Personal and Household Effects of Travelers, Tourists, and Foreign Consultants

Under CAO 06-2020, the Philippines allows conditional tax and duty exemption for goods brought in for personal use, temporary stay, or professional needs. This covers travelers' and tourists' personal effects such as clothing, toiletries, personal accessories, portable tools, instruments, theatrical costumes, and other items needed during the trip. It also includes personal and household effects and vehicles owned by foreign consultants and experts working in the country.

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Personal Effects of Travelers and Tourists

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Who May Avail

• Foreign tourists entering the Philippines
• Returning travelers bringing personal belongings
• Individuals temporarily visiting the country

The exemption applies only if goods are not intended for sale, barter, hire, or transfer to other persons.

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Documentary Requirements

• Goods Declaration
• Import Bill of Lading or Air Waybill
• Import Invoice and Packing List
• Written commitment OR Security (100% of duties and taxes)

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Security Requirement

A security equivalent to 100% of duties, taxes, and charges is required, conditioned on exportation of goods within 3 months or payment of duties and taxes if not re-exported. An extension of up to 3 additional months may be granted by Customs.

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Process for Conditional Exemption

1. Arrival of Goods - Travelers or importers bring or ship personal effects into the Philippines.
2. Filing of Goods Declaration - Submit declaration and supporting import documents to Customs.
3. Submission of Requirements - Present bill of lading/air waybill, invoice, packing list, and security or written undertaking.
4. Evaluation by Customs - The BOC assesses whether items qualify as personal effects under CAO 06-2020.
5. Approval of Conditional Exemption - If compliant, goods are released conditionally without immediate payment of duties and taxes.
6. Monitoring Period - Goods must be exported or duties paid within 3 months (extendable once).

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Personal Effects and Vehicles of Foreign Consultants and Experts

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Who May Avail

• Foreign consultants hired by the Philippine government
• Foreign experts rendering official services in the Philippines
• Accompanying family members and staff

Items must match the consultant's role or assignment and serve only personal or professional use - not for commercial purposes.

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Documentary Requirements

• Tax Exemption Indorsement (TEI) with supporting documents
• Goods Declaration
• Import Bill of Lading or Air Waybill
• Import Invoice and Packing List
• Security OR written commitment (100% of duties and taxes)

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Process for Conditional Exemption

1. Arrival of Goods - Household effects or vehicles are imported into the Philippines.
2. Filing of TEI and Import Documents - Importer submits Tax Exemption Indorsement and supporting documents.
3. Submission of Security or Commitment - Provide bond or written undertaking for re-export or payment of duties.
4. Customs Evaluation and Approval - Customs verifies eligibility based on contract and necessity of goods.
5. Conditional Release - Goods are released without immediate payment of duties and taxes.
6. End-of-Term Compliance - Upon expiration of contract, goods must be re-exported or duties and taxes must be paid within the allowed period (up to 3 months extension possible).

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Basis: CAO 06-2020