Basic information
Outline of the system
Written authorization from the Department is required before a diplomatic mission or international organization (henceforth entity) or their accredited and qualified personnel may import goods free from duties and taxes.
1.2 Free entry requests
1.2.1 Official Goods/Shipments
Shipments must be consigned to an entity and must be explicitly stated in the relevant shipping documents, e.g. air waybill, packing list, commercial invoice, among others. Shipments shall be endorsed to appropriate agencies only if it is clearly stated that the consignee of the goods is the entity.
Goods consigned to an entity must be for its official use.
1.2.2 Personal Effects
Requests for free entry of personal effects must be in reasonable quantities and shall be subject to evaluation and approval of the Department.
1.2.3 Official Motor Vehicle
Each diplomatic mission is allowed one official Chief of Mission (CM) motor vehicle for the exclusive use of the ambassador which must be registered in the name of the mission.
Each diplomatic mission is entitled to one motor vehicle per two members of the diplomatic, consular, and administrative and technical staff, excluding citizens and permanent residents of the Philippines. The CM motor vehicle is excluded from this count.
1.2.4 Personal Motor Vehicle
A Chief of Mission may, in his/her name, import duty free or locally purchase tax-free not more than two personal motor vehicles during his/her tour of duty.
A Deputy Chief of Mission, officially so designated by the Mission’s Foreign Office, may likewise import duty-free or locally purchase tax-free not more than two personal motor vehicles during his/her tour of duty.
Other diplomatic or career consular officials may import duty-free or locally purchase tax-free one motor vehicle during their tour of duty.
Administrative and technical staff members of diplomatic missions and consular posts, during their tour of duty, may import duty-free or locally purchase tax-free one motor vehicle, within six months from the date of accreditation. Replacement is allowed only for meritorious cases.
Product coverage
The Department does not issue licenses for importation of brand new or used motor vehicles. What it does is evaluate requests received from embassies, consulates and international organizations purchasing either a local or imported motor vehicle, used or brand new. Requests are considered and approved on a case-to-case basis.
The provisions on the acquisition of motor vehicles apply to new and used motor vehicles imported to the Philippines, as well as to new and used motor vehicles purchased locally. The acquisition of motor vehicles is subject to reciprocity.
In lieu of the license, the following forms are submitted by the entity for the Department evaluation and signature of approval which will be then forwarded to the Department of Finance – Bureau of Customs, and the Bureau of Internal Revenue:
2.1 Direct Importation. An authority to import a motor vehicle must first be secured from the Department by the entity for the privileged party (Form “E”). Once an authority has been issued, the entity must request for duty-free entry of the said motor vehicle (Form “F”).
2.2 Local Purchase/Purchase of Locally Assembled Motor Vehicle. An authority to locally purchase a motor vehicle must first be secured from the Department by the entity for the privileged party (Form “G”).
An entity entitled to VAT exemption shall secure a BIR Ruling, through the Department, confirming its or its personnel’s exemption from the payment of VAT before commencing with the purchase of the motor vehicle (Form “H”).
The exemption from the payment of VAT for IOs, UN agencies and their qualified personnel may only be endorsed by the Department in accordance with a treaty, convention or host country agreement which explicitly exempts the privileged entity/ person from the payment of such tax.
2.3 Second-Hand/Previously Imported, Tax-Exempt Motor Vehicle. An authority to purchase a previously imported tax-exempt motor vehicle by a privileged buyer must be secured from the Department prior to its endorsement to the Department of Finance for amendment of the Certificate of Payment by the Bureau of Customs (BOC).
2.4 Second-Hand/Locally Purchased, VAT-Exempt Motor Vehicle. In order to purchase a motor vehicle in the local market, the entity concerned must secure an authority to purchase from the Department.
For tax-paid motor vehicles, the entity must file a request for initial registration and assignment of the appropriate license plates with the Department.
Nature of licensing
Automatic
If Automatic, administrative purpose
Automatic licensing - Kind refer to Title I. Section 4 of the RA7157
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
Yes, the evaluation process is intended to monitor and, if necessary, restrict the quantity or value of imports. The goods being imported should only be for their official use. Restricted goods are contained in the Handbook on Immunities and Privileges.
Questions for products under restriction as to the quantity or value of imports
See Answers 6.1-6.11.
The system applies to products originating from which country?
Mostly countries represented by embassies, consulates, international organizations, country/point of origin of their officials and personnel.
Expected duration of licensing procedure
Ongoing
Legal requirements
Is the licensing statutorily required?
Republic Act No. 7157 enumerates the functions of the Office of Protocol. These functions are further discussed in various Department Orders.
Yes, the performance of this function is statutorily required.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
There is some room for discretion in the evaluation and approval process.
Is it possible for the government to abolish the system without legislative approval?
It is not possible to do away with the evaluation process.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
Not applicable.
What persons or firms are eligible to apply for a licence?
Not applicable.
Is there a registration fee?
Not applicable.
Is there a published list of authorized importers?
Not applicable.
Contact point for information on eligibility
Ministry/Authority
Office of Protocol, Immunities and Privileges Division
Address
6th Floor, Department of Foreign Affairs Building
2330 Roxas Boulevard, Pasay City, Metro Manila
Telephone
(02) 8 834-3167
Fax
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Office of Protocol, Immunities and Privileges Division
Documentation requirements
What information is required in applications?
Annex D.1 - Form E Duty-free motor vehicles.pdfWhat documents is the importer required to supply with the application?
Please see Annexes D.1-D.4.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Entities are strongly encouraged to secure the approval for the importation prior to the arrival of the shipment.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Limitations are imposed based on reciprocal considerations and on the rank of the person requesting the importation, and for international organizations, on the provisions of the Host Country Agreement on importations.
Issuing the license
Can a licence be granted immediately on request?
The Department exerts efforts to be flexible on urgent importations. This is done on a case by-case basis and is strongly discouraged.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Importation without the necessary approval is strongly discouraged as this may cause delays. The processing time is the same.
Which administrative body is responsible for approving application of licences?
The Office of Protocol works closely with the Department of Finance and the Bureau of Customs.
Must the applications be passed on to other organs for visa, note or approval?
The Office of Protocol works closely with the Department of Finance and the Bureau of Customs.
Are there any other conditions attached to the issue of a licence?
Not applicable.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There is no fee imposed for the processing of the submitted request.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
None.
Please refer to https://dfa.gov.ph for further information.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
All requests that have met the criteria as regards reciprocity, documentary requirements, purpose, do not present any concerns with regard to public health, safety and security are usually approved
Are the reasons for any refusal given to applicants?
In the event of refusal, the reason for such is officially communicated to the concerned entity.
Have applicants a right of appeal in the event of refusal to issue a licence?
It may appeal the decision or make the necessary changes to secure approval.
If so, to what bodies and under what procedures?
Importation
Are there any limitations as to the period of year during which importation may be made?
Limitations are imposed based on reciprocal considerations and on the rank of the person requesting the importation, and for international organizations, on the provisions of the Host Country Agreement on importations.
What documents are required upon actual importation?
Please see Annexes D.1-D.4.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Not applicable.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Not applicable.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
Not applicable.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Not applicable.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
The embassies, consulates and international organizations are provided with the Handbook on Immunities and Privileges (last updated in 2015). Quotas are decided on a reciprocal basis and this is officially communicated to the concerned entity.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
As stated earlier, quotas are determined on a reciprocal basis. Request should be made per every transaction.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Not applicable.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Not applicable.
What are the minimum and maximum lengths of time for processing applications?
Approval usually takes one to three days.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Not applicable.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The Office of Protocol works closely with the Department of Finance and the Bureau of Customs.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Not applicable.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Not applicable.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Not applicable.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
For motor vehicles, the decision whether to re-export or not lies with the concerned entity. The condition that the motor vehicle should be re-exported after the tour of duty of the diplomat is rarely imposed. As stated earlier, goods imported by the entities should be for their official use only and should not be sold in the domestic market.