May 22, 2026

Customs Procedures

Imported goods for repair, processing, or reconditioning refer to products that businesses temporarily bring into the Philippines to restore, improve, or modify before shipping them back overseas. To qualify for conditional exemption, importers must bring the goods into the Philippines only for temporary work and re-export them after completion. The BOC does not grant this privilege to goods intended for local sale, domestic use, or permanent importation.

‍

Requirements

‍

The following documents shall be filed with the Bureau:

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

‍

How to Qualify for Conditional Duty Exemption

‍

1. Confirm Eligibility Under the CMTA

Before importing the shipment, businesses should determine whether the goods qualify under Section 800(d) of the CMTA. Importers should confirm that the shipment serves a temporary purpose and that they plan to re-export the goods after completing the repair, processing, or reconditioning.

‍

2. Register in the DOF Tax Exemption System (TES) Lite

Qualified importers should complete a one-time registration in the TES Lite System to facilitate the tax exemption process. During registration, businesses provide company details and supporting information required by the DOF.

‍

3. Prepare and Submit Documentary Requirements

Importers or licensed customs brokers should prepare and submit all supporting documents to the BOC. Businesses must clearly show that the goods only entered the Philippines temporarily and that they intend to re-export them after servicing.

‍

4. Post the Required Security or Customs Bond

Before customs releases the shipment, importers must post a customs bond equivalent to 100% of the duties, taxes, and charges. This bond assures the government that the importer will comply with re-exportation requirements.

‍

5. Secure BOC Evaluation and Approval

The BOC reviews the shipment, supporting documents, and customs compliance requirements. Once customs officers approve the application, the BOC releases the goods under the conditional exemption arrangement.

‍

6. Re-export the Goods Within the Prescribed Period

After completing the repair, processing, or reconditioning, importers must re-export the goods within the six-month period. Businesses should also submit proof of exportation to help facilitate the release or cancellation of the posted bond or security.