Guide For Shipping Car To Philippines

Shipping a car to the Philippines is a complex process that involves navigating strict government regulations, hefty taxes, and detailed documentation. Whether you’re a business importing vehicles for commercial use or an individual bringing in a personal car, understanding the rules is crucial to avoid delays, penalties, or unexpected costs. This article outlines the two primary frameworks when shipping car to Philippines, breaking down the process into clear, actionable steps.

Further Reading: Understanding International Shipping Regulations and Customs Policies

Commercial Vehicle Importation

This framework applies to registered business entities importing brand-new vehicles for resale, fleet use, or other commercial activities.

Importer Requirements

• Must be a registered business with the Department of Trade and Industry (DTI)
• Must be an accredited importer with the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR)

Mandatory Documentation

• DTI Certificate of Accreditation for vehicle importation
• BIR Importer’s Clearance Certificate (ICC)
• BOC Certificate of Registration (COR)
• Commercial Invoice
• Bill of Lading (B/L) or Air Waybill (AWB)
• Packing List
• Import Permit

Note on Used Vehicles

Shipping a used car to the Philippines for commercial purposes is heavily restricted under Executive Order No. 877-A, with only rare, specific exceptions permitted.

Personal Vehicle Importation

The No-Dollar Importation Program allows eligible individuals to ship a car to the Philippines for personal use, often as part of broader relocation services. A tax exemption applied only to the “personal and household effects” portion, not the vehicle itself.

Eligibility Criteria

• Returning Filipino citizens who have resided abroad for at least one year
• Foreign nationals with specific visa types (e.g., 13a, 13g, SRRV)

Vehicle and Ownership Conditions

• The vehicle must be Left-Hand Drive (LHD)
• It must be registered in the importer’s name for at least six months before applying for the import permit
• The vehicle must have been purchased with funds earned abroad
• It cannot be resold for at least three years

Mandatory Documentation

• Certificate of Authority to Import (CAI) from the Bureau of Import Services (BIS), obtained before shipping the car to the Philippines
• Original vehicle title and registration certificate
• Proof of foreign earnings
• Deed of Sale or Commercial Invoice of the vehicle
• Passport

Taxes and Duties

Shipping car to Philippines involves significant costs, primarily driven by taxes. Said tax is calculated based on the vehicle’s book value—a standardized value determined by customs, not the price you paid. This distinction is crucial for budgeting.

Tax Breakdown (Applied Sequentially)

• Customs Duty: 40% of the Customs Value
• Ad Valorem Tax: A tiered excise tax ranging from 15% to 100%, based on the Customs Value
  • Up to ₱600,000 – 15%
  • Over ₱600,000 to ₱1,100,000 – 30%
  • Over ₱1,100,000 to ₱2,100,000 – 60%
  • Over ₱2,100,000 – 100%
• Value Added Tax (VAT): 12% of the total of Customs Value + Customs Duty + Ad Valorem Tax

Illustrative Example

For a sedan with a book value of $20,000:

• Customs Duty: $20,000 × 40% = $8,000
• Ad Valorem Tax: $20,000 × 60% = $12,000
• Value Added Tax: $(20,000 + 8,000 + 12,000) x 12% = $4,800

Total taxes and duties payable would sum up to be $24,800. This is before factoring in other expenses, as detailed below.

Additional Costs

• Freight and cargo insurance charges for shipping the car to the Philippines
• Brokerage fees
• Port fees (arrastre, wharfage, warehousing)
• Land Transportation Office (LTO) registration fees

Shipping Process

Shipping a car to the Philippines requires careful planning to ensure the vehicle arrives safely and clears customs without hitches. The logistics begin with choosing the right shipping method and end with the vehicle safely stored at the port, ready for clearance. Here’s how it works:

Shipping Method

When shipping a car to the Philippines, you have two primary options, each with its trade-offs:

• Roll-on/Roll-off (RoRo): The car is driven onto and off a specialized vessel. This method is cost-effective and widely used for operational vehicles. It’s straightforward but exposes the car to the elements during transit, which could be a concern for high-value vehicles.
• Container Shipping (Full Container Load, FCL Shipping): The car is secured inside a dedicated container, offering greater protection against weather, theft, or damage. This is ideal for luxury, vintage, or non-operational vehicles but comes at a higher cost. Containers also simplify tracking and reduce handling risks at ports.

Your choice depends on the car’s value, condition, and your budget. RoRo is the go-to for most, but FCL is worth considering for peace of mind with pricier vehicles.

Compliance

Before shipping a car to the Philippines, ensure all documentation is in order. For example, the Bill of Lading (B/L) is the cornerstone document, serving as both the contract of carriage and proof of ownership. It details the vehicle’s origin, destination, and specifics like the Vehicle Identification Number (VIN). Incomplete or inaccurate documentation may result in the car being held or rejected upon arrival.

Further Reading: The Importance of Accurate Documentation in Customs Clearance

To better make sense of the legal jargon, we advise you to reach out to reputable logistics professionals, such as Express Freight Management. Confirm the freight forwarder’s experience with Philippine ports and their compliance with international shipping standards. Freight and insurance costs vary based on distance, vehicle size, and shipping method, so request detailed quotes upfront.

Further Reading: How to Choose the Right Freight Forwarder for USA–ASEAN Shipping

Post-Arrival

Clearing a car through customs and registering it for road use in the Philippines is where the process gets intense. Every step requires precision, as errors can lead to fines, delays, or even vehicle seizure. Here’s the breakdown:

• Filing of Entry
  • A licensed customs broker submits an Import Entry and Internal Revenue Declaration to the BOC. This document compiles all required paperwork, including the Bill of Lading, Commercial Invoice (for commercial imports), or CAI (for personal imports). The broker acts as your intermediary, ensuring compliance with BOC regulations. Choosing an experienced broker familiar with vehicle imports is critical for a smooth customs clearance
• Vehicle Inspection
  • The BOC examines the vehicle to verify its details (VIN, specifications) against the import documents. Any discrepancies can trigger penalties or additional scrutiny, so ensure your paperwork is airtight.
• Assessment and Payment
  • The BOC calculates and issues a final assessment of duties and taxes, which must be paid in full. This is typically done via bank transfer to the BOC’s designated account. Delays in payment can incur storage fees or interest.
• Release of Vehicle
  • After payment confirmation, the BOC issues a release order. Your broker or shipping agent coordinates with the port to retrieve the vehicle. At this point, you’ll settle any outstanding port fees, such as arrastre (handling) or wharfage (storage).
• LTO Registration
  • The vehicle must be registered with the Land Transportation Office (LTO) to be legally driven on Philippine roads, requiring all original import and customs payment documents. Registration fees vary based on the vehicle type and region.

Conclusion

Shipping a car to the Philippines is a detailed process requiring careful preparation, from selecting a shipping method to navigating customs and LTO registration. By understanding the regulations, securing proper documentation, and working with experienced professionals, you can avoid costly setbacks. Plan ahead, stay organized, and your car will be ready to hit the roads of the Philippines.

For nearly two decades, Express Freight Management has been the trusted partner for businesses shipping between the United States and Southeast Asia. We handle the technological complexity for you, managing everything from carrier selection and customs clearance to warehousing. Discover a streamlined approach to logistics with Express Freight Management for your shipping needs between the United States and Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam today!