Submarine cable vessels granted relief from duties

THE Bureau of Customs (BoC) said it is granting temporary relief on duties for foreign vessels laying and repairing submarine cable.

In Customs Administrative Order No. 02-2026, the BoC outlined the framework for the temporary admission of all foreign-owned and foreign-registered International Cable-Laying and Repair Vessels (ICLRVs).

The specialized ships will be classified as professional equipment, which grants them total conditional relief from import duties and taxes.

According to the BoC, the order was issued to “facilitate the timely and cost-efficient implementation of submarine cable-laying and repair projects that are critical to national telecommunications and energy infrastructure.”

To avail of the exemption, the vessel must be owned and imported by a resident outside of the Philippines and must be used solely by or under the personal supervision of the person visiting the Philippines.

The vessel should be declared as a conditional import and be accompanied by a special permit from the Maritime Industry Authority, a charter agreement or service contract, proof of the value of the vessel, a commercial invoice, and a certificate of vessel registry, among others.

The order also clarified the guidelines for authorized projects covering multiple customs jurisdictions.

According to the order, the project authorization will have to specify the ports covered, the routing plan, the scope of work, and the approximate duration of the activities at each port.

“Movement of the ICLRV between these specified ports shall not require the filing of a new import entry nor give rise to the assessment of duties and taxes,” it said.

However, it said that any cable, pipe, or other material to be used for the approved project that does not form an integral and permanent part of the ICLRV will be subject to import requirements including applicable duties and taxes unless exempted by law. — Justine Irish D. Tabile