BOC issued guidelines for “Balikbayan” or Returning OFWs

Introduction. This CAO implements Section 800 (I) Chapter 1, Title VIII, and other relevant sections of Republic Act (RA] No. 10863, otherwise known as the Customs Modernization and Tariff Act {CMTA).

Section 1. Scope. This CAO shall cover the following:

1.1. CondiWonafy tax and/or duty-exempt impo4aWons of personal and household effects belonging to ”Returning Residents” and Overseas Filipino Workers (OFWs); and

1.2. Additional tax and duty exemption privilege of 0FWs for home appliances and other durables in the amount not exceeding Php 150,000.00.

Section 2. Objectives.

2.1. To establish an informed compliance program for ”Returning Residents” and OFWs on the procedures prescribed for availment of the privilege under Section 800 (I) Chapter 1, Title VIII, of the CNTA;

2.2. To provide the conditions for the availment of additional tax and duty-free privilege on home appliances and other durables brought in by OFWs;

2.3. To facilitate customs clearance of conditionally tax and/or duty-exempt importation of ”Returning Residents“ and 0Ms, without sacrificing the Bureau‘s core functions of revenue collection and border protection through application of risk management techniques and Information and Communication Technology (ICT) enabled monitoring and control systems; and

2.4. To adopt clear and transparent customs rules, regulations, policies and procedures, consistent with international standards and customs best practices.*

Section 3. Definition of Terms. For purposes of this CAO, the following terms are defined as follows:

Availment — refers to the determination by the Bureau or the qualified ”Returning Resident” or OFW that the personal or household effects brought in or sent, are entitled to duty and/or tax exemption pursuant to Section 800 (I) Chapter 1, Title VIII, of the CMTA. Any amount in excess of the allowable non-dut!abIe value shall be subject to the applicable duties and taxes.

Calendar Year — refers to the period from January 01 to December 31 of the same year.*

ce r te of Ide‹›tir tion — efers to a document secured upon departure and issued by the District Collector or authorized customs officer identifying goods to be exported and subsequently brought back to the Philippines.*

Commercial Quantity — refers to the quantity for a given kind or class of articles which are in excess of what is compatible with and commensurate to the person‘s normal requirements for personal use_4
Durables – refer to goods, as household appliances, machinery, or sports equipment that may be used repeatedly or continuously over a period of a year or more, assuming a normal or average rate of physical usage.*

Excisable Goods — refer to goods that are subject to excise tax as provided for in RA No. 8424 of 1997 also known as the National Internal Revenue Code (NIRC), as amended.

FCA — refers to an international commercial term covered by the Incoterms rules developed by International Chamber of Commerce (ICC) which means free carrier or that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties are well advised to specify as clearly
as possible the point within the named place of delivery, as the risk passes to the buyer at that point