Tax exemptions on imported books clarified-A A +A
Friday, January 6, 2012
THE Department of Finance has clarified duty exemptions on imported books both for personal and commercial use under the accord on the importation of educational, scientific and cultural materials or the Florence Agreement.
Department Order (DO) 57-2011 particularly exempted books for ‘personal use’ from any extensive documentary requirements but such importations “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 into the country,” Finance Secretary Cesar Purisima explained in signing DO 57.
“One example is the one that needs to be filled out upon arriving at the airport. You need to check if you will bring in goods from other countries but this does not necessarily mean that you will have to pay for them.”
All imported books, whether for commercial or personal use are “exempt from customs duties and value-added tax pursuant to the National Internal Revenue Code and in accordance with the Florence Agreement.”
Initiated by Unesco and with the Philippines a signatory since 1952, the agreement mandates contracting states not to apply Customs duties or other charges on “educational, scientific and cultural materials” such as books and newspapers, except on those published “essentially for advertising purposes.”
The agreement stressed that “stationery, newspapers and periodicals in which the advertising matter is in excess of 70 percent by space and all other items in which advertising is in excess of 25 percent by space” are not covered by tax and duty exemptions. (CGC)
Published in the Sun.Star Bacolod newspaper on January 06, 2012.