Spare Parts of Vessels or Aircraft Engaged in Foreign Trade

Foreign vessels and aircraft operating in international trade sometimes need urgent replacement parts while staying in the Philippines. To support safe travel and continuous operations, Philippine customs law allows conditional duty exemption for imported spare parts used for emergency repair or replacement. Under Section 800(X) of the Customs Modernization and Tariff Act (CMTA), spare parts of foreign-registered vessels or aircraft engaged in foreign trade may enter the Philippines without payment of import duty, provided the importer follows the conditions required by law.

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Conditions for the Exemption

1. The imported goods must be spare parts of vessels or aircraft.
2. The vessel or aircraft must be foreign-registered.
3. The vessel or aircraft must be engaged in foreign trade.
4. The spare parts must be brought into the Philippines only as replacement parts or for emergency repair.
5. The importer must present proof acceptable to the District Collector that the spare parts are necessary to maintain the safety, seaworthiness, or airworthiness of the vessel or aircraft so it can continue its voyage or flight.

Note: The exemption only applies to import duty. The importer must still comply with customs rules, proper declaration, and submission of supporting papers.

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Examples of Qualifying Spare Parts

• Aircraft engine parts and navigation equipment
• Ship engine replacement parts
• Emergency repair materials
• Mechanical and electrical replacement components

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Required Documents

• TEI with supporting papers or request for under guarding
• Goods Declaration
• Import Bill of Lading or Air Waybill
• Commercial Invoice
• Packing List

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Step-by-Step Import Process

1. Prepare the Import Documents - Gather the TEI, Goods Declaration, Bill of Lading or Air Waybill, Commercial Invoice, Packing List, and proof that the spare parts are needed for repair or replacement.
2. File the Documents with the BOC - File the required documents with the proper BOC office and request conditional duty exemption under Section 800(X) of the CMTA.
3. Submit Proof of Use - Present proof that the spare parts will be used to secure the safety, seaworthiness, or airworthiness of the foreign vessel or aircraft.
4. Customs Review and Assessment - The Bureau of Customs reviews the documents and checks if the shipment qualifies for conditional duty exemption.
5. Release of Spare Parts - Once approved, the spare parts may be released for delivery and immediate use in the repair or replacement of the vessel or aircraft.