The Bureau of Customs (BOC) reiterated that the balikbayan boxes being sent by overseas Filipinos are tax and duty-free.
In their press release, BOC clarified the guidelines on sending duty and tax-free balikbayan boxes.
However, the BOC said Tax Exemption Indorsement must also be secured from the Department of Finance -Revenue Office to avail the privelege.
The BOC cited the Customs Modernization and Tariff Act (CMTA), which states that returning Residents, Overseas Filipino Workers (OFW), and other Filipinos while residing abroad or upon their return to the Philippines are allowed to bring in or send in duty and tax-free balikbayan boxes to their families or relatives.
According to the BOC, overseas Filipino workers (OFWs) with a valid passport from the Department of Foreign Affairs are considered as Qualified Filipinos While Abroad (QFWA).
QFWA are all the Filipinos who work in a foreign country under employment contracts, regardless of profession, skill, or employment status, the BOC said.
QFWA cover all Filipinos, working in a foreign country under employment contracts, regardless of their professions, skills or employment status.
It also includes OFWs under job contracts that do not require certification from DOLE or the POEA.
Resident Filipinos, on the other hand, refer to resident Filipino citizens who temporarily stay abroad which may include holders of a student visa, investor’s visa, tourist visa and similar visas which allow them to establish temporary stay abroad.
Balikbayan boxes may be sent up to 3 times in a calendar year provided that the total value shall not exceed P150,000.00. Any amount that exceeds the allowable value is subject to payment of duties and taxes.
To qualify for the duty and tax-free privilege, the ultimate recipient or consignee of the balikbayan box must be family or relative up to the fourth civil degree of consanguinity or affinity.
Under Section 800 (g) of the CMTA, balikbayan boxes should only contain personal and household effects such as wearing apparel, personal adornments, electronic gadgets, toiletries to qualify for tax exemption. Goods in commercial quantities and those intended for sale or for hire are not covered by the duty and tax-free balikbayan box.
The sender or the QFWA is also required to submit an accomplished and signed Information sheet. This may be obtained from consolidators, value-added service providers or through the BOC website at customs.gov.ph.
