Lessons Learned: Tips on Importing Asian Cosmetics in the Philippines

I am one of the unlucky ones who always get pawned by the Bureau of Customs. Of the four instances of ordering from overseas online shops, three were subjected to exorbitant taxes. A couple of purchases from sasa.com got taxed by around 40% of the item cost, while a recent purchase from roseroseshop got taxed as much as 60% of the item cost.

And because I don't want other Asian cosmetic fans here in the Philippines to encounter the same monster, I'd like to hand out a few tips on how to at least minimize the damage on our pockets by the Bureau of Customs when we need to import cosmetics.

I present to you, Scumbag Bureau of Customs 

Before I continue, I would like to clarify that that I support the government in their various tax collecting schemes. On all occasions, I've paid my duties (to the surprise of the BoC officer of course) and refused to "talk it over" with bribes. But I also think they are being unfair when they tax us ordinary citizens with these insane duties when other influential, may-kapit-sa-loob crooks can smuggle in luxury cars, rice, and other manufactured commodities easily.

The BoC lady I've transacted with during the roseroseshop incident handed me a piece of paper containing the formula for the amount of duty payable. I've found the same formula on their tax calculator. Anyway, we are skincare obsessed people and not scumbags, and we should pay our duties. So here are some legitimate pointers to consider:

The cheaper the product, the smaller the tax will be. If you look at the tax calculator, the product's price can influence the amount of payable tax. So it is best to wait for sales or other promos when purchasing from online (overseas) beauty shops.

Shipping cost also affects taxable value. Unless you're really itching to get hold of that new hot Korean product, steer clear from the more expensive "Expedited Shipping" and go for the "Standard" instead. Better yet, avail of free shipping promos - although a Customs officer in CMEC did place a dummy value in my free sasa.com shipping. Sigh.

Don't spend too little. Even if your imported product costs only 1 USD (for exaggeration), you will have 515 pesos of fixed cost in form of documentary stamp and Import Processing Fee . Which means it is more cost efficient to spend a total of 30 USD then pay this fixed once than have a couple of 15 USD shipment and forking up 515 pesos twice.

But don't spend too much. Keep the purchases less than 2000 pesos. I once spent more than 45 USD on sasa.com, a Hong Kong-based store who posts the amount of good outside the sturdy, huge, Customs-saliva-inducing box. While I think the formula still applied and I was able to maximize the fixed cost, I unfortunately had to pick my package at CMEC Office near Ninoy Aquino Internation Airport, which cost me precious time and commuting fare.

Don't bother with marking the product as a "gift". It is still taxable, even if it is a gift from your OFW parents. I tried this with my recent roseroseshop purchase to test the online rumor that it is possible to bypass the duties by marking the package as a "gift" and it failed spectacularly.

Ask around if your municipality's post office inspects shipment from overseas. In one of my previous blogs, Rae and Elaine told me their city post office only charges the default P50 post office fee. In Mandaluyong City this is obviously not the case. I used to live in Quezon City and I did not know of online shopping at that time, but here's a horror story I found in the webs, and based on the comments, the Customs people there inspect packages too.

There may be other ways other than those I've outlined above. But please, please, do not give in to those corrupt Customs officers who would take a 300-peso bribe and let you go with your package tax free. This country is reeking with corruption already, don't add to it.