SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
'1'5 
AUG 24 P 3 :42 
SENATE 
2913 
S.B. No, ----'-'=-=-=-c:: 
Introduced by Senator Ralph G. Recto 
AN ACT 
EXEMPTING 
FROM 
DUTIES 
AND 
TAXES 
"BALIKBAYAN 
BOXES" 
CONTAINING PERSONAL AND HOUSEHOLD EFFECTS OF OVERSEAS 
FILIPINO WORKERS (OFW), OTHER FILIPINOS RESIDING ABROAD AND 
RESIDENTS OF THE PHILIPPINES RETURNING FROM ABROAD 
Explanatory Note 
Article XIII, Section 3 of the 1987 Philippine Constitution declared that the State 
shall afford full protection to labor, local and overseas, organized and unorganized, and 
promote full employment and equality of employment opportunities for all. In 
recognition of this policy, Congress has enacted laws that promote, protect and ensure 
full protection to Overseas Filipino Workers (OFWs). 
In recognition of the significant contributions of OFWs and other Filipinos 
residing abroad to the Philippine economy through their foreign exchange remittances, 
the Government afforded some benefits and privileges to them such as those provided 
under the Republic Act No. 6768, as amended by Republic Act No. 9174, otherwise 
known as the "Balikbayan Program." Under the program, the "balikbayans" and their 
families shall be entitled to tax- exempt maximum purchase in the amount of One 
Thousand Five Hundred United States dollars (US$ 1,500.00) or its equivalent in 
Philippine peso and in other foreign currencies at all government-owned and-
controlled/operated duty-free shops, and Kabuhayan shopping privilege and additional 
tax-exempt purchase in the maximum amount of Two Thousand United States dollars 
(US$ 2,000.00) or its equivalent in Philippine peso and other acceptable foreign 
currencies, exclusive for the purchase of livelihood tools at all government-owned and 
controlled/operated duty-free shops. 
Section 105 (f) of the Tariff and Customs Code of the Philippines (TCCP), as 
amended by Executive Order No. 206, includes in the list of conditionally-free 
importations the personal and household effects of residents of the Philippines returning 
from abroad which shall neither be in commercial quantities nor intended for barter, sale 
or hire and that the total dutiable value of which shall not exceed Ten Thousand Pesos 
(PIO,OOO.OO). 
Under the existing rules and regulations of the Bureau of Customs (BOC)which 
was laid down in 1990, the "balikbayan boxes" shall contain non-commercial goods or 
goods not in commercial quantity strictly for personal use only, such as wearing apparel, 
clothing, foodstuffs/grocery items/canned goods, and the tax-exempt value of which must 
not exceed US$500.00. However, this value no longer reflects the present value of money 
considering, among others, the effect of inflation rate. The tax-exempt value should now 
be increased to US$2,000.00. The value shall be adjusted every six (6) years to its present 
value using the Consumer Price Index (CPl). 


The intent of this bill is to increase the tax-exempt value of "balikbayan boxes" 
sent by OFWs, other Filipinos residing abroad and residents of the Philippines returning 
from abroad to their families and relatives in the Philippines. This is to recognize 
Philippine tradition and culture of promoting and preserving strong family ties. 
In view ofthe foregoing, the immediate enactment of this bill is earnestly sought. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
'15 
AUG 24 P 3 :42 
SENATE 
S.B. No. 2913 
Introduced by Senator Ralph G. Recto 
AN ACT 
EXEMPTING 
FROM 
DUTIES 
AND 
TAXES 
"BALIKBAYAN 
BOXES" 
CONTAINING PERSONAL AND HOUSEHOLD EFFECTS OF OVERSEAS 
FILIPINO WORKERS (OFW), OTHER FILIPINOS RESIDING ABROAD AND 
RESIDENTS OF THE PHILIPPINES RETURNING FROM ABROAD 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION. 1. Short Title. - This Act shall be known as the "Balikbayan Box 
2 
Law." 
3 
SEC. 2. Declaration of Policy. - The State shall afford full protection to labor, 
4 
local or overseas, organized and unorganized, and promote full employment opportunities 
5 
for all. Towards this end, the State shaIl provide adequate benefits and privileges to 
6 
overseas Filipino workers, other Filipinos residing abroad and residents of the Philippines 
7 
retuming from abroad in recognition of their significant contributions to the Philippine 
8 
economy. 
9 
SEC. 3. Definition of Terms. - For purposes of this Act: 
10 
(a) 
The term "Overseas Filipino Worker (OFW)" refers to a person who is to 
11 
be engaged, is engaged or has been engaged in a remunerated activity in a state of which 
12 
he or she is not a citizen or on board a vessel navigating the foreign seas other than a 
13 
government ship used for military or non-commercial purposes or on an instaIlation 
14 
located offshore or on the high seas, to be used interchangeably with migrant worker.; and 
15 
(b) 
The term "Balikbayan Boxes" are packages of personal and household 
16 
effects which are non-commercial goods or goods not in commercial quantity strictly for 


• 
personal use only sent by OFWs, other Filipinos residing abroad and residents of the 
2 
Philippines retuming from abroad to their families or relatives in the Philippines. 
3 
SEC. 4. Duty and Tax Exemption. - The value of the contents of balik bay an boxes 
4 
not exceeding Two ThOllsand United States Dollars (US$2,000.00) shall be exempt from 
5 
duties and taxes imposed under the Tariff and Customs Code of the Phillippines (TCCP) 
6 
and the National Intemal Revenue Code (NIRC) of 1997, as amended. Provided, that 
7 
every six (6) years after the effectivity of this Act, the value herein stated shall be adjusted 
8 
to its present value using the Consumer Price Index, as published by the Philippine 
9 
Statistics Authority (PSA). 
10 
SEC. 5. Implementing Rules and Regulations. - The Department of Finance 
II 
(DO F), Bureau of Customs (BOC) and the Bureau of Intemal Revenue (BIR) shall 
12 
promUlgate the necessary rules and regulations for the effective implementation of the 
13 
provisions of this Act. 
14 
SEC. 6. Separability Clause. - If any provision of this Act is declared invalid or 
15 
unconstitutional, other provisions hereof which are not affected thereby shall remain in 
16 
full force and effect. 
17 
SEC. 7. Repealing Clause. - All laws, orders, decrees, rules and regulations, and 
18 
other parts thereof inconsistent with the provisions of this Act are hereby repealed, 
19 
amended or modified accordingly. 
20 
SEC. 8. F;[{ectivity Clause. - This Act shall take effect fifteen (15) days after its 
21 
publication in Official Gazette or in at least two (2) national newspapers of general 
22 
circulation. 
23 
Approved, 
2