Balikbayan boxes will be duty-free starting Dec. 25

Balikbayan boxes sent by Filipinos abroad will now be duty-free and exempted from taxes starting December 25, 2016.

Photo taken by Karen Ibanez

This is after Bureau of Customs (BOC) and the Department of Finance (DOF) signed Customs Administrative Order (CAO) 05-2016 which is about the shipment of the boxes. This also serves as the Implementing Rules and Regulations (IRR) for the Customs Modernization and Tariff Act (CMTA), a law which was signed on May 30, 2016, a month before Former Pres. Noynoy Aquino’s term ended.

The order will be covering the “sending of balikbayan boxes by Qualified Filipinos While Abroad (QWFA) to their families and relatives, which shall be exempted from the payment of duties and taxes, up to three times and shall not exceed P150,000 in a calendar year.” This is as long as the contents of these packages aren’t in commercial quantities. This was a big improvement as the tax ceiling for the balikbayan boxes was previously just up to P10,000.

According to the CMTA, QWFA are the following:

1. Holders of valid passports issued by the Department of Foreign Affairs (DFA) and certified by Department of Labor and Employment (DOLE) or Philippine Overseas Employment Administration (POEA) for overseas employment purposes regardless of profession.
2. Non-resident Filipinos who have established permanent residency abroad but retained their Filipino citizenship.
3. Resident Filipino citizens who temporarily stay abroad (may include holders of student visa, investors’ visa, tourist visa, and similar visas which allow them to establish temporary abroad).

The following requirements must also be submitted for the QWFAs to avail these privileges:

1. Supporting documents:

• Photocopy of a page of his/her Philippine passport with personal information, picture and signature, or photocopy of his/her foreign passport with personal information, picture and signature plus proof of copy of dual citizenship; and,
• Invoice, receipt or equivalent document covering the goods in the balikbayan box, if any.

2. A filled up, signed and submitted information sheet, which will be issued by BOC and will serve as the packing list.
3. The international forwarder/consolidator should submit these information sheets and supporting documents via a secure electronic format to a local (Philippine) forwarder/deconsolidator.
4. The local forwarder/deconsolidator should transmit to the Bureau the information sheet and supporting documents via a secure electronic format before the arrival of the balikbayan boxes in the Philippines and within the period prescribed:
5. a) For consolidated shipments by sea:

• For shipments that will take 3-day shipping time: 24 hours prior to arrival
• For shipments that will take 7-day shipping time: 48 hours prior to arrival
• For shipments coming from America, Europe, Middle East, and other parts of the world that do not fall under the above shipping times: 10 days prior to arrival

1. b) For consolidate shipments carried by aircraft:

• For those coming from Asia – 1 hour prior to arrival
• For those coming from other countries – 6 hours prior to arrival

5. A QFWA should also certify that only personal effects and household goods, which shall not be in commercial quantities, are sent through balikbayan boxes.

BOC Commissioner Nicanor Faeldon also called on people to follow the guidelines which come alongside this law. Not only will this enable the Bureau to speeden up the process, but also to ensure that the packages will be delivered to its recipients with care.

He also reminded port personnel about the Bureau’s “no opening of balikbayan box policy” and to hasten the release and handling of the boxes.

 

Source: Department of Finance, Rappler, Philippine Daily Inquirer