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Tax-free balikbayan box starts August

Overseas Filipino workers (OFWs) will soon be able to send up to three shipments to their families back home without extra charges as the Bureau of Customs (BOC) rolls out the tax-free “balikbayan box” rule next month.  

BOC Commissioner Nicanor Faeldon said starting August 1, the agency will implement the Customs Administrative Order (CAO) 05-2016, which exempts “qualified Filipinos” from duties and taxes as long as the shipments’ value do no not exceed a total of P150,000 (Dh10.896).

Under the order, OFWs may avail tax-free privilege up to three times in a year.

To use their balikbayan privilege, senders must be:

1. Holders of valid passports issued by Department of Foreign Affairs and certified by the Department of Labor and Employment or Philippine Overseas Employment Administration for overseas employment purposes, the CAO 05-2016 reads.  

2. Senders should also be non-resident Filipinos who have established permanent residency abroad, but retained their Filipino citizenship; or resident Filipino citizens who temporarily stay abroad.

3. OFWs should also submit a photocopy of the graphical page of their Philippine passport to prove their citizenship.

4. They must also submit invoice, receipt or equivalent document to confirm the value of the shipments.

5. OFWs must also provide an itemized list of the contents of their balikbayan boxes.

Faeldon assured that only the sender, delivery company and receiver will be informed of their parcels’ contents.

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