Imported books exempted from customs duties, VAT—DoF

MANILA, Philippines—Books brought in from abroad, whether for personal or commercial use, are exempt from customs duties and the value-added tax, the Department of Finance said.

The DoF has issued an order clarifying this matter following the Philippines’ commitment with the United Nations through the so-called Florence Agreement, formally known as the Agreement on the Importation of Educational, Scientific, and Cultural Materials.

But Department Order No. 57-2011, dated Dec. 9, 2011, states that shipments of books “should be cleared and released through the required declaration of goods as provided under existing rules and regulations.”

“This declaration of goods form is part of the normal process in importing goods wherein you declare anything that you will bring in to the Philippines,” Finance Secretary Cesar V. Purisima explained.

The Philippines in 1979 signed the Florence Agreement – initiated by the UN Educational, Scientific and Cultural Organization (Unesco) – with the commitment that it would not apply customs duties or other charges on “educational, scientific and cultural materials” such as books and newspapers.

Based on the DoF order, books that are for “personal use” are those “embracing all articles of personality not considered as merchandise” and should not exceed 12 copies of any one work when imported by an institution or six copies when imported by an individual.

Beyond that, shipments are considered of “commercial quantity,” for which importers must first present an endorsement from the DoF certifying that the cargo is indeed granted tax and duty exemptions.

Documents needed to secure such endorsement include bill of lading, commercial invoice, packing list with title of books, affidavit to the effect that the shipment consists of books, certification from the Unesco Office in the Philippines, and registration certificate with the National Book Development Board (NBDB) as book importer or publisher.

In case of donated books, a deed of donation duly authenticated by the Philippine Consulate abroad and deed of acceptance must be provided, the order stated. An authority is also required should the consignee assign a representative to facilitate the books’ release.

In 2009, the NBDB protested when the DoF issued an order that resulted in the imposition of duties on imported books.

Then Finance Secretary Margarito B. Teves suspended the order, which he said was intended to remove discretion among customs officers, increase transparency, and improve accountability in the duty-free importation of books.