Professional Instruments and Tools of Trade of Persons Coming to Settle in the Philippines

Under Customs Administrative Order (CAO) No. 06-2020, professional instruments, tools of trade, occupation or employment, along with related personal effects, may be imported into the Philippines without payment of duties and taxes. This applies when the items belong to persons who are relocating to the country to settle permanently or for long-term residence. The policy aligns with the CMTA, particularly Title VIII, Chapter 1, Section 800(h).

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Who May Avail

• Overseas Filipinos returning or relocating to the Philippines
• Persons coming to settle in the Philippines permanently or for long-term residence

To qualify, the individual must be bringing professional instruments or tools directly related to their occupation, trade, or employment. The exemption also covers wearing apparel, domestic animals, personal and household effects, and tools and instruments used for work or profession.

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Conditions for Conditional Tax and Duty Exemption

• The importer is an eligible person coming to settle in the Philippines
• The items are professional instruments or tools of trade, occupation, or employment
• The goods are not intended for sale or commercial distribution
• The items were already owned and used before departure from the former place of abode
• The goods arrive as unaccompanied baggage or shipment linked to the relocating individual

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Documentary Requirements

• TEI (Transfer of Effects Inventory) with supporting documents
• Goods Declaration
• Permit or clearance from relevant regulatory agencies, if required
• Import Bill of Lading or Air Waybill
• Import Invoice and Packing List

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Process for Conditional Tax and Duty Exemption

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1. Preparation of Documents

The importer prepares all required documents before shipment or arrival, including the Transfer of Effects Inventory (TEI), Goods Declaration, Import Invoice and Packing List, Bill of Lading or Air Waybill, and any required permits or clearances from regulatory agencies.

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2. Filing of Goods Declaration

Upon arrival of the shipment, the importer or authorized representative files the declaration with the Bureau of Customs, declaring items as professional instruments and personal effects and indicating purpose as settlement in the Philippines.

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3. Submission and Verification

All documents are submitted to Customs for review. Customs checks if the importer and goods qualify for exemption by confirming the importer is eligible (settling individual), checking proof of prior ownership, and verifying non-commercial use of items. Working with a licensed customs broker can help ensure all documentation is in order.

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4. Assessment of Eligibility

Customs may conduct physical inspection of the shipment, confirming actual items match the declared list, checking condition and quantity of goods, and validating consistency with documents.

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5. Clearance Approval

Once approved, the goods are cleared for release. Customs issues clearance, no duties and taxes are collected if qualified, and the shipment is delivered to the importer.

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Basis: CAO 06-2020