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Need clarification for RA 9135 Section 2

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1 Need clarification for RA 9135 Section 2 on Tue Jun 02, 2015 6:37 pm

Kabedon


Arresto Menor
I'm not new to purchasing items online (from abroad) and have paid customs duty and taxes with my previous parcels as most of them have dutiable value exceeding 2,000 pesos. Some that didn't exceed 2,000 pesos were exempted from duty and taxes. Now I tried to claim a parcel (an anime figure/toy) yesterday which is worth 1,600 pesos and to my surprise the customs officer have put my parcel on hold and handed me a computation sheet, requiring me to pay 395 pesos in order for my parcel to be cleared from formal entry. I asked him how come no tax were collected for my previous parcels that were worth below 2,000 pesos, and he isn't being accommodating to my question as he says he has no time to explain these stuff as he is busy and he still have a lot of parcels to address and just want me to pay the duty and taxes. Now that's not a proper behavior of a public official if you ask me, especially if money is involved. Makes me think something fishy is going on. I know 395 pesos isn't much but if this is a corruption then it shouldn't be tolerated. I did some research and came across RA 9135 Section 2.


RA 9135 SEC. 2. Section 1302 of Part 2, Title IV of the Tariff and Customs Code of the Philippines, as amended, is hereby further amended to read as follows:

         "Sec. 1302. Import Entries. – All imported articles, except importations admitted free of duty under Subsection "k", Section one hundred and five of this Code, shall be subject to a formal or informal entry. Articles of a commercial nature intended for sale, barter or hire, the dutiable value of which is Two thousand pesos (P2,000.00) or less, land personal and household effects or articles, not in commercial quantity, imported in passenger’s baggage, mail or otherwise, for personal use, shall be cleared on an informal entry whenever duty, tax or other charges are collectible.

         The Commissioner may, upon instruction of the Secretary of Finance, for the protection of domestic industry or of the revenue, require a formal entry, regardless of value, whatever be the purpose and nature of the importation.


Now to cut to the chase, I don't fully understand this part of the Tariff and Customs code, particularly the part where it says "shall be cleared on an informal entry whenever duty, tax or other charges are collectible." How would it be an informal entry if taxes will still be collected for parcels with dutiable value not exceeding 2,000 pesos? And was there any changes to the Tariff and Customs Code recently? Because as I have said, this is the first time I was required to pay duty and taxes for a parcel worth less than 2,000 pesos. I hope someone can clarify this matter. Any help is greatly appreciated.

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centro


Reclusion Perpetua
He should have answered your query.
My understanding is, both informal and formal entries are subject to tax.
Depending on the item and its condition, taxes vary. It is not based solely on value. They use a tax calculator to compute.
Some items though are granted exemptions. There were perhaps considerations why your previous packages were not charged with taxes.

Just an opinion interpreting the written word.

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3 Re: Need clarification for RA 9135 Section 2 on Tue Jun 02, 2015 11:14 pm

Lunkan


Reclusion Perpetua
SOME in the Philippine custom have acted VERY remarkable both at imports and exports.
E g VERY HIGH custom fees were demanded to let through foreign GIFT vehicles to be used to support Filipinos soon after Yolanda, when special vehicles were needed, because the roads were blocked. So the vehicles couldn't be used to assist the victims, because they were kept by the custom!!! Evil or Very Mad
Several of the foreign people, who went to Philippines to assist Filipinos soon after Yolanda got very frustrated by how the Filipin officials BLOCKED much of the aid work!!! Instead of be given to the Yolanda victims, some of the ment to be aid products somehow ended up in SHOPS in Manila!!! Evil or Very Mad

Just heared, I haven't seen any documents, some very expensive EXPORT goods have got STUCKED in the custom "for ever" of some odd reason, and the custom even demand high RENT fees... This make I don't dare to start my favorite business idea, because I would go bankruptcy if the custom stop my first export container...

SOME indiividual custom personal have demanded higher custom fee from travelers than the product was worth. (E g a phone.) I GUESS because the personal want the traveler to give up the product, so the custom personal can take it, because why would they do it otherwice?...

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4 Re: Need clarification for RA 9135 Section 2 on Tue Jun 02, 2015 11:47 pm

Kabedon


Arresto Menor
centro wrote:He should have answered your query.
My understanding is, both informal and formal entries are subject to tax.
Depending on the item and its condition, taxes vary.  It is not based solely on value.  They use a tax calculator to compute.
Some items though are granted exemptions.  There were perhaps considerations why your previous packages were not charged with taxes.

Just an opinion interpreting the written word.

I know right? Instead of providing me a convincing explanation, avoiding my question only made him even more questionable or suspicious. Though based on your explanation, I guess the duty and taxes imposed on my parcel is valid. I don't mind paying the duty and taxes as I have done it before with items that are on the expensive side. If ever, this is a first for an item that is not too expensive (below 2,000 pesos). I just want to be sure that what I'm going to pay will not go straight to his pocket as I heard rumors that some customs officers take advantage of those who appear clueless by collecting unofficial taxes (collecting tax for items that shouldn't be subject to tax like books, meaning it isn't an official transaction and the money collected doesn't go to the government but rather to themselves), which is why I did my homework and seeking advice here to find out if the tax imposed is valid or not. Anyway, I will return to the post office on Thursday to claim my parcel and pay the duty and taxes. Thanks for the clarification.

Lunkan wrote:SOME in  the Philippine custom have acted VERY remarkable both at imports and exports.
E g VERY HIGH custom fees were demanded to let through foreign GIFT vehicles to be used to support Filipinos soon after Yolanda, when special vehicles were needed, because the roads were blocked. So the vehicles couldn't be used to assist the victims, because they were kept by the custom!!!  Evil or Very Mad
Several of the foreign people, who went to Philippines to assist Filipinos soon after Yolanda got very frustrated by how the Filipin officials BLOCKED much of the aid work!!! Instead of be given to the Yolanda victims, some of the ment to be aid products somehow ended up in SHOPS in Manila!!!   Evil or Very Mad

Just heared, I haven't seen any documents, some very expensive EXPORT goods have got STUCKED in the custom "for ever" of some odd reason, and the custom even demand high RENT fees...  This make I don't dare to start my favorite business idea, because I would go bankruptcy if the custom stop my first export container...

SOME indiividual custom personal have demanded higher custom fee from travelers than the product was worth.  (E g a phone.) I GUESS because the personal want the traveler to give up the product, so the custom personal can take it, because why would they do it otherwice?...

I understand that the customs is the most corrupt government agency in just about every country (France, Portugal and some European countries have their fair share of these horror stories with their customs), but the customs here in the Philippines is taking it way too far. While doing my "homework", I stumbled upon the FAQ section of the official website of Philippines Customs and this is what I saw under the importation section:

"All imported articles are subject to Formal and Informal entry except importation admitted free of duty for the official use of embassies, legation and other agencies of foreign governments who accord like privileges to corresponding agencies of the Philippines."

If those foreign vehicles you mentioned where sent by the embassies or foreign government (which they probably are) then those should be exempted from tax. This is actually what most people fear when dealing with customs, they may end up paying tax for an item that shouldn't be subject to tax in the first place. Though to be fair, I really didn't have much problem with them in the past until the ordeal yesterday.

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Lunkan


Reclusion Perpetua
"I understand that the customs is the most corrupt government agency in just about every country (France, Portugal and some European countries have their fair share of these horror stories with their customs)"
I don't know about custom problems there, but there are much corruption in south and east part of European Union, which NorthWest part try to stop. There are some corruption in NorthWest part too, but least in the world together with New Zealand. In NorthWest Europe have top positioned politicians got fired for not paying a TV fee and an other for trying yo make the parlament paying a chockolate bar... Laughing And now is a big NorthWest European governmentprivate mix owned company brought to a big case in court because they have bribed a foreign government to get business there (which everyone else do there, because otherwice they can't get any business orders in that very corrupt country.)

"If those foreign vehicles you mentioned where sent by the embassies or foreign government (which they probably are) then those should be exempted from tax. "
Much of the AID to Yolanda victims came from foreign AID organisations. REDICILOUS by the Philippine custom and government to demand custom fee for AID instead of just let all through to the Yolanda VICTIMS. Otherwice would the custom and government GAIN on what people in other countries are kind and GIVE - ment to the victims, not to rich politicians Mad

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