Question & AnswerQ&A (Republic Act No. 9174)
The primary purpose of the Balikbayan Program under RA 9174 is to attract and encourage overseas Filipinos to visit the Philippines in recognition of their economic contributions through foreign exchange inflow and revenues, and to provide additional benefits and privileges to balikbayans.
A balikbayan is defined as a Filipino citizen who has been continuously out of the Philippines for at least one year, a Filipino overseas worker, or a former Filipino citizen naturalized in a foreign country, including their family members traveling with them.
Family refers to the spouse and children of the balikbayan who are not balikbayan in their own right and are traveling with the balikbayan to the Philippines.
Livelihood tools include instruments used by hand or machine necessary to practice a trade, profession, or vocation such as hand tools, power tools, precision tools, farm tools, dressmaking tools, beauty parlor or barber shop tools, and computers with accessories as determined by the Overseas Workers Welfare Administration (OWWA).
Balikbayans are entitled to a maximum tax-exempt purchase of US$1,500 for general goods and an additional tax-exempt purchase of US$2,000 exclusively for livelihood tools at government-owned duty-free shops, subject to limitations in Section 4.
Purchases must be made within 15 calendar days from the date of arrival; however, during the Christmas season (November 15 to January 15), this period extends to 30 days. Senior citizens and handicapped balikbayans have one year from arrival to avail of the privilege.
Generally, the privilege is non-transferable and must be availed personally by the balikbayan. However, an Overseas Filipino Worker may endorse the kabuhayan shopping privilege in writing to immediate family members within the second degree of consanguinity or affinity residing in the Philippines under certain conditions.
Balikbayans with foreign passports, except restricted nationals, may enter visa-free for one year, are exempt from travel tax, and have access to designated reception areas and accredited transportation for convenience and safety upon arrival.
At least 10% of items sold in these duty-free shops must be sourced from Philippine-based manufacturers to showcase Filipino culture, craftsmanship, and industry, coordinated by the Department of Tourism and Department of Trade and Industry.
The Department of Labor and Employment through OWWA, in coordination with TESDA, the Technology and Livelihood Resource Center, and other agencies, provides entrepreneurial training, livelihood skills programs, and marketing assistance to balikbayans and their families availing of the kabuhayan program.
Balikbayans may only make one shopping transaction per arrival, with one item limit per product category for non-consumables priced over US$200. Consumables are subject to existing quantity limitations.
The Department of Tourism must submit semi-annual reports to the President through the Secretary of Finance and to Congress detailing quantities and value of goods sold in government-owned duty-free shops, categorized per the Tariff and Customs Code.
RA 9174 took effect 15 days after its publication in the Official Gazette or in at least two national newspapers of general circulation, whichever came earlier.