Customs suspends guidelines on duty and tax-free balikbayan boxes

October 5, 2017

The Bureau of Customs has temporarily suspended guidelines in the implementation of the duty and tax-free privilege of consolidated balikbayan boxes, following criticisms among overseas Filipino workers (OFW) on availing tax-exempt privilege.

In a press statement Thursday, Customs Commissioner Isidro Lapeña said the bureau  is receiving many  complaints on the tedious requirements to be granted with duty and tax exemption.The memorandum states the suspension of Customs Administrative Order (CAO) 05-2016, Customs Memorandum Order (CMO) 04-2017, and the registration requirements of deconsolidators.

The suspension of CAO 5-2016 and CMO 14-2017 is until March 31, 2018. CAO 05-2016 and CMO 04-2017 provides guidelines on implementing duty and tax-free privilege of balikbayan boxes.

Under these customs orders, qualified Filipinos while abroad must accomplish the Information Sheet,  submit a photocopy of the Philippine passport, a copy of invoice, and proof of purchase of the goods contained in the box to be qualified for the P150,000 tax exemption.

"Although it is our duty to facilitate customs clearance of balikbayan boxes, we cannot set aside the sentiments of our fellow Filipinos abroad," the Customs chief said.

The drafting team of the Customs Modernization and Tariff Act will meet with the stakeholders for consultation to make the necessary amendments on the CAO and CMO, he added.

"With the suspension of the current procedure on balikbayan box, the previous regulation will be enforced," said Lapeña. DMS