Tax-free balikbayan box policy starts August 1, 2017


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Starting August 1, the Bureau of Customs (BoC) will implement the tax-free balikbayan box policy. Customs Commissioner Nicanor Faeldon said Tuesday that overseas Filipino workers (OFWs) may send up to three shipments for their loved ones back home without having to spend extra for taxes and duties.

The news and plans about the tax-free balikbayan box policy has been around and delayed since last year, but this time, the BoC will begin enforcing the policy where up to three shipments from “qualified Filipinos while abroad” will be exempt from duties and taxes, as long as they do not exceed a total value of Php150,000.

According to Customs Administrative Order (CAO) 05-2016, “qualified Filipinos” are those who are:

  • Holders of valid passports issued by the Department of Foreign Affairs and certified by the Department of Labor and Employment or Philippine Overseas Employment Administration for overseas employment purposes regardless of profession;
  • Non-resident Filipinos who have established permanent residency abroad but retained their Filipino citizenship; and,
  • 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 stay abroad).

Interested migrant workers need to fill up an information sheet on the customs bureau’s website and submit a few documents to their chosen package forwarder, including:

  • Photocopy of the page of their Philippine passport with personal information, picture and signature, or photocopy of their 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.

In addition, the sender has to itemize each shipment with corresponding prices to determine if the total amount has reached Php150,000.

Faeldon called the policy a gift to OFWs, and he assures the public that boxes will not be opened unless there is a discrepancy in the declared contents. Only the sender, delivery company and receiver will know the items of the balikbayan box.

Read More: New BoC rule to require balikbayan box senders to list items, restrict recipients to relatives only.

 

Source :

ABS CBN, Rappler

This article has been viewed 1173 times. Article originally posted: July 26, 2017, 12:57 pm (UTC-0). Last update: July 26, 2017 at 12:57 pm (UTC-0).

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