Importing Business in the Philippines, US or CHINA?

07/24/2025

Running an importing business in the Philippines has always been about juggling margins, speed, and supplier trust. But a major trade update just flipped the playing field.

As of July 22, 2025, all goods from the United States entering the Philippines are now duty-free. No more 3% or 15% customs duties. The move, backed by the new PH-U.S. trade agreement, opens new doors for Filipino entrepreneurs who want to expand beyond the usual China route.

But here’s where it gets real: duty-free doesn’t mean tax-free.

You’re still on the hook for:

12% VAT on the landed cost
Brokerage charges, which vary but often hit ₱300–₱1,500
Excise taxes for specific goods (alcohol, oil, tobacco, etc.)

That said, there’s one big win for small importers: the de minimis rule. If your shipment’s declared value is below ₱10,000, you pay zero customs duty and no VAT. Just the courier or freight-forwarding fee.

For a bootstrapped importing business in the Philippines, that’s a chance to experiment without getting crushed by overhead.

A Real-World Cost Example

Let’s say you’re eyeing collagen supplements from Amazon U.S. worth ₱9,500.

Because that’s under the ₱10,000 threshold:

You skip both duty and VAT
You only pay the freight forwarder’s service fee (around ₱350–₱400)

That means you can test demand with a ₱10K budget instead of ₱15K or more. Rinse and repeat weekly, and suddenly you have a lean, responsive importing flow that grows as your orders grow.

U.S. vs China: Quick Comparison Table

Here’s a side-by-side breakdown for anyone running an importing business in the Philippines in 2025.

Feature	China	United States
Best For	Shopee resellers, TikTok trends, bulk orders	Wellness, baby care, premium skincare, high-trust products
Unit Cost	Lowest in market, great for volume buys	Higher per unit, but QC usually included
Sea Freight Time	7–15 days (South China to Manila)	Around 31 days (New York to Manila)
Air Cargo Lead Time	4–7 days via agents	3–5 days via DHL or UPS
Tariff	0–5% under RCEP/ASEAN deals	0% (under July 2025 PH-U.S. deal)
Compliance Burden	Flexible; less paperwork, but high buyer risk	Strict; origin docs, safety certs, lower risk of fake goods
Brand Trust	Mixed; often seen as generic	High; “Made in USA” adds credibility
Market Saturation	Very high; everyone’s selling the same stuff	Moderate; fewer sellers = niche potential
Startup Capital Needed	₱5,000–₱10,000 via WeChat, TikTok, Alibaba	₱20,000+ via Buyandship, Shipito, Johnny Air

Why China Still Leads in Speed and Scale

If your focus is quick turnover, China is hard to beat.

Consolidated shipments via WeChat agents or TikTok overseas programs
Fast sea shipping (as quick as one week from Shenzhen)
Rock-bottom pricing lets you play in price-sensitive categories

Most agents in China allow you to:

Mix multiple products in one box
Pay low minimum order values
Start selling in days, not weeks

For early-stage entrepreneurs running an importing business in the Philippines, that low barrier is the main appeal. But the catch? Quality can vary wildly. Order samples first and listen to real customer feedback before scaling.

When the U.S. Becomes the Better Bet

Trust is expensive—but it sells.

Parents buying baby formula, customers with allergies looking for clean skincare, or tech buyers who prefer legit brands—they all lean toward Made in USA.

Now that U.S. items are duty-free, the gap between American and Chinese landed costs has narrowed. In many cases, especially when Chinese goods are subject to 5% tariff and higher brokerage or packaging fees, U.S. items end up competitive.

One more thing: marketing punch. A product labeled “Imported from California” often wins more trust than one from a “generic overseas factory.”

For solo entrepreneurs, try:

Buyandship or Johnny Air for forwarding and consolidation
MyShoppingBox or Shipito to bundle multiple U.S. orders
Keep individual shipments under ₱10,000 to use the de minimis exemption

Tools to Run a Lean Importing Setup

Function	China	United States
Consolidation	WeChat agents, TikTok overseas warehouses	Buyandship, MyShoppingBox, Shipito
Payments	GCash + Wise virtual card, 1688 with DragonPay	PayPal, Payoneer, Wise
Tracking	AfterShip, vendor-supplied tracking	Shop App, USPS/DHL tracking numbers

Blending Both: A Smarter Long-Term Strategy

For most modern entrepreneurs, the best play isn’t to choose one—it’s to mix both.

Use China to keep your inventory flowing with fast-moving basics
Use U.S. imports to offer premium add-ons that improve basket size or brand credibility
Create separate price tiers: “Everyday Value” (China) and “Premium Picks” (USA)

The key to managing both is watching total landed cost, not just the factory price.

Break it down:

Supplier price
Shipping (air or sea)
VAT, if over ₱10,000
Brokerage and warehouse fees
Conversion rate losses or international bank charges

What It Means for Filipino Entrepreneurs

Here’s the bottom line:

The importing business in the Philippines is evolving. For the first time, American goods are playing on equal ground with Chinese counterparts—not because they got cheaper at the source, but because the government finally leveled the tariff field.

If you’re building an importing business in the Philippines that thrives in 2025 and beyond, you need to stay flexible. Study your market. Ask:

Is your customer price-sensitive or brand-conscious?
Do they care about speed or about where it’s made?
Can you test both channels and use data to decide?

Many successful entrepreneurs will start importing from both regions—using China to scale and the U.S. to differentiate. With the right tools and strategy, there’s room for both to make your store more competitive.