Customs Administrative Order (CAO) 05-2016 took effect on August 1, 2017. The new rule affects Pinoys abroad and OFWs who painstakingly try to fill balikbayan boxes with items that their families, friends and other loved ones need or ask for.

New Ruling and Provisions

CAO 05-201 upgrades the provisions for balikbayan boxes. Foremost is the removal of customs duties on personal goods that hardworking overseas Filipino workers send home regularly.

In order to comply with CAO 05-201, here are some reminders. These are meant to ensure that OFWs do not go overboard when filling up their balikbayan boxes.

Tax exemption

To qualify for tax exemption, the minimum declared value of the items inside a balikbayan box is PHP 150,000 (previously PHP 100,000). The de minimis (small amount) value of taxable goods was raised from PHP 10 to PHP 10,000. The rate will be adjusted once every three years to keep up with inflation.

Qualification to send balikbayan boxes tax-free

Under the new order, persons who can send tax-free balikbayan boxes are the Qualified Filipino While Abroad (QFWA). They are Filipinos who are:

Studying, working abroad or those who are already permanent residents in their current location
Holders of valid and current Philippine passports issued by the Philippine Overseas Employment Administration (POEA) or Department of Labor and Employment (DOLE), proving they presently work overseas
Enjoying permanent residency in other countries who still retain their Filipino citizenship
Filipino businessmen, students and tourists with visas

Maximum number of boxes per year

A QFWA can send a maximum of three balikbayan boxes per calendar year (Jan. 1 – Dec. 31). Each box will be exempt from taxes and should contain personal items of up to PHP 150,000.

Note: Items should be for personal use only and not for trade or commercial purposes.

Allowed and banned items

A QFWA can send a maximum amount as follows:

Perfumes (5 bottles)
Lipsticks (10 pcs)
Shampoo (2kg)
Lotion (2kg)
Bar soap (2kg)
Assorted cosmetics (1kg)
Toys (10 pcs)
Childcare items (5kg)
Household detergents, dishwashing liquid, fabric conditioners, softeners (5kg)

Banned items include:

Cash
Bullets/ammunition
Illegal drugs
Pornographic materials
Pirated DVDs
Seeds and plants
Large number of items intended for business

Requirements to avail of tax exemption

When a QFWA sends a balikbayan box, these are the requirements:

Photocopy of passport of the OFW sender to ascertain his/her identity before processing the transaction.
Completion of an information sheet for the Bureau of Customs (BOC) in triplicate, detailing each item inside the box. Brand new items should have copies of their receipts.
BOC forms available for download from the BOC website or from the accredited foreign couriers
Gifts, second-hand items, grocery items may not need receipts but the sender has to provide an approximate value for each one
Tax-free balikbayan boxes must pass through an X-ray machine. The process must be supervised by a BOC personnel.
Boxes that do not clear the BOC X-ray may be opened and held until all the rules are met
Boxes not meeting the BOC requirements nullifies the tax-free privilege and will be charged the usual freight rates

Processing fees

Each tax-free balikbayan box will be charged PHP 250 processing fee, payable to the BOC. A fine of up to PHP 300,000 will be imposed on violators who may face criminal prosecution.