Most expats are exasperated with the high cost of computers, cameras, tablet computers, e-readers and other electronic gadgets in the Philippines compared to the U.S. and elsewhere. Johnny Air Cargo (JAC) is an air cargo company with branches in the U.S. and in the Philippines. JAC offers an interesting alternative if you live near a JAC office in the Philippines. JAC has offices in Metro Manila, Pangasinan, Naga, Laoag, Bacolod, Cebu City, Iloilo, Davao and Cagayan de Oro.
Here’s how the JAC program works. You make your purchases through any of the online merchants such as Amazon.com, NewEgg.com, and frys.com. When you make your purchase, have it shipped to the Woodside, Queens, NY JAC office. The JAC website http://www.johnnyair.com/?page=72 gives the email addresses of JAC agents. You choose one and inquire about the service using the email addresses on the JAC website. They will give you shipping instructions. For example, I contacted Analyn Diego at the Woodside office. She sent me an email describing the program and told me to ship our purchases to:
ANALYN-ROBERT HAMMERSLAG Address:6904 Roosevelt Avenue Woodside, NY 11377 (718) 672-7080 As soon as we made our purchase we notified Ms. Diego of our purchase and asked her to forward it to the JAC Iloilo office. Based on Analyn’s email quote we expected the cost to be as follows: Service charge: $5.00Shipping: $7.50 per pound to Metro Manila, $8.50 per pound to the provinces with a two pound minimum.
Customs fee: laptops ($50), iPad/iPhone/iPod Touch/Smartphones/Tablets/
Couture/bags and other high-value items worth $500 and over ($25)
VAT: 12% of the fees paid to JAC.
As a test, we ordered a Barnes and Noble Nook Color e-reader. Barnes and Noble does not ship its e-readers outside of the U.S. so using the JAC Woodside shipping address was perfect. Since we ordered it from Barnes and Noble, which has branches in New York, we had to pay New York State Sales tax. Of course, it’s better to order from merchants offering free shipping and no sales tax. I placed the order on Oct. 19. On Nov. 5 we were informed by text message that my package was available for pickup at the JAC Iloilo office and that the charges are P3413.28. We were upset because, based on the information we had received from Analyn, the fees should have been $17 for shipping, $25 for customs, service fee $5.00 + $5.62 VAT for a total of $52.62 or about P2290. It took several rounds of text messages and emails before JAC relented. The final charges were P2185.48. We think that the problem may have been that someone at JAC may have mis-classified the Nook e-reader as a computer and so charged a $50 customs fee rather than the $25.00 e-reader fee.
The JAC staff in Iloilo were helpful in resolving the problem so we decided to give them another try with a camera order. It worked perfectly. The total cost we paid at pickup in Iloilo was P950 or about $22. This is a bargain for international air shipping. Doing the same shipment via FedEx or DHL would be much, much more expensive, albeit a few days faster.
Bottom line — JAC offers an appealing work-around especially for high value, light weight items such as cameras and laptop computers. Here’s an example. A decent laptop computer costs about P40,000 in the Philippines or $920.00 The same computer in the U.S. would be about $550 or P23,925. The savings is P16,075. Assuming a weight of 10#, JAC would charge $150 to deliver the laptop to a Philippine provincial office, so over all the savings would be almost P10,000. Of course you have to consider warranty coverage. We have previously recommended Asus brand laptops because they offer a two year global warranty which really works in the Philippines.
November 10, 2012 at 5:23 pm
If you are only paying $50.00 duty customs fee for laptops using this service I think my wife and I just found a new business. We shipped a laptop Fed Ex from the US and it got lost in customs for over a month. I finally found out we had to pay $300.00 to get it out of customs. We had purchased the laptop while in the States for $200 via E-bay.
October 29, 2012 at 3:46 pm
Nice article! I’m an expat that has been living in PH for over a year now and I was planning on ordering a laptop from Newegg seeing as it is $300 cheaper than buying here locally in the Philippines. I have heard crazy stories about immigration charging outrageous “fees” when electronics such as laptops, cellphones, cameras etc go through their hands whether they come from a business or an individual. Have you had any experience ordering from Newegg Amazon etc and getting it shipped directly to Metro Manila, I have heard the method you ship(US Post, UPS, DHL etc) can have an effect on whether or not you get hit with these customs fees, and of course there is always the chance that your product never reaches you because of corrupt customs people. Would you recommend using a service such as JAC over direct shipping from an online retailer, what would you say the pros/cons of either method of shipping would be? Any advice would be appreciated. Cheers.
October 29, 2012 at 4:16 pm
Hi William,
I would not have have a computer shipped directly to the Philippines. FedEx, DHL etc. all have to clear their shipments through customs in Manila. In addition to duty, you’ll be charged another fee by a customs broker. The best way is to have a friend or relative bring the laptop to you in the Philippines. No duty, no shipping charges. The next best is shipping in a balikbayan box along with other stuff you’ll need or want. It will cost about $100 but you can get a lot of useful stuff in a big balikbayan box. You will not be charged duty. Use a reliable shipper such as Manila Forwarders or Forexworld. The disadvantage is that it’s slow. Next best is JAC.
You could also get a cheap flight to Hong Kong and buy a laptop there. With hotel and a cheap flight you might not save money but you’ll have a Hong Kong visit “for free” with the lower cost of computer there. Take a look at the Mongkok Computer Center – several floors of every tech gadget. If you buy in the Philippines, check out the V-mall which is part of the Greenhills Shopping Center in San Juan, Manila. It’s supposed to have the best prices in Manila for tech.
Give consideration to an Asus brand laptop. The cheapest ones have a one year global warranty but the better ones have a two year warranty that will actually be honored in the Philippines. They have a repair facility in Manila.
I am just about to get a new laptop. Fortunately, my son is coming from Arizona to Iloilo for a visit in January so we can load him down with all sorts of goodies!
Good luck.
November 10, 2012 at 5:26 pm
You are correct. We paid $300 custom fee to Philippines for a $200 used laptop we bought on E-bay in the US. Don’t buy it and send it wait till you leave and bring it back with you as your carry on luggage.
November 10, 2012 at 6:15 pm
Yes, FedEx is a disaster except for documents with no value. Then they are the best.
July 30, 2012 at 6:44 pm
This is good reference. Thanks for the detailed posts about your experience!
November 14, 2011 at 11:08 am
Very good report there, Bob. I’m familiar with Johnny’s from years ago when i used to use them for all my Dollar/Peso trading when I visited Manila frequently.
I have a friend who runs a shipping company who started a service similar to Johnny, and I’d love to recommend him, but his customer service folks n the US are just not responsive enough. I may give Johnny’s a try real soon now.
November 14, 2011 at 8:55 am
if the nook tablet can be easily rooted like the nook color was (as most likely it will be), it’s one helluva full on android tablet with those specs! once rooted, you get the whole android market at your finger tips. install the kindle and nook apps then buy & read from wherever you are! i’m closely montioring the nook dev community in the next two weeks …
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