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PRESS RELEASE: Packages valued at 10k below now tax freeOctober 14, 2016 Posted By: Corp.Comm
Good news to those who receives personal packages through the post office especially this Christmas season.
The Philippine Postal Corporation (PHLPost) welcome the new provisions stated under the official Customs Administrative Order (CAO) 02-2016 which will implement Section 423 of the New Customs Modernization and Tariff Act (CMTA) signed into law as Republic Act (RA) 10863, of the Bureau of Customs which provides that “no duties and taxes shall be collected on goods with a freight on board or free carrier value of P10,000 and below.
The new law will benefit thousands of consumers and Philippine residents who rely on the postal service to send and receive packages from abroad. This order shall take effect on 25 October, 15 days after its publication in the Official Gazette.
This will amend the threshold value or de minimis on duty-free imports from the outdated P10 ceiling to P10,000.
“It is a welcome development especially for this new administration to effectively administer changes by implementing the new provisions of the law which will benefit our postal clients abroad who send personal items as gift to their love ones in the Philippines”, Assistant Postmaster General Luis D. Carlos said.
Minimum thresholds or de minimis refers to value of goods exempted from duties and taxes.
The new law protects and enhances government revenue, institute fair and transparent customs and tariff management that will efficiently facilitate international trade and commerce.
Based on APEC study, it is important that trade is secure and that customs rules and procedures are kept to a minimum to reduce trade transaction costs.
Only those personal packages or parcels coming from abroad that passes through PHLPost which has been assessed with customs duties and taxes valued at P10,000 and below are tax exempt.
All inbound foreign mails and parcels are subjected to customs examination, duties, taxes and other fees.