements in place with ASEAN, an economic partnership agreement with Japan, European Free Trade Association Free Trade Agreement. The Philippines and EFTA members – Iceland, Liechtenstein, Norway, and Switzerland – signed a free trade agreement in 2016 which is expected to enter into force in 2018.

Additionally, the Philippines has free trade agreements with China, India, Japan, South Korea, and Australia and New Zealand under ASEAN. Visit the De partment of Trade and Industry website on Free Trade Agreements and the Tariff Commission website for a list of Philippine trade agreements and corresponding tariff schedules and commitments. Other trade-related information is also available at the Philippine National Trade Repository website.

For more information on regulatory departments contact details, please see the following link: 4.1 Philippines Government Contact List

Page 2