How to Avail Duty Exemptions for Sea and Air Stores

When a ship or an airplane travels between the Philippines and other countries, it needs supplies to keep the journey going. These items - called sea stores or air stores - include everything from food for the crew to goods sold in the cabin. To keep international travel running well, the Philippine government allows these supplies to enter without charging the usual import duties and taxes. This helps lower the costs for transport companies and keeps travel and shipping prices down.

‍

Conditions for the Exemption

• The supplies must be for the reasonable needs of the vessel or aircraft during its trip outside the Philippines.
• The goods can come from a Customs Bonded Warehouse (CBW) and move to a ship or plane engaged in foreign trade.
• The items must be for the crew or passengers to use or eat while on board.
• The goods can also be items bought abroad to be sold on the ship or plane (saloon stores or air store supplies).
• Any extra or surplus supplies that stay on the vessel when it arrives from a foreign port will be taxed - the exemption only covers what is actually needed for the voyage.

‍

Required Documents

1. Tax and Duty Exemption Indorsement (TEI)
2. Goods Declaration
3. Import Bill of Lading or Air Waybill
4. Requisition Slips - papers showing that the ship or aircraft captain officially requested the supplies

‍

Step-by-Step Import Process

‍

1. Determine the Vessel Requirements

The ship or aircraft operator calculates how much food, drink, and other supplies the crew and passengers will need for the international trip, ensuring the amount is reasonable so as not to be taxed on the excess.

‍

2. Withdraw Goods from the Warehouse

If the goods are stored in a Customs Bonded Warehouse, the operator processes a transfer, moving the items from the warehouse directly to the vessel or aircraft under customs supervision.

‍

3. Prepare the Tax Exemption Papers

The operator files for a Tax and Duty Exemption Indorsement (TEI), including the voyage details to show the ship or plane is going to a foreign port.

‍

4. File the Goods Declaration

The operator submits the official list of stores to the Bureau of Customs, marking these items specifically as sea or air stores so officers know they are for use on board.

‍

5. Customs Inspection and Loading

Customs officers check the supplies as they are loaded onto the vessel or aircraft, verifying that the goods match the declaration and that no unauthorized items are hidden in the shipment.

‍

6. Monitor Surplus Supplies

When the vessel returns to the Philippines, the crew checks for any leftover supplies. They report these extra goods to the Bureau of Customs and pay the necessary duties on the surplus.

‍

7. Final Clearance

Once the Bureau confirms the supplies were used correctly for the voyage, they finalize the records. The operator completes the process without paying duties on the consumed goods.