customs tariff?

[jlg1md]

Hi guys,

anybody here know how customs compute its tariffs/duties/fees for packages? would appreciate any info on this.

Thanks,
jojo

[amfour]

Taken from another forum (This is an old computation. For VAT, you need to change it from 10% to 12%).

1. Raw Cost of Parcel (Item cost + Shipping)

First off, get the total value of your parcel (item cost + shipping costs). The total value of my parcel was 12,014 yen. The customs officer first converted the yen amount into peso, with a conversion rate of 109.71 yen to one dollar. Then he converted it from dollar to peso, with a conversion rate of P55.809 to one dollar at that time.

12014 yen / 109.71 = $109.51
$109.51 x 55.809 = P6,111.64

2. Import Duty

First customs item the guy will compute is the Import Duty, which at the time was 10% of the raw peso value of your parcel.

Import Duty
P6,111.64 X 10% - P611.16

3. Fixed Costs
Then he added two fixed costs, Customs Documentary Stamps (CDS) and Import Processing Fee (IPF). I know they stand for something but I don't remember what. The values for CDS and IPF are for 2004.

CDS = P265.00
IPF = P250.00

4. VAT

Then the BIR takes a crack at you for VAT. The VAT rate is the sum of the raw cost, the import duty, and the two fixed costs, multiplied by 10% (in 2004, it is now 12%), which was the VAT rate at the time:

Item Cost - P 6,111.64
Import duty - P611.16
CDS - P265.00
IPF - P250.00
Subtotal - P7,237.80

VAT - 10% Subtotal - P723.70

5. Grand Total

The total amount you will have to pay is Import Duty + CDS + IPF + VAT:

Import duty - P611.16
CDS - P265.00
IPF - P250.00
VAT - P723.70

Total Duties and Taxes to Pay - P1,850.00

So I was out P1,850 for an item worth P6,100+.

[jlg1md]

Thanks for the post AM4. NJow I know what I'm paying for.

jojo