ELEMENTS OF THE DUTIABLE

VALUE
TOTAL CUSTOMS VALUE (FOB-By Sea/FCA-By Air)
A. DUTIABLE FREIGHT
B. DUTIABLE INSURANCE
C. DUTIABLE OTHER CHARGES(if any)
CMO 22-2007
 DUTIABLE FREIGHT

1. By Sea
a) Shall be the freight charges indicated in the B/L

Dutiable Freight = FRT/BL

Ex:
Mr. Saitou imported an article with a CFR invoice value
of $ 3,568.50, wherein freight is $ 874.50. Customs Official
found out that the amount of Freight per B/L is $ 895.00.
What is the Dutiable Freight for the said transaction?
What is the amount of Dutiable Value?
b) If no freight charge is indicated in the bill of lading
and/or invoice, then the declared freight charge on
the IEIRD/SAD may be considered, provided that said
amount is not lower than 70% of the Conference Rate
otherwise a Certification from the carrier or Official
Receipt as to the actual freight charges paid must be
presented to the BOC.

Dutiable Freight = FRT/SAD vs 70% of GCR,

whichever is higher
Ex:
Frt/SAD : $ 2,238.40
GCR : $ 3,200.00
What is the Dutiable Freight?
GCR x 70% = $ 2,240.00
Dutiable Freight = $ 2,240.00
since it is much higher than the Frt/SAD.
c) In case of bulk shipments, the certified copy of
Charter Party document of Freight Contract, and
Stowage Plan shall be presented to show the
actual freight charges, all of which shall be
attached to the SAD.

Dutiable Freight = FRT per Charter Party

Contract
d) For bulk/general cargo shipments made by the
National Food Authority (NFA), the actual freight
charge may be accepted provided that it is not
lower than 10% of the CFR value of the
commodity.

Dutiable Freight = Actual FRT vs 10% of

CFR
whichever is higher
Ex:
The National Food Authority made an importation
of 6 tons of rice from Thailand. Invoice Value shows
$ 8,430.00 CFR. Freight charges included in the
invoice is $800.00.
What is the Dutiable Freight?
e) In case of refrigerated shipments, a
certification from shipping lines as to the
freight paid must be presented for Customs
verification.

Dutiable Freight = FRT/BL (w/ Cert. from S.L.)

 in the absence of a shipping lines certification, the following
freight charges may be used as reference:
shipments coming from China in reefer vans should not be lower
than the following freight charges:

PORT OF ORIGIN 1x20’ 1x40’

Guangzhou $ 1,300.00 $ 1,700.00
Xiamen $ 1,500.00 $ 1,800.00
Shanghai $ 1,800.00 $ 3,200.00
Dalian $ 1,350.00 $ 1,680.00
PORT OF ORIGIN 1x20’ 1x40’
Hong Kong $ 800.00 $ 1,600.00

Singapore $ 900.00 $ 1,850.00

Plus BAF 70.00 140.00
Singapore $ 970.00 $ 1,990.00

Los Angeles, USA $ 3,050.00 $ 6,100.00

Dutiable Freight = FRT/BL(no cert.) vs Reefer Rates

whichever is higher
2. By Air
a) The freight charge shall be based on the amount
indicated in the Air Waybill.
b) If no freight charge is indicated in the air waybill and/or
invoice, then the declared freight charge in the SAD
may be considered. If the declared freight charge is
lower than 70% of the IATA freight rate, a certification
from the carrier/forwarder and/or receipt, as to the
actual freight charges paid, must be presented to the
BOC.
 DUTIABLE INSURANCE

1. If the terms of sale are CIF/CIP, the amount

of the actual insurance premium shall be
used in the assessment, provided that if
such amount is lower than 2% of the
FOB/FCA value for general cargo and 4% of
the FOB/FCA value for
dangerous/inflammable goods, the same
shall be subject to further verification by
the BOC.
a) General Cargo:

CIF - FRT INS = 2% x FOB/FCA

FOB/FCA =
1.02

b) Dangerous Cargo:

CIF - FRT INS = 4% x FOB/FCA

FOB/FCA =
1.04
2. If a shipment is covered by a local or
domestic insurance, the amount of
insurance premium actually paid may be
accepted for assessment purposes (if
equivalent or higher than 2% or 4% for
general and dangerous cargo, respectively).
3. If the local insurance premium is lower
than 2% of the FOB/FCA value for general
cargo, or to 4% of the FOB/FCA value for
dangerous/inflammable goods, then a
certification from the insurance company
indicating actual premium paid shall be
presented to the BOC together with the
original receipt.
 if with Certification (Official Receipt)

Dutiable Insurance = Local Premium(P)

Rate of Exchange

If without Certification (Official Receipt)

Dutiable Insurance = Loc. Prem. vs 2% or 4% of

FOB/FCA
whichever is higher
4. Importation not covered by any local insurance,
the amount of insurance premium declared in
the SAD may be accepted, provided that if such
amount is lower than 2% and 4% of the FOB
value for general and dangerous cargoes
respectively, the same shall be subject to
verification by the BOC.
 For General Cargoes:

Dutiable Insurance = 2% x FOB

For Dangerous Cargoes:

Dutiable Insurance = 4% x FOB

5. For direct importation by the government, the original
copy of the Marine Open policy issued by the GSIS
together with true copy shall be presented to the BOC.
The BOC shall apply the actual GSIS insurance premium
rate.

Dutiable Insurance = INS premium/GSIS(P)

Rate of Exchange
……..
if insured by a domestic surety company other than
the GSIS, apply no. 3, and if not covered by a local
insurance, apply no. 4.