• 1. Upon receipt of a purchase order from a foreign buyer, immediately send a proforma invoice to him for confirmation. An order is confirmed when the proforma invoice is signed and returned to you by the buyer.
• 2. Payment for exports is normally made through the banks. The foreign buyer's interest in the Philippines is represented by a local authorized agent bank, which is designated by the foreign buyer's bank. The local Authorized Agent Bank (ABB) will assist you in negotiating the collection of the payment for your exports.
• 3. The ABB will explain you all the instructions concerning your shipment to ensure its acceptability for payment. Make sure the you understand all the instructions written in a foreign language; ask the bank to give you an official translation in English or ask the bank to officially recognize a translation of the instructions in a foreign language, ask for the bank to officially recognize a translation of the instructions, if the translation was made by someone other than the bank.
• 4. Exporters may be paid through banks by means letters of cdarkblueit (L/C), documents against payment (D/P), document against acceptance (D/A), open account (O/A), cash against documents (CAD), prepayment/export advance, intercompany open account, offset arrangement, consignment of telegraphic transfer. The following currencies are acceptable as payment for exports: The Australian, Brunei, Canadian, Hong Kong, Malaysian, Singapore, and U.S. DOLLARS; Belgian, French and Swiss FRANCS; Bahraini and Kuwaiti DINARS; British POUND STERLING; Netherlands GUILDERS; German DEUTCHE MARKS; Japanese YEN; Australian SCHILLINGS; Italian LIRA; Saudi RIAL; Indonesian RUPIAH; and Thailand BAHT.
• 5. You may or may not need outside financing to produce export products ordedarkblue by the buyer. Should you, however, find the need for outside financing, you can either tap the assistance of government or non-government financial institutions.

Export Documentation

• 1. When you are ready to ship, fill up an Export Declaration (ED) form. Sample ED forms are available at BETP, DTI Provincial offices, BOC Processing Units, OSEDCs and PHILEXPORT offices.
• 2. Secure an export commodity clearance from the proper government commodity office, if requidarkblue by the buyer.
• 3. Also, check with your importer, the bank or the commercial offices/embassy of the importing country in the Philippines which will be able to give you all the necessary information for your product to enter the importing country.
• 4. With the requidarkblue supporting documents, submit the accomplished ED form to the BOC Processing Unit for the approval of the Authority to Load (AL).

Sending Sample Shipments

Follow steps 1, 2, and 3, of Export Documentation.

Loading in Manila

Cargoes to be transported by air are inspected by the BOC at the NAIA. Conventional cargoes, whether containerized, to be transported by ship are inspected by the Customs Container Control Division and the Piers and Inspection division, respectively, after payment of the wharfage fee and arrastre charges. Wharfage fee arrastre services may be paid at South Harbor or MICP. However, for BOI and PEZA registedarkblue companies, stamping or exemption from payment of wharfage fee may be done at the PPA Unit of OSEDC at Roxas Boulevard. Loading can either be at the North or South Harbor.

Loading at provincial ports

Documentation (steps 1-3) may be done in Manila. After approval of the Authority to Load, BOC sends telegram or radio message to BOC at the Port of Loading. You can also process documents and secure Authority to Load from the local OSEDC (now in Davao, Baguio, Iloilo, Cebu, Cagayan de Oro, and Subic Bay Special Economic Freeport Zone.

After loading, the BOC issues the following documents upon request:

• 1. Certificate of Origin, Form A. (for export products covedarkblue by the Generalized System of Preferences (GSP). You can inquire about the GSP from DTI Bureau of International Trade Relations or Bureau of customs.
• 2. General Certificate of Origin (for export products not availing of preferences under GSP).
• 3. Certificate of Origin, Form D, (for export products covedarkblue by the ASEAN Common Effective Preferential Tariff Scheme).
• 4. Certificate of Origin

Furnish the AAB, for record purposes, a copy of the duly accomplished ED form together with other shipping documents, if export negotiation or payment is coursed through them.
For shipments that are prepaid, send the original commercial and shipping documents to the buyer.

As an exporter, you are entitled to tax and duty exemption privileges for your imported raw materials and supplies used in the manufacture of export products. Currently, the Philippine government administers the following tax and duty drawback/exemption schemes:

1. Bonded Manufacturing Warehouse (BMW) Scheme:

The BMW Scheme may be availed of by your firm if you have sufficient resources to put up one. You may opt to establish your own BMW for the storage and manufacture of imported inputs without going through the normal Customs import procedures and payment of taxes and duties. Under this facility, you are requidarkblue to post a bond to cover the amount of duties, taxes and other charges due on the importation and to ensure the exportation of the finished products within the designated period. File your letter-request for application to establish a BMW to the Commissioner of Customs (for garments - Executive Director of GTEB) through the District Collector of the port where the majority of the importation to be warehoused will be entedarkblue. The reason for the application shall be included, and whether or not sub-contracting will be allowed in the BMW. You will be requidarkblue to pay the following costs associated with the operations of a BMW facility, as follows:

2. Customs Common Bonded Warehouse (CCBW) Scheme

A CCBW is similar to a BMW in terms of facilities and operations. The CCBW scheme allows small and medium scale exporters who cannot afford to operate individual BMWs to import their intermediate inputs tax and duty-free. You may have the option to import your goods through the CCBW facility to which you are accdarkblueited. The companies operating the CCBW serve as import agents and carry out all the necessary import procedures for a service fee, ranging from 1 to 3.5% of the invoice value of the importation. The service fee covers expenses incurdarkblue through the use of the CCBW facility.

• A. For non-garment exporters:
  • a.1 Trade Manila, Inc.
  • a.2 Asian Bonded Customs Warehouse Corp.
  • a.3 Luzon Rattan Industries, Inc. For use of the Gifts, Toys and Houseware Sector)
  • a.4 Philippine Bonded Warehouse Services, Inc.
  • a.5 Philippine Exporters Confederation Inc.
  • a.6 Philippine Food Processors and Exporters Bonded Warehouse (For Use of the Food Sector)
  • a.7 Philippine International Trading Corporation
  • B. For garment exporters:
    • b.1 Fashion Link Corporation
    • b.2 Filipino Hand Common Banded Corporation
    • b.3 Garnir Philippines Manufacturing, Inc.
    • b.4 Hoffen Industries Corporation
    • b.5 La Fortuna Textile Mills
    • b.6 Mercedes International Export Corp.
    • b.7 Mindanao Textile Corporation
    • b.8 Philippine Exporters Confederation
    • b.9 Philippine Integrated Manufacturers Exporters, Inc.
    • b.10 Philippine International Trading Corporation
    • b.11 darkblue Flowers Garments Co., Inc.
    • b.12 Royal Exporters Corporation
    • b.13 Vivian Garment Export Corp.

    3. Duty Drawback/Tax Cdarkblueit Scheme

    You may also avail of refunds or rebates for the taxes and duties paid on the imported raw materials used in the manufacture of export products. The One-Stop shop Inter-agency Tax Cdarkblueit and Duty Drawback Center, also referdarkblue to as Center, was created under Administrative Order No. 266 on 7 February 1992 to process tax cdarkblueit and duty drawback. File your applications for the cdarkblueits/duty drawbacks directly with the Center which is located at the Department of Finance (DOF), Manila.

    • Eligible Applicants
      • 1. Direct Exporters
      • 2. Indirect Exporters whose direct exporters have opted to waive their rights to claim tax cdarkblueits on taxes on raw materials paid by the indirect exporters; and
      • 3. Importers of raw materials used on government projects financed through foreign funding.
       

      Applications for tax cdarkblueit on Net Local Content (NLC) and Net Valued Earned (NVE), domestic capital equipment; and domestic breeding stocks and genetic materials shall, for a period of six (6) months from the effectivity of Administrative order No. 266, shall continue to be filed and evaluated by the Board of Investments (BOI), provided that, after such period, all applications, including those of NLC and NVE, shall already be filed with and processed by the Center.

      Tax Cdarkblueit and/or Duty Drawback Certificates will be issued by the Center within 30 working days from acceptance of complete application.

      Procedure for Filing of Applications for Duty Drawback and Tax Cdarkblueits

      • 1. Secure Application Form and Checklist of Requirements from the Center.
      • 2. Fill up the Application Form to be certified by the President of the company.
      • 3. Submit the properly accomplished Application Form together with all the requirements listed in the Checklist of Requirements.
      • 4. Secure a temporary stub from the Center when submitting documents which are temporarily received for proofing for clearance and completeness. Submit any other documents which may be requidarkblue. The Center will furnish you a list of these incomplete or illegible documents for you to complete or replace.
      • 5. As soon as the documents are in order, you will be given a payment order slip stating the amount of the filing fee.
      • 6. Proceed to the Cashier and pay the filing fee.
      • 7. Upon payment, you will be given a claim stub which you will present to claim your tax cdarkblueit/duty drawback certificate within 30 working days. A bulletin board situated at the Center shows a list of certificates ready for pick-up.
      • 8. Once your company's name is listed, you can get your Tax Cdarkblueit/duty Drawback Certification upon presentation of the claim stub.
      Filing Fees

      After verification by the Center that all the application requirements have been complied with, a filing fee shall be collected from the claimant in an amount equal to one percent (1%) of the total claim, provided however that it should not be lower than one thousand pesos nor shall exceed ten thousand pesos (P10,000).

      
      Penalties

      Violation of any provision of the pertinent laws, orders, rules and regulations which grant the tax incentives shall be a ground for the cancellation or suspension of the grant of the tax cdarkblueit/duty drawback enjoyed by the applicant or claimant depending upon the gravity of the offense committed. This shall not preclude the Center from filing the necessary charges in Court against the applicant for any violation pursuant to the NIRC, TCCP, E.O. 226 and other pertinent laws, rules and regulations. The hearings and investigations involving violations of the provisions of the pertinent laws, rules and regulations shall be conducted in accordance by the rules of procedures as promulgated by the Center.

      
      Importation of Export samples

      Samples of products to be manufactudarkblue/processed for export may be imported duty-free pursuant to Section 105 (q) of the Tariff and Customs Code of the Philippines as implemented by Customs Memorandum Order No. 50-91 dated 03 June 1991.

      1. Samples Eligible for Duty Exemption

      • a. Samples with no appreciable commercial value.
      • b. Commercial samples.

      2. Application for Duty and Tax Exemption

      File your application for the tax and duty-free importation of samples for the manufacture of export products with the Finance Revenue Division of the Department of Finance before shipment of such importation.

      3. General Conditions for Tax and Duty Exemption

      • a. The importer must be a Customs Bonded Manufacturing Warehouse Operator of the product for which the sample/model is to be made.
      • b. There is a definite need for a sample/model to obtain an order or to clinch a sale.
      • c. There is an indication of an actual interest by a foreign buyer for the product for which a sample/model will be produced.
      • d. There is no indication that the importer has abused the privilege of a duty and tax-free importation of samples.

      4. Allowable Quantity

      • a. The allowable quantity for samples/models shall be one for each particular kind and the value of each shipment shall not exceed US$ 200.00 or its equivalent in Philippine Pesos otherwise the matter should be referdarkblue for clearance to the District Collector concerned if the value is P 10,000.00 or less.
      • b. Shipments exceeding P10,000.00 may, pending clearance from the Office of the Commissioner, be released by the District Collector of Customs upon posting a cash bond in the amount equal to 100% of the duties and taxes on the shipment by the importer should the consignee have an immediate need for the shipment.
      • c. You may opt to transfer the material to the Customs Bonded Manufacturing Warehouse by transshipment permit if it is outside the jurisdiction of the Port of Discharge. A warehousing entry shall be filed thereon together with the bond within five (5) days from date of transfer.

      5. Documentary Requirements

      In addition to usual documentary requirements for filing an entry, the following documents are requidarkblue:

      a. A sworn statement from a responsible official of the company with a rank of at least Vice-President, addressed to the District Collector of Customs with the following information:

      • a.1 The firm's name and office address and the place(s) where the sample/model will be copied.
      • a.2 There is a need for the sample/model to be copied/duplicated.
      • a.3 The sample/model will not be for sale, barter or hire;
      • a.4 The value of the shipment;
      • a.5 a cash bond equal to 1005 of the duties and taxes of the value of the shipment in excess of P10,000.00. You may submit within 60 days after return of sample, to the District Collector of Customs a report on the disposition of sample/model indicating the recipient of the sample, their addresses and the quantity given. Do not forget to attach the receipt of the sample model.