Guidelines implementing tax-free importation of balikbayan boxes on hold

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The Bureau of Customs (BOC) has temporarily suspended its guidelines implementing duty- and tax-free importation of consolidated balikbayan boxes due to complaints by overseas Filipino workers (OFW) over tedious requirements needed to avail of such exemption.

Customs Commissioner Isidro Lapeña on October 3 signed a memorandum, dated September 28, suspending Customs Administrative Order (CAO) 05-2016 and Customs Memorandum Order (CMO) 04-2017 until March 31, 2018.

CAO 05-2016 implements the tax- and duty-free importation of consolidated balikbayan boxes, while CMO 04-2017 covers the revised guidelines implementing CAO 05-2016 and the accreditation of balikbayan box deconsolidators.

Under the customs orders, qualified Filipinos while abroad (QFWA) must accomplish an information sheet; and submit a photocopy of the Philippine passport, a copy of invoice, and proof of purchase of goods contained in the box to import tax and duty-free once every year balikbayan boxes containing P150,000 worth of items.

Some OFWs earlier voiced apprehension over the requirements, specifically the listing of goods contained in the box, saying this would make easy pickings for corrupt customs officials.

Initially implemented in August by former customs commissioner Nicanor Faeldon, the orders were supposedly designed to protect senders. The goods list was meant to allow recipients to immediately check if contents of the box are complete.

“Although it is our duty to facilitate customs clearance of balikbayan boxes, we cannot set aside the sentiments of our fellow Filipinos abroad,” Lapeña said in a press statement.

The drafting team of the Customs Modernization and Tariff Act, which is the basis of CAO 05-2016, will meet with stakeholders for consultation to make the necessary amendments on the customs orders.

“With the suspension of the current procedure on balikbayan box, the previous regulation will be enforced,” Lapeña.

The memorandum noted that deconsolidators, which complied with registration requirements under CMO 14-2017 “shall be given priority in the processing of the clearance/release of their shipments.”

Image courtesy of yodiyim at FreeDigitalPhotos.net