Entrepreneurs who would like to sell products overseas, especially on websites like Amazon.com, or import products to be sold here have to be aware of regulations and laws governing cross-border e-commerce. Whether you are importing or exporting, the primary regulation in general is the Customs Modernization and Tariff Act. For regulated (like firearms) and strategic goods (dual-use goods), other regulatory agencies may have jurisdiction over them.
Import and export compliance expert Michael Tede shared: “Currently for e-commerce cross-border regulation, implemented by the Bureau of Customs (BOC), the de minimis importation which is no collection of duties and taxes for goods with a free carrier (FCA) or free on board (FOB) value of P10,000 and below. There’s also the accreditation of air express cargo operators to handle Air Express shipment, and informal entry procedures for low-value goods with an FOB or FCA value of less than P50,000. The draft customs memorandum order for the clearance and processing of cross-border e-commerce goods will be out soon.”
Customs processes and duties in the Philippines affect cross-border e-commerce. Tede said regulations handling cross-border e-commerce are easy but subject to compliance at the border, especially on declaration of value and permits and clearances. “The best practice is to know the registration processes, accreditation requirements, and compliance checkpoints,” Tede said.
Certain product categories, especially those impacting safety, health and security, face stricter regulations. Items like cosmetics, electronics, food and medicines are regulated by agencies such as the Food and Drug Administration, National Telecommunications Commission and the Optical Media Board. Tede explained: “The FDA may allow exemption from regulation if the quantity or volume is within the allowable limits established by the agencies. The Philippine National Trade Repository serves as a valuable resource for identifying whether a product is regulated, providing legal bases, requirements and procedures.”
The most efficient logistics and shipping methods, whether sea freight or airfreight, for cross-border e-commerce in the Philippines, hinges on the nature of the goods. “Bulk shipments favor sea freight, while high-value items are best sent via air freight, said Tede. Efficient logistics can be achieved through strategic networking and leveraging emerging technologies. As to delivery terms or choosing the right Incoterms (who are responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities), it is best for trading parties to be educated or knowledgeable on the proper use of each.
Tede also gave pointers for entrepreneurs wanting to export goods to sell internationally on marketplace platforms. The first step is accreditation and registration as an exporter, with a value-added service provider for lodgment of export declaration. This is followed by correctly identifying and classifying goods, managing export documentation, and adhering to online processes for export declaration. Key documents typically include export invoices and packing lists, with a strong emphasis on online submissions and record-keeping for audits.
“To meet the legal and safety standards of different countries, Philippine sellers should collaborate closely with buyers and logistics companies abroad. This partnership ensures adherence to both Philippine export requirements and destination-specific regulations.”