Trailer Chassis Conditioned Tax and Duty Exemption Under CMTA Section 800(Z)

Trailer chassis imported by shipping companies may qualify for conditional tax and duty exemption under Section 800(Z) of the CMTA. These chassis are used to transport containerized cargo within ports, warehouses, and customs areas, helping improve cargo movement and reduce delays in trade operations. The exemption allows shipping companies to temporarily import trailer chassis without immediate payment of duties and taxes, provided they comply with the conditions set by the Bureau of Customs.

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Conditions for the Exemption

Under CMTA Section 800(Z) and CAO 06-2020 Section 5.30, the following conditions must be complied with:

1. The trailer chassis must be imported by shipping companies only.
2. The trailer chassis must be used exclusively for handling containerized cargo.
3. The shipping company must post a security equivalent to 100% of the duties, taxes, and other charges.
4. The security covers a period of one year from the date of acceptance of the customs entry.
5. The Commissioner of Customs may extend the period from year to year for valid or meritorious reasons.
6. The trailer chassis must be properly identified and registered with the Land Transportation Office (LTO).
7. The importer must pay the customs supervision fee fixed by the District Collector and approved by the Commissioner.
8. The trailer chassis must remain deposited within the customs territory when not in use.
9. Upon expiration of the allowed period, the importer must either pay the duties and taxes or re-export the trailer chassis.

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Common Documents Needed

• TEI with accompanying documents
• Goods Declaration
• Import Bill of Lading/Air Waybill
• Import Invoice and Packing List
• Proof that the importer is a shipping company
• Certificate or proof of intended exclusive use for containerized cargo
• Surety Bond or Security Bond equivalent to 100% duties and taxes
• LTO registration documents
• Authority or clearance from the Bureau of Customs

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Step-by-Step Import Process

1. Prepare Import Documents - The shipping company gathers the invoice, bill of lading, packing list, and other cargo documents before shipment arrival.
2. File Import Entry with the BOC - The importer files the customs declaration and applies for conditional tax and duty exemption under CMTA Section 800(Z).
3. Post the Required Security Bond - The shipping company posts a bond equal to 100% of the estimated duties and taxes.
4. Register the Trailer Chassis with the LTO - The importer secures proper identification and registration of the chassis.
5. Customs Inspection and Approval - The Bureau of Customs checks the documents and may inspect the trailer chassis before release.
6. Use the Trailer Chassis for Containerized Cargo Only - The chassis must only be used for its declared purpose during the approved period.
7. Monitor the One-Year Validity Period - Before the period expires, the importer may request extension if there are valid reasons.
8. Re-export or Pay Duties and Taxes Upon Expiration - At the end of the approved period, the shipping company must either re-export the chassis or settle the applicable duties and taxes. Working with a licensed customs broker helps ensure all compliance steps are properly handled.