Section 105 of the Tariff
and Customs Code of the
1. Returning
Residents. – A returning resident is a national, not necessarily from
the
Personal effects and household goods used by him abroad for at least six (6) months and the dutiable value of which is not more than Ten Thousand Pesos (P10, 000.00) are exempt from duties and taxes. Any amount in excess of Pl0,000.00 shall be subject to 50% duty across the board.
2. Overseas Contract Workers (OCWs). – An OCW, now also commonly known as Overseas Filipino Worker or OFW, is a Filipino national who works in a foreign country under an employment contract. He must have an uninterrupted stay abroad of more than six (6) months to be entitled to duty and tax free privileges.
In addition to the above privileges granted to returning residents, an OCW may be allowed to bring in, duty and tax free, Ten Thousand Pesos (P10, 000.00) worth of used home appliances, subject to the following conditions:
a) One (1) item per appliance;
b) Declaration under oath that the privilege has not been enjoyed previously during the
calendar year;
c) Presentation of the owner's passport is presented at the port of entry; and
d) Any amount in excess of P10,000.00 to be subject to duty and tax.
3. Former Filipino Citizens. – This refers to a Filipino national who has acquired foreign citizenship abroad. A former Filipino citizen who is returning to settle permanently in the Philippines after a stay abroad of at least six (6) months shall be entitled to duty and tax exemption privileges.
Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal household effects shall be exempt from payment of customs duties and taxes, subject to the following conditions:
a) The change of residence is bonafide;
b) The privilege of free entry was never availed of before; and
c) The articles are brought from his former place of abode.
4. Balikbayans. – This is another term for an OCW or a former Filipino citizen. A returning resident is also a Balikbayan when he has stayed abroad for at least one (1) year. Therefore, Balikbayans are similarly entitled to duty and tax free privileges.
Other
Information:
l. Family members of returning residents, OCWs and former Filipino citizens are also entitled to the above privileges provided they meet the prescribed requirements.
2. For availment of duty and tax free privileges, they must present to the Bureau of Customs a favorable written endorsement from the Department of Finance.
3. The goods extended duty and tax free privilege are not to be sold, bartered or traded.
4. The goods should not be prohibited importations.
5. For regulated importations, they must present an appropriate endorsement from the regulatory agency concerned.
6. Legal tender Philippine currency in excess of P5,000.00 requires the prior approval of the Bangko Sentral ng Pilipinas (BSP).
Motor
Vehicles:
Brand-New Motor Vehicles
l. Anyone can bring in a
motor vehicle provided that it is brand-new. Under BSP Circular No. 92,
dated
2. According to the guidelines presently under consideration by the Office of the President, a motor vehicle is brand-new if the following criteria are duly satisfied:
a) The motor vehicle is of current or advance year model;
b) It has never been registered or used; and
c) It is covered by a certificate of first ownership.
Used Motor Vehicles
l. Under
Appendix l-D of BSP Circular-Letter dated
2. Pursuant to Executive Order No. 248, the following individuals may be allowed to bring in used motor vehicles:
a) A returning Filipino or a former Filipino citizen who has stayed abroad for more than a year; and
b)
An immigrant to the
3. A PIA shall be required on the following vehicles:
a) Motor vehicles that are not of current or advance year model although they are covered by certificate of first ownership and have not been registered or used; and
b) Used motor vehicles.
4. Only one (1) unit motor vehicle (motorcycle included) shall be allowed per family.
5. Physical presence of the owner at the Bureau of Customs is required.
6. In the absence of the PIA, the foregoing vehicles shall be impounded by the Bureau of Customs and may only be released upon payment of the heavy penalties on top of the taxes and duties due thereon.
7.
The PIA may be obtained from the Bureau of Import Services (
a) Proof of continuous stay abroad of at least one (l) year;
b) Registration paper showing that the vehicle is registered abroad in the name of the returnee for at least six (6) months prior to its shipment to the Philippines; and
c) Proof that the vehicle was acquired out of earnings abroad.
8.
The
Bureau of Import Services
Welding Industries of the Philippines Bldg., 3F
Tel. No.
Other Information:
4. Inquiries on taxes,
duties and charges payable may be addressed to the following offices:
a)
Bureau
of Customs
b) One Stop
Processing Center for Motor Vehicles
Manila
International Container Port
(Signed) SUSAN O. CASTRENCE, Consul General