ALTHOUGH the law increasing the tax exemption was enacted in May, Filipinos returning from overseas may still not enjoy the P150,000 exemption on their balikbayan boxes after the Bureau of Customs delayed the issuance of the implementing rules for Republic Act 10863.
“Let’s give it one month,” said Customs acting spokesperson for enforcement and intelligence operations Neil Anthony Estrella. “Maybe we cannot do it by the holidays because officials maybe busy for this coming season.”
“We’re trying to consolidate the inputs coming from the public as well as their individual, even minor concerns, so that when we start finalizing the IRR, we are assuring that these will be enhanced and help our countrymen,” Estrella said.
“We’re safe to say that by early next year, we’re about to finalize the IRR,” he added.
Estrella said that while the IRR is being finalized, the tax exemption ceiling for balikbayan boxes sent by any Filipino worker or resident abroad will stay at P10,000.
RA 10863, of the Customs Modernization and Tariff Act, was signed into law last May and granted tax- and duty-free privileges on balikbayan boxes brought into the country by Filipinos, provided the goods are not in commercial quantities nor intended for barter, sale or hire.
On top of the tax- and duty-free balikbayan boxes, Filipinos, who have stayed in a foreign country for at least 10 years and are returning to the Philippines, will also be granted tax exemption for the personal and household effects, not exceeding P350,000, when they return to the country.
As for Filipinos who have lived overseas for at least five years, he said, they would be entitled to tax- and duty-free personal and household effects amounting to P250,000, while those who have stayed abroad for less than five years could enjoy P150,000 tax-free ceiling.
According to BoC data, there are about 400,000 balikbayan boxes are shipped to the Philippines every month and the figure doubles during the Christmas season. That translates to an average of three to four balikbayan boxes for every Filipino abroad.
The total estimated amount of the contents of these boxes is at around P80,000, he said.
RA 10863 also mandates the BoC to adopt non-intrusive examination of goods, and will be only allowed to conduct physical examination if directed by the commissioner, the goods are subject to an alert order, and if there are controversies surrounding the goods declaration and the import process.