The Corruption in EMS Philippines

I lost my faith in the International Express Mail Service (EMS) in the Philippines. And lost a certain amount of faith in the country in the process.

I had two packages sent from abroad to the Philippines, worth $17 each. Both were sent on the same day. One was delivered right at my doorstep, and was paid P35.00.

The other package didn’t arrive. Instead, I received a parcel notice from EMS, informing me that I need to pick up the package at the EMS head office near the domestic airport in Pasay City.


It is the dreaded parcel notice — sent to unsuspecting recipients when your parcel has caught the eye of an EMS vulture. I mean, employee.

Sure enough, I was told that I needed to pay “taxes” worth P4,000 ($90). It didn’t matter to them that then pen was worth $17, and looked like it. It didn’t matter that it has been marked as a gift. I needed to pay the “customs tax” — which coincidentally will not reflect on the receipt. Only the P35 handling charge will be indicated.

Looking around, you could see an old man wearing tattered clothes, begging at the counter to “untax” a second hand PSP. Speaking in Filipino, he explained that his sister in the States sent the old PSP for his grandson. He couldn’t afford P6,000 worth of taxes. He barely has enough to go back home.

Disgusted, I left the package at the EMS, and decided to check the probability of packages being held up by EMS in the Philippines. I had 5 more similar packages sent in a span of 8 days — same weight, same mailing address, same value, and all marked as gifts.

The results: Packages 2 and 5 arrived “unharmed.” Packages 1, 3, and 4 did not. They were unlucky enough to be served with parcel notices.

I initially thought we are only victims of an antiquated tax system by Customs. Proof of this is the fact that Filipino tourists are only allowed a maximum of P10,000 worth of imported goods to bring home. Regardless if these are of personal use. Regardless if you had to purchase an entire set of clothing because the airline lost your luggage. (FYI, in the United States, residents are allowed to bring in up to $800 worth of goods, tax free.)

However, even worse than this illogical tax system are the existence of corrupt & evil personnel at the EMS.

We have always heard anecdotes about missing packages, opened parcels, and illegal taxing of items by the EMS. And we thought that in this day and age, it has disappeared entirely. After all, internet has penetrated the country, lessening the amount of mail being sent out. Surely the EMS would want to preserve their business by offering a highly improved service?

But decades & presidents have gone by, and this corruption still exist. And you wonder if there will ever be a solution. And you wonder if anyone would go out in the streets to correct this. It is so much easier to gather a crowd to oust a President than to fix these deeply embedded corruption in government agencies.

181 thoughts on “The Corruption in EMS Philippines”

  1. 3. RESPECT AND KEEP THOSE 1099s
    This might sound like an April 15-only item. In fact, how you handle third-party “information returns,” such as 1099s, year-round will influence how easy or hard a time you have when you file your return and interact with the IRS thereafter.

    Whether you are a payee or a payer, you need a system to record and track information returns. That’s exactly what the IRS does. A lot of what goes on at the IRS is computer matching — the endless correlation of taxpayer identification numbers and payments. Even a small mismatch between what’s on these forms and what you report on your tax return will be caught and could result in months of hassles with the IRS. Much of what the IRS does, when it comes to monitoring taxpayers, is information return matching.

    There are different forms for miscellaneous income — Form 1099-MISC (.pdf file) — for interest — Form 1099-INT (.pdf file) — and so on. There are also a few information returns you might receive showing how much you paid. For example, if you have a home mortgage and make mortgage payments, you should receive a Form 1098 (.pdf file) from your lender reporting how much interest you paid during the year. (See “Home: The mother of all tax shelters.”) When you deduct interest on your tax return, the IRS will match your return to this form to make sure you haven’t overstated your deduction. Another common information form is a Form W-2, issued to employees reporting wages.

    Pay attention to these forms as they arrive. Confusingly, these days you might get a statement from your bank that looks like your regular statement but says somewhere it is a 1099. When you get your 1099s, don’t just stick them in a drawer. Look at them. Payers are required to mail all 1099s to payees no later than Jan. 31. Then the payer has until Feb. 28 to send all 1099s to the IRS. This one-month lag means that if you receive a 1099 you know is wrong, there might be time to correct it before the IRS receives a copy.

    If you receive an incorrect 1099 — this is common — contact the payer as soon as you receive the errant form. Explain the error and ask whether the payer has already sent a copy of the 1099 to the IRS. The best corrections are done this way, with the payer simply destroying the old form and issuing a correct one.

    It’s a good idea to keep a record of such communications, since you might end up ensnarled in a reporting mess later on. If the payer has already sent a copy of the erroneous form to the IRS, you can still ask for a correction. In that event, the payer should issue a corrected 1099 (there’s a box on the form to check for this).

  2. FAQs

    Chapter I. Importation

    1 WHAT ARTICLES ARE SUBJECT TO DUTY?
    All articles, when imported to the Philippines, are subject to duty upon each importation, even though previously exported there except as otherwise specifically provided for in the Tariff and Customs Code, as amended, or in other laws.

    2 WHEN DOES IMPORTATION BEGIN AND DEEMED TERMINATED?
    Importation begins when the carrying vessel or aircraft enters the jurisdiction of the Philippines with the intention to unlade therein. Importation is deemed terminated upon payment of the duties, taxes and other charges due upon the articles, or secured to be paid, at a port of entry and the legal permit for withdrawal shall have been granted, or in case said articles are free of duties, taxes and other charges, until they have legally left the jurisdiction of Customs.

    3 WHO ARE AUTHORIZED TO MAKE IMPORT ENTRY?
    The following are authorized to make import entry:

    1. Importers and other persons who are holders of the bill of lading;

    2. Licensed Customs broker acting under authority from a holder of the bill; and

    3. A person duly empowered to act as agent or attorney-in-fact for each other.
    (The duly notarized power of attorney should be approved by the Port Collector and no more than such continuing power may be accepted or recognized)

    4 WHEN TO FILE AN ENTRY?
    Entry must be filed in the Customhouse within 30 days from the date of discharge of the last package from the vessel, which shall not be extendible. Failure to file the entry constitutes implied abandonment and will result in the “ipso facto” forfeiture of the goods/shipment.

  3. FAQs

    Chapter II. Privileges

    1 WHO ARE ENTITLED TO DUTY AND TAX FREE PRIVILEGES?
    Section 105 of the Tariff and Customs Code of the Philippines as amended by Executive Order No. 206 provides duty and tax free privileges to the following individuals, the extent of which depends on their particular status:
    1. Returning Resident. A Returning Resident is a Filipino national who has gone abroad and is now returning. Only those Returning Residents who have an uninterrupted stay abroad for at least six (6) months prior to their return to the Philippines are entitled to duty and tax free privileges.

    2. Overseas Filipino Worker (OFW) is a Filipino national who worked in a foreign country under an employment contract. Only OFWs who have an uninterrupted stay abroad for more than six (6) months are entitled to duty and tax free privileges.

    3. Former Filipino. A Filipino national who has acquired foreign citizenship abroad and is now returning. Only former Filipinos who are coming to settle permanently in the Philippines and have stayed abroad for at least six months are entitled to the duty and tax exemption privileges.

    2 ARE BALIKBAYANS ALSO ENTITLED TO CERTAIN DUTY AND TAX FREE PRIVILEGES?
    BALIKBAYAN is another term for an OFW or a former Filipino. A returning resident is also a BALIKBAYAN when he has stayed abroad for at least one year. Balikbayans are entitled to duty and tax free privileges.

  4. nag hulog den ako ng EMS document sa pilipinas ng January 13,2010..Cainta post office …pa balik balik na lang yung kapatid ko sa cainta post office..tinatanong nya kung dumating na yung EMS document na pinadala ko..Hanggang ngayon wala pa january 25 na…tinignan ko sa Internet kung kailan ang dating.nakasulat january 15 pa dumating ng manila..sino ba ang makakatulong sa aken para malaman ko kung ibibigay ba nila o hinde..o pupunta pa ba ako kay Tulfo o mr. enriquez para humingi ng tulong..

  5. Its because the national election is coming. a custom officer (friend) told me that the administration gave them quotas to reach every month to collect taxes. obviously raising funds for the election. but this happened last election 2004. so i guess they are doing it again.

    pero talagang matatakaw ang mga customs officers (not all) eversince. lakas nila kumita ng pera. you’ll see them spending so much in night clubs. mga naka rolex pa yan. pero magkano lang sweldo nila.

    kaya if i were you. kung wala din kyo kakilala sa customs, huwag na kyo padala package. lalo na pag mahal yung item. dito nalang kyo bumili. 2nd hand psp? 2nd hand phone? or brand new stuff. madami yan sa greenhills… mag pa remit nalng kyo ng pera sa pnb. mura lang charge nila dun. :)

    para hindi na kyo ma stress.

  6. Please advice: I sent my girlfriend in the Philippines a digital camera and a stuffed toy for Christmas. Found out today the reason she hasn’t received it is because they want P7000 asked by customs. The total value declared all together is $200. I don’t know how they came up with P7000, but that’s like buying another camera. I don’t think it should be that much. It is a post office in Davao City. What can be done? Please help.

  7. bbwisit tlg yan EMS na yan!!!!! Argh!! pero pumapayag cla na hati nlang pero wlang resibo.. lol!
    kakapal ng mukha.. kada punta ko dun dmeng nagrereklamo.. ako nga lastweek kinuha ko ung package for sneakers and guess what????[b]THEY CHARGED ME 10,000[/b] for the 7 pair of shoes.. lol! bat ako magababayad nun.. kakulitan nmin nkuha namin xa for 4700.. w/ receipt un.. pero dte 12 pairs kinuha ko P2000 lang bnayaran ko…
    ireklamo na kc yan! kakapal ng mukha..

  8. Yeah I agree to that. Parents should be responsible with their kids. NAG ASAWA AT NAG ANAK KAYO HINDI NYO PALA KAYA.
    Know how to discipline them and set some limitations.
    PINTA SKAYO NG PINTAS TAPOS HINDI NYO PALA MAAYOS ANG SARILING NYONG BUHAY. ;D

  9. Laws alone can not secure freedom of expression; in order that every man present his views without penalty there must be spirit of tolerance in the entire population.

  10. Ignorance of the law excuses no man: Not that all men know the law, but because ’tis an excuse every man will plead, and no man can tell how to refute him.

  11. If one had to worry about one’s actions in respect of other people’s ideas, one might as well be buried alive in an antheap or married to an ambitious violinist. Whether that man is the prime minister, modifying his opinions to catch votes, or a bourgeois in terror lest some harmless act should be misunderstood and outrage some petty convention, that man is an inferior man and I do not want to have anything to do with him any more than I want to eat canned salmon.

  12. People are eternally divided into two classes, the believer, builder, and praiser, and the unbeliever, destroyer and critic.
    YOU CAN’T PLEASE EVERYBODY!

  13. Those who have not yet accepted their own imperfection are the first ones to judge and critisize the faults of others..

    ARE YOU ONE OF THEM? GOOD LOVE ADVISER? ;D

  14. We demand that people should be true to the pictures we have of them, no matter how repulsive those pictures may be: we prefer the true portrait in all its homogeneity, to one with a detail added which refuses to fit in.

  15. I admire your courage for sending mail through the “system” in the Philippines! You should get a medal or something… lol. But yeah, sticking to FedEx, LBC, UPS or whatever else carrier where I pay a bit more but get my packages for sure.

  16. MAYBE U’RE THE ONE WHO DESERVE TO GET A MEDAL FOR BEING SUCH A GOOD PARENT TO YOUR KID. FOR TAKING GOOD CARE OF THEM AND PROTECTING THEM. ;)

  17. Commercials on television are similar to sex and taxes; the more talk there is about them, the less likely they are to be curbed.

  18. I always want to say to people who want to be rich and famous: ‘try being rich first’. See if that doesn’t cover most of it. There’s not much downside to being rich, other than paying taxes and having your relatives ask you for money. But when you become famous, you end up with a 24-hour job.

  19. If you can manipulate news, a judge can manipulate the law. A smart lawyer can keep a killer out of jail, a smart accountant can keep a thief from paying taxes, a smart reporter could ruin your reputation- unfairly.

  20. Keeping a lid on taxes is not just good for the taxpayer. It’s a powerful way to force government to be more accountable, set priorities and spend smarter. Let me repeat that: more accountable, set priorities and spend smarter – that’s what we need to be about.

  21. Let me respond with a few points, the first being that all immigrants pay taxes, income taxes, property taxes, sales taxes, gasoline taxes, cigarette taxes, every tax when they make a purchase.

  22. [i]TIPSYcustomer said:
    BAKIT KA NAMAN MAGBABASA?
    ANO BA MAPAPALA MO PAG BINASA AT PINAG ARALAN MO YUN?
    BAKA HINDI KAYANIN NG UTAK MO
    BAKA SUMABAOG PA ITO KUNG HINDI TALAGA KAYA [/i]

    My reply: [b]YOU ARE STUPID, IF EVER YOU REPRESENT EMS OR CUSTOMS, OR AN YOU ARE AN EMS OR CUSTOMS PERSONNEL, THEN YOU ARE NOT DOING YOUR ORGANIZATION ANY GOOD. IT JUST SHOWS HOW DIRTY AND FILTHY YOU GUY ARE. MALIGO KA NA, NAAMOY KO BAHO MO!!!!!! [/b]

    February 01, 2010
    AMOEBIASISbheiby said:
    BAKIT SA LBC, DHL FED EX,TEC..
    PAG NAGPADALA KA WALA BANG CUSTOMS CHARGES?

    My reply: [b]DIDN’T I MAKE IT CLEAR? I PAID FOR DOOR TO DOOR SERVICE, SO WHY DO I HAVE TO TRAVEL 2 HOURS JUST TO GET MY PARCEL?! I CAN PAY THE TAX NEEDED, ITS JUST STUPID TO HAVE THE ITEMS FOR PICK UP IN PASAY![/b]

    My tax was computed with a tariff rate of 7%.. and 12% vat.

  23. How dirty and filthy our GOVERNMENT OFFICIALS?
    I think pareho lang po sa mga CALL CENTERS. Na sila sila pumapatol sa isa’t isa at kahit kanino pumapatol kaya uso na AIDS, GONORRHEA, UTI, ETC… OR SEXUALLY TRANSMITTED DISEASE

  24. Dapat siguro alamin muna yung SOP, RULES AND REGULATIONS, TERMS AND CONDITIONS OR PROCEDURES.

    Then you’re like an idiot Captain of an Amry who’s sending his man in a battle without informing them who are the enemy and what are their task.

  25. Ako lang pala ang gusto mo.
    Sana sinabi mo noon pa.
    Don’t worry hinding hindi ako mapapasyo
    kahit na ano pang gawin mo.

  26. Tanong lang po, plan ko po kasi bumili ng item sa germany and use Deutsche Post as a shipping method. Papaship ko ung item sa bulacan. ang maghahandle po ba nito is ems? (according sa site ng ems na “Provisional member” lang and Deutsche Post. di ko kasi alam kung pano process nun dito). if ever na dumaan ung item ko sa EMS san ko sya kukunin? do I still need to claim my item in pasay? or merong post office sa bulacan?
    Na try ko na kasi magpaship dati sa manila and I ended up going to post office sa pasay and pay a big tax for my item. I use ems before :-\

    Hope someone can help me. TIA

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