Overseas Filipino Workers (OFW) who are trying their luck in other countries to seek greener pasture and to make dreams and aspirations of their family a reality always carry a heavy heart, knowing they are thousand miles away from their loved ones. Aside from taking advantage of modern technologies to speak with their loved ones, another way of showing their love is by means of sending Balikbayan boxes. It takes months to fill these boxes and raising tax-exempt value for these Balikbayan boxes is good news. Senator Ralph Recto authored Bill 2913 and before the bill was approved tax-exempt value only applied to boxes with contents more than P10,000.
OFW can also send two boxes at a time, but they must keep in mind that they can only enjoy this privilege up to three times in a calendar year. If an OFW sends two boxes which are not more than P150,000, these boxes are counted as one. Recto also reminds OFW that the boxes should only contain personal and household effects. They should not be intended for sale or barter.
Here is an overview of the bill’s explanatory note:
“Article XIII, Section 3 of the 1987 Philippine Constitution declared that the State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. In recognition of this policy, Congress has enacted laws that promote, protect and ensure full protection to Overseas Filipino Workers (OFWs). In recognition of the significant contributions of OFWs and other Filipinos residing abroad to the Philippine economy through their foreign exchange remittances, the Government afforded some benefits and privileges to them such as those provided under the Republic Act No. 6768, as amended by Republic Act No. 9174, otherwise known as the "Balikbayan Program." Under the program, the "balikbayans" and their families shall be entitled to tax-exempt maximum purchase in the amount of One Thousand Five Hundred United States dollars (US$ 1,500.00) or its equivalent in Philippine peso and in other foreign currencies at all government-owned and-controlled/operated duty-free shops, and Kabuhayan shopping privilege and additional tax-exempt purchase in the maximum amount of Two Thousand United States dollars (US$ 2,000.00) or its equivalent in Philippine peso and other acceptable foreign currencies, exclusive for the purchase of livelihood tools at all government-owned and controlled/operated duty-free shops.
Section 105 (f) of the Tariff and Customs Code of the Philippines (TCCP), as amended by Executive Order No. 206, includes in the list of conditionally-free importations the personal and household effects of residents of the Philippines returning from abroad which shall neither be in commercial quantities nor intended for barter, sale or hire and that the total dutiable value of which shall not exceed Ten Thousand Pesos (10,000).”
