SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
AUG 26 P 3 :54 
SEN~373 
S.B. No. 
. 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT AMENDING SECTION 709 OF PRESIDENTIAL DECREE 1464, OTHERWISE KNOWN AS 
THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED 
EXPLANATORY NOTE 
For the Overseas Filipino Workers (OFW), going back home to the Philippines is 
something they look forward to. And part of this experience is putting up a package of gifts to 
bring home to family, relatives and friends. The balikbayan box has been the symbol for the 
OFWs - of their sacrifices and travails going abroad, of their desire to provide better lives for 
their loved ones. 
Yet, sending a balikbayan box home becomes burdensome for these modern-day 
heroes. Currently, these packages undergo a tedious process in the customs and are charged 
fees that are discouraging for OFWs to send more regularly. Thus, there is a need to provide the 
ten million Filipinos abroad, who have been already contributing greatly to the economy the 
past four decades, a better customs administration by reducing the de minimis threshold. 
The de minimis threshold is the minimal volume of declaration of goods in the customs 
for consignments. low thresholds for customs declaration signify increased documentation and 
processes for shipments at entry pOints in the country. Increased documentation leads to 
larger turnover and delivery time of goods, and larger administration costs that would yield 
lower revenue impact for both businesses and government. 
Presently, the Philippines has the lowest de minimis threshold in the ASEAN, at PhP10 or 
US$0.23. 1 The ASEAN average threshOld is at a hundred dollars, which is four hundred times' 
that of the Philippines'. The extremely low Philippine threshold has not been changed since 
1957 and is clearly antiquated. It needs to be updated to be reflective of current prices. 
By increasing the de minimis level to Ten Thousand Pesos (PhP10,000.00), the proposed 
measure provides a more realistic and relevant threshold. It enables the Bureau of Customs to 
focus its efforts in looking out for high-value, high-risk and high-revenue goods for collection 
and enforcement, thereby making customs processes more efficient. 
Then, the balikbayan boxes and other low-value and low-risk packages and of OFWs and 
others, such as entrepreneurs and individuals, who purchase small goods online, are allowed to 
go through customs faster with minimum fees. 
As the saying goes, MAMI: minimum activities for maximum impact for government, 
private institutions and individuals. 
1 Based on B5P exchange rate of U5$1: PhP43.8 as of 26 August 2014. 


In view of the foregoing, the approval ofthis bill is ear~=t'a 
--'CAA ~ 
Senator Mo Benigno -"Bl~" A. Aquino IV 


'. 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
AUG 26 P 3 :54 
SENAJ.J: 
S.B. No. 
~3 7 3 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT AMENDING SECTION 709 OF PRESIDENTIAL DECREE 1464, OTHERWISE KNOWN AS 
THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Section 709 of the Tariff and Customs Code of the Philippines (TCCP), as 
2 
amended, is hereby further amended to read as follows: 
3 
"Sec. 709. Authority of the Collector to Remit Duties -
A Collector shall have 
4 
discretionary authority to remit the assessment and collection of customs duties, taxes, 
5 
and other charges when the aggregate amount of such duties, taxes and other charges 
6 
is less than [ten pesos] TEN THOUSAND PESOS (Pl0,000.00) and he may dispense with 
7 
the seizure of articles of less than [ten pesos] TEN THOUSAND PESOS (Pl0,000.00) in 
8 
value except in cases of prohibited importations or the habitual or intentional violation 
9 
of the tariff and customs law." 
10 
SECTION 2. Implementing Rules and Regulations. - The Commissioner of the Bureau of 
11 
Customs shall, within thirty (30) days from the effectivity of this Act, issue the necessary rules 
12 
and regulations for the implementation of this Act. 
13 
SECTION 3. Separability Clause. - If any provision of this Act is subsequently declared 
14 
invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain 
15 
in full force and effect. 
16 
SECTION 4. Repealing Clause. - All laws, decrees, orders, rules and regulations, and 
17 
other issuances, or parts thereof, inconsistent with the provisions of this Act are hereby 
18 
repealed or modified accordingly. 
19 
SECTION 5. Effectivity Clause. - This Act shall take fifteen (15) days after its publication 
20 
in the Official Gazette or in a newspaper of general circulation 
21 
Approved,