VHINPH - Freight and Insurance

Rule 1: If no freight charges is indicated in the commercial invoice or if included in the invoice but no separate value was allocated for the freight charges, then the freight charges appearing in the B/L or AWB shall be deemed as the dutiable freight.

Rule 2: If the freight charges appears in both the commercial invoice and B/L or AWB, then the dutiable freight is whichever is higher between the freight per invoice and the freight charges per B/L or AWB.

Important Note: To determine the FOB/FCA VALUE of a shipment ALWAYS deduct the Freight indicated in the commercial invoice(e.g.CFR – FRT/INV). But if to determine the dutiable value (CIF/CIP), ALWAYS add the HIGHER Freight.

Rule 3: If the freight charges does not appear in both the B/L or AWB and invoice, then the freight charges declared in the SAD or entry shall be deemed the dutiable freight.

• If the Gross Conference Rate (GCR) or IATA Rate is given, the freight per SAD should not be lower than 70% of the GCR or IATA Rate.

Rule 4: For bulk shipments chartered by the shipper, the dutiable freight shall be the freight charges indicated in the charter party/bare boat agreement whereby a certified true copy of which, together with the stowage plan, shall be attached to the working copy of the SAD/Entry.

Rule 5: For bulk or general cargo shipments consigned to the National Food Authority (NFA), the dutiable freight shall be the actual freight charge provided it shall not be lower than 10% of the CFR value of the imported commodity.

Rule 6: For refrigerated shipments, the dutiable freight shall be the actual freight paid supported by a certification from the shipping lines as to the actual freight paid. If no certification is presented to the BOC, then the dutiable freight shall not be lower than the following freight rates if originating from specific countries:

Rule 6: For refrigerated shipments

Port of Origin 20 Footer 40 Footer

China

Guangzhou $1,300.00 $1,700.00

Xiamen $1,500.00 $1,800.00

Shanghai $1,800.00 $3,200.00

Dalian $1,350.00 $1,680.00

Freight charges Cars:

From Germany & Euro Countries $950.00

From Japan & other Asian Countries $600

From United States of America

West Coast $ 1,002.00

East Coast $ 2,004.00

From Middle East $ 600.00

20 Footer 40 Footer

China

From Hongkong $800.00 $1,600.00

From Singapore w/BAF) $970.00 $1,990.00

From Los Angeles, USA $3,050.00 $6,100.00

Arbitrary Freight charges Motorcycles and Scooters:

From Germany & Euro Countries $ 276.00

From Japan & other Asian Countries $ 180.00

From United States of America

West Coast $ 300.60

East Coast $ 601.20

From Middle East $ 180.00

DUTIABLE INSURANCE

Rule 1: If the terms of shipment is either CIF or CIP, the amount of actual insurance premium indicated as a separate value in the INVOICE shall be deemed the dutiable insurance even if lower than 2% (General Cargo) or 4% (Dangerous Cargo) of the FOB value. In cases where the insurance premium is not indicated as a separate value in the invoice, then the dutiable insurance shall be 2% (Gen. Cargo) or 4% (Dangerous Cargo) of the FOB value.

Rule 2: If the importation is covered by a local or domestic insurance, the dutiable insurance shall be the actual insurance premium paid provided a certification AND official receipt (O.R.) as to the premium paid, was presented to the BOC. In the absence of said certification and O.R., the local insurance premium shall not be lower than 2% (General Cargo) or 4% (Dangerous Cargo) of the FOB value.

Rule 3: For shipments not covered by any local insurance, then the amount of insurance premium declared in the entry is deemed the dutiable insurance provided such insurance shall not be less than 2%(Gen. Cargo) or 4% (Dangerous, Inflammable, Chemicals and other High Risk Cargoes) of the FOB value.

Rule 4: For direct importations by the government, the original copy of the marineopen policy issued by the Government Service Insurance System (GSIS) together with a true copy shall be presented to the BOC. Thedutiable insurance shall be based on the actual GSIS insurance premium paid.

A. If insured by a surety company other than the GSIS, apply the provisions of Rule 2;

B. If not covered by a local insurance, apply the provisions of Rule 3.

Customs Memorandum Order 22 - 2007 DUTIABLE FREIGHT

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