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Doromaner

ASEAN trade agreement

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Doromaner

Has anyone had anything shipped from China and evoked the ASEAN trade agreement to keep import taxes to a minimum?

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Tinbum

Yes!!

Just shipped, (last month) a container of office furniture from Guandong to Cebu. Used the ASEAN Treaty, more specifically Certificate of Origin Form E to aid in paying minimal duties. China has a reciprocal trade agreement with the Phil. 

NOTE minimal duties. Depending on the goods you are importing, differing base rates of duty apply, in our case 1%. This is for Import Duty only. Tax is still paid in such varying forms as VAT, clearances etc etc.

On a shipment value of approx 375k PHP, via our pet broker (see seperate topic headed Customs broker), we ended up paying around 100k PHP.

This included a saving of 60k PHP solely due to the submission of the Form E.

Breaking the 100 down, its roughly 55 for local charges, including brokerage fee, transport to site and 45 for Customs.

Customs has recently upgraded its collection system to attempt to weed out corruption. Now, collection of duties and taxes is levied directly on your bank account. As part of the import process, you must furnish them with details of your bank account and they make a direct withdrawal via computer.No more cash in the hand. This automated debit is for Customs only, local charges are paid over the counter in your chosen form.

Also be prepared to supply copies of TT's , commercial invoice etc as validation of the value of the imported goods. No longer are fictitious values accepted.Our supplier actually offered an invoice of much lower value but it would not match the TT's so it was a nice offer but no use.

 

I hope this gives you a rough insight.

 

We actually got a quote from a Cebu company which came in at 650K. By going to China we upgraded quality, quantity and got the companies designs customised to suit the varagries of the office. Plus.. the company was happy to outsource other goods from other companies within China and include those goods in our container.

So, more of better quality goods at a significant saving (175K PHP) for a few headaches, and lots of e-mails.

 

On a fun note, lots of people said "Oohh, China, it will be Mickey Mouse quality!" The broker came to the office to collect her cheque personally. When she saw what we had, quality etc, she knew full well the price we had paid being our broker, she said "i wish i had joined with you and re-fitted our office!"

For example the conference table top is 3 mtr long, 1200mm wide and 50mm thick solid timber!!! It weighs a bloody ton!

Packaging was exceptional, nothing damaged, all glass intact....... All goods in thin foam, then industrial bubble wrap, corner protectors then corrugated cardboard. Glass goods in sepeate wooden crates with similiar protection.

Edited by Tinbum
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Doromaner

Yes!!

Just shipped, (last month) a container of office furniture from Guandong to Cebu. Used the ASEAN Treaty, more specifically Certificate of Origin Form E to aid in paying minimal duties. China has a reciprocal trade agreement with the Phil. 

NOTE minimal duties. Depending on the goods you are importing, differing base rates of duty apply, in our case 1%. This is for Import Duty only. Tax is still paid in such varying forms as VAT, clearances etc etc.

On a shipment value of approx 375k PHP, via our pet broker (see seperate topic headed Customs broker), we ended up paying around 100k PHP.

This included a saving of 60k PHP solely due to the submission of the Form E.

Breaking the 100 down, its roughly 55 for local charges, including brokerage fee, transport to site and 45 for Customs.

Customs has recently upgraded its collection system to attempt to weed out corruption. Now, collection of duties and taxes is levied directly on your bank account. As part of the import process, you must furnish them with details of your bank account and they make a direct withdrawal via computer.No more cash in the hand. This automated debit is for Customs only, local charges are paid over the counter in your chosen form.

Also be prepared to supply copies of TT's , commercial invoice etc as validation of the value of the imported goods. No longer are fictitious values accepted.Our supplier actually offered an invoice of much lower value but it would not match the TT's so it was a nice offer but no use.

 

I hope this gives you a rough insight.

 

We actually got a quote from a Cebu company which came in at 650K. By going to China we upgraded quality, quantity and got the companies designs customised to suit the varagries of the office. Plus.. the company was happy to outsource other goods from other companies within China and include those goods in our container.

So, more of better quality goods at a significant saving (175K PHP) for a few headaches, and lots of e-mails.

 

On a fun note, lots of people said "Oohh, China, it will be Mickey Mouse quality!" The broker came to the office to collect her cheque personally. When she saw what we had, quality etc, she knew full well the price we had paid being our broker, she said "i wish i had joined with you and re-fitted our office!"

For example the conference table top is 3 mtr long, 1200mm wide and 50mm thick solid timber!!! It weighs a bloody ton!

Packaging was exceptional, nothing damaged, all glass intact....... All goods in thin foam, then industrial bubble wrap, corner protectors then corrugated cardboard. Glass goods in sepeate wooden crates with similiar protection.

P45,000 still goes to customs? That seems like just a backhanded way to avoid the true purpose of the ASEAN agreement, but I see you still saved money. May I ask how large and heavy your shipment was?

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Tinbum

In actuality it was a 20 foot container. The weight is rather immaterial when shipping by container, as opposed to say air freight. But to answer your question, from the packing list we have a gross weight of 3512kg.

As an interesting aside, we opted for exclusive use of the container even though we only filled it to 60% capacity cubic metre wise. Our supplier offered the choice to share a container with a "mixed load". We turned this down for a few reasons. One, you have to go to the port with transport to remove your goods. Two, whoever gets to unload thier stuff first will not care about walking on your stuff or throwing it out of the way etc. Three, the saving was only 400USD from the initial price of 1500USD.

We felt that to spend the extra guaranteed safety of goods and took away the hassle of finding suitable transport.

 

Just something to also consider for your import. Speaking of which, you will also have to apply to Manila for permission to import as a private individual. This can be done online and you will be given a certificate with reference no. for your "exclusive one time per year import" This online cert. is also needed in forming part of your official dossier. Multiple imports per year require you to hold an annual license, easier for companies than private individuals due to the legislative requirements etc.

 

I do hope that this is of help to you. Good luck.

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thebob

Too bad we didn't know you were going to ship. We could have filled up the rest of your container with solar panels.

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mrlondon

Too bad we didn't know you were going to ship. We could have filled up the rest of your container with solar panels.

 

I'm curious, what's the price of solar panels?

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LastManStanding

I am being told that you cannot do this anymore unless you are an accredited importer.  Such as scam.  So therefore you have pay like $500 to a dummy importer to use it.

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Monsoon

 

 

Our supplier actually offered an invoice of much lower value but it would not match the TT's so it was a nice offer but no use.

 

Easy, send two TTs.

 

 

 

I am being told that you cannot do this anymore unless you are an accredited importer.  Such as scam.  So therefore you have pay like $500 to a dummy importer to use it.

 

You might look into the "first and last" importation scheme. 

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Tinbum

As an addition to my original topic, i just imported some special tile spacers/ levellers for a big job, again from China. This time i did not invoke the ASEAN agreement but just let it pass through FEDEX, mainly due to small value.

From the paperwork i can see the following.

Customs charged

The Duty rate was 3%

VAT was 12%

FEDEX charged 9.8% for their part which included getting it through Customs, all paperwork etc, paying up front on my behalf and to the door delivery.

 

The percentage rates quoted above are based on the value of the shipment which is GOODS PLUS CARRIAGE.

So for an example total all in cost of 100 dollars, Duty $3, VAT $12, FEDEX $9.8.......TOTAL $24.8

 

I hope this helps someone??!!

Edited by Tinbum

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smokey

I still find all these so called special duty things just more smoke and mirrors.... my car was imported under the Special rule created to help returning Filipino citz.. its call the NO DOLLAR IMPORT...  

and it was no dollar but  a whole bunch of fee 's... to include vat of course my bill looked like a veco bill with line after line of special fee for this and special fee for that so my no dollar import was just like any other import about 100% of the value of the unit...

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