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The Bureau of Customs has issued an order establishing a clear framework for the temporary admission of international cable-laying and repair vessels, allowing them to enter Philippine waters duty- and tax-free provided they are used exclusively for authorized submarine cable projects and re-exported upon completion
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Customs Administrative Order No. 02-2026 classifies these vessels as professional equipment under the Istanbul Convention — resolving long-standing legal ambiguity that previously led to inconsistent treatment across different ports
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Vessels covered by the order may move between project sites and ports across multiple customs districts without filing new import entries each time, significantly reducing the administrative burden on large-scale, multi-location submarine cable and offshore energy projects
The Bureau of Customs (BOC) has issued new rules governing the temporary admission of foreign cable-laying and repair vessels operating in Philippine waters, in a move that is expected to reduce delays and costs for infrastructure projects critical to the country’s digital connectivity and offshore energy development.
Customs Administrative Order (CAO) No. 02-2026 prescribes uniform treatment for the temporary admission of international cable-laying and repair vessels (ICLRVs) consistent with the Customs Modernization and Tariff Act (CMTA) and Annex 8.2 of the 1990 Convention on Temporary Admission, or the Istanbul Convention.
The order was signed by Commissioner Nepomuceno on May 6, 2026, and concurred by Finance Secretary Frederick D. Go on May 18, 2026. It was published on July 2, 2026, and takes effect on July 17, 2026.
The CAO specifically covers foreign-owned and foreign-registered ICLRVs temporarily admitted for the survey, installation, maintenance, upgrading, or repair of submarine cables, including seabed cable-support activities related to information and communications technology infrastructure and offshore energy-generation systems.
Under the order, ICLRVs are formally classified as professional equipment, a designation that triggers duty- and tax-free temporary admission under the Istanbul Convention — effectively resolving the legal ambiguity that previously existed across different ports, where inconsistent interpretations of applicable customs rules created unpredictability and compliance risks for international operators.
Key provisions
Under CAO No. 02-2026, qualified foreign cable-laying and repair vessels may temporarily enter the country without paying import duties and taxes, provided they are used exclusively for authorized submarine cable projects and are re-exported after completing their operations.
The order also allows authorized submarine cable projects to span multiple customs jurisdictions or collection districts without requiring new import entries or additional duty assessments whenever the vessel moves between covered ports — a provision of particular importance given the archipelagic nature of the Philippines, where cable installation and repair operations routinely require vessels to operate across different customs districts.
In addition, the order introduces simplified procedures for vessels staying in Philippine waters for short periods, allowing faster processing and reducing administrative requirements while maintaining customs supervision and compliance safeguards.
To avail of the duty relief, importers or operators must file the required documents with the BOC and post security equivalent to 100% of the duties, taxes, and other charges that would otherwise be payable. Violations of the order would subject vessels to penalties under the CMTA, including payment of duties, taxes, and other charges.
The BOC emphasized that while the vessels themselves may receive temporary duty and tax relief, materials such as cables, pipes, and other imported equipment remain subject to existing customs laws and importation requirements.
The American Chamber of Commerce of the Philippines (AmCham) welcomed the issuance of the order, saying it “represents an important step toward reducing procedural uncertainty and improving the efficiency of customs processes for highly specialized vessels that support global connectivity and digital resilience.” AmCham, however, has sought further refinements, including a clearer and more standardized approach to the security valuation requirement.
Commissioner Nepomuceno said the reform strikes a balance between facilitation and oversight. “This initiative helps create a more efficient environment for projects that improve the country’s digital connectivity and critical infrastructure. By streamlining customs procedures while maintaining proper safeguards, we are supporting investments that benefit businesses, communities, and the Filipino public,” he said in a statement.
The measure advances the BOC’s Integrity, Accountability, and Modernization (IAM) agenda and is expected to help speed the rollout of submarine cable networks and offshore energy investments — two sectors increasingly viewed as essential to the country’s digital economy and long-term energy security.
READ: BOC drafts rules for conditional imports of foreign cable-laying & repair vessels
