DOF: Cigarette, liquor imports worth less than P10,000 still not tax-free

Small quantities of cigarettes and liquors brought into the country would still be slapped an excise tax, the Department of Finance clarified Wednesday.

In a statement, Finance Undersecretary Antonette Tionko said the recently issued Customs Administrative Order (CAO) No. 2-2016 that raised the tax-exempt value of non-commercial imports to P10,000 still provided that de minimis importations of tobacco goods, wines and spirits remained subject to excise tax, pursuant to the Tax Code.

Finance Secretary Carlos G. Dominguez III and Customs Commissioner Nicanor E. Faeldon signed CAO 2-2016 in September. CAO 2-2016 is one of the guidelines implementing Republic Act No. 10863 or the Customs Modernization and Tariff Act (CMTA).

In Customs Memorandum Order (CMO) No. 28-2016 subsequently issued by the Bureau of Customs on Nov. 14, Faeldon clarified that “importations of wines, spirits and tobacco, whether by air or sea, or bought from an establishment other than from Duty Free Philippines, shall be subject to excise tax regardless of value.”

According to Faeldon, “purchases of 200 cigarettes or 50 cigars and two liters of wine or one liter of spirits brought in by passengers shall not be subject to duty or tax, provided that these products fall within the de minimis value.”

In general, “any imported goods which exceeded the de minimis value shall be dutiable and subject to tax for the full dutiable amount,” CMO 28-2016 read.