Buyandship established a network of self-operating(US, JP, CA and UK) and dedicated(KR, CN, TW, AU, IT, TH and ID) warehouses for users to ensure fast and efficient delivery services. But every country has different taxation that has to be considered. Find the taxation for Philippines below.

When importing goods into the Philippines, there will be an import duty and tax charge, no matter if imported by a private individual or a commercial entity.

In accordance with Customs Administrative Order (CAO) No. 02-2025, effective May 7, 2025, shipments imported into the Philippines with a Free on Board (FOB) or Free Carrier (FCA) value not exceeding PHP 10,000 are exempt from customs duty and value-added tax (VAT).

The Bureau of Customs applies a consolidation rule for de minimis shipments. When multiple shipments are consigned to the same recipient and delivery address and arrive on the same day, their total value is aggregated for customs assessment. If the combined value exceeds PHP 10,000, the exemption does not apply and the entire shipment is subject to the applicable duties and taxes in accordance with Philippine customs regulations. This policy ensures compliance with the Customs Modernization and Tariff Act and current administrative orders.

Delivered Duty Unpaid (DDU) is a shipping arrangement where the recipient of the shipment is responsible for paying all import-related charges-including duties, value-added tax (VAT), import processing charges, and documentary fees-when the shipment arrives in the Philippines. These charges are collected by the local courier before your shipment is delivered to your address.

• Under DDU, your shipment will pass through Philippines Customs, and the local courier will prepare a billing notice for you to pay upon delivery (Cash on Delivery or bank transfer).
• If the combined value of all shipments addressed to the same consignee and delivery address arriving on the same day exceeds PHP 10,000, the exemption does not apply, and the entire shipment will be subject to regular duties and taxes in accordance with Customs Administrative Order (CAO) No. 02-2025.
• For shipments with a declared value (FOB/FCA) of PHP 10,000 or below, only the import processing charge, documentary stamp taxes, and handling fees apply. These are settled directly with the courier.
  
  Charges You Need to Pay (via UPS/DDU)

  Value of Shipment (PHP)	Third-Party IPC	CDS + DST	UPS Handling Fee
  Up to 2,000	50	130	120
  2,001 – 10,000	2.5% of shipment value	130	120
  Above 10,000	As per regular	130	Vary



• Third-Party IPC: Import Processing Charge collected by the courier (percentage is of shipment value).
• CDS + DST: Customs Documentary Stamp (PHP 100) + BIR Documentary Stamp Tax (PHP 30).
• UPS Handling Fee: Standard processing fee (PHP 120) charged by UPS for de minimis shipments (may vary for higher-value shipments).
• Above PHP 10,000: Shipments are subject to regular customs duties and 12% VAT according to applicable rates; processing and handling fees may also vary.

DDP is only applicable for a shipment with a declared value of PHP 95,000 or below. If it is above PHP 95,000, you will not be able to choose DDP when checking out and instead can only choose DDU. Please note that the foreign currency may vary which could affect the availability of choosing the DDP option.

Reminder
Kindly remember that you have to declare your shipments properly based on your invoice and receipt. Please ensure you declare according to the warehouse currency you shipped to and that the unit price per item is as is in your invoice and receipt. For more information, please refer to "How to declare your shipment in Buyandship Philippines".

Please note if you are using DDP, you do not have to wait until goods have passed PH customs before sending the other. If you have two orders, one is DDP and one is DDU, there is no effect of DDP to the DDU total value at the time of assessment of PH customs.

Customers should have to pay for the duty of the shipment (if any), and also VAT (Value Added Tax) of the total value of shipments. This is represented with the calculation of Duty Tax + VAT.

Philippines customs will charge duty fees for all personal shipments.

• Duty Tax:
  The duty rate depends on the product category (HS Code) and typically ranges from 3% to 30%. Most consumer goods fall within the 5%–15% range, with an average duty rate around 5.7%–15%. Some sensitive items may have higher rates, but for most personal shipments, the rates above apply.
• VAT (Value Added Tax):
  The standard VAT rate in the Philippines is 12% and applies to all imports with a shipment value above PHP 10,000.

CIF is the valuation method the customs use to define a shipment's value and use this value to calculate tax.

• CIF = Product price + Cost of Shipping (Freight) + Cost of Insurance
• Duty Tax = Duty % x CIF
• VAT = 12% x (CIF + Duty + excise taxes if any)
• Import Tax & Custom Fees = Duty Tax + VAT

* There may be a processing fee by the local courier and Philippines Customs storage fee. Buyandship is not responsible for these charges incurred.

Purchased a luggage in PHP 15,000, and the weight is 5lb. The pricing plan is DDU.

• Tax Threshold: PHP 10,000
• Product price = PHP 15,000
• Cost of Shipping = PHP 620 + PHP 380 x 4lb = PHP 2,140
• Cost of Insurance = 0
• CIF = 15,000 + 2,140 + 0 = PHP 17,140

If the the total CIF value is PHP 17,140, and the duty rate of the luggage is 15%

• Duty Tax = 15% x 17,140 = PHP 2,571
• VAT = 12% x (17,140 + 2,571) = PHP 2,365.3
• Import Tax & Custom Fees = 2,571 + 2,365.3 = PHP 4,936.3

The following information is subject to change at any time.

• Accessories(W/WO Battery) 15%
• Health & Beauty 3%
• Fashion 15%
• Supplements 15 %
• Toys 3%
• Sports 5%
• Luggage 15%
• Gaming 0%
• Books & Collectibles 0%