Distributing a product

Evolution of the sector

The majority of companies use the services of agents, distributors, and intermediaries for distribution, who distribute on the traditional channels.

Doing business in the Philippines requires going through a broad network of subcontractors.

Market shares

Among its 642 013 stores, in 2007, the Philippines had 638 826 traditional grocers, 1 550 local stores, 1 157 supermarkets, 22 warehouse stores and 458 shopping malls. 9 306 pharmaceutical stores distributed in 7 481 traditional medical stores and 1 825 industrial stores (Nielsen, Retail and shopper trends Asia Pacific 2008).

Organizations in the retail sector

Distribution Management Association of the Philippines (DMAP)

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

International economic cooperation

Asia-Pacific Economic Council (APEC), Asia Free Trade Agreement (AFTA, free trade zone of the ASEAN), Asia Europe Meeting (ASEM), Japan Philippines Economic Partnership Agreement (JPEPA) and the ASEAN - China Free Trade Area.

Non tariff barriers

Imports generally enjoy a liberalised regime. However, imports of certain products are regulated and sometimes forbidden in accordance with the current laws, for reasons of health, national security, or international requirements or in order to protect the development of local industry. Imports are currently classified into three categories according to the degree of restriction they are subject to: freely imported products, regulated and forbidden products. For regulated products, an import license is necessary which can be obtained by applying to the authorities concerned (for example, certain foodstuffs or pharmaceutical products require the authorisation of the Food and Drug Authority). The third category comprises products which it is forbidden to import such as: explosives, firearms and war weapons, precious metals, narcotics, drugs, and coffee.

Customs duties and taxes on imports

6.3%

Customs classification

The Philippine Customs system is based on the Standard International Trade Classification (SITC) of the United Nations (Revision 2). Duties are usually calculated ad valorem, and specified in the Philippines Customs Code. There is a programme of reduction and simplification of the duties in conformity with the liberalisation policy of the Philippine Government. A Customs system which will classify imported products into only two categories is envisaged: raw materials and finished products. For these categories, fixed rates of respectively 3% and 10% duty will be applied.
For the calculation of import duties, the Philippines currently use the system of value based on the price of domestic consumption. Besides, the Philippine government has a contract with the services of SGS SA (Société Générale de Surveillance), a Swiss company providing inspection and valuation of imported goods with value higher than 500 USD, so as to avoid any over-invoicing or under-invoicing.

Import procedures

All imported articles invite import taxes, even those having been previously exported (except special mention envisaged in the Tariff and Customs Code or another regulation). The entry form must be filled in at the Customs Office in the 30 days following the unloading of the last package, failing to do which amounts to abandonment of the goods and ipso facto confiscation of the cargo.

For further information

Customs office
Department of Trade and Industry
Chamber of Commerce of the Philippines

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

Conveying products to the Philippines and everywhere in the country can prove to be a long and expensive process. As the country is an archipelago  and due to the bad condition of the highway network, the sea route is the primary mode of transport

Ports

Manila
Cebu
Zamboanga
Subic
Davao

Airports

(Manila) Ninoy Aquino International Airport
Mactan Cebu International Airport
(Angeles City) Diosdado Macapagal International Airport
Zamboanga International Airport

Sea transport organizations

Philippine Ports Authority

Air transport organizations

Air Transportation Office

Road transport organizations

Land Transportation Office

Rail transport organizations

Philippine National Railways

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Type of production

Manufacturing of electronic components, textile industry, furniture making, food industry.

Business directories

Philippines Pages
Philippine Directory
Philippine Business
Exporters and manufacturers directory of the Philippines

Manufacturers associations of the main industries

Cement Manufacturers' Association of the Philippines
Philippine Pharmaceutical Manufacturers Association
Philippine Constructors Association
Computer Manufacturers Distributors and Dealers of the Philippines

Trade Agencies and their representations abroad

Chamber of Commerce and Industry of the Philippines

Enterprises federation

Philippine Exporters Confederation
Federation of Philippine Industries

Standards

National standards organizations

Bureau of Product Standards

Integration in the international standards network

The Philippines are members of the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the Asia Pacific Economic Cooperation (APEC), the ASEAN Consultative Committee on Standards and Quality (ACCSQ).

Classification of standards

PNS (Philippine National Standard) is the mark of the national standard.

Online consultation of standards

A list can be consulted on the Philippines National Standards Catalog on the Bureau of Product Standards website.

Certification organizations

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

The organisation responsible for the protection of intellectual property in the Philippines is the Intellectual Property Office of the Philippines.

Regional organizations

Harmonization within the ASEAN and the APEC

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)