Do You Pay Taxes When Exporting from the Philippines?

A Simple Guide for SMEs Going Global

Shipping your products from the Philippines to customers abroad? That’s an exciting big step! But before you start packing your first export shipment, it’s good to know what kind of taxes, fees, and paperwork you might run into.

This blog is here to make all that export talk a little easier to understand—and show you how ZendEase can help you avoid surprises along the way.

Do You Need to Pay Taxes When Exporting?

Here’s some good news to start: In general, you don’t have to pay export taxes when sending goods out of the Philippines. Items such as accessories, beauty products, gadgets, and food are typically exported tax-free from the Philippines.

However, once your shipment arrives at its destination, it may be subject to import duties, VAT, or other local taxes depending on that country’s customs regulations.

That said, depending on your product, you may need to obtain certain permits or specific documentation. During your consultation, our team at ZendEase will determine the specific commodity you’re shipping and inform you of any special requirements that may apply. We’ll also let you know if your product is prohibited or restricted from being exported, so you can avoid any compliance issues early on.

What Paperwork Do You Need to Ship?

Preparing the right paperwork isn’t just about getting your goods out of the country—it also plays a major role in determining what duties, taxes, or exemptions may apply once your shipment arrives. Incomplete or incorrect documents can delay customs clearance, trigger penalties, or even lead to unexpected costs abroad.

When you’re ready to ship your products overseas, these are a few key documents to prepare:

• Commercial Invoice
• Packing List
• Bill of Lading
• Export Declaration (submitted through the Bureau of Customs)
• Product-specific permits (like FDA or USDA clearances, depending on what you’re shipping)

At ZendEase, we help you determine which specific paperwork may be required based on your product and destination. We help you identify missing documentation, advise on where and how to file it, and assist in reviewing it for compliance and correctness.

Once your documents are in order and your shipment is on its way, the next step is to prepare for what happens when your goods arrive at the destination. This is where duties and taxes come in—costs that are often overlooked but can significantly impact your total expenses.

What Are Duties and Taxes?

When your shipment arrives in another country, customs agents at the destination might charge duties and taxes. It is important to note that these are not included in your shipping fee—as they depend on the destination country's regulations.

So what’s the difference?

• Taxes are government charges applied to almost all purchases, such as VAT or GST, and are typically based on the item’s value plus the shipping cost.
• Duties (sometimes called tariffs) are specific to the product and based on its Harmonized System (HS) Code, a classification system used worldwide.

These charges are determined by the customs office in the destination country once your shipment enters their system. While ZendEase can offer general estimates to help you plan ahead, the final charges will always depend on the destination country’s customs regulations.

Incoterms: Who Pays for Duties and Taxes at the Destination?

Now, what are Incoterms? You may often hear this mentioned in export conversations. Don’t worry, it’s not as scary as it sounds.

Incoterms, or International Commercial Terms, are just standard rules that define who’s responsible for what when shipping goods internationally.

For this blog, we’ll focus on the two most common ones:

DDU: Delivered Duty Unpaid

Under DDU, ZendEase handles the logistics side of shipping for you—this includes arranging the transport of your goods from the Philippines to your buyer’s country, coordinating with carriers, and managing local charges at the origin and destination.

However, customs duties and import taxes at the destination are not included. Your buyer shoulders these charges once the shipment arrives at its destination. They will need to settle these fees with the customs office in their country before the shipment can be released.

DDU is the more common and practical option recommended by ZendEase because:

• Customs taxes are unpredictable and vary per country
• It allows ZendEase to give you a clear logistics quote excluding the variable customs charges
• It prevents misunderstandings with clients about customs-related costs that ZendEase cannot control

At ZendEase, we’ll walk you through what’s covered in your quote and flag what’s not—so both you and your buyer know exactly what to expect.

DDP: Delivered Duty Paid

With DDP, the exporter takes full responsibility for the shipment—from the moment it leaves your hands until it reaches your buyer.

This includes:

• Shipping and logistics arrangements
• Duties, taxes, and customs clearance at the destination

Your customer won’t have to pay anything extra when the shipment arrives. The delivery will be smooth and hassle-free for them, making this a great option if you want to offer a seamless buyer experience.

ZendEase can help you coordinate a DDP shipment by managing the logistics and assisting with customs processing. However, it’s important to understand that customs taxes vary by country and can’t be confirmed in advance. We can provide you with an estimate, but the local customs office always determines the final charges upon arrival of the shipment.

Due to this uncertainty, DDP can sometimes lead to unexpected additional costs. That’s why we often recommend DDU instead, as it gives you more control over the logistics and avoids taking on the unpredictable fees at the destination.

What is De Minimis?

Every country has a de minimis threshold—a minimum value under which shipments can enter without being taxed or charged duties.

For example:

In some countries, if the total shipment value is under USD 150, it may be cleared by customs without any taxes. That means a small e-commerce order sent via air freight could arrive duty-free.

You can check the exact de minimis values by country using this guide from Zonos:

But keep in mind:

• Air freight is more likely to benefit from de minimis rules.
• Sea freight is usually taxed no matter what the value is.

At ZendEase, we’ll help you determine if your shipment may qualify for de minimis, depending on its destination and mode of shipment.

Other Fees to Consider

While taxes and duties may be charged by the destination country, there are still additional fees on the export side that can impact your total shipping costs—even though they aren’t classified as government export taxes.

These fees often catch new exporters by surprise, so it’s essential to factor them into your budget early on.

Common fees include:

• Documentary stamp tax(for certain documents)
• Port and handling charges
• Brokerage and documentation fees
• Cross-border bank fees

These aren’t technically government export taxes, but they can still affect your pricing and profit margin, especially for SMEs working with tighter cost structures.

At ZendEase, we’ll walk you through which fees may apply based on your shipment and destination—and clarify which ones are already included in your logistics quotation to avoid any billing surprises.

What’s in a ZendEase Quote?

Now that you have a better idea of the common export-related fees, you might be wondering which of these are already covered when you get a quote from ZendEase. Understanding what’s included and what isn’t can help you plan better, avoid hidden charges, and make informed pricing decisions for your business.

When you request a shipping quote from ZendEase, here’s what’s typically included:

• Origin carrier charges
• Origin local charges
• Destination local charges
• Optional: Customs clearance and delivery in the destination country (if you don’t already have your own importer)

We’ll always tell you if certain charges are optional or only apply to specific cases.

Quick Note: Customs clearance and delivery fees refer to the logistics costs for processing your shipment at the destination and bringing it to your buyer’s location. These are different from import taxes and duties, which are government-imposed charges.

What’s Not Included?

Import taxes and duties charged by the destination country’s customs office are not included in our standard quote. These fees are external, change often, and are only determined once the shipment is processed abroad.

ZendEase cannot predict these charges exactly, as the customs office in the destination country determines them. However, we can provide general estimates to help guide you and explain which charges fall outside of our control.

How ZendEase Makes Exporting Easier

At ZendEase, we’re here to help you ship smarter, not harder.

We’ll support you by:

• Helping identify required documents and double-checking them for accuracy
• Identifying what permits or clearances your products need
• Guiding you through the process of drafting the Export Declarations to processing it with the BOC
• Advising you on the best shipping terms (DDU vs. DDP)
• Giving you clear pricing for everything within our control
• Coordinating air or sea shipments with end-to-end support

Whether you’re shipping your first international order or sending regular exports, we’re here to simplify the process and make sure you feel confident at every step.

Ready to Export?

Contact ZendEase to begin your export process with the right guidance and support. We’ll help you understand what you need and make sure your shipment is handled properly from start to finish.

Schedule your consultation with ZendEase today, and let’s get your products moving.