Balikbayan boxes will be tax exempt

Filipinos prepare balikbayan boxes in Central.

MANILA—Starting Christmas Day, all balikbayan boxes containing valuables worth up to P150,000 will be exempted from duties and taxes, Customs Commissioner Nicanor Faeldon said.

Bureau of Customs and the Department of Finance officials have signed Customs Administrative Order 05, which paves the way for the tax exemption that will take effect on December 25.

The AO is aligned with the Customs Modernization and Tariff Act, which raised the tax exemption on consumer goods sent home by OFWs from only P10,000 to P150,000.

The balikbayan boxes, however, should contain only personal and household effects and these should not be in commercial quantities. Also, OFWs can avail of this privilege only up to three times a year.

“Filipinos abroad may avail themselves of duty and tax free privileges on balikbayan boxes containing personal effects and households goods,” Faeldon said.

He said the Filipinos abroad availing themselves of the exemption must present valid passports and should also be certified by Department of Labor and Employment.

“Non-resident Filipinos who have established permanent residency abroad but retained their Filipino citizenship, 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, can also avail themselves of the exemption,” he added.

Faeldon said balikbayan boxes that would take three-days shipping time must be delivered within 24 hours after arrival, while boxes that would take seven days to ship must be out 48 hours after arrival.

Shipments from America, Europe, Middle East, and other parts of the world that do not fall under the above shipping time must be released 10 days after arrival.