The idea of bringing home a car on your way home to the Philippines can be very appealing. Besides, as most OFWs would probably attest, vehicles are available for a much cheaper price abroad than it is in the country.
So if you’ve already bought a car while working overseas and have no plans of selling it, is it possible to import it to the Philippines?
Of course, the short answer to that is a “yes” but take note that there are certain conditions and you will have to spend big bucks for it.
To begin with, the Bureau of Customs has declared that imported vehicles are subject to customs duty and taxes.
According to the official BOC website:
“Whether brand-new or used, purchased or donated, the imported vehicle is subject to 40% Customs duty, 10% VAT and Ad Valorem Tax from 15% to 100% depending on its piston displacement. Its book value serves as the tax base and not the purchase price nor the acquisition cost.”
As for vehicle classification, a car will be considered brand new if it hasn’t been used or registered yet. It will also be considered as such if its mileage has not exceeded 50 kilometers if the car model is of the current year, and if you are the first owner.
Used cars, on the other hand, are vehicles that have a gross vehicle weight not exceeding 3 tons. It should also have a Certificate of Authority to Import as issued by the Bureau of Import Services (BIS).
The car should have also been registered for a minimum of 6 months before the application date to ship it to the country. Moreover, the BOC reminded car owners that imported used cars are for personal use and cannot be resold for at least three years.
Take note that you likewise need a Prior Import Authority (PIA) for your used vehicles or authorities might seize it which will lead to bigger fines to pay. To get a PIA, submit an application form and a proof of continuous stay abroad for 1 year or more. Registration papers and proof that your car was purchased out of your earnings abroad will also be required.