In the Absence of a Shipping lines

[ REEFER RATES ]
certification, the following freight charges
may be used.
FROM CHINA 20” 40”
Guangzhou 1,300 1,700
Xiamen 1,500 1,800
Shanghai 1,800 3,200
Dalian 1,350 1,680
FROM HONGKONG 800 1,600
FROM SINGAPORE 970 1,990
FROM LOS ANGELES, 3,050 6,100
USA

GENERAL CARGO (2%) DANGEROUS CARGO (4%)

CIF−FRT CIF−FRT
a. FOB = 1.02
a. FOB = 1.04

b. INS = 0.02 x FOB b. INS = 0.04 x FOB

a. FRT/BL

b. FRT/BL vs. FRT/INV, whichever is higher

c. FRT/SAD vs. 70% of GCR/IATA, whichever is higher

d. Actual FRT vs. 10% of CFR (NFA), whichever is higher

e. FRT/BL vs. Reefer Rates (IF NO CERTIFICATION)

OTHER FORMULAS:

LANDED COST: DUTIABLE VALUE:

LC = DV + CUD + ME LC−ME
DV = (1 . R / D)
VAT
LC = .12 CUD
DV = R /D
LC = ET – VB (With ET) DV ∧CUD
LC∧VAT
DV = (1 . R/ D)
LC = 1 .12
BC
DV = 0.00125

VALUE-ADDED TAX DV =
BF−5,050
0.00125
VAT = LC x .12
VAT = VB x .12
NOTE: IF THE IMPORTATION IS
E.T = VB – LC
SUBJECT TO EXCISE TAX, THE
AMOUNT OF E.T SHALL BE ADDED TO VB = LC + E.T
THE LC FIRST BEFORE MULTIPLYING
TO 12% IN ORDER TO GET THE VAT

MISCELLANEOUS EXPENSE CANNOT BE USED IN

PRO-RATA
FORMAL ENTRIES
1. Bank Charge (BC) a. Rate of Duty
2. Brokerage Fee (BF)
b. Landed Cost
3. Wharfage Due (WD)
4. Arrastre Charge (AC) c. Value-Added Tax
5. Customs Documentary Stamp (CDS) d. Customs Duty
6. Import Processing Fee (IPF)
e. Exchange Rate
INFORMAL ENTRIES
1. Brokerage Fee (BF) = 700.00 NOTE: Hindi pwede ilagay sa equation
2. Customs Doc. Stamp = 30.00 pero pwede makuha using other terms
BROKERAGE FEE – FORMAL/WAREHOUSING ENTRIES &
TRANSSHIPMENT
DUTIABLE VALUE OF THE RATE
SHIPMENT
Up to P10,000.00 1,300.00
Over P10,000.00 to P20,000.00 2,000.00
Over P20,000.00 to P30,000.00 2,700.00
Over P30,000.00 to P40,000.00 3,300.00
Over P40,000.00 to P50,000.00 3,600.00
Over P50,000.00 to P60,000.00 4,000.00
Over P60,000.00 to P100,000.00 4,700.00
Over P100,000.00 to P200,000.00 5,300.00

OTHER SERVICES OF A CUSTOMS BROKER

1. Shipside Permit 1,300.00
2. Transfer Permit 1,300.00
3. Withdrawal Entry
a. Complete Withdrawal 2,000.00
b. Partial Withdrawal 1,500.00

IMPORT PROCESSING FEE – RATE FOR FORMAL ENTRIES ONLY

DUTIABLE VALUE RATES
Up to P250,000.00 250.00
Over P250,000.00 to P500,000.00 500.00
Over P500,000.00 to P750,000.00 750.00
Over P750 1,000.00

Net / Unit Traditional Hybrid

Sched 1: Up to P600,000.00 4% ISP 2% ISP
Sched 2: Over P600,000.00 10% ISP 5% ISP
To 1,000,000.00
Sched 3: Over P1,000,000.00 20% ISP 10% ISP
To 4,000,000.00
Sched 4: Over P4,000,000.00 50% ISP 25% ISP
SCHEDULE OF AVT RATES (BRANDNEW & USED)
NOTE: If the problem is “SILENT” considered as Traditional
Auto

FORMULAS / EQUATION ON SURCHARGES

a. % Difference b. Amount

Asf −Asd SC = D&T x 2.5 or 5

% DF = Asf

Formula: D&T = CUD + VAT + E.T

 PERMISSIBLE DEDUCTIONS
1. Charges for construction, erection, assembly, maintenance, or
technical assistance, undertaken after importation.
2. Cost of transport after importation
3. Duties, Taxes and Other Charges paid for the imported goods
4. Cash, Trade, Volume Discounts
5. Marketing and Advertising Expenses

These charges are only deducted to the PAPP if:

1. They were included in the seller’s quotation or invoice
2. There is an objective and quantifiable data as basis for such

deduction
% Pf to AC % Pf to Pf
% Pf Just remove the decimal
2

Ex: .80 = 80
AC x 2 Pf to % Pf
Put decimal (2 places)

Ex: 80 = .80

MANDATORY ADDITIONS
C – Commissions and Brokerage Fees
A – Assists
R – Royalties and Fees
P – Packing and Container Costs
P – Proceeds
I – Insurance
T – Transportation Costs
NOTE: Do not add if included na sa PAPP
 VAT-EXEMPT TRANSACTIONS
1. Personal belongings of OFWs and persons coming to
settle in the PH
2. Fuel, goods, supplies by international shipping and air
transport operators
3. Raw Agricultural and marine products
4. Educational service books
NOTE: Take Note that if the problem asks for the amount of
VAT, the LC costs of these products shall still be multiplied by
12% --- EXEMPTED if asks for amounts payable
INCOTERMS
EXW = Cost of Goods
FCA = EXW + Other Charges
FAS = EXW + Other Charges
FOB = EXW + Other Charges
CFR = FOB + FRT
CIF = FOB + FRT + INS
CPT = FCA + FRT
CIP = FCA + FRT + INS
DPU = FOB/FCA + FRT + Destination Other Charges
DAP = FOB + FRT + Destination Other Charges
DDP = FOB + FRT + Other Charges (+ Duties)

FOR OUTPORTS FOR MAJOR PORTS

ARRASTRE CHARGE  Based on CMO 07 – 2014
a. 8.00 per MT (Shipside) for the rates.
 b. 110.00 per MT (Pierside)
c. As declared, If higher
WHARFAGE DUE
a. 17.00 per MT (Shipside)
b. 34.00 per MT (Pierside)
1. DUTIABLE VALUE
DV = CV + FRT + INS
2. CUSTOMS DUTY
CUD = DV x R/D
3. BANK CHARGE
BC = 0.00125 x T. DV in P
[computed only pag may L/C or
IED attached]
4. BROKERAGE FEE
BF = 0.00125 x T. DV + 5,050 FORMAL = Table
[If the DV is above 200,000]
FORMAL = Table
INFORMAL = 700.00
Major Ports:
 MICP (Manila International
Container Port)
 Port of Manila / South
Harbor
 NAIA [not included]
6. ARRASTRE CHARGE
Refer to the CMO 7 – 2014
7. CUSTOMS
DOCUMENTARY STAMP
- No computation
FORMAL = 280.00
INFORMAL = 30.00
8. IMPORT PROCESSING FEE
- No computation
INFORMAL = No IPF
9. VALUE-ADDED TAX
EXPORT = ½ of the rates VAT = LC x .12 (if no ET)
VAT = VB x .12 (if with ET)
5. WHARFAGE DUE
Refer to the CMO 7 – 2014

LANDED COST