The Treasurer’s Guide to Trade Finance

Philippines

Bank accounts

ƒ Resident companies can hold foreign

currency bank accounts in the Philippines

as well as foreign currency bank accounts

outside the Philippines, provided they are

not funded with foreign exchange purchased

from authorised agent banks (AABs) and

AAB-forex corporations.

ƒ Non-resident companies can hold local

currency (PHP) and foreign currency bank

accounts in the Philippines subject to some

conditions.

Philippines imports exports

ƒ The extension of PHP loans to non-residents

by banks is not allowed.

ƒ Domestic currency cross-border payments

and settlement for capital transactions is

prohibited if they exceed PHP 10,000 or the

equivalent in foreign currency.

ƒ Prior and subsequent registration with

the BSP is required for all outward direct

investments over USD 60 million annually

if the foreign exchange is to be purchased

from the domestic banking system.

ƒ Prior approval from the BSP International

Department is required for individual exports

and imports that exceed PHP 10,000 in

cash, cheques, money orders and other bills

of exchange denominated in pesos.

ƒ Individuals that import or export foreign

currency in excess of USD 10,000 or its

equivalent in cash and/or cheques must

notify the customs authorities

(www.customs.gov.ph) in writing. Information

on the source and purpose of the transport

of the funds must also be provided.

Trade information

Key trading partners

Imports by origin

Japan 11.0%

USA 10.9%

China 10.2%

Singapore 8.1%

EU 7.4%

Other 52.4%

Source: WTO, September 2012

Exports by destination

Japan 18.5%

USA 14.8%

China 12.7%

EU 12.4%

Singapore 8.9%

Other 32.7%

Principal exports

Semiconductors and electronic products,

transport equipment, garments, copper products,

petroleum products, coconut oil and fruits.

Documentation

Imports

ƒ Commercial invoice, customs import

declaration, packing list, terminal handling

receipts, bill of lading, confirmation receipt for

payment of customs fees, delivery order and

a cargo release order.