April 20, 2007

Requirements for Donation of Medicines to the Philippines

In order to avoid delay in the processing and eventual release of medical donation shipments at the Bureau of Customs (BOC) in the Philippines, the Commission on Filipinos Overseas (CFO) reminds overseas donors of the following requirements set by the Department of Finance (DOF) in securing duty-free clearance for donation of medicines to the Philippines:
From the donor:
  1. Deed of donation duly authenticated by the Philippine Embassy or Consulate,
  2. Packing list or itemized list of donated items,
  3. Product catalogue and/or technical description of products to be donated, and
  4. Shipping documents such as bill of lading or air waybill, pro-forma or commercial invoice. The original copy of these documents will be needed by the consignee in processing the release of the donation at the Bureau of Customs.


    IMPORTANT: The name listed as donee or consignee in the deed of donation must be the same as that appearing in the shipping documents.
From the donee or consignee:
  1. Letter to the DOF / National Economic and Development Authority (NEDA) requesting for the issuance of duty-free clearance for the donation,

  2. Endorsement from the Department of Health (DOH) – Bureau of International Health Cooperation (BIHC),

  3. Duly notarized Deed of Acceptance stating that the donee is assuming all responsibilities with regard to the items being donated,

  4. Distribution plan of the donated items,

  5. An authenticated document signed by both the donor and the donee indicating who will assume the responsibility of the payment of Value Added Tax (VAT) that may be imposed on the donation, and

  6. Current and valid DOH License to Operate.
CFO also advises that donation of medicine will only qualify for exemption from duties if donation is consigned to government and private (primary and secondary) hospitals duly licensed to operate by the Department of Health, and welfare or relief dispensing organizations or agencies duly accredited by the Department of Social Welfare and Development (DSWD). Despite exemption from duties, the donations would still be subject to VAT computed at 12% of the total landed cost of the shipment.

The lead time for the processing of duty-free clearance from government agencies concerned is at least thirty (30) days.

Donors are strongly advised to withhold shipment of the donation to the Philippines unless prior coordination with the identified consignee has been made and appropriate clearances from appropriate agencies have been secured.

For more information and further inquiries on medical donations, you may contact the Commission on Filipinos Overseas at telephone numbers (632) 561-8327 or (632) 561-8321 (local 607) or through fax number (632) 561-8332.
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