DUTIABLE INSURANCE

I. If the terms of shipment is either CIF or CIP, the amount of actual insurance
premium indicated as a separate value in the invoice shall be deemed the dutiable
insurance even if lower than 2% (Gen. Cargo) or 4% (Dangerous Cargo) of the FOB
value. In cases where the insurance premium is not indicated as a separate value in
the invoice, then the dutiable insurance shall be 2% (Gen. Cargo) or 4% (Dangerous
Cargo) of the FOB value.
II. If the importation is covered by a local or domestic insurance, the dutiable insurance
shall be the actual insurance premium paid provided a certification and official
receipt (O.R.) as to the premium paid, was presented to the BOC. In the absence of
said certification and O.R., the local insurance premium shall not be lower than 2%
(General Cargo) or 4% (Dangerous Cargo) of the FOB Value.
DUTIABLE INSURANCE
III. For shipments not covered by any local insurance, then amount of insurance
premium declared in the entry is deemed the dutiable insurance provided such
insurance shall not less than 2% (General Cargo) or 4% (Dangerous, Inflammable,
Chemicals, and Other High Risk Cargoes) of the FOB value.
IV. For direct importations by the government, the original copy of the marine policy
issued by the Government Service Insurance System (GSIS) together with true copy
shall be presented to the BOC. The dutiable insurance shall be based on the GSIS
insurance premium paid.
a) If insured by a surety company other than the GSIS, apply the provisions of II.
b) If not covered by a local insurance, appy the provisions of III.
DUTIABLE INSURANCE
Given: INSURANCE IS
Shipment – Gen. Cargo
Total FOB – $ 5,000.00 INDICATED AS A
Total FRT - $ 500.00 SEPARATE VALUE
Total INS - $ 75.00
Total CIF,MLA - $ 5,575.00
FIND:
Dut. INS

ANSWER: $ 75.00
DUTIABLE INSURANCE
Solution:
Given: CIF = FOB + INS +FRT
Shipment – Dangerous Cargo $ 10,000 = FOB + (0.04) FOB + $1,160
Total CIF – $ 10,000.00
$ 10,000 - $1,160 = FOB + (0.04) FOB
FRT/BL - $ 1,160.00
FIND: $ 8,840 = 1.04FOB
Dut. INS 1.04
FOB = $ 8,500.00
ANSWER: $ 340.00
INS = 4% OF FOB
INSURANCE IS NOT INDICATED AS A
SEPARATE VALUE INS = $ 340
DUTIABLE INSURANCE
Solution:
Given: CIF = FOB + INS +FRT
Shipment – General Cargo $ 4,500 = FOB + (0.02)FOB + $318
Total CIF – $ 4,500.00
$ 4,500 - $318 = FOB + (0.02)FOB
FRT/BL - $ 318.00
FIND: $ 4,182 = 1.02FOB
Dut. INS 1.02
FOB = $ 4,100.00
ANSWER: $ 82.00
INS = 2% OF FOB
INSURANCE IS NOT INDICATED
AS A SEPARATE VALUE INS = $ 82
DUTIABLE INSURANCE
Given: Solution:
Shipment – General Cargo DV = FOB + INS +FRT
Total CIF – $ 12,500.00
FRT/INV - $ 1,200.00 = $ 12,500 + $ 200 + $ 1,250
FRT/BL - $ 1,250.00 = $ 13,950 X ₱ 43.115
INS/Inv - $ 200.00 = ₱ 601,454.25
T. CIF - $ 13,900.00
E/R - ₱ 43.115 / $ 1.00
FIND:
Total DV

ANSWER: ₱ 601,454.25
DUTIABLE INSURANCE
Given: Solution:
Shipment - General Cargo
Total FOB - $ 6,000.00 The dutiable insurance shall be
FRT - $ 500.00 the actual insurance premium
Local INS Premium - ₱ 4,300 paid provided a certification
(with Cert./O.R.) and official receipt (O.R.).
E/R - ₱ 43.00 / $ 1.00
FIND: ₱ 4,300 / ₱ 43.00 = $ 100.00
Dut. INS

ANSWER: $ 100.00
DUTIABLE INSURANCE
Given: Solution:
Shipment - Inflammable Cargo In the absence of said
Total FOB - $ 8,000.00 certification and O.R., the local
insurance premium shall not be
FRT - $ 1,000.00 lower than 2% (General Cargo) or
Local INS Premium - ₱ 12,900 4% (Dangerous Cargo) of the FOB
Value.
(w/o Cert./O.R.)
$ 8,000 x 4% = $ 320.00
E/R - ₱ 43.00 / $ 1.00
$ 12,000 / 43 = $ 300.00
FIND:
Dut. INS
Whichever is higher will be the
dutiable insurance
ANSWER: $ 320.00
DUTIABLE INSURANCE
Given: Solution:
Shipment - General Cargo DV = FOB + INS +FRT
Total FOB - $ 9,750.00 = $ 9,750 + $ 150 +$ 750
FRT - $ 750.00
= $ 10,650 X ₱ 43.275
Local INS Premium - ₱ 6,491.25
= ₱ 460,878.75
(with Cert./O.R.)
E/R - ₱ 43.275 / $ 1.00
FIND: INS = ₱ 6,491.25 / ₱ 43.275
Total DV = $ 150.00

ANSWER: ₱ 460,878.75
DUTIABLE INSURANCE
Given: Solution:
Shipment - General Cargo INS = $ 6,000 X 2%
Total FOB - $ 6,000.00 = $ 120
FRT - $ 500.00
No Local Insurance
FIND:
Dut. INS

ANSWER: $ 120.00
DUTIABLE INSURANCE
Given: Solution:
Shipment - General Cargo CFR = FOB + FRT/INV
Total CFR - $ 13,500.00 FOB = CFR – FRT/INV
FRT/Inv - $ 1,300.00 = $ 13,500 - $1300
FRT/BL - $ 1,350.00 = $ 12,200
No Local Insurance
E/R - ₱ 43.275 / $ 1.00 DV = FOB + INS +FRT
FIND: = $ 12,200 + (2%)FOB + $ 1,350
Total DV = $ 13,794 X ₱ 43.275
= ₱ 596,935.35
ANSWER: ₱ 596,935.35
DUTIABLE INSURANCE
Given:
Solution:
Shipment - 2 MT – Rice
Importer - NFA INS = FOB / E/R
Total FOB - $ 12,000.00 = ₱ 6,525 / ₱ 43.275
FRT/BL - $ 1,400.00
Loc. INS Premium - ₱ 6,525.00 (GSIS)
= $ 150.78
E/R - ₱ 43.275 / $ 1.00
FIND:
DV = FOB + INS + FRT
Dut. INS
Dut, Value in Php = $ 12,000 + $ 150.78 + $ 1400
= $ 13,550.78 X ₱ 43.275
ANSWER:
$ 150.78 = ₱ 586,410.00
₱ 586,410.00
DUTIABLE INSURANCE
Given: Solution:
Shipment - 3 MT – Rice
Importer - NFA INS = $ 21,750 / 43.50
Total FOB - $ 18,000.00 = $ 500.00
FRT/BL - $ 2,100.00
Loc. INS Premium - ₱ 21,750.00
INS = $ 18,000 X 4%
(Private INS Firm w/o Cert / O.R.) = $ 720.00
E/R - ₱ 43.50 / $ 1.00
FIND:
Dut. INS DV = FOB + INS + FRT
Dut, Value in Php
= $ 18,000 + $ 720 + $ 2,100
ANSWER: = $ 20.820 X ₱ 43.50
$ 720.00 = ₱ 905,670.00
₱ 905,670.00