WITH THE approach of the holiday season and the consequent increase in the volume of imports, the Bureau of Customs (BOC) reiterated the guidelines in sending “balikbayan boxes” while reminding the public to be “cautious” in sending their packages and parcels by only dealing with ‘legitimate’ cargo forwarders to avoid being scammed.
Under the Republic Act No. 10863 or the Customs Modernization and Tariff Act 2016 (CMTA), the sending of balikbayan boxes by Qualified Filipinos While Abroad (QFWA) to their families and relatives is exempt from payment of duties and taxes up to three (3) times and the total FOB/FCA value of which is not exceeding Php 150,000 in a calendar year.
Any amount that exceeds the allowable value is subject to payment of duties and taxes, the bureau said.
While anyone can send balikbayan boxes to the Philippines to include corporations and other companies, only QFWA can avail of the duty- and tax-free privilege under Section 800 (g) of the
CMTA, the bureau further stressed.
QFWA covers the following Filipinos; (1) Overseas Filipino Workers (OFWs) with valid DFA-issued passports, certified by the Department of Labor and Employment (DOLE) and Philippine Overseas Employment Administration (POEA) for overseas employment.
They also include Filipinos under job contracts not requiring certification from the foregoing; Non-Resident Filipinos with permanent residency abroad but has retained Filipino citizenship, and lastly, Resident Filipino Citizens that may include holders of a student visa, investors visa, tourist visa, and similar visas which give them temporary residence status abroad.
To avail of the privilege, the bureau also reminded Filipinos that balikbayan boxes should contain only personal and household effects such as wearing apparel, personal adornment, gadgets, and toiletries; goods which are in commercial quantities and those intended for sale, hire, or barter, are not covered by the tax and duty-free privilege.
Last year, the BOC had already launched the ‘Balikbayan Tracking System’ to render a more efficient means of tracking parcels and balikbayan boxes as it can be accessed through the bureau’s website (customs.gov.ph).
Stakeholders are encouraged to utilize the system designed to provide them with updates about
their shipments as it goes through the different stages of customs clearance.