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COMPUTATIONS AND FORMULAS
FOR DUTIABLE VALUE
Cost (FOB or FCA)
Dutiable Freight
Dutiable Insurance Premium
FOR LANDED COST
Taxable Value (Dutiable Value)
Customs Duty
Miscellaneous Expense
BASIS OF DUTIABLE VALUE
FOB + Insurance + Freight
= Customs Value x Rate of Exchange
= Dutiable Value in Peso x Rate of Duty
= CUSTOMS DUTY
TRANSACTION VALUE
Price Actually Paid and Payables (Art. I)
(+) Adjustment (Art. VIII)
(-) Permissible Deduction
= Transaction Value
TAXABLE VALUE (Components)
Dutiable Value
+ Bank Charges (LC Required)
+ Customs Duty
+ Brokerage fee
+ Wharfage Due (Sea only)
+ Arrastre Charges (Sea only)
+ Customs Documentary Stamp
+ Import Processing Fee
= LANDED COST
+ Excise Tax (If excisable Shipment)
+ Ad Valorem Tax ( For Motor Vehicle)
= VAT Base (Total Landed Cost) x 12% VAT Rate
= Value Added Tax (VAT)
SUMMARY
CUSTOMS DUTY
+ VALUE ADDED TAX
+ EXCISE TAX
+ AD VALOREM TAX
+ IMPORT PROCESSING
= TOTAL DUTIES/TAXES DUE TO GOV'T.
PRORATIONS
Total Fob/Ins/Frt/DC
(Devide by) Total Term of Shipment
= Factor X Individual Fob(per item)
= Individual Fob/Insurance/Frt/DC
Ind. Fob/Ins/Frt/DC
(Devide by) Total Term of Shipment
= Factor X Total Fob/Ins/Frt/DC
= Individual Total Fob/Ins/Frt/DC
BROKERAGE FEE/BANK CHARGES/MARKING/INSURANCE
SHORTCUT FORMULAS: (If total DV is more than Php.200,000.00)
1. T. BF = (0.00125 )(T.DV) + Php 5,050.00 (fixed)
2. T. BF = T.DV – 200,000 x 0.00125 + Php5,300.00 (fixed)
3. T. BF = DV ÷ 800 + 5,050
Bank Charges
BC = Dutiable Value ÷ 800
BC = Dutiable Value x .00125
Cost of Repair:
Added Component Amount + Insurance + Freight
= Dutiable Value x Exchange Rate
= Dutiable Value in Peso x Rate of Duty
= Customs Duty
Marking Duty Dutiable Value x 5%
(SECTION 710.Marking of Imported Goods and Containers )
Insurance Premium
CIF – Frt = C&I = C&I / 1.002 (0.004)
= FOB X .002/.004 = INSURANCE
BACKWARD FORMULAS
To solve for Customs Duty
Total Landed Cost – Total Misc. Expense
= Dutiable Value & Customs Duty / Rate of Duty
= Dutiable Value x Rate of Duty
= Customs Duty
MoTOR VEHICLES
VAT / .12 = VAT Base (CD/AVT/MISC)
VAT Base - M.E. = DV/CD
DV/1.RD = Dutiable Value
To derive LC/MSP under Backward Approach
Category 1 (Up to P600T) Landed Cost/Manufaturer's Selling Price = AVT per unit / .04
Category 2 (More than P600T up to 1M Landed Cost/Manufaturer's Selling Price = AVT per unit /.10
Category 3 (More than P1 M up to 4M Landed Cost/Manufaturer's Selling Price = AVT per unit / .20
Category 4 (More than P4M) Landed Cost/Manufaturer's Selling Price = AVT per unit / .50
Short Cut Formula in Determining MSP/ISP or LC (in case of local sale)
AVT Range per unit MSP Determination
Sch.1. AVT is Php24,000 & below MSP = AVT per unit / 0.04
Sch.2. AVT is above Php24,000 up to Php100,000 MSP = AVT per unit / 0.10
Sch.3. AVT is above Php100,000 up to Php800,000 MSP = AVT per unit / 0.20
Sch.4. AVT is above Php800,000 MSP = AVT per unit / 0.50
Other important considerations:
1. If freight charge is NOT given, use arbitrary freight rates in the country of origin
2. If miscellaneous expense is NOT given, you will have to itemize the charges (eg bank charges, arrastre, etc)
3. For local purchase of used motor vehicles, miscellaneous expense is P280.00
4. 9 seater and below, 30% rate of customs duty
5. 10 seater and above, 20% rate of customs duty
6. For used motor vehicle and brand new consigned to an individual, AVT shall be based on LC
7. For local purchase, freight and insurance premium shall NOT be included in the dutiable value.
8. No IPF shall be collected on local purchase of used motor vehicle
Note : In case of motor vehicles that are imported for personal use or those imported under the POV scheme, not intended for sale, the excise tax (AVT), if any, shall be computed based on the total landed cost
SPECIFIC TAX
DISTILLED SPIRITS = P52.00 / 22% AVT RATE
Volume Capacity /Factor = Liter X no. of Bottles
= Gauge Liter. X ( Alcohol Content X 2 / 100 )
= Proof Liter X Specific tax rate
= Specific Duty
How to get Proof Liter
Specific Tax Rate / Rate of Tax = Proof Liter
Specific Tax = G.L. / bottles = Liter
How to get Rate of Tax
Specific Tax / Proof of Liter
= Rate of Tax
WINES / FERMENTED LIQOUR
Volume Capacity /Factor = Liter X no. of Bottles
= Gauge Liter X Tax rate
= Specific Duty
Excess of 750 ml = NRP /750 ML = Percentage X 750
= Percentage/ ---- Apply rate / NRP VC
To determine Net Retail
Specific Tax / Alcohol Content = NRP
To determine Alcohol Content:
Proof Liter / Gauge Liter = Alcohol Content
Guage Liter / 2x100 = Alcohol Content
OTHERS
Fireworks: Specific Tax = 30.00/kgs
Cinematographic Film
Linear meter X rate (.70/L.M)
= Specific Duty
Sugar (Specific Tax)
No. of Liters x Excise Tax Rate
= Excise Tax
MATCHES
Safety Matches: 144 pcs./boxes = 1 gross
No. of Sticks / 80 = Total / Box X 0.50/Box
= Total Matches + Total Excess
= Price per Box
Excess or cents x 80
No. of Sticks x .0000434
= Total Excess
CMTA UNDER CAO No. 1-2020
SEC. 1400, CMTA UNDER CAO No. 1-2020
MISCLASSIFICATION (As to rate of duty) -
Rate of Duty as found – Rate of Duty as declared
= Difference / As Found = Percentage Difference
MISDECLARATION (As to Quantity)
Value as found – Value as declared
= Difference / Value as Found = Percentage Difference
UNDERVALUATION (As to Value)
Value as found – Value as declared
= Difference / Value as Found = Percentage Difference
SURCHARGE
Summary of Duty and Tax
Customs Duty
Value Added Tax
Total Duties and Tax
x Surcharge Rates
= SURCHARGE (Base on Total Duties and Tax)
SEC. 104 CMTA
When Duty and Tax are Due on Imported Goods
Formula:
Legal Interest per Annum 20% / 360 Days
= Legal Interest per day x No. of Days
= Total Legal Interest x Unpaid Additional Duty and Tax
= Total Amount of Legal Interest
SEC. 714
Discrimination by Foreign Countries
Formula:
Dutiable Value x 100%
= Across the board duty (DV)
SEC. 800
Conditionally Tax and/or Duty-Exempt Importation
(y) Goods exported from the Philippines for repair, processing or reconditioning
Formula:
Added Component Amount + Insurance + Freight
= Dutiable Value x Exchange Rate
= Dutiable Value in Peso x Rate of Duty
= Customs Duty
How to get Value as found
Value as declared / 100% - Perc.difference = VAF
Value as declared x Perc. Difference = VAF
How to get Amount of Penalty
Customs Duty / Rate of Duty = D / V + C/ D = L/C x Rate of fines = PENALTY
How to get Value as Declared
Value as found x (100% - percentage difference) = VAD
Substantial Transformation:
RVC = FOB Price - Value of Non-originating Materials /FOB Price x 100%
Storage: (5 Days Free Storage last cargo discharge)
No. of Days x Rate x No. of Containers
Exclude the 1st Day Include the Last Day
SAFEGUARD MEASURES
SSG Determination
0% to 10%
No Safeguard Duty
10% to 40%
(.30 x Percentage Difference) Less (0.03 x Trigger Price)
40% to 50%
(.80 x Percentage Difference) Less (0.23 x Trigger Price)
50% to 75%
(1.50 x Percentage Difference) Less (0.65 x Trigger Price)
More than 75%
(2.40 x Percentage Difference) Less (1.325 x Trigger Price)
COUNTERVAILING
Total Benefit (grant) / Useful Life of Asset
= Amount of Benefit
DUMPING DUTY:
Normal Value - Export Value
= Difference / Export Value
= Percentage Difference
Dumping Margin
DM = NV-EP or if expressed as % DM
= NV-EP / EP
ALTERNATIVE COMPUTATION
Retail Price / 1.20
= Domestic Wholeselling Price /1.25
= Buyers Price / 1.10
= Landed Cost / 1.% Rate of Duty
= Dutiable Value in Peso / Exchange Rate
= DUTIABLE VALUE in $
CONVERSION
Cbm x 35.31445 = CUF / 40
= Revenue Ton x Rate
Kilos to Pounds = Kilos/2.2
Lbs. X .4536 = Kilograms /1000
= Revenue Ton x Rate
ARRASTRE CHARGES
Containerize = No. of Container/s x Rate
LCL = No. of bd. Ft/MT/RT x Rate
NOTES for LCL Shipments:
Board Feet Formula = Thickness(inch) x Width(inch) x Length(ft) divide by 12
2. Heavy Lift Rate is determined by getting the Gross weight per unit in Metric Ton.
Rates as per CMO 26-95C
Pierside = No. of MT x Php110.00
Shipside = No. of MT x Php8.00
As Declared, if HIGHER
WHARFAGE
Containerize =No. of Container/s x Rate
LCL = No. of MT/RT X Rate
Rates as per CMO 26-95
Pierside = No. of MT x Php34.00
Shipside = No. of MT x Php17.00
As Declared, if HIGHER
Wharfage Due Private Port (Shipside Only)
Rate as per CMO 4-2006
Php18.325 x No. of MT
INCOTERMS FORMULAS
SUMMARY OF FORMULAS (SEA)
FAS = EXW + O/C
FOB = EXW + O/C
CFR = FOB + FRT, EXW + O/C + FRT
CIF = FOB + FRT + INS, EXW + O/C + FRT
SUMMARY OF FORMULAS MULTI-MODAL (SEA OR AIR)
EXW = Cost of Goods
FCA = EXW + O/C
CPT = FCA + FRT, EXW + O/C + FRT
CIP = CPT + INS, FCA + FRT + INS, EXW + O/C + FRT + INS
SUMMARY OF FORMULAS MULTI-MODAL (SEA OR AIR)
DAP = FCA + FRT + Des. O/C, EXW+ Or. O/C + FRT + Des. O/C
DPU = FCA + FRT + Des. O/C, EXW+ Or. O/C + FRT + Des. O/C
DDP = FCA + FRT + Des. O/C, EXW+ Or. O/C + FRT + Des. O/C + D/T
" Do Not Count How Many Times You FALL! But Count How Many Times You RISE From The Time You FALL ! "
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