0% import tax

[Joshua Ondangan]

hey guys just looking around about import tax about this ITA.

 

based on here http://web.ita.doc.gov/ITI/itiHome.nsf/9b2cb14bda00318585256cc40068ca69/de1ea002117f656885256d11007369c1?OpenDocument#B.%20CUSTOMS%20DOCUMENTATION%20REQUIREM

 

 Are duties assessed on the intellectual property of the software or on the medium on which is it presented?

The Philippines became a member of the Information Technology Agreement (ITA) under the aegis of the World Trade Organization (WTO) on April 1, 1997. The ITA has eliminated tariff and some non-tariff barriers to trade in IT products since 2000 (see above for information on the ITA). Hence, the Philippines' tariff duties for computer hardware, peripherals and software imports are 0% since January 2000 pursuant to Executive Order (EO) No. 163 (Modifying the Nomenclature and the Rates of Import Duty on IT Products). EO 163 was signed by former Philippine President Joseph Estrada on Oct. 18, 1999 to implement the commitments made by the Philippines in the ITA.

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Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
Computer and related accessories including software are subject to 10% Value Added TAX (VAT), computed based on the landed cost of the medium.  

 

computer hardware, peripherals and software imports are 0% but are subjecter to a 10% vat. 

 

and here http://www.dutycalculator.com/dc/109091-import-duty-rate-for-computer-hardware-is-0/

at least for 12% vat.

 

so meaning let's say I'm in this kind of scenario

I ordered something worth let's say 500$ (US) once it reaches like the post office there would be a 0% import but I would have to pay 10%-12% for vat + other charges etc.

 

haha was looking through those just got me interested and all wanted to learn quite a bit. hope you smart guys out there can tell me a thing or two.

 

I was planning on ordering other couple of stuff @ frozencpu tonight. at first I was just thinking of grabbing x2 tubes but after browsing around I'm thinkingo f buying other parts but was looking through on what else do I need to pay once it reaches it's destination. (unless the shipping there offers a door2door shipping). most of those stuff I'm planning to order are non existent in my local area and I prefer quality + looks vs availability in local unless they would charge me 200% or more once it reaches the office.

any of you guys live in a far away country and experienced something?

 

edit: I was talking with some people who ordered there and bought some small peripherals and everything worked fine.

under here which do you guys categorize water cooling parts for pc

 https://www.gov.uk/classifying-computers-and-software

[dizmo]

You live in the Philippines? (Totally jealous btw).

If so you'd have to pay 12% tax, but if I read this correctly you have to pay 12% even if you buy it locally no?
VAT is a largely European tax.

Duty is what you'd have to look out for, which in this case is 0%.

You have to be careful with shippers, as sometimes they'll charge Brokerage. For example UPS does this. Basically they fill out all of the customs paperwork for you, and charge you for the service. It can be quite expensive.

USPS is usually the best if you're getting something shipped to you from the United States.

Avoid UPS, and ideally FedEx, unless you'd like to do a lot of the paperwork yourself.

[Joshua Ondangan]

hi there. yes we do have to pay 12% anyways even locally and ordering online just gives me more excitement hehehe.

 

I was reading a lot about ups and boy are they expensive + the expensive brokage fee (haven't tried them but never will). fedex I don't know much about them but there is a fedex branch just 10 min walk from my house.

 

usps is what some of my co-filipino's used when they bought some peripherals in frozencpu and things are good. so far mostly 40 bucks or lower.

 

my total was 601.x (let's say 602 bucks). just looking at that almost 300$ shipping fee for ups nearly gave me a heart attack.

 

while looking around there are 3rd party ones like johnny air cargo which I've had experience with buying from amazon and has been good to me (just remembered them just now) lol nearly forgot about it. it seems cheaper when I was buying small low cost items like books and stuff. not sure about hardware.

 

while looking at them mostly I'll be just be paying the stuff above custom duties = 0%. so most likely a 6$ or 6.5$ per lbs (I pick up at their mall branch or add 10$ send to my place) good thing would be I'll be paying those once either I go to their branch or once after the dude deliver it to my house. pretty much less hasle. (I never really read stuff before when I bought some books and just pay whatever number is written there lol).

but pretty much it does say above rates are inclusive of all custom duties and taxes. 

 

this is the meaning of inclusive unless I didn't understand it right.

 in·clu·sive

inˈklo͞osiv/

adjective

 

1. 1.

   including or covering all the services, facilities, or items normally expected or required.

   "the price is inclusive, with few incidentals"

   synonyms: all-inclusive, with everything included, comprehensive, in toto; More

 

sadly I'm still computing on which one would be cheaper usps priority mail/express or the jack one (this one I have experience and seems good).

 

just that the parts I'm ordering on frozencpu doesn't seem to show how heavy it is or something.

[Joshua Ondangan]

well decided to make a reply instead of making the above a wall of text.

 

I got here an example if we were to base it with this

 

 DUTIES AND TAXES ON SOFTWARE IMPORTS

Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
The Philippines became a member of the Information Technology Agreement (ITA) under the aegis of the World Trade Organization (WTO) on April 1, 1997. The ITA has eliminated tariff and some non-tariff barriers to trade in IT products since 2000 (see above for information on the ITA). Hence, the Philippines' tariff duties for computer hardware, peripherals and software imports are 0% since January 2000 pursuant to Executive Order (EO) No. 163 (Modifying the Nomenclature and the Rates of Import Duty on IT Products). EO 163 was signed by former Philippine President Joseph Estrada on Oct. 18, 1999 to implement the commitments made by the Philippines in the ITA.

Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
Computer and related accessories including software are subject to 10% Value Added TAX (VAT), computed based on the landed cost of the medium.

 

Cost of Goods (USD): 200

Freight (USD): 50

Total: 250 (USD)

x44.8920

= Dutiable Value (PHP): 11,223PHP (total amount in US to PH convertion)

 

Dutiable Value: 11,223PHP 

X Rate of Duty : 0% (since the tariff duties for computer hardware, peripherals, software imports are 0%)      

=Customs Duty : 0.00PHP

 

Dutiable Value : 11,223PHP

+ Customs Duty : 0.00PHP

+ CDS : 265.00PHP

+ IPF : 250.00PHP

= Total Landed Cost : 515.00PHP

X VAT Rate : 10%

= VAT : 1,173.80PHP

 

Summary:

Customs Duty : 0.00PHP

VAT : 1,173.80PHP

CDS : 265.00

IPF : 250.00

 

Total Customs Duties & Taxes : 1,688.80PHP

 

This would be an example as I understand it based on our law.

 

If so I'd trigger my order asap. I also mailed the po about this for confirmation.

 

If I understand it right I'd trigger on this and probably order a couple more stuff on frozencpu. (this is cheaper than johnny air cargo lol).