Fundamentals of Computation of Duties and Taxes for Imported Goods
A. Basic Formula
Total Duties and Taxes = | Customs Duty | |
+ VAT | ||
+ IPF | ||
+ Excise Tax (if applicable) |
B. How to Arrive at Customs Duty
Customs Duty = | Customs Value (Dutiable Value) |
x Foreign Exchange Rate | |
x Rate of Duty | |
Dutiable Value = | Cost of Goods |
+ Freight | |
+ Insurance | |
+ Other Charges and Costs | |
Exchange Rate = | As published weekly through Customs Memorandum Circular |
Rate of Duty = | As per classification of goods under AHTN, Section 104, TCCP |
C. How to Arrive at Value Added Tax (VAT)
VAT = | 12% of Total Landed Cost (TLC) |
TLC = | Dutiable Value |
+ Bank Charges | |
+ Customs Duty | |
+ Brokerage Fee | |
+ Arrastre Charge | |
+ Wharfage Due | |
+ Customs Documentary Stamp (CDS) | |
+ Import Processing Fee (IPF) |
D. CDS = Fixed Amount of P265.00
E. IPF Table per CAO 2-2001
DV of shipment | IPF/entry |
---|---|
Up to P250,000 | P 250.00 |
Over P250,000 to P500,000 | P 500.00 |
Over P500,000 to P750,000 | P 750.00 |
Over P750,000 | P 1000.00 |
F. List of Articles subject to Excise Tax
G. Normal Computation for Motor Vehicles
Total Car Value = | Book Value |
+ Accessories (if any) | |
Depreciation Value = | Total Car Value |
– Depreciation (based on year model and cc) | |
Cost = | Depreciation Value |
x 80 (Less: 20% wholesale allowance/fixed) | |
Dutiable Value (in $) = | Cost |
+ Insurance | |
+ Freight | |
Customs Duty = | Dutiable Value (in $) |
x Rate of Exchange | |
x Rate of Duty | |
Landed Cost / AVT Base = | Customs Duty |
+ Dutiable Value in Php | |
+ Miscellaneous Expenses | |
Ad Valorem Tax = | Landed Cost / AVT Base |
x Rate of Ad Valorem Tax (under RA 9224) | |
Value Added Tax Base = | Ad Valorem Tax |
+ Landed Cost | |
Value Added Tax = | Value Added Tax Base |
x 12% (Rate of VAT) | |
Total Duties of Taxes = | Customs Duty |
+ Ad Valorem Tax | |
+ VAT | |
+ IPF |