Imported donations will still be taxed, undergo customs processes before release – BOC

By Betheena Unite

Donations shipped into the country will still be subjected to customs duties and taxes, and to the normal processing of imports, the Bureau of Customs (BOC) said.


Like any other goods coming from any countries, international donations will still be taxed and will have to undergo customs procedure before release, the bureau recently reiterated.

However, the agency said, shipments of donations may be exempted from payment of customs duties and taxes if the consignee is a national government agency, a foundation or relief organization registered with the Department of Social Welfare and Development (DSWD) of the Philippines, a non-stock, non-profit educational institution; or a disabled person.

In order to avail of the duty and tax exemption on the importation of international donation, a Tax Exemption Indorsement (TEI) must be secured from the Department of Finance-Revenue Office, the bureau added.

An institution must secure pertinent requirements in applying for a tax exemption. They must submit a recommendation or endorsement for duty and/or tax-exempt from the appropriate government agency like DSWD, National Economic and Development Authority, Department of Education, and Commission on Higher Education, among others; Letter Request addressed to the Secretary of Finance; Import Bill of Lading (BL)/Airway Bill (AWB); Import Invoice; Packing List (PL); Deed of Donation; and other documents, as may be required by the Department of Finance.

The approved TEI shall then be transmitted by the Department of Finance - Central Records Management Division to the Bureau of Customs -Tax Exempt Division for transmittal to the proper Customs Collection District for processing.

With this, BOC urged the public to follow the proper procedures in importing foreign donations to avoid unnecessary charges.