Parcels valued up to P10,000 are tax free — PHLPost

Parcels and personal packages sent by Filipinos overseas will be tax free as long as the value does not exceed P10,000, the Philippine Postal Corporation (PHLPost) said on Monday.

The new valuation of parcels and packages takes effect on Tuesday, October 25, the state-run postal service said, citing Customs Administrative Order (CAO) 02-2016 which implements Section 423 of the New Customs Modernization and Tariff Act (CMTA).

PHLPost noted it is implementing the provisions of the law that says "no duties and taxes shall be collected on goods with a freight on board or free carrier value of P10,000 and below."

Only parcels passing through PHLPost and assessed with Customs duties and taxes qualify under the tax-free provisions of the law.  All inbound foreign mails and parcels are subjected to Customs examination, duties, taxes and other fees.

Assistant Postmaster General Luis Carlos said in a statement the order will benefit thousands of Filipinos who rely on PHLPost in sending and receiving packages to and from abroad.

“It is a welcome development especially for this new administration to effectively administer changes by implementing the new provisions of the law which will benefit our postal clients abroad who send personal items as gift to their love ones in the Philippines," Carlos said.

The minimum thresholds on duty-free imports were raised from P10 to P10,000 to protect and enhance government revenue and institute fair and transparent Customs and tariff management. —Joseph Tristan Roxas/VDS, GMA News