10/21/2021

COMPUTATION OF TOTAL LANDED COST (LC) AND VAT:

COMPONENTS ( BY SEA ONLY ) BASIS
1. Dutiable Value (DV) CMTA 700-708, CMO 22-2007/ CAO 4-2004

COMPUTATION OF TOTAL LANDED

2. Customs Duty (CUD) AHTN
3. Bank Charges (BC) (1/8 of 1% x DV or 0.00125 x DV)
4. Brokerage Fee (BF) CAO 1-2001

COST (LC) AND VAT *5. Wharfage Due (WD)

*6. Arrastre Charge (AC)
7. Customs Documentary Stamp (CDS)
8. Import Processing Fee (IPF)
CMO 26-95/ CMO 4-2006 (By sea Shipment only)
CMO 26-95 C (By sea Shipment only)
fixed at P280.00 (CAO No. 1-94)
CAO 2-2001______________

Total Landed Cost (LC)- P xxx,xxx.xx

12% VAT Rate 0.12
Value Added Tax (VAT)- (Sec. 107, NIRC as amended by RA 9337)
(Box 47/53, IEIRD/SAD)

NOTE: if by AIR, LC is computed by excluding Arrastre Charge and Wharfage Due.

41 42

BROKERAGE FEES:
BANK CHARGES (ITEM 2, BOX NO. 53, SAD) 1) If dutiable value is P 200,000.00 and below, refer to schedule of rates as tabulated under CAO 1-2001;

2) If Dutiable value is more than P 200,000.00, multiply 1/8 of 1% (0.00125) to the dutiable value in excess
Shall be computed only when mode of payment for imported goods of P 200, 000.00 then add P 5,300.00.
is made via Letter of Credit (L/C)
CAO 1- 2001;

Indicators for importation under L/C: 1) Customs brokerage Fees covered by Formal/ Warehousing entries and Transshipment
DUTIABLE VALUE OF SHIPMENT RATES
Up to P 10,000.00 P 1,300.00
a) L/C no. indicated in commercial invoice or B/L Over P 10,000.00 to P 20,000.00 P 2,000.00
Over P 20,000.00 to P 30,000.00 P 2,700.00
Over P 30,000.00 to P 40,000.00 P 3,300.00
b) Attachment of duly accomplished and bank validated Import Entry
Over P 40,000.00 to P 50,000.00 P 3,600.00
Declaration (IED) representing payment of advance duty as Over P 50,000.00 to P 60,000.00 P 4,000.00
mandated under PH 1853 and implemented by CAO 2-95 and CB Over P 60,000.00 to P 100,000.00 P 4,700.00
Circular 909. Over P 100,000.00 to P 200,000.00 P 5,300.00

NOTE: Over P 200,000.00, P 5,300.00 on the first P 200,000.00 plus 1/8 of 1% (0.00125) in excess thereof.
FORMULA: BC = 0.00125 X DV
43 46

1
 10/21/2021

COMPUTATION OF BROKERAGE FEES (CAO 1-2001 NOTATION): B. INFORMAL ENTRIES:

A. FORMAL ENTRY For services rendered to clear shipments covered by Informal Entries – P 700.00

1) If dutiable value is P 200,000.00 and below, refer to schedule of rates as tabulated under CAO 1-2001; C. EXPORT DECLARATION

2) If Dutiable value is more than P 200,000.00, multiply 1/8 of 1% (0.00125) to the dutiable value in excess
of P 200, 000.00 then add P 5,300.00. For services rendered to clear shipments covered by export declarations, one- half
of import rates.
TO COMPUTE:

D. OTHER SERVICES
BF = [(DV – 200,000.00) x 0.00125 ] + 5,300.00
For other services, in relation to:
BF = [(0.00125 DV – (0.00125)(200,000.00)] + 5,300.00 1) Obtaining shipside permit P 1,300.00
2) Obtaining transfer permit P 1,300.00
BF = (0.00125 DV – 250.00) + 5,300.00
3) Withdrawal Entry (warehousing articles)
BF = 0.00125 DV – 250.00 + 5,300.00 a) complete withdrawal P 2,000.00
b) partial withdrawal P 1,500.00 (for every withdrawal)
BF = 0.00125 (DV) + 5,050.00

47 48

WHARFAGE DUE
1. CMO 26- 95 (OCT. 27, 1995)
LCL Wharfage Due RATES
The following schedule of wharfage fees shall be utilized in the
(Out Ports/ CMO 26-95)
computation of the landed cost for customs assessment purposes:
a.) P 17.00 per metric ton – for cargo declared
2. CMO 4- 2006 ( FEB. 21, 2006) as shipside cargo.
Sec. 1: b.) P 34.00 per metric ton – for cargo declared
For purposes of computation of the Total Landed Cost or VAT Base, all bulk as pier side cargo or declared fee, IF
imports discharges shipside at PRIVATELY OWNED PIERS/ PORTS allowed
by the PPA shall have a uniform wharfage charges equivalent to P 18.325 HIGHER.
per metric ton, as provided in number 7 of PPA- PMO-NH memorandum
Circular No. 05 Series of 1994.
WD = Rate x MT

52 53

2
 10/21/2021

LCL Wharfage Due RATES

FCL Wharfage Due RATES
(Manila Ports)/ CMO 7-2014
1x20 – P519.35
1x40 – P872.54
a.) P 30.55 per Revenue Ton WD = Rate x No. of Containers
b.) P 36.65 per Metric Ton

WD = Rate x MT/ RT

54 55

ARRASTRE CHARGES ( ITEM 6, BOX 53. IEIRD/SAD) LCL Arrastre Charge Rates
Definition:
It is the amount which the owner, consignee, or agent of either, of the
merchandise nor to pay for the receiving, handling and custody of the
1) P 8.00 per metric ton – for shipside
merchandise imported or for export. cargo
CMO 26-95 (MAY 26, 1999)
2) P 110.00 per metric ton – for pier side
cargo or declared charge IF HIGHER
To account for increase in port charges, the arrastre charges to be
observed in the Automated Customs Operations System (ACOS) for AC = Rate x MT
Customs assessment purposes shall be:

59 60

3
 10/21/2021

IMPORT PROCESSING FEE (IPF)

FCL Arrastre Charge Rates
PER SCHEDULE OF RATES AS TABULATED IN

1x20- P4025 CAO 2-2001 BASED ON TOTAL DUTIABLE VALUE PER SHIPMENT.

1x40 - P9881 Footnote, TCCP ( p. 14):

Consular Invoice requirement over P 10,000.00 in dutiable value, abolished by P. D. 1679.
Authentication requirement of commercial invoice ABOLISHED by E. O. 736 and provided
instead IMPORT PROCESSING FEE.

AC = Rate x No. of Containers CAO 2- 2001:

Rates of Customs Fees and Charges

I. IMPORT PROCESSING FEES (for Formal / Informal Entries)

DUTIABLE VALUE OF SHIPMENT RATE
Up to P250,000.00 P 250.00
Over P250,000.00 to P500,000.00 P 500.00
Over P500,000.00 to P750,000.00 P 750.00
Over P750,000.00 P 1,000.00
61 66

COMPUTATION OF TOTAL DUTIES / TAXES AND

COMPUTATION OF TOTAL LANDED COST (LC) AND VAT:
OTHER CHARGES:
COMPONENTS ( BY SEA ONLY )
1. Dutiable Value (DV)
BASIS
CMTA 700-708, CMO 22-2007/ CAO 4-2004
CMO 25-95, Sec. 2.3:
2. Customs Duty (CUD) AHTN
3. Bank Charges (BC) (1/8 of 1% x DV or 0.00125 x DV) It shall be the responsibility of the importer to determine the amount payable to AAB and
4. Brokerage Fee (BF) CAO 1-2001 declare the same, together with the amount of the advance deposit he is deducting from the
*5. Wharfage Due (WD) CMO 26-95/ CMO 4-2006 (By sea Shipment only) amount payable.
*6. Arrastre Charge (AC) CMO 26-95 C (By sea Shipment only)
7. Customs Documentary Stamp (CDS) fixed at P280.00 (CAO No. 1-94) The following declaration shall be made in the “ FREE DISPOSAL” portion at the back of the
8. Import Processing Fee (IPF) CAO 2-2001______________ working copy of the IEIRD.
SUMMARY
Total Landed Cost (LC)- P xxx,xxx.xx
CUD ----- P XX,XXX.XX
12% VAT Rate 0.12
VAT ----- P XX,XXX.XX
Value Added Tax (VAT)- (Sec. 107, NIRC as amended by RA 9337)
(Box 47/53, IEIRD/SAD) IPF ----- P XXX.XX
CSF ----- P XXX.XX
NOTE: if by AIR, LC is computed by excluding Arrastre Charge and Wharfage Due. TOTAL ----- P XX,XXX.XX
LESS: ADVANCE DEPOSIT – P X,XXX.XX
NET AMOUNT PAYABLE ----- P XX,XXX.XX

70 71