Clearance rules for duty-free book importation

Executive Order No. 292 (Administrative Code of 1987) is cited as legal basis through Section 38(1), Chapter 7, Book IV.
The Order is issued in relation to the Tariff and Customs Code of the Philippines (TCCP), as amended.
The Order is issued in relation to the National Internal Revenue Code of 1997, including Section 109(R).
The Order is anchored on other existing laws and international agreements.

The Order emphasizes the duty-free and VAT-exempt status of imported books.
The duty-free and VAT-exempt treatment applies subject only to the exceptions under the Florence Agreement.
The Order clarifies the procedure for clearance and release from the Bureau of Customs.

The Florence Agreement refers to the Agreement on the Importation of Educational, Scientific and Cultural Materials signed on August 2, 1952, under which contracting States undertake not to apply customs duties or other charges on, or in connection with, the importation of books and listed materials in Annexes A to E.
Commercial quantity means quantities for a given kind or class of articles in excess of what is compatible and commensurate with a person’s normal requirements for personal use, as defined in Customs Memorandum Order No. 67-77.
Personal effects/personal use refers to articles of personality not considered as merchandise, including books, as explained in Customs Administrative Order No. 7-72 and the implementing rules and regulations of Section 105 of the TCCP, as amended.
For purposes of the Order, books treated as personal effects or for personal use mean quantities that do not exceed twelve (12) copies of any one work when imported by an institution; or six (6) copies of any one work when imported by an individual.

All imported books are exempt from customs duties, whether intended for commercial or personal use, except for books published by or for a private commercial enterprise essentially for advertising purposes, as stated in Annex A of the Florence Agreement.
Importation of books is exempt from value-added tax (VAT) pursuant to Section 109(R) of the National Internal Revenue Code.
The exemption for duty-free importation is implemented through a DOF Revenue Office endorsement requirement only for books imported in commercial quantities.

Before the Bureau of Customs (BOC) releases books imported in commercial quantities, importers must first present an endorsement from the Revenue Office of the Department of Finance for duty- and VAT-free importation under the Florence Agreement.
The DOF Revenue Office endorsement is issued after submission of the following documents:
- Bill of Lading/Airwaybill/Postal Registry Notice with BOC Tentative Assessment Sheet;
- Commercial Invoice;
- Packing List with title of books;
- Authority of Representative (in lieu of consignee);
- Affidavit that the shipment consists of books;
- For donated books: a deed of donation duly authenticated by the Philippine Consulate abroad, and Deed of Acceptance;
- Certification from the UNESCO Office in the Philippines attesting that the importation/s is/are covered by the Florence Agreement; and
- Certificate of Registration with the National Book Development Board as book importer or publisher.
The Order conditions BOC release of commercial-quantity book imports on the prior presentation of the DOF endorsement.

The endorsement required under the commercial-quantity procedure is not required for books imported as personal effects or for personal use as defined under Section 2(b) of the Order.
Personal-use books may be transported as accompanied baggage, through couriers, or through the post offices.
Personal-use book imports must still be cleared and released through the required declaration of goods under existing rules and regulations.

All DOF Department Orders, Circulars, Bureau of Customs issuances, and any related provisions that are inconsistent with the Order are revoked, repealed, or modified accordingly.
The Order’s effectivity is immediately upon publication in a newspaper of general circulation.