Article 109p. 109

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

their stay abroad, accompanying them on their return, or

arriving

within

a

reasonable

time

which,

barring

unforeseen and fortuitous events, in no case shall exceed

sixty (60) days after the owner's return.

For purposes of this section, the phrase "returning

residents" shall refer to nationals who have stayed in a

foreign country for a period of at least six (6) months.

Returning residents shall have tax and duty exemption on

personal and household effects: Provided , That:

(1) It shall not be in commercial quantities;

(2) It is not intended for barter, sale or for hire; and

(3) Limited to the FCA or FOB value of:

(i) Three hundred fifty thousand pesos (P350,000.00)

for those who have stayed in a foreign country for at least

ten (10) years and have not availed of this privilege within

ten (10) years prior to returning resident's arrival;

(ii) Two hundred fifty thousand pesos (P250,000.00)

for those who have stayed in a foreign country for a

period of at least five (5) but not more than ten (10) years

and have not availed of this privilege within five (5) years

prior to returning resident's arrival; or

(iii) One hundred fifty thousand pesos (P150,000.00)

for those who have stayed in a foreign country for a

period of less than five (5) years and have not availed of

this privilege within six (6) months prior to returning

resident's arrival.

Any amount in excess of the above-stated threshold

shall be subject to the corresponding duties and taxes

under this Act.

Every three (3) years after the effectivity of this Act,

the Secretary of Finance shall adjust the amount herein

stated to its present value using the CPI as published by

the PSA.

In addition to the privileges granted under the

immediately preceding paragraph, returning Overseas

Filipino Workers (OFWs) shall have the privilege to bring

in,

tax

and

duty-free,

home

appliances

and

other

durables, limited to one of every kind once in a given

calendar year accompanying them on their return, or

arriving

within

a

reasonable

time

which,

barring

unforeseen and fortuitous events, in no case shall exceed

sixty (60) days after every returning OFW's return upon

presentation of their original passport at the port of entry:

Provided , That any amount in excess of FCA value of one

hundred fifty thousand pesos (P150,000.00) for personal

and household effects or of the number of duty-free

appliances as provided for under this section, shall be

subject to the corresponding taxes and duties: Provided,

further , That every three (3) years after the effectivity of

this Act, the Secretary of Finance shall adjust the amount

herein stated to its present value using the CPI as

published by the PSA;

(g)

Residents of the Philippines, OFWs or other

Filipinos while residing abroad or upon their return to the

Philippines shall be allowed to bring in or send to their

families or relatives in the Philippines balikbayan boxes

which shall be exempt from applicable duties and taxes

imposed under the NIRC of 1997 , as amended: Provided ,

That

balikbayan

boxes

shall

contain

personal

and

household effects only and shall neither be in commercial

quantities nor intended for barter, sale or for hire and that

the FCA value of which shall not exceed one hundred fifty

thousand pesos (P150,000.00): Provided, further , That

every three (3) years after the effectivity of this Act, the

Secretary of Finance shall adjust the amount herein

stated to its present value using the CPI as published by

the

PSA:

Provided,

finally ,

That

residents

of

the

Philippines, OFWs or other Filipinos can only avail of this

privilege up to three (3) times in a calendar year. Any

amount in excess of the allowable non-dutiable value

shall be subject to the applicable duties and taxes;

(1) For purposes of this Act, OFWs refer to holders of

valid passports duly issued by the Department of Foreign

Affairs (DFA) and certified by the Department of Labor

and Employment (DOLE) or the Philippine Overseas

Employment

Administration

(POEA)

for

overseas

employment purposes. They cover all Filipinos, working in

a

foreign

country

under

employment

contracts,

regardless

of their professions, skills or employment

status in a foreign country; and

(2) Calendar Year refers to the period from January 1

to December 31.

(h) Wearing apparel, goods of personal adornment,

toilet goods, portable tools and instruments, theatrical

costumes and similar effects accompanying travelers, or

tourists, or arriving within a reasonable time before or

after their arrival in the Philippines, which are necessary

and appropriate for the wear and use of such persons

according to the nature of the journey, their comfort and

convenience: Provided , That this exemption shall not

apply to goods intended for other persons or for barter,

sale or hire: Provided, however , That the Bureau may

require either a written commitment or a security in an

amount equal to one hundred percent (100%) of the

ascertained duties, taxes and other charges thereon,

conditioned for the exportation thereof or payment of the

corresponding duties, taxes and other charges within

three (3) months from the date of acceptance of the

goods declaration: Provided, further , That the Bureau may

extend the time for exportation or payment of duties,

taxes and other charges for a term not exceeding three

(3) months from the expiration of the original period.

Personal

and

household

effects

and

vehicles

belonging to foreign consultants and experts hired by, or

rendering service to, the government, and their staff or

personnel and families accompanying them or arriving

within a reasonable time before or after their arrival in the

Philippines, in quantities and of the kind necessary and

suitable to the profession, rank or position of the person

importing said items, for their own use and not for barter,

sale or hire: Provided , That the Bureau may require either

a written commitment or a security in an amount equal

to one hundred percent (100%) of the ascertained duties,

taxes

and

other

charges

thereon,

upon

the

goods

classified

under this subsection; conditioned for the

exportation thereof or payment of the corresponding

duties, taxes and other charges within three (3) months

after the expiration of their term or contract: Provided,

however , That the Bureau may extend the time for

exportation

or

payment

of

duties,

taxes

and

other

charges for a term not exceeding three (3) months from

the expiration of the original period;

(i) Professional instruments and implements, tools of

trade,

occupation

or

employment,

wearing

apparel,

domestic animals, and personal and household effects

belonging to persons coming to settle in the Philippines

or Filipinos or their families and descendants who are

now residents or citizens of other countries, such parties

hereinafter referred to as overseas Filipinos, in quantities

and of the class suitable to the profession, rank or

position of the persons importing said items, for their

own use and not for barter or sale, accompanying such

persons, or arriving within a reasonable time: Provided ,

That the Bureau may, upon the production of satisfactory

evidence that such persons are actually coming to settle

in the Philippines and that the goods are brought from

their former place of abode, exempt such goods from the

payment of duties and taxes: Provided, further , That

vehicles, vessels, aircrafts, machineries and other similar

goods for use in manufacture, shall not fall within this

classification and shall therefore be subject to duties,

taxes and other charges;

(j) Goods used exclusively for public entertainment,

and for display in public expositions, or for exhibition or

competition for prizes, and devices for projecting pictures

and

parts

and

appurtenances

thereof,

upon

identification, examination, and appraisal and the giving

of a security in an amount equal to one hundred percent

(100%) of the ascertained duties, taxes and other charges

thereon, conditioned for exportation thereof or payment

of the corresponding duties, taxes and other charges

within three (3) months from the date of acceptance of

the goods declaration: Provided , That the Bureau may

© Compiled by RGL

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