May 22, 2026

Customs Procedures

Equipment for use in the salvage of vessels or aircrafts includes machinery, tools, and specialized devices that operators import to recover, rescue, repair, or retrieve damaged, stranded, sunken, or wrecked ships and aircraft. Importers may only claim the exemption when they use equipment that is unavailable locally and dedicate it exclusively to salvage operations.

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Requirements

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The following documents shall be filed directly with the Bureau in order to be considered conditionally tax and/or duty exempted:

  1. TEI with accompanying documents
  2. Goods Declaration
  3. Import Bill of Lading/Air Waybill
  4. Import Invoice and/or Packing List
  5. Security equal to 100% of the duties, taxes and other charges thereon, conditioned for exportation or payment within six (6) months from the date of acceptance of the goods declaration
  6. Certificate of Identification of the equipment upon entry into the Philippine territory and re-identification upon re-exportation

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How to Qualify for Conditional Duty Exemption

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1. Confirm That the Equipment Qualifies

To qualify under Section 800(b) of the Customs Modernization and Tariff Act (CMTA) and CAO 06-2020, the equipment must:

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2. Apply for a Tax Exemption Indorsement (TEI)

Importers need to apply for a TEI from the Department of Finance - Revenue Office (DOF-RO). This indorsement establishes the importer's eligibility to seek conditional tax and duty exemption under CAO 06-2020.

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3. File the Goods Declaration with the BOC

After the shipment arrives, importers must file a Goods Declaration with the BOC and declare the shipment under the category of conditionally tax- and duty-exempt importation. Importers should attach the TEI and all supporting import documents at this stage.

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4. Submit Supporting Documents for Customs Evaluation

Importers must provide complete supporting documents to facilitate customs processing. Submitting complete and accurate documentation helps avoid delays in customs clearance.

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5. Post a Security Bond Equivalent to 100% of Duties and Taxes

Before customs releases the shipment, importers must post a security bond equivalent to 100% of the duties, taxes, and charges that would normally apply. This bond guarantees that the importer will either re-export the equipment after use, or pay the applicable duties and taxes if the equipment stays in the Philippines. The importer must comply within six (6) months from acceptance of the goods declaration.

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6. Complete Equipment Identification and Verification

Importers must allow the BOC to inspect and identify the imported equipment upon arrival. Customs officers may issue a Certificate of Identification to document the specific equipment entering the country. When the importer re-exports the equipment, the BOC uses this identification process to confirm that the same equipment leaves the Philippines.

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7. Use the Equipment for Salvage Operations Only

Once the importer completes customs requirements and posts the required bond, the BOC may release the equipment for use. Importers should use the equipment strictly for the declared salvage operation because the exemption only covers equipment intended for that purpose.

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8. Re-export the Equipment or Pay Applicable Duties and Taxes

Within six (6) months, importers must either re-export the equipment after completing the salvage operation, or pay the corresponding customs duties and taxes if they decide to keep the equipment in the Philippines. If importers need additional time, they may request an extension from the BOC - however, the extension cannot exceed another six (6) months.