How to make donated supplies tax free.
Securing duty-free clearance for donated items
- To secure duty-free clearance from the DOF, donations of medicines and medical supplies must be consigned to private (primary and secondary) and government hospitals duly licensed to operate by the DOH. Even if said donations are exempt from duties, these would still be subject to Value-Added Tax, which is computed at ten percent (10%) of the total landed cost of shipment.
- The following are the requirements in requesting for duty-free clearance from the DOF for the said donation:
- From the donor:
- Deed of donation duly authenticated by the Philippine Embassy or Consulate;
- Packing list or itemized list of donated items; and
- Shipping documents (bill of lading/air waybill).
- From the donee/consignee:
- Letter to the DOF/National Economic and Development Authority requesting for the issuance of duty-free clearance for the donation;
- Duly notarized Deed of Acceptance;
- Current and valid DOH License to Operate;
- Endorsement from DOH; and
- Certificate of Product Registration from BFAD (for medicines).
- For medicines, the following additional information will be required:
- Generic name/brand name;
- Formulation;
- Dosage forms/strengths;
- Batch/lot number and expiration date of at least six (6) months upon arrival in the Philippines; and
- Name and address of the manufacturer.
Donors are also advised to withhold shipment of the donation to the Philippines unless prior coordination with the local consignee has been made, and appropriate clearances from the government agencies concerned have been secured.