How to Import Export Containers and Packaging Duty-Free

When a business produces goods in the Philippines to sell to other countries, they often need high-quality packaging from abroad. To help local industries grow and compete globally, the Philippine government allows the tax-free entry of specific containers and receptacles. This rule specifically supports local cement producers and fruit farmers by lowering their costs and helping keep Philippine exports affordable and competitive in the global market.

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What Is Covered?

This tax break specifically covers:

• Kraft paper bags used for locally made cement meant for export
• Corrugated boxes for fresh fruits like bananas, mangoes, and pineapples destined for international markets
• Other similar holders or receptacles made of any material, provided they are for shipping goods out of the country

Note: The law excludes certain paper, paperboard, and textile containers that are easily reusable for general transportation.

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Security Deposit Requirement

Because this is a conditional exemption, the Bureau of Customs requires a security or deposit equal to 100% of the duties and taxes that would normally be charged. This deposit acts as a promise that the importer will use the containers for their intended export purpose within six months.

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Required Documents

1. Tax and Duty Exemption Indorsement (TEI)
2. Security Deposit - a bond or cash equal to the full duties and taxes
3. Goods Declaration
4. Import Bill of Lading or Air Waybill
5. Commercial Invoice and Packing List

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Step-by-Step Import Process

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1. Check the Container Type

The importer confirms that the bags or boxes are for specific export products like cement or fresh fruits and verifies that the materials are not on the list of excluded reusable paper or textiles.

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2. Calculate the Security Amount

The importer determines the total duties and taxes that would apply if the shipment were not exempt and prepares a security deposit (such as a bond) for 100% of that total amount.

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3. Submit the Goods Declaration

The importer files the Goods Declaration with the Bureau of Customs within the allowed timeframes to start the identification process.

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4. Undergo Identification and Appraisal

Customs officers examine the shipment, identify the containers to make sure they match the description, and appraise their value to confirm the security deposit is correct.

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5. Secure the TEI Approval

The importer submits the Tax and Duty Exemption Indorsement (TEI) along with the Invoice and Packing List to prove to the Bureau that the containers are for legitimate export use.

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6. Release and Export Deadline

Once the Bureau accepts the security and the paperwork, they release the containers. The importer then has six months from the date the Goods Declaration was accepted to use these containers for their exports.

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7. Clear the Security

After the goods are exported in these containers, the importer shows proof of the export to the Bureau of Customs. Once satisfied, the Bureau releases the security deposit back to the importer.