Bitumen Import Duty in the Philippines
Last updated: 2026-10-02
Bitumen Import Duty in the Philippines
The Philippines imposes a 0% import duty on bitumen (HS Code 2713.20) under the ASEAN Harmonized Tariff Nomenclature, because bitumen is classified as an essential industrial input and the country is a net importer with no domestic refinery production. Importers instead pay 12% VAT on the CIF (Cost, Insurance, Freight) value plus the Customs Documentary Stamp (PHP 250–500 per shipment), along with port charges of roughly PHP 15,000–30,000 per 20-foot container. So while the tariff line reads zero, the real landed cost of a 20MT bitumen container typically climbs 18–22% above the FOB invoice price once all fees, VAT, and logistics are tallied.
What Is the Current Tariff Rate on Bitumen in the Philippines?
Bitumen falls under HS Code 2713.20.00 in the Philippine Tariff Finder (maintained by the Bureau of Customs). The current rate structure is straightforward:
| Charge Category | Rate | Basis |
|---|---|---|
| Import Duty (MFN) | 0% | CIF value |
| Import Duty (ASEAN/ATIGA) | 0% | CIF value |
| Value-Added Tax (VAT) | 12% | CIF + duty + other charges |
| Customs Documentary Stamp | PHP 250–500 | Per import entry |
| BOC Processing Fee | PHP 1,000–2,500 | Per shipment |
| Arrastre & Port Handling | PHP 15,000–30,000 | Per 20-ft container |
- No domestic production: The Philippines has no commercial bitumen refinery. Petron and Shell's local refineries historically produced small volumes but ceased bitumen output years ago, making the country 95%+ import-dependent.
- Essential infrastructure input: Bitumen is classified as a critical input for the government's "Build, Build, Build" (now "Build Better More") infrastructure program.
- ASEAN commitments: Under the ASEAN Trade in Goods Agreement (ATIGA), most industrial inputs, including bitumen, sit on the 0% tariff line for member states.
> Key takeaway: You do not pay duty on bitumen — but VAT and logistics charges still add 18–22% to your landed cost.
Total Landed Cost Breakdown: 20MT Bitumen Container
Here's a real-world landed cost calculation for a 20-foot container (approximately 20 metric tons) of penetration-grade bitumen shipped from South Korea to Manila:
| Cost Component | Amount (USD) | % of FOB |
|---|---|---|
| FOB Price (20MT @ $580/MT) | $11,600 | 100% |
| Ocean Freight (Busan → Manila) | $900 | 7.8% |
| Marine Insurance | $120 | 1.0% |
| CIF Value | $12,620 | 108.8% |
| Import Duty (0%) | $0 | 0% |
| VAT (12% of CIF + fees) | $1,530 | 13.2% |
| Documentary Stamp & BOC Fees | $60 | 0.5% |
| Port Handling & Arrastre | $450 | 3.9% |
| Trucking (Port → Warehouse) | $250 | 2.2% |
| Total Landed Cost | $14,910 | 128.5% |
| Effective Cost Per MT | $745.50/MT | — |
The gap between FOB and landed cost: $3,310 per container, or roughly 28.5%.
- Duty (0%) contributes nothing to this gap.
- VAT contributes the largest share at $1,530.
- Logistics (freight + handling + trucking) contributes $1,600.
HS Code Classification & Documentation Requirements
Getting the HS code wrong is the single biggest compliance risk for bitumen importers. Bitumen (2713.20) is often confused with:
| Product | HS Code | Duty Rate | Notes |
|---|---|---|---|
| Bitumen / Asphalt Cement | 2713.20 | 0% | Correct classification |
| Petroleum Coke | 2713.11/2713.12 | 0–3% | Different product |
| Asphalt (natural) | 2714.10 | 0% | Natural deposits, rare |
| Cutback Bitumen | 2715.00 | 0–3% | Solvent-diluted |
| Bitumen Emulsion | 2715.00 | 0–3% | Water-based |
- Commercial Invoice — must state grade (e.g., Pen 60/70, PG 64-22), quantity in MT, and unit price
- Bill of Lading — consignee must match the importer of record
- Packing List — for drummed shipments, list drum count and net weight
- Certificate of Origin — required for ATIGA preferential treatment (Form D)
- Material Safety Data Sheet (MSDS) — mandatory for hazardous goods
- Import Clearance from DTI/DOE — for petroleum products, a CPC (Certificate of Product Clearance) may be required
- BOC Import Entry (SAD) — filed electronically via the BOC e2m system
> Pro tip: If your supplier is in ASEAN (Malaysia, Indonesia, Thailand), file Form D to lock in the 0% ATIGA rate. If sourcing from South Korea, a Korea-Philippines FTA certificate also applies.
Country Comparison: Bitumen Import Duty Across Asia
How does the Philippines compare to its neighbors? This matters if you're deciding on a sourcing hub or transshipment point.
| Country | Import Duty | VAT/GST | Total Tax Burden | Notes |
|---|---|---|---|---|
| Philippines | 0% | 12% | 12% | Most favorable |
| Indonesia | 0–5% | 11% | 11–16% | Local refining capacity |
| Vietnam | 0–3% | 10% | 10–13% | ATIGA-eligible |
| Thailand | 0–5% | 7% | 7–12% | Domestic production |
| Malaysia | 0% | 10% | 10% | Net exporter |
| Singapore | 0% | 9% | 9% | Re-export hub |
| Japan | 0% | 10% | 10% | High logistics cost |
| India | 5–10% | 18% | 23–28% | Protectionist |
Why the Philippines stands out: Zero duty plus a competitive 12% VAT makes it one of the cheapest entry points for bitumen in Southeast Asia — provided you account for the port congestion at Manila and Subic, which can add 5–12 days to clearance.
Delays, Penalties & Compliance Risks
Even with 0% duty, importers face significant non-tariff costs:
| Risk Factor | Typical Impact | Mitigation |
|---|---|---|
| Misclassification (2715 vs 2713) | 3% duty + 25% surcharge + penalties | Pre-validate HS code with a customs broker |
| Missing CPC/DTI clearance | 7–14 day hold | Apply 30 days before shipment |
| Undervaluation flags | BOC valuation review, 10–20 day delay | Keep supplier invoices at market rate |
| Port congestion (Manila) | 5–12 days | Book Subic or Batangas for bulk |
| Expired Form D | Loss of ATIGA preference | Verify CO validity before arrival |
Penalty math: If BOC reclassifies your bitumen as HS 2715 (cutback), you pay 3% duty + 25% surcharge on the duty + 20% interest. On a $12,620 CIF shipment, that's roughly $500–$800 in unexpected costs — small in absolute terms but enough to trigger an audit flag.
How to Calculate Your Exact Bitumen Import Cost
Manual computation is error-prone. Here's the formula:
Landed Cost = CIF + (CIF × VAT rate) + Fixed Fees + Logistics
Where:
- CIF = FOB + Freight + Insurance
- VAT rate = 12%
- Fixed Fees = Documentary Stamp + BOC processing
- Logistics = Arrastre + trucking + storage
| FOB Value | CIF Value | VAT (12%) | Total Landed | Cost/MT (20MT) |
|---|---|---|---|---|
| $8,000 | $8,700 | $1,044 | $10,244 | $512 |
| $11,600 | $12,620 | $1,514 | $14,910 | $745 |
| $14,500 | $15,800 | $1,896 | $18,416 | $921 |
| $20,000 | $21,800 | $2,616 | $25,266 | $1,263 |
For bulk shipments (3,000+ MT via tanker), the per-MT cost drops by 15–20% due to shared freight and handling.
Frequently Asked Questions
Q1: Is there really zero import duty on bitumen in the Philippines?
Yes. Bitumen under HS Code 2713.20 carries a 0% Most-Favored Nation (MFN) tariff and 0% under ATIGA. The only mandatory tax is the 12% VAT on the CIF value plus fixed BOC fees of PHP 1,000–2,500 per entry.
Q2: How much is the total tax on a 20MT bitumen import?
For a typical 20MT container valued at $11,600 FOB / $12,620 CIF, you pay approximately $1,530 in VAT plus $60 in fixed fees. Total tax burden is about 12.6% of CIF, or $1,590 per container.
Q3: Do I need a special license to import bitumen into the Philippines?
Yes. You need a Certificate of Product Clearance (CPC) from the Department of Energy (DOE) and may need DTI registration if reselling. Your customs broker must also hold a valid BOC accreditation to file the import entry.
Q4: How long does bitumen customs clearance take in the Philippines?
Under normal conditions, clearance takes 3–5 business days from vessel arrival if documents are complete. During peak congestion (Q4), expect 7–12 days, especially at the Port of Manila.
Q5: Can I avoid VAT on bitumen imports?
In most cases, no — VAT is mandatory at 12%. However, PEZA-registered enterprises and BOI-registered infrastructure projects may qualify for VAT zero-rating or exemptions on capital equipment inputs, including bitumen, subject to BIR approval.
Calculate Your Bitumen Import Cost in Seconds
Stop guessing at landed costs. [Use 6Tar's free cost calculator](https://6tar.com/calculator) to plug in your FOB price, freight, and destination port — and get an instant, accurate breakdown of duty, VAT, and logistics for any Philippine port (Manila, Subic, Batangas, Cebu).
- ✅ Real-time exchange rates
- ✅ Port-specific handling fees
- ✅ Bulk vs. container mode comparison
- ✅ Export-ready cost sheets for your finance team
Whether you're importing Pen 60/70 from South Korea or PG 64-22 from Singapore, 6Tar gives you the numbers you need before you commit to a shipment. [Get your quote today →](https://6tar.com)