Bitumen Import Duty in the Philippines
Last updated: 2026-10-04
Bitumen Import Duty in the Philippines
The Philippines imposes a 0% import duty on bitumen (HS code 2713.20) under the ASEAN Harmonised Tariff Nomenclature, since bitumen is classified as an essential infrastructure input with no domestic production. However, importers still pay 12% VAT on the CIF value plus customs processing fees, and total landed costs typically run USD 30–45 per metric ton above the FOB price. With Philippine bitumen demand at roughly 2.5–3.0 million metric tons annually and zero domestic refining capacity, nearly 100% of supply is imported, mostly from South Korea, Singapore, Malaysia, and the Middle East.
Current Bitumen Import Duty Rates in the Philippines
The Philippine tariff schedule treats bitumen differently depending on its end use and origin. Under the ASEAN Harmonised Tariff Nomenclature (AHTN) 2022, the key HS codes are:
| HS Code | Product Description | MFN Duty Rate | ASEAN (ATIGA) Rate | VAT |
|---|---|---|---|---|
| 2713.20.00 | Petroleum bitumen (asphalt) | 0% | 0% | 12% |
| 2713.20.10 | Penetration-grade bitumen | 0% | 0% | 12% |
| 2713.20.90 | Other bitumen (cutback, emulsion base) | 0% | 0% | 12% |
| 2715.00.00 | Bituminous mixtures (cutbacks) | 7% | 0% | 12% |
Key points:
- Raw petroleum bitumen entered the Philippines at 0% Most-Favoured Nation (MFN) duty even before the ASEAN Trade in Goods Agreement (ATIGA) eliminated tariffs entirely.
- The 12% VAT is non-negotiable and applies to the CIF value + duty + excise (if any).
- Bituminous mixtures and emulsions (HS 2715) can attract up to 7% MFN duty, which is why importers prefer importing base bitumen and blending locally.
The Bureau of Customs (BOC) collects the VAT at the point of entry, while the Bureau of Internal Revenue (BIR) handles creditable input VAT for registered importers.
How the 12% VAT and Fees Stack Up on a Real Shipment
Duty is only one line item. Here is a worked example on a 5,000 MT shipment of penetration-grade bitumen (HS 2713.20) from South Korea to Manila, priced at USD 480/MT FOB:
| Cost Component | Basis | Amount (USD) | Per MT |
|---|---|---|---|
| FOB value | 5,000 MT × $480 | 2,400,000 | 480.00 |
| Freight (Busan–Manila) | ~$45/MT | 225,000 | 45.00 |
| Insurance | ~0.3% of CIF | 7,875 | 1.58 |
| CIF value | — | 2,632,875 | 526.58 |
| Import duty @ 0% | CIF × 0% | 0 | 0.00 |
| VAT @ 12% | CIF × 12% | 315,945 | 63.19 |
| Customs brokerage/processing | fixed + 0.25% | ~15,000 | 3.00 |
| Arrastre & wharfage | per MT | ~25,000 | 5.00 |
| Total landed cost | — | 2,988,820 | 597.77 |
Takeaways:
- Effective landed cost is roughly USD 118/MT (24.6%) above FOB.
- VAT alone adds USD 63.19/MT — by far the largest government charge.
- Duty savings from the 0% rate are worth ~USD 42/MT versus a 7% MFN scenario.
Tariff Comparison: Philippines vs. Regional Buyers
How does the Philippine regime compare with other Asian importers of bitumen?
| Country | MFN Duty on HS 2713.20 | VAT/GST | Effective Tax Load |
|---|---|---|---|
| Philippines | 0% | 12% | 12% |
| Indonesia | 0% | 11% | 11% |
| Vietnam | 0% | 10% | 10% |
| Thailand | 0% | 7% | 7% |
| Singapore | 0% | 9% GST | 9% |
| Malaysia | 0% | 10% SST | 10% |
| India | 10% | 18% GST | ~28% |
| Australia | 0% | 10% GST | 10% |
Observations:
- The Philippines has the highest effective indirect tax burden in ASEAN for bitumen importers.
- India's combined load is more than double the Philippines', but India has significant domestic refining capacity.
- Among ASEAN buyers, the Philippines' 12% VAT is a genuine cost driver for road contractors.
Which Countries Supply Philippine Bitumen?
Philippine refiners (Petron, Shell, and formerly Caltex) ceased bitumen production between 2005 and 2015, forcing total reliance on imports. The Department of Energy (DOE) reports annual bitumen imports of 2.5–3.0 million MT, split roughly as:
| Source | Approx. Share | Typical Grade |
|---|---|---|
| South Korea | 35–40% | Pen 60/70, PG 64-22 |
| Singapore | 20–25% | Pen 60/70 |
| Malaysia | 10–15% | Pen 80/100 |
| UAE / Saudi Arabia | 15–20% | Pen 60/70, Pen 40/50 |
| Thailand, Taiwan | 5–10% | PG grades, cutbacks |
Implications for importers:
- South Korean and Singaporean suppliers dominate because of shorter transit (5–9 days to Manila) and established ATIGA/Free Trade Agreement treatment.
- Middle East cargoes take 18–25 days but often price USD 10–20/MT lower FOB, which can offset freight.
- All key suppliers are covered by 0% duty, so origin selection should hinge on CIF price + logistics reliability, not tariff preference.
Compliance Steps and Typical Timelines
Importing bitumen into the Philippines requires several agency clearances. Standard timeline from vessel arrival to factory delivery:
| Step | Agency | Typical Duration |
|---|---|---|
| Arrival & lodgement of SAD | Bureau of Customs | Day 1 |
| Duty/VAT assessment | BOC | Day 1–2 |
| Payment of VAT | BOC accredited banks | Day 2–3 |
| DOE import clearance | Department of Energy | 3–7 days (pre-arrival) |
| Product standards check | DTI / PS certification | 5–10 days (pre-arrival) |
| Release & trucking | Port operator | Day 3–5 |
| Total cycle | — | 5–10 working days |
Documents required:
- Bill of Lading and commercial invoice
- Packing list and certificate of origin (Form D for ATIGA)
- Import Entry and Internal Revenue Declaration
- DOE Certificate of Registration as an oil importer
- SGS/Intertek quality certificate (penetration, softening point, viscosity)
- BIR Certificate of Registration
Failure to present a Form D forfeits ATIGA preference — though for bitumen the MFN rate is already 0%, so the practical impact is limited to documentary penalties.
Cost Drivers Beyond Duty
Since duty is zero, landed cost differences come from five other sources:
- VAT timing: 12% VAT on CIF is payable upfront; recovery depends on BIR crediting within 30–60 days. Cash-flow cost can reach 1–2% of CIF for high-volume importers.
- Marine freight: ranges USD 30–60/MT from North Asia; USD 55–90/MT from the Gulf.
- Port congestion: Manila South Harbor berth waiting can add 1–3 days and USD 8,000–15,000 in demurrage per vessel.
- Quality downgrades: off-spec cargo rejected at port triggers re-export or re-blending costs of USD 25–40/MT.
- Financing: LC and trust receipt charges add 0.5–1.5% of CIF.
Rule of thumb: budget USD 600–650 per MT landed in Manila when FOB is USD 470–500/MT, inclusive of full VAT.
FAQ: Bitumen Import Duty Philippines
Q1: What is the current import duty on bitumen in the Philippines?
Bitumen classified under HS 2713.20 enters the Philippines at 0% MFN duty, and the same 0% applies under ATIGA for ASEAN-origin cargo. The only government charge on the CIF value is the 12% VAT, plus minor customs and port fees.
Q2: Is VAT charged on top of the duty for bitumen imports?
Yes. The 12% VAT is levied on the CIF value plus any duty payable — and since bitumen duty is 0%, the tax base equals the CIF value. Registered importers can claim this as creditable input VAT against future output VAT liabilities.
Q3: How long does it take to clear a bitumen shipment in the Philippines?
Standard clearance runs 5–10 working days from vessel arrival, assuming pre-arrival DOE clearance and complete documentation. Missing documents or BOC valuation queries can extend this to 15–20 days.
Q4: Which bitumen HS code applies to penetration-grade and cutback grades?
Penetration-grade bitumen is classified under HS 2713.20.10, while cutbacks and emulsions typically fall under HS 2715.00.00 — the latter can attract up to 7% MFN duty. Importers should verify classification with a customs broker before shipment.
Q5: Are there any anti-dumping or safeguard duties on bitumen in the Philippines?
No. The Philippine Tariff Commission has no active anti-dumping or safeguard measure on bitumen (HS 2713.20) as of 2025. All shipments face the same 0% duty plus 12% VAT regardless of origin.
Calculate Your Philippine Bitumen Landed Cost in Seconds
Duty is only one variable. Freight, VAT timing, port fees, and demurrage all move your final number — and manual spreadsheets miss them. Use the 6Tar cost calculator to model FOB + freight + 12% VAT + port charges across Korean, Singaporean, Malaysian, and Middle East origins in one view. Enter your tonnage, grade, and port of discharge to get a per-MT landed cost in under 60 seconds — no signup required.