Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Third Regular Session

6156

House Rill No.

Introduced by AGAP Party-list Representative Nicanor M. Briones

AN ACT
INCREASING THE EXEMPTION OF OVERSEAS FILIPINO
WORKERS (OFWS) BALIKBAYAN BOXES AND PERSONAL
EFFECTS FROM TAX AND CUSTOMS DUTIES, AMENDING
FOR THE PURPOSE THE NATIONAL INTERNAL REVENUE
CODE (NIRC) AND THE TARIFF AND CUSTOMS CODE OF THE
PHILIPPINES (TCC)

Explanatory Note

All across the world, Filipmios slowly, patiently fill that box, that “balikbayan” box
that will travel many miles, across countries and continents, to bring a slice of joy and
a piece of themselves to families, relatives, friends. These boxes, symbolic of their
love and their displacement, do not contain gold, guns, riches ~ they are packed with
clothes, simple houschoid i:21ns, books, soap, toothpaste, All the things that the
overseas Filipino worker (OFW) has lovingly collected in the course of the year.

And now, even these small, simple gestures of love has come under the radar of the
Bureau of Customs (BOC), with the aim of collecting taxes on these OFW
“balikbayan” boxes.

In recognition of the immense contribution of the OFWs to the Philippine economy
though their remittances which reached the total amount of US$ 24.308 Billion last
2014, this Bill seeks to increase the exemption of “balikbayan” boxes from tax and
custom duties from US$500.00 to US$ 2,000.00, and the personal effects of OFWs
and other returning Filipito migrants or residents abroad whose value does not exceed
Php 100,000.00.

In view thereof, the immediate enactment of this Bill is earnestly sought.

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2
NICAN! |. BRIONES


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

SIXTEENTH CONGRESS
‘Third Regular Session

House Bill No._§ 1 5G

Introduced by AGAP Party-list Representative Nicanor M. Briones

AN ACT
INCREASING THE EXEMPTION OF OVERSEAS FILIPINO
WORKERS (C¥WS) BALIKBAYAN BO) AND PERSONAL
EFFECTS FROM TAX AND CUSTOMS DUTIES, AMENDING
FOR THE PURPOSE THE NATIONAL INTERNAL REVENUE,
CODE (NIRC) AND THE TARIFF AND CUSTOMS CODE OF THE.
PHILIPPINES (TCC)

Be it enacted by the Senate and the House of Representatives of the
Congress of the Republic of the Philippines in session assembled:

SECTION 1. Short Title. This Act shall be known as the “OFW Balikbayan
Box Law.”

SEC. 2. Declaration of Policy. — It shall be the policy of the State to afford
full protection to labor, local and overseas, organized and unorgani and promote
full employment and equality of employment opportunities for all. Likewise, the State
shall affirm labor as a ptimaty social economic force and shall protect the rights of
workers and promote their welfare. In view thereof, the State shall assist to uplift the
socio-economic status of overseas Filipino workers (OFWs) by providing adequate
benefits and privileges.

SEC. 3. Definition of Terms. ~ For purposes of this Act:

a) “Overseas Filipino worker (OFW)” as defined under Republic Act No.
8042, as amended by RA 10022, refers to “a person who is to be engaged, is engaged
or has been engaged in a remunerated activity in a state of which he or she is not a
citizen or on board a vessel navigating the foreign seas other then a government ship
used for military or non-commercial purposes or on an installation located offshore or
on high seas; to be used interchangeably with migrant worker.”

b) _ “Balikbayan Boxes” refer to packages of personal and household
effects which are non-commercial goods or goods not in commercial quantity strictly
for personal use oniy sent by OFWs.


SEC. 4, Duty and Tax Exemption, — The value of the contents of
Balikbayan Boxes shall be exempted from customs duties and taxes if the value of
which do not exceed Two Thousand United States Dollars (US$2,000.00). Personal
effects of OFWs and other returning Filipino migrants or residents abroad whose
value do not exceed One Hundred Thousand Pesos (Php 100,000.00) shall also be
exempted from taxes and customs duties. Provided, that every six (6) years after the
effectivity of this Act, the value herein stated shall be adjusted to its present value
using the Consumer Price Index, as published by the Philippine Statistics Authority
(PSA).

SEC. 5. Implementing Rules and Regulations, — For the effective
implementation of this Act, the Department of Finance (DOF), Bureau of Customs
(BOC) and the Bureau of Internal Revenue (BIR) shall promulgate the necessary rules
and regulations within sixty (60) days from the approval of this Act.

SEC. 6. Separability Clause. ~ If any provision of this Act is declared
unconstitutional, the remaining provisions not affected thereby shall continue in force.

SEC. 7. Repealing Clause. — All laws, orders, decrees, rules and
regulations, and other parts thereof inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.

SEC. 8. Effectivity. — This Act shall take effect fifteen (15) days after

its publication in the Official Gazette or in at least two (2) national newspapers of
general circulation.

Approved,