Customs Modernization and Tariff Act
Section 402. Goods Declaration for Consumption. - All goods declaration for consumption shall be cleared through a formal entry process except for the following goods which shall be cleared through an informal entry process:
(a) Goods of a commercial nature with Free on Board (FOB) or Free Carrier At (FCA) value of less than fifty thousand pesos (P50,000.00). Every three (3) years after the effectivity of this Act, the Secretary of Finance shall adjust this amount as provided herein to its present value, using the Consumer Price Index (CPI) as published by the PSA; and
(b) Personal and household effects or goods, not in commercial quantity, imported in a passenger's baggage or mail.
The Commissioner may adjust the value of goods of commercial nature that shall be cleared through an informal entry process without prejudice to the periodic adjustment period in subparagraph (a) of this section.
All importations entered through a formal entry process shall be covered by a letter of credit or any verifiable commercial document evidencing payment or in cases where there is no sale for export, by any commercial document indicating the commercial value of the goods.