How Foreign Companies Import Goods into the Philippines

Foreign companies seeking to import goods into the Philippines must navigate a regulatory environment that requires coordination with the Bureau of Customs and other government agencies. Importation may be conducted through a locally registered entity or through an authorized representative.

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Establishing a Local Presence

Foreign companies typically establish a Philippine entity or partner with a local distributor to facilitate importation. This entity must secure the necessary accreditation and permits required by customs and regulatory agencies.

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The Importation Process

The importation process involves:

• Preparation of documentation
• Classification of goods
• Assessment of duties and taxes
• Compliance with inspection procedures

Foreign companies must also consider logistical arrangements, including warehousing and distribution.

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BOC Accreditation

BOC Accreditation is a mandatory requirement before any importation activity can take place. This is done through the Client Profile Registration System (CPRS), which allows access to the customs electronic systems such as e2m.

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How to Get BOC Accreditation

1. Register Your Business – Sole Proprietorship → DTI; Corporation/Partnership → SEC.
2. Secure BIR Registration – Obtain TIN and Certificate of Registration (Form 2303).
3. Prepare Required Documents – DTI/SEC Registration, BIR Certificate, valid government ID, proof of business address, notarized SPA if applicable.
4. Apply via CPRS – Access through the Bureau of Customs website, fill out the importer profile, and upload required documents.
5. Evaluation by BOC – BOC reviews submitted documents and may request clarification.
6. Approval and Activation – Once approved, your account is activated in the e2m system.

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Step-by-Step Importation Guide

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Step 1: Business and Tax Registration

• Register your business with DTI or SEC
• Register with BIR and obtain TIN
• Apply for BOC Accreditation via CPRS

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Step 2: Determine Import Requirements

• Classify goods using AHTN/HS Code
• Check regulatory requirements per agency (FDA, DA, DTI, PNP, etc.)
• Identify required permits (CPR, ATRIG, SPSIC, ICC, etc.)

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Step 3: Arrange Shipment

• Place order with supplier and confirm Incoterms (CIF/FOB)
• Prepare commercial invoice, packing list, bill of lading, and insurance certificate

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Step 4: Secure Regulatory Permits (Before Arrival)

Apply for permits with relevant agencies. Some permits must be submitted before the shipment leaves the exporting country.

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Step 5: Lodgement with BOC

• Engage a licensed customs broker to file import declarations via e2m
• Submit Import Entry Declaration with supporting documents

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Step 6: Customs Assessment

• Duty = CIF × Duty Rate
• VAT = (CIF + Duty + Other Charges) × 12%
• Lane assignment: Green (no inspection), Yellow (document review), Red (physical inspection)

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Step 7: Payment and Release

• Pay duties and taxes through Authorized Agent Banks (AAB) or electronic channels
• BOC issues ATRIG for regulated goods
• Cargo released from port or warehouse

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Step 8: Delivery to Consignee

Arrange transport from port to warehouse and confirm quantity and condition of shipment.

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Step 9: Post-Clearance Compliance

• Maintain records for at least 3 years
• Be ready for Post-Clearance Audit (PCA) by BOC
• Ensure permits, invoices, and declarations match

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Given the complexity of Philippine import regulations, foreign companies are advised to engage experienced customs brokers and trade advisors to facilitate compliance and ensure efficient importation.