How to Import a Car to the Philippines (2026)

Introduction

Importing a new car to the Philippines costs 30% customs duty (20% from Japan with a Form JP, 0% from ASEAN or Korea), TRAIN excise of 4–50% on the whole landed value, and 12% VAT. Electric cars and hybrids pay 0% duty from any origin until 2028. Used imports are banned and only left-hand drive vehicles are allowed.

The Philippines sells over 400,000 new vehicles a year. Despite strong local assembly operations by Toyota, Mitsubishi, and Nissan, the country imports a significant share of its vehicles as completely built-up units (CBUs) — particularly from Thailand, Indonesia, Japan, South Korea, and China.

The Philippine import regime is administered by three primary agencies: the Bureau of Customs (BOC) handles customs valuation, duty assessment, and cargo release; the Bureau of Internal Revenue (BIR) manages excise tax and VAT through the electronic Authority to Release Imported Goods (e-ATRIG) system; and the Land Transportation Office (LTO) handles vehicle registration, inspection, and plate issuance. Understanding how these agencies interact is essential for a smooth import experience.

The Philippines applies a layered tax structure — Basic Customs Duty, Excise Tax (cliff brackets under the TRAIN Law, charged on the whole landed value), and 12% VAT — that adds about 15% of CIF for a battery-electric car and more than 100% of CIF for a luxury petrol car. Free Trade Agreements with ASEAN, Japan and South Korea reduce or eliminate customs duty for vehicles from those origins; the China agreement does not zero-rate cars across the board. This guide covers every step of the process, from eligibility checks and the used vehicle ban through customs clearance, duty payment, and LTO registration.

Quick Facts

Types of Cars That Can Be Imported

The Philippines draws a sharp line between new and used vehicle imports. Understanding this distinction is critical before planning any import.

New Vehicles

Importation of brand-new CBU passenger cars and commercial vehicles is fully liberalised. Any individual, dealer, or company can import new vehicles subject to normal customs, excise, emission, and registration requirements. There is no requirement to be a returning resident, diplomat, or registered importer to bring in a new car — though accredited importers and CAMPI/AVID dealer members benefit from streamlined processing under BOC CMO 35-2010 and CMO 55-2010.

All new vehicles must meet Euro 4 emission standards (enforced since January 2018 under DENR Administrative Order 2015-04) and must be left-hand drive.

Used Vehicles — Effectively Banned

Executive Order 156 (2002), strengthened by EO 877-A (2010), bans the importation of all types of used motor vehicles and used parts/components. The Supreme Court has repeatedly upheld this ban as legitimate industrial policy.

Narrow exceptions exist for:

• Returning residents and immigrants under the No-Dollar Importation (NDI) program — must be LHD, GVW not exceeding 3 tons, registered in the importer's name for at least 6 months, and cannot be resold for 3 years
• Diplomatic corps and international organisations with DTI Certificate of Authority to Import (CAI)
• Used trucks (GVW 2.5 tons and above), buses (GVW 6 tons and above), and special-purpose vehicles — regulated but allowed with prior CAI and IAC-UTE authorisation
• Donated vehicles to local government units under strict conditions

Electric Vehicles and Hybrids

The Philippines actively promotes EV adoption through the Electric Vehicle Industry Development Act (RA 11697, known as EVIDA), Executive Order 12 (2023) and Executive Order 62 (2024), which extended and widened the zero tariff to 2028. Battery Electric Vehicles (BEVs) pay 0% customs duty until 2028 and are exempt from excise tax. Hybrid Electric Vehicles (HEVs) and Plug-in Hybrids (PHEVs) pay 0% customs duty until 2028 and 50% of the applicable excise bracket rate. The 0% duty applies from any origin and needs no certificate of origin, so a Japanese hybrid pays 0%, not the 20% Japan rate. VAT at 12% still applies to every electrified vehicle.

Two points to watch: the 0% duty is scheduled to end in 2028, when electrified cars would revert to the normal 30% rate unless it is renewed; and a 48V mild hybrid that cannot move on electric power alone may not count as a hybrid for excise, so IPAS quotes it at the full excise rate.

Pickup Trucks — Recent Change

Starting 1 July 2025, pickup trucks are no longer exempt from excise tax under the Capital Markets Efficiency Promotion Act (CMEPA, RA 12214), implemented by BIR Revenue Regulations 18-2025. They now follow the same 4/10/20/50% excise bracket schedule as other automobiles, on top of 15-20% customs duty (0% for ASEAN-built pickups with Form D). Purely electric pickups remain exempt; hybrid pickups pay 50% of the rate. Pickup-based SUVs with an enclosed passenger compartment (Fortuner, Everest, MU-X, Montero Sport) are passenger cars and pay the 30% car duty rate.

Cars You Can Import to the Philippines

Seaports and Airports Supporting Vehicle Import

The Port of Batangas is explicitly described by Asian Terminals Inc. as the country's preferred gateway for CBU imports, serving as the staging ground for major car brands including Toyota, Mitsubishi, and BYD. Recent large-scale EV shipments (including BYD RoRo vessels carrying over 1,500 vehicles) have also used Batangas.

Restrictions on Vehicle Import for Individuals

Private Individuals (New Vehicles)

Any individual can import a brand-new vehicle for personal use. There are no quantity restrictions, though the importer must:

• File an Import Entry and Internal Revenue Declaration (IEIRD) with the BOC
• Obtain an electronic Authority to Release Imported Goods (e-ATRIG) from BIR for excise and VAT processing
• Pay all applicable duties, excise taxes, and VAT before release

Private Individuals (Used Vehicles)

Private individuals cannot import used vehicles for commercial purposes. The only pathway is the No-Dollar Importation (NDI) program for returning residents/immigrants, which requires:

• DTI-FTEB Certificate of Authority to Import (CAI)
• Vehicle must be LHD and GVW not exceeding 3 tons
• Registered in the importer's name for at least 6 months before application
• Certificate of Emission Compliance from country of origin (authenticated/apostilled)
• 3-year non-resale restriction after importation

Right-Hand Drive Ban

Under RA 8506 (1998), it is unlawful to import, register, use, or operate any right-hand drive vehicle on Philippine roads. Violations carry imprisonment of approximately 2 years 4 months to 4 years 2 months, plus a PHP 50,000 fine. The only exceptions are vintage vehicles manufactured on or before 31 December 1970 (under RA 11698), vehicles used exclusively in legally sanctioned motorsports events, and off-road special-purpose vehicles.

Duty Structure Overview

The Philippines applies a three-layer tax structure on imported vehicles: Basic Customs Duty, Excise Tax, and VAT. The total burden varies dramatically based on the vehicle's origin country (FTA eligibility), fuel type, and selling price.

Layer 1: Basic Customs Duty (on CIF Value)

The MFN rate for most CBU passenger cars is 30% (15-20% for pickups and goods vehicles). Free Trade Agreements can reduce this or eliminate it — ASEAN-origin vehicles enter at 0%, Korean petrol and diesel cars at 0% under the Philippines-Korea FTA (in force since 31 December 2024), and Japanese cars at 20% under PJEPA. Electrified cars pay 0% from any origin until 2028.

US-made cars pay the 30% MFN rate. A 0% rate for US automobiles was announced with the July 2025 US-Philippines trade deal, but no executive order putting it into effect had been issued as of August 2026. If one is issued, US-origin duty would fall by 30 points of CIF.

Layer 2: Excise Tax (TRAIN Law Brackets)

The automobile excise follows the bracket system set by the TRAIN Law (RA 10963). For a car imported for the buyer's own use (not for resale), BIR Revenue Regulations 5-2018 set the base as the total landed value: CIF plus customs duty plus import charges (brokerage, wharfage, arrastre and fees). Cars imported for resale are taxed on the importer's selling price instead.

These are cliff brackets, not marginal ones: the whole base is taxed at the bracket rate. A car with a base of PHP 999,999 pays about PHP 100,000 of excise; at PHP 1,000,001 it pays about PHP 200,000. The brackets were set in 2018 and are not indexed for inflation, so price rises push more cars into higher brackets each year.

BEVs are fully exempt (0%). HEVs and PHEVs pay 50% of the applicable rate — for example 10% instead of 20% in the PHP 1-4 million bracket, not a flat 50%.

Layer 3: VAT

A flat 12% VAT applies on the cumulative value of CIF + customs duty + excise tax + import charges.

Worked Examples

Calculated with the customs cascade IPAS uses. CIF is in PHP; import charges are an illustrative PHP 50,000 (real broker charges vary and matter near a bracket threshold).

Totals include the PHP 50,000 import charges. Tax percentages count duty, excise, VAT and charges against CIF.

Get exact duty rates for your specific vehicle using CarImport.AI

FTA Preferential Rates Summary

Worked Example: Importing a 2026 Cadillac Escalade to the Philippines

Documents Required for Import

Customs Clearance Documents

• Bill of Lading (original)
• Commercial Invoice showing CIF value (insurance and freight itemised)
• Packing List (for container shipments)
• Import Entry and Internal Revenue Declaration (IEIRD) — filed electronically with BOC
• BOC Car Evaluation System printout / valuation
• Electronic Authority to Release Imported Goods (e-ATRIG) from BIR — processed under RMO 14-2014 and RR 2-2016
• Certificate of Origin / Form D (ASEAN), proof of origin under EO 80 (Korea), Form JP (Japan), Form E (China) — if claiming preferential duty rates

Additional Documents for Used Vehicles (Where Permitted)

• Certificate of Authority to Import (CAI) from DTI-FTEB
• Certificate of Emission Compliance from country of origin (authenticated/apostilled)
• Certificate of Roadworthiness (for used trucks and buses)
• IAC-UTE authorisation (for used trucks and buses)

LTO Registration Documents

• Certificate of Payment (CP) from BOC and Tax Payment Clearance
• Certificate of Stock Reported (CSR)
• Sales/commercial invoice from importer
• PNP-HPG Motor Vehicle Clearance
• Insurance Certificate of Cover (third-party liability)
• Motor Vehicle Inspection Report (MVIR)
• DENR Certificate of Conformity (Euro 4)
• Tax Identification Number (TIN)

Customs Clearance Timeline

Used trucks, buses, and CAI-regulated imports can take substantially longer due to extra agency clearances, IAC-UTE authorisation, and additional inspections.

Homologation and Vehicle Approval

Emission Standards — Euro 4 Mandatory

Under the Clean Air Act (RA 8749) and DENR Administrative Order 2015-04, all new vehicles for initial registration must meet Euro 4 emission standards. Since 1 January 2018, DENR stopped accepting Euro 2 Certificates of Conformity (COC) for LTO registration, meaning non-Euro-4 new vehicles can no longer be registered.

Imported vehicles must present a DENR Certificate of Conformity confirming Euro 4 compliance before LTO will process registration.

Used Vehicle Emission Requirements

Used trucks and buses imported under the regulated programs must present Certificates of Roadworthiness and Emission Compliance from authorised inspection centres abroad, authenticated by the Philippine embassy in the country of origin.

EV and Hybrid Classification

Under EVIDA (RA 11697), the Department of Energy (DOE) classifies vehicles as BEV, HEV, or PHEV for excise tax purposes. BIR Revenue Regulation 1-2025 transferred this classification authority back to DOE, which maintains the official Electric Vehicle Recognition List used by BIR to determine excise exemption (BEV) or the 50% reduced rate (HEV/PHEV). The tax code (NIRC s.149) defines a hybrid as electric power combined with petrol or diesel "with or without provision for off-vehicle charging", which is why plug-in hybrids take the hybrid rate rather than the BEV exemption.

Safety Standards

The Land Transportation and Traffic Code (RA 4136) and various LTO Memorandum Circulars set roadworthiness requirements including lighting, braking, seatbelt compliance (RA 8750), and general construction standards. All imported vehicles undergo Motor Vehicle Inspection before LTO registration.

Registration Procedures and Costs

Step 1: Stock Reporting

The importer or accredited dealer submits a Certificate of Stock Reported (CSR) request to LTO with:

• Current LTO accreditation as Manufacturer/Assembler/Importer/Dealer (MAID)
• BOC Certificate of Payment and Tax Clearance (with supporting documents)
• Vehicle photographs and stencil data

Step 2: Sales Reporting

CSR and sales invoice are submitted to the LTO regional office.

Step 3: Initial Registration

The vehicle owner applies at the LTO district office near the port of entry with all required documents (CP, CSR, sales invoice, PNP-HPG clearance, DENR COC, MVIR, insurance, TIN). The vehicle undergoes inspection and emission testing, with data cross-checked against the LTO MAIDRS system.

Step 4: OR/CR Issuance

LTO issues the Official Receipt (OR) and Certificate of Registration (CR), with licence plates issued once available.

Key Costs

Brand-new vehicles registered for the first time typically get three years of initial registration; thereafter, owners renew annually with MVUC and LTO fees.

EV Registration Incentives

Under EVIDA, BEVs receive a 30% discount on MVUC and registration/inspection fees, and HEVs receive a 15% discount, for eight years from EVIDA's effectivity (until approximately 2030).

Frequently Asked Questions

Can I import a used car to the Philippines?

Generally no. Executive Order 156 (2002), upheld by the Supreme Court, bans used vehicle imports. The only exceptions are returning residents under the No-Dollar Importation program (strict conditions apply), diplomatic imports, and regulated used trucks/buses with prior government authorisation.

How much does it cost to import a car to the Philippines?

Total taxes range from about 15% of CIF for a battery-electric car to more than 100% for a petrol car whose landed value passes PHP 4 million. A mid-range petrol car pays 30% duty (20% from Japan with a Form JP), 20% excise on CIF plus duty, and 12% VAT — about 64-78% of CIF in total. Use CarImport.AI for your exact calculation.

Can I import a right-hand drive vehicle?

No. RA 8506 bans the import, registration, and use of RHD vehicles. Violations carry imprisonment and a PHP 50,000 fine. The only exceptions are pre-1971 vintage vehicles, motorsport vehicles, and off-road special-purpose vehicles.

Are electric vehicles cheaper to import?

Yes, significantly. Under EO 12 and EO 62, BEVs, hybrids and plug-in hybrids pay 0% customs duty from any origin until 2028. BEVs are also exempt from excise, so only 12% VAT (plus import charges) applies — about 15% of CIF. Hybrids and plug-in hybrids pay 50% of the normal excise bracket rate.

What is the TRAIN Law excise tax on cars?

For a car imported for your own use, the excise is charged on the total landed value (CIF + duty + import charges): 4% up to PHP 600,000; 10% from PHP 600,001 to PHP 1,000,000; 20% from PHP 1,000,001 to PHP 4,000,000; and 50% above PHP 4,000,000. The rate applies to the whole value, not just the part above each threshold. BEVs are exempt; hybrids pay half rates.

Do cars from Thailand enter duty-free?

Yes. Under ATIGA (ASEAN Free Trade Area), vehicles from ASEAN member states like Thailand and Indonesia enter the Philippines at 0% customs duty, provided they meet the 40% ASEAN content requirement and are accompanied by a valid Form D Certificate of Origin.

How long does customs clearance take?

With complete and correct documents, customs clearance typically takes 3-4 working days. This includes entry filing, inspection (if selected), e-ATRIG processing with BIR, duty payment, and release order issuance.

Are pickup trucks still excise-exempt?

No. Starting 1 July 2025, the CMEPA (RA 12214) removed the excise exemption for pickups. They now follow the same 4/10/20/50% bracket schedule as other automobiles. Electric pickups remain exempt; hybrid pickups pay 50% rates.

Ready to Import Your Vehicle?

The Philippines offers competitive import conditions — especially for ASEAN-origin vehicles at 0% duty, and for electric cars and hybrids at 0% duty until 2028 (with BEVs also exempt from excise). Whether you are sourcing a new vehicle from Thailand, Japan, or the United States, understanding the layered tax structure and FTA opportunities can save you thousands of dollars.

Two tools to get you started:

CarImport.AI — Calculate the exact landed cost of importing any vehicle to the Philippines. Get a complete breakdown of customs duty, excise tax, VAT, and shipping costs tailored to your specific vehicle and origin country. Calculate your landed cost

IPAS EXPRESS Pro Car Shipping — Already have a vehicle? Get instant shipping quotes for sea freight or air freight to Manila, Batangas, or Cebu. Compare container and RoRo options with real-time pricing. Get a shipping quote