Sunday, April 7, 2024

List of Luggage Items Considered Taxable by Bureau of Customs

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In line with the mandate by the Bureau of Customs on balikbayan boxes sent by overseas Filipino workers, a ranking official of the agency answered the common question being asked by concerned individuals traveling to the Philippines.

“Which items in my luggage are considered taxable?”

In a news report by GMA 7, no tax is imposed on balikbayan box if it is accompanied by the passenger, and its worth does not exceed P10,000 equivalent, according to the Bureau of Customs.

Traveling Filipinos and foreign visitors into the Philippines are exempt from paying tax duties:

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1. Used personal effects in non-commercial quantity
2. Wine and spirits not exceeding two bottles
3. Tobacco and cigarettes not exceeding 200 sticks
4. Cosmetics and perfumery not exceeding one bottle

But more specifically, OFWs traveling to the Philippines are also entitled to tax-free of used electric or electronic appliances for one item of each kind.

Once the value of content in a balikbayan box exceeds the prescribed amount, an ad valorem tax worth 50% of each item i is charged to the passenger.

“The policy of Bureau of Customs is a bit liberal,” said Deputy Commissioner Art Lachica, referring to how the agency charges items that are seen as obviously worth above the P10,000 tax-free limit.

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For unacompanied balikbayan boxes or those sent through consolidators abroad, tax duty is imposed if the value exceeds US$500. BoC currently charges freight forwarders with tax charges for every container filled with these balikbayan boxes. In return, these companies pass on tax charges to customers who avail of their freight services.

Referring to the Philippine Consulate General in Sydney’s website, the Tariff and Customs Code of the Philippines (TCCP) mandates that all items brought into the Philippines are subject to import duties. Items, including used items, brought to the Philippines as parcels mailed through the Australian Post or sent through courier services (LBC, DHL, Fedex, etc.) are subject to tax.

The rate of import duty varies depending on the commodity imported, ranging from 3 to 50%. The schedule of rates is listed under Section 104, Tariff and Customs Code of the Philippines (TCCP), as amended.

While it is uncommon, according to BoC, that balikbayan boxes are charged after it arrives at their consignees in the Philippines, those that are deemed to exceed the US$500 value are slapped additional tax duties.

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Lachica said the rates depend on the type, as well as the condition of items.

Items are tax-free if they fall under de minimis, or items whose declared value falls at P10, a very low value under the law that has not been changed since 1957.

Currently, the Philippines has the lowest de minimis threshold, or the minimal volume of declaration of goods in the customs for consignments, in the ASEAN, at PhP10 or US$0.23. The ASEAN average threshold is at a hundred dollars.

To address the issue, BoC is pushing for the Customs modernization act which proposes to adjust de minimis to P10,000, according to Lachica.

With the moratorium of random opening of balikbayan boxes, the BoC admits it becomes more difficult to assess the value of items inside each balikbayan box.

Nonetheless, the Bureau of Customs advises the public to report instances of violation (Email: helpdesk@customs.gov.ph, Twitter: @customsPH, Facebook: Bureau of Customs Public Assistance and Complaint Desk)

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22 COMMENTS

  1. Bakit kaya ngaun lang nag ka tax ang mga bagahe ng mga ofw kc nasabe ko yan kc dati ang mga nag daan na presedente wala namang ganito bakit si aquino lang ang nag papahirap sa mga ofw saloob ng 25yrs ko sa saudi ngaun lang ganyan seguro nga tuwid nadaan pero pag dating sadulo baluktot na tama ba yan mga kabayan IDiLaT natin ang mga mata kung tutuo ang daang matuwid …

  2. si noynoy kase di cyanakaranas ng hirap maging sa sariling bayan lalung lalu na sa abroad kaya di nya alam kung anong hirap bago mapuno ang balaikbayan box tapos sisingilin ng tax sarili nya nga di nya maituwid panu pa kaya ang gobiernong hawak nya lag lag bala sa naia di nya magawan ng paraan cya ang presidente ng bansa ala cyang ginagawang aksiyon pa pogi lang di naman pogi di bale konting panahon nalang naman matatapos na ang termino nya konting tiis nalang mga OFW may bago na tayong presidente walang iba kundi c MAYOR RODRIGO DUTERTE

  3. OO PAGUWI NG PINAS DAPAT WALANG TAX YAN,,,EH KUNG BNIGYAN NG AMO NG GAMIT NA BAGO ANG OFW HNDI PALA MADAdala sa pinas kc takot na may tax yon,hindi tama yan talaga naman gobiiernonatn ,,ngayun lang na c aquino yan,,salamat sa diyos matapos na rin term nya,,para baguhin ang law na yan kc sa ibang bansa airport walang ganyan,tax at bibistahin gamit bago lumabas ng door anu yan,,,,isana kung manalo c duterte or miriam baguhin yan na tax luggage50% sa ofw,,hindi mayaman ang ofws,,,may konting pera lang,,tapos magbabayad lang kami ng tax sa gusto naming dalhin sa pamilya namin ,,anu yan mali yan,,,hindi ako ok,,sorry custom ,,,sorry president hndi ako sangayun sa ganyan kayu lang na bansa ang mayron nyan,,,

  4. ang nakalagay pa 200 stick cigaret,,at used daw na gamit walang bayad tax,,nangibang bayan ka tapos used ang dala mo ,,,dios mio perdon na gobierno de pilipinas porque asi,,,no mi gusta,,asi,,,como loko el gobierno,,,pobrisito ofws,,sana c duterte or miram para maging iba naman,,,,sana hindi salita lang ang gawin nila ,,sabay gawa,,,,puro salita wala sa gawa,,no acer nada,,,,,,useless,,,,,,,,,,,,,,

  5. Wala na talaga magawa si Pnoy…lahat ng mga OFW ekampanya natin na wag botohin yung pambato nya, na si roxas, at ang lahat na LP member, sabihin natin sa mga kamag anak natin sa pinas na wag sya botohin at ang lahat na LP member, kawawa na naman ang mga OFW pag mananatili sila sa pwesto….lahat na OFW……..BIGGGGGGGG….NO NO… kay roxas….

  6. No to LP, para matapos na kahunghangan ng Aquino admin. Hindi na kailangan ipagpatuloy ang ganitong sistema, isa akong OFW , hirap at pagod para lang may maibuhay sa pamilya dahil fuckshit ang gobyerno, mga sakim sa kaban ng bayan tapos ganito pa igaganti, tama ang desisyon ko noon na Hindi ko binoto c Aquino at never ko iboboto mga kaalyansa nya, sa dami ng krimen na nangyayari sa Pinas, ayokong mapahamak ang mga mahal ko sa buhay dahil kakulangan ng kamay na bakal. Malayo ako sa mga pamilya ko, araw araw nangangamba ako sa kanilang buhay dahil wala ng puso at kaluluwa ang mga demonyo na nagkalat, ayoko mangyari sa pamilya ko ang nangyayari sa iba na binabalita sa TV na walang awa pinapatay ang mga kawawang biktima,mga magnanakaw. Ayokong pamunuan ulit ang bansa ko ng mga baklang politikong na puro putak lang ng putak na walang malasakit sa kapwa ko Filipino. Pera lang importante at position importante sakanla. Gising tyo mga kabayan.

  7. Hindi naman yata patas ang ginawa ng custom. Hindi lalampas ng P10,000 at ang bote ng pabango isa lamang. Ano naman ba yun. Hindi naman yata patas yun. Dahil alam ng Custom marami na naman uuwi ng Christmas sa Pilipinas, ginawa na naman negosyo! Hay nakuh! Wala na talagang pagbabago. Patapos na kasi ang tanim bala ngayon sa mga balikbayan naman gagawa ng negosyo… Haiiyyyyyyyyyyyyyzzzzzzzzz

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