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Lesson 4- Tariff 3

The document outlines the computation of the total amount due to the government for imported goods, including various taxes and fees such as VAT, CUD, and CSF. It provides examples of calculations for different import scenarios, detailing the formulas and steps required to determine the total charges. Additionally, it explains the prorating of multiple items in an importation to calculate individual customs values and associated fees.

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Mc Deeve Acompaniado
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15 views

Lesson 4- Tariff 3

The document outlines the computation of the total amount due to the government for imported goods, including various taxes and fees such as VAT, CUD, and CSF. It provides examples of calculations for different import scenarios, detailing the formulas and steps required to determine the total charges. Additionally, it explains the prorating of multiple items in an importation to calculate individual customs values and associated fees.

Uploaded by

Mc Deeve Acompaniado
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TARIFF 3

LESSON 4: COMPUTATION OF THE TOTAL AMOUNT DUE TO THE GOVERNMENT ;PRORATION OF MULTIPLE
ITEMS
VAT AND TADG

FORMULA:

LANDED COST
X 12% VAT RATE
VAT

Summary CUD
+ VAT
EXCISE TAX (if any)
IPF
CSF (Container Security Fee)
TADG ( Total Amount Due to the Government)
EXAMPLE

Manila Cordage, an industrial rope maker imported 1x40FCL STC: 26-


Pallets PFY 1500 Denier High Tenacity Polyester Yarn from China at 3%
duty. The importation has an FOB Value of US$34,938.17, insurance
US$18.83 (official receipt presented), and ocean freight per bill of lading
at US$600.00, Gross weight 19,220.00 kgs and net weight 18,900 kgs. If
the exchange rate upon filing of the IEIRD together with COO/Form ‘D’
was at Php43.616/US$.
Determine the appropriate duties, taxes and other charges payable to
BOC.
Compute the LC:
DV = P
SOLUTION
1,550,854.11
CUD = 3% (NO FORM E) = P 46,525.62
BC = 0.00125 DV = P
1,938.57
BF = 0.00125 DV + 5050 = P 6,988.57
AC = P110.00 x 19.22 = P
2,114.20
WD = P34.00 x 19.22 = P 653.48
CDS = P
280.00
IPF =
P 1,000.00
LC =
CSF COMPUTATION:
Consideration:
‘20 sized container – 5$/ctr peso
equivalent
‘40 sized container – 10$/ctr peso
equivalent
GIVEN: 1x40
Therefore 1x $10 = $10.00
Summary CUD = P 46,526.00
VAT = P 193,243.00
IPF = P 1,000.00
CSF = P 436.00
Total = P 241,205.00
SAMPLE EXERCISE:

A shipment categorizes as general cargo consigned to


BPT Trading arrived at POM with total CFR Value of
$30,750.00. The ocean freight charges indicated in the
commercial invoice amounted to $ 2,750.00 while the
covering bill of lading shows freight of $2,800.00. No
local insurance was secured by the importer. The cargo
weighs 12,000 Kgs ( GW)- 11,800 Kgs ( N.W.) compute
the total amount due to the government using E/R at P
42.50/US$. (5% Ad val)
CFR$30,750 - $2,750 B/L FRT= FOB $28,000
FOB $28,000 x .02 INS = $560 INS
FOB $ 28,000 + $560 INS + $2,800 FRT = $31, 360 CIF
CIF $$31,360 x E/R Php 42.50 = Php 1,332,800 DV
Php 1,332,800 DV x .05 = Php 66,640 CUD
Compute the LC:
DV = P 1,332,800.00
CUD = 5% = P 66,640.00
BC = 0.00125 DV = P 1,666.00
BF = 0.00125 DV + 5050 = P 6,716.00
AC = P110.00 x 12 = P 1,320.00
WD = P34.00 x 12 = P 408.00
CDS = P
280.00
IPF = P
1,000.00
LC = P
1,410,830.00

Hence VAT = 0.12 LC = P 169,299.60


Summary CUD = P 66,640.00
VAT = P 169,300.00
IPF = P 1,000.00
CSF = P 0.00
Total = P 236,940.00 - TADG
PRORATION OF MULTIPLE ITEMS

FORMULA: Individual T/S ( Term of Shipment) x Total


Amount to be prorated
Total T/S
EXAMPLE:

GIVEN: Importation of XYZ Company are the following: 1x40 STC-


a. 10,000 calculators CFR$ 5,000
b. 5,000 steel chairs CFR$ 8,500
Other Infos: COO- Beijing, CN
Freight Charges $350
Insurance $300 (O.R. presented)
G.W.- 1,000 kgs
N.W.- 950 kgs
E/R- Php 43.00/1$
R/D- 3% and 5% respectively

Find the individual amount of Customs Value, Insurance, Freight, other component of LC.
Compute for the TADG
A B
Total
CFR $ 5,000 $8,500
$13,500
Less: FRT 129.63 220.37
350
FOB $4,870.37 $8,279.63
$13,150
INS 111.11 188.89
300
FRT 129.63 220.37
350
DV$ $5,111.11 $8,688.89
$13,800
X E/R Php 43.00 43.00
43.00
DVPHp 219,777.73 373,622.27
593,400.00
A B
TOTAL
DV Php 219,777.73 373,622.27 593,400.00
CUD 6,593.33 18,681.11 25,274.44
BC 274.72 467.03 741.75
BF 2,145.09 3,646.66 5,791.75
AC 40.74 69.26 110.00

WD 12.59 21.41 34.00


CDS 103.70 176.30 280.00
IPF 277.78 472.22 750.00
LC Php 229,225.68 397,156.26 626,381.94
X VAT RATE .12 .12 .12
VAT 27,507.08 47,658.75 75,165.83
SUMMARY: CUD Php 25,274.00
VAT 75,166.00
IPF 750.00
CSF 430.00
TADG 101,620.00

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