May 22, 2026

Customs Procedures

The cost of repairs includes all expenses that owners incur when they repair a vessel or aircraft outside the Philippines to restore it to its original operating condition. These costs include labor charges for repair work, parts and replacement materials, dry-docking fees for vessels, aircraft maintenance and overhaul services, and technical and engineering services.

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Requirements

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The following documents shall be filed with the Bureau:

  1. TEI with accompanying documents
  2. Goods Declaration
  3. Import Bill of Lading/Air Waybill
  4. Import Invoice/Packing List

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How to Qualify for Conditional Duty Exemption

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1. Export the Vessel or Aircraft for Repair

The owner exports the vessel or aircraft from the Philippines before any foreign repair work begins. This involves filing the export declaration with the BOC, ensuring the vessel or aircraft remains properly registered and identifiable, and securing all export documentation for future reference.

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2. Arrange and Complete Repair Abroad

The owner sends the vessel or aircraft to a foreign repair facility and completes all repair work. The repair facility must issue a detailed invoice for labor, parts, and services; specify all repair activities performed; and confirm that the work restores, not replaces, the unit.

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3. Gather All Re-importation Documents

The importer collects and organizes all supporting documents before return shipment, including:

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4. File Import Entry Upon Arrival

When the vessel or aircraft arrives in the Philippines, the importer files the import entry with the BOC, declaring the shipment as a re-importation after repair under CAO 06-2020 Section 800(c) and identifying the transaction as a conditional exemption claim.

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5. Apply for Conditional Duty Exemption

The importer submits a formal exemption application to the BOC, stating the actual repair costs only, attaching all required supporting documents, and requesting recognition of conditional exemption under CAO 06-2020. Accurately declaring the actual repair costs is critical - only eligible repair costs qualify for the duty exemption.

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6. Undergo BOC Verification and Inspection

The BOC reviews and validates the application and supporting documents. Officers verify the identity of the vessel or aircraft, match export and import records, examine repair invoices and cost breakdowns, and inspect the vessel or aircraft when necessary.

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7. Receive BOC Decision

The BOC issues its ruling after evaluation. If approved, they grant conditional exemption for eligible repair costs and the importer pays only applicable charges, if any remain. If denied, they impose duties and taxes and the importer bears liability due to incomplete or non-compliant documentation. Engaging a licensed customs broker can help ensure documentation is accurate and complete before filing.