IMPORTATIONOFUSEDITEMS

By:DomingoG.Castillo

I. IMPORTPROCEDURESANDDOCUMENTATIONS A. ImportersAccreditationwiththeBureauofCustoms(BOC)

EveryimportermustbeaccreditedwiththeBOC.Theimportersaccreditationwillbevalidforaperiod of one (1) year which accreditation may be renewed by filing an application for itsrenewalatleastthirty(30)dayspriortothedateofexpiration.AnapplicationforaccreditationintheprescribedformmustbefiledwiththeBOCsupportedbythefollowingdocuments:

1. Special Power of Attorney (in case of representative applicant) or Board Resolution ofauthorizedrepresentative(forCorporations);

2. BureauofCustomsOfficialReceipt(BCOR)evidencingpaymentofregistrationfee;

3. PrintedClientProfileRegistrationSystem(CPRS)Applicationprofile;

4. MayorsPermitandBarangayClearance(BusinessPermits);

5. Bureau of Internal Revenue (BIR) Tax Identification Number (TIN) and/or VAT (nonVAT)Certificate;

6. ValidIDandCommunityTaxCertificate(CTC)ofapplicant;

7. Securities and Exchange Commission (SEC) Certificate of Registration, Articles ofIncorporationandBylaws (forCorporations);ProofofregistrationwiththeDepartmentofTradeandIndustry(DTI)(forSoleProprietorships);

8. AuditedFinancialStatements(AFS)forthepastyear(ifapplicable);

9. BureauofInvestments(BOI)CertificateofRegistration(ifapplicable);

10. IncomeTaxReturns,CertifiedTrueCopyofVATreturnsforthepast3years(ifapplicable);

11. Proofofownershiporlawfuloccupancyofthebusinesspremises,asthecasemaybe;

12. Proofofutilitybilling;

13. Companyprofilewithpicturesofpremises;

14. Locationmapofprincipalplaceofbusiness;

15. Capitalstructure;

B. LicenseandPermits

Therearethreeclassesof imports inthePhilippinesandtheyarethosecommodities:(i)freelyimportable; (ii) regulated;and (iii)prohibited.Freely importablecommoditiesarecommoditieswhich importation may be effected without the prior approval of or clearance from anygovernment agency. On the other hand, importations that require clearances/permits fromappropriate government agencies belong to the class of regulated commodities. Finally,prohibited commodities fallunder the classof commoditieswhich importation isnot allowedunderexistinglaws.

S Y C IP S ALAZAR H ERNANDEZ & G ATMAITAN

ATTORNEYS-AT-LAW

Page2of2ImportationofUsedItems

With theexceptionof some commoditieswhichare identifiedunderSection104of theTCCPspecificallyasused items,commodities ingeneralarenotdistinguishedastowhethertheyarebrandnew or used. As discussed above, commodities are classified into three based on theextentofgovernment regulation involved in their importation.Therefore, therearenospecialrequirementsfortheimportationofuseditemsascomparedtotheirbrandnewcounterparts.

Forregulatedcommoditieshowever,used itemsmustpassspecificrequirementsprescribedbythe regulatory agencieshaving jurisdictionover theparticular commodity. Table1below listssomeof these regulated commoditieswithan indicationof thegovernmentagency tasked toissuelicensesandpermitsontheirimportation.

Table1.ListofRegulatedCommoditiesRequiringImportPermits

COMMODITY AGENCYISSUINGIMPORTPERMIT

Toys

DepartmentofHealthBureauofHealthDevices

andTechnology(DOHBHDT)

MotorVehicles,Trucks,Motorcycles,Parts

DepartmentofTradeandIndustryBureauof

ImportServices(DTIBIS)

Jukebox,autochanger,opticalmediamanufacturing,replicatingequipment,

partsandaccessories

OpticalMediaBoard(OMB)

FirearmsandAmmunition;Partsand

Accessoriesthereof

PhilippineNationalPoliceFirearmsand

ExplosivesOffice(PNPFEO)

Communications,Telecommunications

equipment,andaccessories

NationalTelecommunicationsCommission(NTC)

Ships,equipment,andparts

MaritimeIndustryAuthority(MARINA)

Recyclablematerialscontaininghazardoussubstances,e.g.electronicassemblies.

DepartmentofEnvironmentandNatural

ResourcesEnvironmentalManagementBureau(DENREMB)

1. MotorVehicles,Trucks,Motorcycles,andParts

Unlikebrandnewvehicleswhicharefreelyimportablesubjecttocertainrequirements,usedmotorvehiclesmayonlybe imported in to thePhilippinesuponpriorauthority to importissuedbytheDTIBIS.

Page3of3ImportationofUsedItems

Section2,Article2of ExecutiveOrder156defines abrandnew vehicle asone that isofcurrentor advance yearmodel in the countryoforiginormanufactureorof yearmodelimmediately preceding year in the country of originormanufacture. The vehiclemust inadditionhaveamileageofnotmore than200kilometersand thevehiclemusthavebeenacquiredbytheimporterfromthedealerasfirstowner.Hence,anyvehiclenotofcurrentoradvanceyearmodelwillbeprocessedasinusedmotorvehicle.

TheusedcommoditiesallowedforimportationuponpriorclearancefromtheDTIBISarethefollowing:

i. usedtruckswithgrossvehicleweight(GVW)of2.5to6tons;

ii. usedbuseswithGVWof6to12tons;

iii. usedtires;

iv. automotivereplacementparts;

v. motor vehiclesnotexceeding3,000 kilogramsGVWbrought inby returning residentsandotherqualifiedindividualsforpersonaluseundercertainconditions

AproperlyfilledupapplicationformmustbefiledwiththeDTIBIS.Additionally,themotorvehicle must be accompanied by a certificate of roadworthiness and a certificate ofcompliancetoemissionstandards issuedbytheauthorizedagency inthecountryoforigin;andthemotorvehiclemustbelefthanddrive.

2. RecyclableMaterials

It is thepolicyof the State to regulate, restrictorprohibit the importation,manufacture,processing, sale, distribution, use and disposal of chemical substances andmixtures thatpresentunreasonableriskand/or injurytohealthortheenvironment.Hence,all importersof recyclablematerials containinghazardous substancesmust first registerwith theDENRandsupplythefollowinginformation:

i. namesandaddressesofwasteimporterandreceivingparties;

ii. typesandquantitiesoftheimportedmaterial;

iii. physicalcharacteristics;

iv. chemicalcharacteristics;

v. justificationfortheimport;

vi. methodsforhandlingincludingcollection,packaging,labeling,transportation,androutewhichmustconformwithinternationallyacceptedstandards;

vii. listingofpersonnelwhowillberesponsibleforsupervisingthecollection,transportandunpackingoftherecyclablematerialsandtheirrespectivequalifications;and

viii.emergency responseplandescribingstepstobetakenbypartiesconcerned incaseofspill/accidentwhichmay occur during transport from the premises of the recyclablematerialgeneratortotheimporter.

Upon a determination by the EMB that the applicant has the capability to recycle theimportedmaterialinanenvironmentallyacceptablemanner,theimporterwillberegistered

Page4of4ImportationofUsedItems

and can now proceed to apply for an Importation Clearance for each shipment of theimportedrecyclablematerialatleastthirty(30)workingdayspriortotheactualimportation.

3. Communications,Telecommunicationsequipment,andaccessories

TheNTC requires an importerof communications equipment to submit a letterof intentindicatingthenameoftheconsignee;itsnatureofbusiness;intentoftheletter;descriptionand quantity of each equipment indicated in the proforma invoice; and purpose of theimportation.TheletterofintentmustbefiledwiththeNTCtogetherwithotherdocumentsandpaymentofthepermittoimportfeesanddocumentarystamptax.

4. FirearmsandAmmunition

Importerswhowish todeal firearmsandammunition includingairgunsmustapply foralicensewith the PNPFEO. In addition to the application for a license to deal in the saidarticles, the importer must write a supplementary letter addressed to the Chief PNPrequestingissuanceofthelicense.

5. Toys

To ensure the safety of Filipino children using locally manufactured or imported toysintended for children, all toys that are imported, distributed and manufactured in thePhilippines must comply with the Philippine National Standards for Safety of Toys. Inaddition,allmanufacturers,distributorsand importersof toys shallapply fora License toOperate (LTO) at the DOHBHDT. Nonfunctional, incomplete, wornout, broken orunsanitary importeddonated toysshallbeprohibitedtoenterthePhilippinesandshallbereshippedtothecountryoforigin.

6. Opticalmediamanufacturing,replicatingequipment,partsandaccessories

Importersofopticalmedia,manufacturing,replicatingequipment,partsandaccessoriesarerequiredtoregisterwiththeOMB.Inadditiontotheregistration, importersofsaidarticlesmust obtain a separate license for each activity which they intend to engage in or areactuallyengagedinandforeachlocationatwhichsuchactivityisbeingundertaken.

7. Ships,equipment,andparts

Persons intending to engage in the importationof ships, equipment, andpartsmust firstobtainanaccreditationwiththeMARINA.Afterobtainingthecertificateofaccreditation,theimportermustthenobtainaseparatepermitfortheimportationofthearticleintendedforimportation.

C. ImportEntry

Uponimportationofthesubjectitems,importersmustfileanimportentryandinternalrevenuedeclarationwiththeBOCwithin30daysfromthedateofdischargeofthelastpackagefromthevessel.ThefollowingdocumentsarerequiredtobesubmittedtotheBOC:

1. ImportEntryandInternalRevenueDeclaration;

2. SupplementalDeclarationonValue(SDV);

3. BillofLading(BL)orAirwayBill(AWB);

Page5of5ImportationofUsedItems

4. CommercialInvoice;

5. PackingList;

6. ProcessingReportForm;

7. CertificateofOrigin(ifapplicable);

8. InsuranceCertificate/Policy(ifapplicable);

9. Duty/Taxexemption(ifapplicable);

10. OtherImportPermits(ifapplicable)

II. VALUATIONOFUSEDITEMS A. ASEANHarmonizedTariffNomenclature(AHTN)

Section104of theTariff andCustomsCodeof thePhilippines (TCCP)provides for theASEANHarmonised Tariff Nomenclature (AHTN). The AHTN is an 8digit commodity nomenclatureadoptedby the ten (10)ASEANmembercountries. Itspurpose,amongothers, is toserveasauniformtariffnomenclaturewithinASEAN.

TheAHTNsforselectedcommoditiesarelaiddowninthefollowingsubsectionsandchaptersofsection104oftheTCCP:

SECTION/CHAPTER DESCRIPTION

SectionXVII Vehicles,Aircraft,VesselsandAssociatedTransportEquipment

Chapter86 Railway or tramway locomotives, rollingstock, and parts thereof;railway or tramway track fixtures and fittings and parts thereof;mechanical(includingelectromechanical)trafficsignalingequipmentofallkinds

Chapter87 Vehicles other than railway or tramway, rollingstock, and parts andaccessories thereof, e.g. motor vehicles principally designed for thetransportofpersons(87.02and87.03),motorcycles(87.11),

Chapter88 Aircraft,spacecraft,andpartsthereof

Chapter89 Ships, boats, and floating structures, e.g. cruise ships (89.01), fishingvessels(89.02),yachts(89.03)

SectionXVI Machinery and Mechanical Appliances; Electrical Equipment; PartsThereof; Sound Recorders and Reproducers, Television Image andSoundRecordersandReproducers,andPartsandAccessoriesofSuchArticles

Page6of6ImportationofUsedItems

Chapter84 Nuclear reactors, boilers,machinery andmechanical appliances; parts

thereof e.g. air conditioning machines (84.15), refrigerators (84.18),calculatingmachines(84.7)

Chapter85 Electricalmachineryandequipmentandpartsthereof;soundrecordersand reproducers, television image, and parts and accessories of sucharticles, e.g. telephone sets (85.17), sound recording or reproducingapparatus(85.19),videorecordingorreproducingapparatus(85.21),

SectionXVIII Optical,Photographic,Cinematographic,Measuring,CheckingPrecision,Medical or Surgical Instruments and Apparatus; Clocks and Watches;MusicalInstruments;PartsandAccessoriesThereof

Chapter90 Optical,Photographic,Cinematographic,Measuring,CheckingPrecision,Medical or Surgical Instruments and Apparatus; Parts andAccessoriesThereof

Chapter91 ClocksandWatchesandPartsThereof

Chapter92 MusicalInstruments;PartsandAccessoriesofsuchArticles

SectionXIX ArmsandAmmunition;PartsandAccessoriesThereof

Chapter93 ArmsandAmmunition;PartsandAccessoriesThereof,e.g.revolversandpistols(93.02),spring,air,orgasguns(93.04).

B. Appraisal

Themethodused for theappraisalof importedarticles fropurposesofcomputing thecorrectdutiesandtaxesisfoundunderSection201oftheTCCP.Theresixmethodsfordeterminingthebasisofdutiablevalueofimports:(1)transactionvalue;(2)TransactionValueofIdenticalGoods;(3)TransactionValueofSimilarGoods;(4)DeductiveValue(5)ComputedValue;and(6)FallbackValue.

Section201oftheTCCPprovides:

Section201. Basis of Dutiable Value. (A) Method One. TransactionValue.Thedutiable valueof an importedarticle subject toanad valoremrateofdutyshallbethetransactionvalue,whichshallbethepriceactuallypaidorpayableforthegoodswhensoldforexportforthePhilippines,adjustedbyadding:

(1) Thefollowingtotheextentthattheyareincurredbythebuyerbutarenotincludedinthepriceactuallypaidorpayablefortheimportedgoods:

(a) Commissionsandbrokeragefees(exceptbuyingcommissions);

(b) Costofcontainers;

(c) Thecostpacking,whetherforlabourormaterials;

Page7of7ImportationofUsedItems

(d)The value, apportioned as appropriate, of the following goods andservices:materials,components,partsand similar items incorporatedintheimportedgoods;tools,dies,mouldsandsimilaritemsusedintheproduction of the imported goods; materials consumed in theproduction of the imported goods; and engineering, development,artwork, designwork, and plans and sketches undertaken elsewherethan in thePhilippinesandnecessary for theproductionof importedgoods,wheresuchgoodsandservicesaresupplieddirectlyorindirectlybythebuyerfreeofchargeoratareducedcostforuse inconnectionwiththeproductionandsaleforexportofthe importedgoods,totheextentthatsuchvaluehasnotbeenincludeinthepriceactuallypaidorpayable;

(e) The amount of royalties and license fees related to the goods beingvalued that the buyer must pay, either directly or indirectly, as aconditionofsaleofthegoodsthataccruesdirectlyor indirectlytotheseller;

(2)Thevalueofanypartoftheproceedsofanysubsequentresale,disposaloruseoftheimportedgoodsthataccruesdirectlyorindirectlytotheseller;

(3)ThecostoftransportoftheimportedgoodsfromtheportofexportationtotheportofentryinthePhilippines;

(4) Loading,unloadingandhandlingchargesassociatedwith the transportoftheimportedgoodsfromthecountryofexportationtotheportofentryinthePhilippines;and

(5)Thecostofinsurance.

Alladditionstothepriceactuallypaidorpayableshallbemadeonlyonthebasisofobjectiveandquantifiabledata.

No additions shall be made to the price actually paid or payable indeterminingthecustomsvalueexceptasprovidedinthisSection:Provided,ThatMethodOne shallnotbeused indetermining thedutiable valueofimportedgoodsif:

(a) Therearerestrictionsastothedispositionoruseofthegoodsbythebuyerotherthanrestrictionswhich:

(i) AreimposedorrequiredbylaworbyPhilippineauthorities;

(ii) Limitthegeographicalareainwhichthegoodsmayberesold;or

(iii) Donotsubstantiallyaffectthevalueofthegoods.

(b) The sale or price is subject to some condition or consideration forwhichavaluecannotbedeterminedwith respect to thegoodsbeingvalued;

(c) Partof theproceedsofanysubsequent resale,disposaloruseof thegoodsbythebuyerwillaccruedirectlyorindirectlytotheseller,unlessan appropriate adjustment can be made in accordance with theprovisionshereof;or

Page8of8ImportationofUsedItems

(d) The buyer and the seller are related to one another, and suchrelationship influenced thepriceof the goods. Suchpersons shallbedeemedrelatedif:

(i) Theyareofficersordirectorsofoneanother'sbusinesses;

(ii) Theyarelegallyrecognizedpartnersinbusiness;

(iii) Thereexistsanemployeremployeerelationshipbetweenthem;

(iv) Any person directly or indirectly owns, controls or holds fivepercent (5%)ormoreof theoutstandingvotingstockorsharesofbothsellerandbuyer;

(v) Oneofthemdirectlyorindirectlycontrolstheother;

(vi) Both of them are directly or indirectly controlled by a thirdperson;

(vii) Togethertheydirectlyorindirectlycontrolathirdperson;or

(viii) Theyaremembersofthesamefamily,includingthoserelatedbyaffinityorconsanguinityuptothefourthcivildegree.

Personswhoareassociatedinbusinesswithoneanotherinthatoneisthesole agent, soledistributoror sole concessionaire,howeverdescribed,oftheothershallbedeemedtoberelatedforthepurposesofthisActiftheyfallwithinanyoftheeight(8)casesabove.

(B) Method Two. Transaction Value of Identical Goods. Where thedutiablevaluecannotbedeterminedundermethodone,thedutiablevalueshall be the transaction value of identical goods sold for export to thePhilippines and exported at or about the same time as the goods beingvalued. "Identical goods" shall mean goods which are the same in allrespects, including physical characteristics, quality and reputation.Minordifferences inappearancesshallnotprecludegoodsotherwiseconformingtothedefinitionfrombeingregardedasidentical.

(C) Method Three. Transaction Value of Similar Goods. Where thedutiable value cannot be determined under the preceding method, thedutiablevalueshallbethetransactionvalueofsimilargoodssoldforexportto thePhilippines and exported ator about the same time as the goodsbeingvalued."Similargoods"shallmeangoodswhich,althoughnotalikeinall respects,have like characteristicsand like componentmaterialswhichenable them to perform the same functions and to be commerciallyinterchangeable. The quality of the goods, their reputation and theexistenceof a trademark shallbe among the factors tobe considered indeterminingwhethergoodsaresimilar.

If the dutiable value still cannot be determined through the successiveapplicationofthetwo immediatelyprecedingmethods,thedutiablevalueshallbedeterminedundermethod fouror,when thedutiable value stillcannotbedeterminedunderthatmethod,undermethodfive,exceptthat,at the requestof the importer, theorderofapplicationofmethods fourandfiveshallbereversed:Provided,however,ThatiftheCommissionerof

Page9of9ImportationofUsedItems

Customsdeemsthathewillexperiencerealdifficulties indeterminingthedutiablevalueusingmethodfive,theCommissionerofCustomsmayrefusesucharequestinwhicheventthedutiablevalueshallbedeterminedundermethodfour,ifitcanbesodetermined.

(D) Method Four.DeductiveValue.Thedutiable valueof the importedgoodsunderthismethodshallbethedeductivevaluewhichshallbebasedon the unit price at which the imported goods or identical or similarimportedgoodsaresold inthePhilippines, inthesameconditionaswhenimported, in thegreatestaggregatequantity,atorabout the timeof theimportation of the goods being valued, to persons not related to thepersons fromwhom they buy such goods, subject to deductions for thefollowing:

(1) Either the commissions usually paid or agreed to be paid or theadditionsusuallymade forprofitandgeneralexpenses inconnectionwithsalesinsuchcountryofimportedgoodsofthesameclassorkind;

(2) The usual costs of transport and insurance and associated costsincurredwithinthePhilippines;and

(3) Whereappropriate,thecostsandchargesreferredtoinsubsection(A)(3),(4)and(5);and

(4) ThecustomsdutiesandothernationaltaxespayableinthePhilippinesbyreasonoftheimportationorsaleofthegoods.

Ifneitherthe importedgoodsnoridenticalnorsimilarimportedgoodsaresoldatoraboutthetimeof importationofthegoodsbeingvalued inthePhilippines intheconditionsas imported,thecustomsvalueshall,subjecttotheconditionssetforthintheprecedingparagraphhereof,bebasedontheunitpriceatwhichtheimportedgoodsoridenticalorsimilarimportedgoods sold in thePhilippines in the conditionas importedat theearliestdate after the importation of the goods being valued but before theexpirationofninety(90)daysaftersuchimportation.

Ifneitherthe importedgoodsnoridenticalnorsimilarimportedgoodsaresoldinthePhilippinesintheconditionasinimported,then,iftheimportersorequests,thedutiablevalueshallbebasedontheunitpriceatwhichtheimportedgoods,afterfurtherprocessing,aresoldinthegreatestaggregatequantity topersons in thePhilippineswhoarenot related to thepersonsfromwhomtheybuysuchgoods,subjecttoallowanceforthevalueaddedbysuchprocessinganddeductionsprovidedunderSubsections(D)(1),(2),(3)and(4)hereof.

(E) MethodFive.ComputedValue.Thedutiablevalueunderthismethodshallbethecomputedvaluewhichshallbethesumof:

(1) The cost or value of materials and fabrication or other processingemployedinproducingtheimportedgoods;

(2) The amount for profit and general expenses equal to that usuallyreflected in the saleofgoodsof the same classorkindas thegoodsbeing valued which are made by producers in the country ofexportationforexporttothePhilippines;

Page10of10ImportationofUsedItems

(3) The freight, insurance feesandother transportationexpenses for theimportationofthegoods;

(4) Anyassist,ifitsvalueisnotincludedunderparagraph(1)hereof;and

(5) The cost of containers and packing, if their values are not includedunderparagraph(1)hereof.

TheBureauofCustomsshallnotrequireorcompelanypersonnotresidingin thePhilippines toproduce for examination,or to allow access to, anyaccountorotherrecordforthepurposeofdeterminingacomputedvalue.However, information supplied by the producer of the goods for thepurposes of determining the customs value may be verified in anothercountrywith the agreementof theproducer andprovided theywill givesufficientadvancenoticetothegovernmentofthecountryinquestionandthelatterdoesnotobjecttotheinvestigation.

(F) Method Six. Fallback Value. If the dutiable value cannot bedetermined under the preceding methods described above, it shall bedetermined by using other reasonable means and on the basis of dataavailableinthePhilippines.

Iftheimportersorequests,theimportershallbeinformedinwritingofthedutiable value determined under Method Six and the method used todeterminesuchvalue.

NodutiablevalueshallbedeterminedunderMethodSixonthebasisof:

(1) ThesellingpriceinthePhilippinesofgoodsproducedinthePhilippines;

(2) Asystemthatprovidesfortheacceptanceforcustomspurposesofthehigheroftwoalternativevalues;

(3) The price of goods in the domestic market of the country ofexportation;

(4) The costofproduction,other than computedvalues, thathavebeendetermined for identicalor similargoods inaccordancewithMethodFivehereof;

(5) ThepriceofgoodsforexporttoacountryotherthanthePhilippines;

(6) Minimumcustomsvalues;or

(7) Arbitraryorfictitiousvalues.

If in the course of determining the dutiable value of imported goods, itbecomesnecessarytodelaythefinaldeterminationofsuchdutiablevalue,the importer shall nevertheless be able to secure the release of theimportedgoodsupon the filingofa sufficientguarantee in the formofasuretybond,adeposit, cashor someotherappropriate instrument inanamount equivalent to the imposable duties and taxes on the importedgoods in question conditioned upon the payment of customs duties andtaxesforwhichtheimportedgoodsmaybeliable:Provided,however,That

Page11of11ImportationofUsedItems

goods,the importationofwhich isprohibitedby lawshallnotbereleasedunderanycircumstancewhatsoever.

Nothing in this Section shall be construed as restricting or calling intoquestion the rightof theCollectorofCustoms tosatisfyhimselfas to thetruthoraccuracyofanystatement,documentordeclarationpresentedforcustomsvaluationpurposes.Whenadeclarationhasbeenpresentedandwhere the customs administration has reason to doubt the truth oraccuracy of the particulars or of documents produced in support of thisdeclaration, the customsadministrationmayask the importer toprovidefurther explanation, including documents or other evidence, that thedeclaredvaluerepresentsthetotalamountactuallypaidorpayablefortheimportedgoods,adjusted inaccordancewiththeprovisionsofSubsection(A)hereof.

If,afterreceivingfurtherinformation,orintheabsenceofaresponse,thecustoms administration still has reasonable doubts about the truth oraccuracyofthedeclaredvalue, itmay,withoutprejudicetoan importer'sright to appeal pursuant to Article 11 of the World Trade OrganizationAgreementoncustomsvaluation,bedeemedthatthecustomsvalueoftheimportedgoodscannotbedeterminedunderMethodOne.Beforetakingafinaldecision,theCollectorofCustomsshallcommunicatetotheimporter,inwritingifrequested,hisgroundsfordoubtingthetruthoraccuracyoftheparticulars or documents produced and give the importer a reasonableopportunity to respond. When a final decision is made, the customsadministration shall communicate to the importer inwriting its decisionandthegroundstherefor.

III. PREPARATIONFORIMPORTATION

Dependingonthepackagingneedsoftheimporter,thefollowingtypesofpackagingmaterialmaybeusedtotransportgoods:

i. BubbleWrap/ShrinkWrap

ii. Boxes

iii. Plastic;and

iv. Wood

A. InternationalStandardforPhytosanitaryMeasures(ISPM15)

Toprevent the introductionand spreadofpests linked to theworldwidemovementofWoodPackagingMaterial (WPM), all incoming shipmentswithWPMmust be treated and properlymarkedatthecountryoforigin.Theneedtoregulatewasrealizedbecausethe introductionofpestslinkedtoWPMisaworldwideproblem.

TheguidelinesundertheISPM15applytoconiferousandnonconiferousWPMswhichincludespallets,dunnage,crating,packingblocks,drumscases,loadboards,palletcollars,andskids.TheregulationdoesnotcoverWPMsmadeentirelyoutofwoodbasedproductssuchasplywood,particleboard,oriented strandboard,or veneer thathavebeen createdusingglue,heatandpressurebecausetherisksassociatedwithrawwoodarenotpresentingthesematerials.

Page12of12ImportationofUsedItems

TheprocedureforimportationwithWPMsinvolvesanexaminationoftheshipmentbyanofficerof theBureauofPlant Industry (BPI)uponanapplication for inspection filedby the Importer.Aftertheclearancehasbeen issuedbytheBPI,thegoodsmaybereleased inaccordancewithexistingrulesandregulations.

IV. STATISTICALDATA

According to theNationalStatisticsOffice (NSO)and theBureauofCustoms (BOC), inan informalinquiry, they do not make available any statistical data on importation of used items with theexceptionofcertaincommoditiese.g.,motorvehicles.

Thefollowingtableliststhevalueofimportationforselectedcommoditieswhichmaybebrandneworused.

Table2.ValueImportsofSelectedCommoditiesFromJanuarytoSeptember2011and2012

COMMODITYJanuaryto

September2012(US$)

JanuarytoSeptember2011

(US$)

PowerGenerating&SpecializedMachines 2,793,809,253.00 2,579,960,180.00

Office&EDPMachines 1,532,640,169.00 1,375,219,188.00

TelecommunicationEqpt.&Elect.Mach. 6,288,404,972.00 5,671,570,972.00

LandTransportEqpt.excl.PassengerCars&Motorizedcycle 949,351,025.00 791,291,117.00

Aircraft,ShipsandBoats 794,944,715.00 430,086,247.00

Prof.Sci.&Cont.Inst.,PhotographicEqpt.&OpticalGoods 449,732,622.00 414,744,347.00

Passengercars&motorizedcycle 1,451,297,164.00 1,219,816,958.00

Homeappliances 242,063,159.00 241,187,835.00

oOo