The BOC and DOF had signed the IRR to make the ceiling for the Balikbayan boxes sent by OFWs up to P150 thousand for three times a year.
The Implementing Rules and Regulations (IRR) prescribing the guidelines on tax- and duty-free balikbayan boxes was signed by the Department of Finance (DOF) and Bureau of Customs (BOC).
The Customs Administrative Order (CAO) 05-2016 signed by the DOF and the BOC serves ad tge IRR of the Customs Modernization and Tariff Act (CMTA) covering the sending of the balikbayan boxes from abroad into the Philippines.
According to BOC Commissioner Nicanor Faeldon, the Customs Bureau values the importance of each balikbayan box, which symbolizes the hardship of the Overseas Filipino Workers (OFWs) and the love of Filipinos who are working abroad for their families left here in the Philippines.
The tax exemption ceiling for OFW packages has now been hiked to P150 thousand as long as the boxes do not contain commercial quantities.
The tax- and duty-free privileges on balikbayan boxes can be availed of up to three times annually.
The CAO 05-2016, though may sound a good news for “all” OFWs, but the same administrative order clearly states that “only qualified” Filipinos can avail such.
The CAO 05-2016, that takes effect on December 25 which is Christmas Day, states that only those who are qualified Filipinos abroad may avail of duty- and tax-free privileges on balikbayan boxes that contains household goods and personal effects.
“Qualified Filipinos abroad” are those who are holding valid passports issued by the Department of Foreign Affairs (DFA) and with a certification from the Department of Labor and Employment (DOLE) or the Philippine Overseas Employment Administration (POEA) for purposes of employment.
Also qualified are non-resident Filipino people who have established permanent residency abroad but retained their being Filipinos, and resident Filipino citizens who temporarily stay outside the Philippines and hold an investors’ visa, a student visa, a tourist visa and similar visas.
Qualified Filipinos must submit a photocopy of the page of their Philippine passport with personal details, picture and signature, or a photocopy of their foreign passport with personal data, picture and signature, and a copy of proof of their dual citizenship.