When I began importing from China to the Philippines, I quickly realized that choosing the right product category could mean the difference between paying high taxes and saving big on import duties. Here’s what worked for me:
1. Research HS Codes Carefully
Each product has a Harmonized System (HS) Code that determines its customs duty and VAT rate. I used the Philippines Bureau of Customs Tariff Finder to check tax rates by product type. Surprisingly, categories like educational materials, textiles, and selected electronics have lower duties compared to luxury goods or cosmetics.
2. Choose Low-Duty Product Categories
From experience, I’ve found that items like:
- Books and printed media
- LED lighting parts
- Mobile phone accessories
- Unbranded clothing (not luxury) …are typically under low-tax shipping categories to the Philippines.
3. Factor in Shipping and Handling
Even if the tax is low, the shipping and handling fees to the Philippines can inflate costs. I always ask for a full landed cost estimate from my forwarder, including handling, to see the real picture.
4. Coordinate Sourcing and Shipping
I try to source products directly from factories or trusted vendors in China who are experienced with shipping to the Philippines. This helps streamline customs processing and makes it easier to classify goods under favorable HS codes.
5. Use a Customs Broker for Confirmation
Before shipping, I consult a broker to confirm whether the items I’m sourcing qualify for lower taxes or exemptions. They sometimes suggest better product descriptions that align with low-tax categories, which really helps.
People Also Ask (PAA)
1. Which products have low import tax in the Philippines?
Books, mobile accessories, selected textiles, and educational materials usually fall under low-tax categories.
2. How do I check customs tax rates for the Philippines?
Use the official Philippines Tariff Finder to search by product description or HS code.
3. What affects shipping and handling fees to the Philippines?
Fees depend on package size, destination, type of shipping (air/sea), and value-added services like delivery or warehousing.
4. Can sourcing cheaper products reduce my taxes too?
Not always. Taxes are based on product category and declared value, not necessarily the price you paid.
5. Do small parcels have lower tax rates in the Philippines?
Shipments under certain thresholds (like USD $200) may qualify for de minimis exemptions, but this depends on the declaration and product type.