December is now approaching! It will be expected that millions of Filipinos abroad will be sending home balikbayan boxes for their love ones for Christmas season. OFWs must know that there is a new rule of sending balikbayan boxes to avail the tax-free privilege. This new rule will be effective today, August 01, 2017.
Under Custom Memorandum Order (CMO) No. 04-2017, there is a new rule for tax free BALIKBAYAN BOXES
To avail the balikbayan boxes privilege, the sender is required to fill out an Information Sheet detailing itemized description of goods inside the box, including the quantity and price value of each item.
New BOC Rule on Tax Free Balikbayan Boxes
- OFWs can avail the tax exemption up to three (3) times in a calendar year.
- The total value in balikbayan boxes should not exceed more than 150,000 in a calendar year.
- But if the sender is willing to pay duties and taxes for goods being shipped then no need for him/her to fill out an information sheet.
- Goods must not be in commercial quantity.
- Used items, gift and groceries and other goods that less than 10,000 are not required for a receipt.
- Brand new items and balikbayan boxes worth more than 10,000 is required for invoice or receipt.
- The package should be address to a family member or relative of the sender. Boyfriend/girlfriend/live-in partner can’t apply the tax exemption privilege.
Under Balikbayan Box Privilege Law the allowed recipient such are the following:
- Parent
- Spouse
- Child
- Siblings
- Sibling of Parent
- 1st Cousin
- Nephew/Niece
- Grandparent
- Sibling of Grandparent
- Grandniece/Grandnephew
- Grandchild
- Great Grandparent
To avail the Balikbayan box tax-free privilege, the sender must submit a copy of valid Philippine passport and Balikbayan Box Information Sheet to the cargo forwarder or consolidator.
To get the copy of Balikbayan Box Information Sheet, just log on the website of Customs at www.custom.gov.ph.
The rule is to prepare 3 copies of Balikbayan Box Information Sheet, one copy attached in the box itself, one inside the box, and another one copy for the forwarder. But we advise to keep another one copy for your personal file and have the cargo forwarder signed and acknowledge your own copy of the Itemized Declaration List.
Declaration of goods is important for security purpose. It is also a precaution in case something is missing inside the box. You can use the balikbayan box list in case you need to file a case against the cargo forwarder or even the custom officer.
For more inquiries and concern, call the Bureau of Custom at these contact numbers:
(02) 705-6000
(02) 705-6052
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