After a delay of several months, the Bureau of Customs finally starts implementing the tax-free program for balikbayan boxes.
This means that Overseas Filipino Workers (OFWs) can send up to three packages a year without duties and taxes – so long as they do not exceed a total value of PhP150,000 within that calendar year.
The new rule applies to what’s known as “Qualified Filipinos While Abroad”. These are the OFWs certified by DOLE and POEA; non-resident Filipinos who have established permanent residency abroad but retained their Filipino citizenship; and resident Filipino citizens who temporarily stay in other countries.
Athena Dans, Bureau of Customs Chief of the Informal Entry Division at Manila International Container Port, said: “What we want to accomplish is for Filipinos to enjoy the privilege but without it being abused.
In order to qualify for tax-free shipping, applicants have to submit a number of documents:
- A photocopy of their passport
- An information sheet downloaded from the BOC website
- Itemized list of their boxes’ contents, and,
- Where applicable, receipts or invoices of the goods being shipped.
Concerns have been raised about identity theft and tampering, though.
Marie Roxas, Spokesperson of the Door-To-Door Consolidation Association of the Philippines, said: “People are naturally hesitant about yielding their passport information. Perhaps some alternative identification document might suffice.”
The international forwarders then need to transmit all the supporting documents to the local freight handler before the box even reaches Philippine shores.
The door-to-door group is already anticipating that this may cause issues with their partners abroad.
The Bureau of Customs insists the new program will help the government curb smuggling, even though legislators have also pointed out that attaching a list of the contents could unnecessarily entice thieves even more.
One other restriction is that only relatives up to the fourth degree of consanguinity are eligible to pick up the boxes.
This means that if you’re sending to a friend, you would have to pay regular duties and taxes.
The Bureau of Customs has tried to assure the public that boxes won’t be opened unless there are discrepancies – although it’s not clear at this stage what kind of discrepancies will warrant a search.
The agency also says it would be foregoing PhP75 billion a year in revenue from this new scheme.
