Retailers push for de minimis removal, gradual reforms

The Philippine Retailers Association (PRA), which is pushing for the removal of the de minimis rule on low value goods, is proposing gradual reforms including lowering the threshold or limiting its usage to ensure the government is prepared for policy changes.

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In a May 6 letter to Customs Commissioner Bienvenido Rubio, PRA president Roberto Claudio said the country's retailers are calling for the removal of the de minimis value threshold currently applied to imported goods entering the Philippines.

To facilitate trade, the de minimis rule exempts imported goods valued at P10,000 or lower from duties and taxes.

"We believe that revisiting this policy is crucial to restoring fair competition, protecting local industries and improving government revenue," Claudio said.

He said the rule puts local retailers at a disadvantage as it creates a tax imbalance with foreign retailers with increased e-commerce activity leading to more goods entering the country without taxes and duties.