Market Focus

The Philippines has become one of the major global destinations for offshoring and outsourcing (O&O) operations in only a few short years.

Q&A

When lined up with India, China and Vietnam, the Philippines appears to be well positioned for the long term.

Need Global Know-how?

Get export success in the Philippines
with the right connections!

Global experts are ready to help.

UPS Export Series

Trading with the Philippines: Highlights and Restrictions

UPS in the Philippines

UPS operates daily flights from Singapore to the Philippines and manages customs-bonded warehouses in both Manila and Clark.

UPS also has presence across 16 strategic locations in the Philippines.

Import Restrictions

Businesses exporting to the Philippines should be aware of restrictions imposed on certain goods to avoid customs delays.

All cosmetics and food are subject to clearance by the Bureau of Food and Drugs.
Fish and fish products require import permits and quarantine clearance by the Bureau of Fisheries and Aquatic Resources.
All pharmaceutical products require clearance by the Dangerous Drug Board.
Radio, satellite and telephone equipment are subject to clearance by the National Telecommunication Commission.

An archipelago of 7,107 islands, the Philippines is the world's 12th most densely populated country with 96 million people. It has an average population growth rate of 1.9 percent, one of the highest in Asia.

The Philippines' gross domestic product (GDP) grew by 7.3 percent in 2007, the fastest in the last three decades, with the services sector contributing 55 percent, followed by the industry sector and the agriculture sector at 31 percent and 14 percent respectively.

This growth was fueled by increased government and private construction expenditures; a robust information and communications technology industry; improved post-drought agricultural harvests; and strong private consumption. It was also spurred in part by US$14.4 billion in remittances from overseas workers, which is equivalent to about 10 percent of GDP.

GDP growth is expected to slow in 2008 but still reach between 5 percent and 6 percent.

Bilateral Trade

The Philippines-Singapore Action Plan (PSAP) is a comprehensive umbrella framework established in 1998 to stimulate co-operation in various areas including trade and investment, information technology, capital market development, education, culture, defense, and people-to-people exchanges.

Singapore remains the Philippines' largest Southeast Asian trading partner, with total trade amounting to US$9.358 billion in 2007. Exports to Singapore were valued at US$3.139 billion with the bulk of exports coming from electronic and petroleum products.

Meanwhile, imports from Singapore totaled US$6.219 billion consisting mostly of electronic products and mineral fuels, lubricants and related materials, processed foods, pharmaceuticals, machineries and equipment.

Because of both countries' complementary roles in the global electronics supply chain, electronic products continued to dominate bilateral trade, making up 58 percent of trade volume.

Logistical Highlights

Free Trade Zones - Imported materials for production being sent to an Export Processing Zone, Special Economic Processing Zone, Industrial Park or Free Trade Zone may be exempt from customs duties and taxes.
Taxes - Value Added Tax is applied on shipments to the Philippines at a standard rate of 12% and is applied to the total landed cost. Total landed cost includes customs duty assessed, brokerage fee, bank charges, import processing fee, documentary stamps.
Duties - Customs duties collection is one of the main sources of revenue to the Republic of the Philippines; hence many commodities into the Philippines are dutiable.

Need further information? UPS can advise you on any restrictions or special requirements for shipping to the Philippines.