BOC says balikbayan boxes are tax and duty-free

The Bureau of Customs (BOC) on Wednesday reiterated that balikbayan boxes sent by overseas Filipinos are duty and tax-free, reviewing the guidelines and those who are qualified to benefit from the privilege.

Returning residents and other Filipinos, while residing abroad or when return to the country, are allowed to send or bring goods without charges, as spelled out in the Customs Modernization and Tariff Act (CMTA).

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).

They must be employed and certified by the Department of Labor and Employment (DOLE) or the Philippine Overseas Employment Administration (POEA).

QFWA are all the Filipinos who work in a foreign country under employment contracts, regardless of profession, skill, or employment status, the BOC said.

It includes OFWs under job contracts that do not require certification from DOLE or the POEA.

Resident Filipinos are Filipino citizens temporarily staying abroad, including holders of a student visa, investor’s visa, tourist visa, and similar visas.

As long as the total aggregate value does not exceed to P150,000, balikbayan boxes may be sent 3 times in a calendar year. Duties and taxes will be imposed to amounts exceeding P150,000.

The ultimate recipient or consignee of the balikbayan box must be a family or relative up to the fourth civil degree of consanguinity or affinity to qualify for the tax and duty exemptions.

CMTA’s  Section 800 (g) states that balikbayan boxes should only contain personal and household belongings like apparel, personal adornments, electronic gadgets, and toiletries.

Goods in commercial quantities and those intended for sale or for hire are not covered by the duty and tax-free privilege, the BOC noted.

The sender is required to submit an accomplished and signed information sheet, which may be obtained from consolidators, value-added service providers or through the BOC website at customs.gov.ph.

A Tax Exemption Indorsement must be secured from the Department of Finance - Revenue Office. —Joviland Rita/VDS, GMA News