QuestionsQuestions (DOT)
The DOT Rules were promulgated pursuant to Section 8 of Republic Act No. 9174 (An Act Amending the Balikbayan Program).
A balikbayan includes: (1) a Filipino citizen continuously out of the Philippines for at least one (1) year from the date of last departure; (2) a Filipino overseas worker; or (3) a former Filipino citizen who was naturalized abroad and returns to the Philippines, together with the defined family members traveling with the latter.
“Family” means the spouse and children of the balikbayan who are not balikbayans in their own right, traveling with the balikbayan to the Philippines.
For (a): Philippine passport showing date of last departure. For (b): Passport plus any of the listed documents (e.g., POEA-approved contract, certificate/contract of employment by foreign employer, embassy/consulate certificate, contract worker stamp, seaman’s service record book, or OFW E-Card). For (c): Passport plus old Philippine passport or naturalization papers showing former Philippine citizenship, or a certification from the embassy/consulate of the adoptive country.
They must present their passports plus: birth certificate for children, marriage certificate for spouse, and adoption papers/proof of adoption for legally adopted children.
US$1,500 (or its equivalent in Philippine pesos and other acceptable foreign currencies), subject to the limitations stated in the rules.
Normally within fifteen (15) calendar days from the date of arrival. During the Christmas Season (Nov. 15 to Jan. 15), it is extended to thirty (30) calendar days from date of arrival. Senior citizens and handicapped balikbayans may enjoy the privilege within one (1) year from arrival.
No, it is non-transferable and purchases must generally be made personally by the balikbayan. Exceptions: (1) a balikbayan who returned abroad may still avail of the kabuhayan shopping privilege within one (1) year from arrival, and immediate family may claim the kabuhayan tools purchased; (2) an OFW may endorse in writing the kabuhayan shopping privilege to immediate family members (second degree of consanguinity/affinity) once within two (2) years from the effectivity of the contract and only during the duration of the contract.
The privilege may be availed of by a balikbayan only once a year.
Only a balikbayan of majority age under Philippine laws can enjoy the privilege. However, family members who are minors are still entitled to purchase privilege not exceeding the allowable duty and tax-exempt limit for arriving passengers under Customs Administrative Order No. 4-92.
Consumables: additional limits include two (2) reams of cigarettes of any brand and two (2) bottles of wine and/or liquor, consistent with Customs Administrative Order No. 4-92. Consumer durables: a balikbayan may buy only one (1) item per product category whose selling price exceeds US$200. The rules also mention a partial attachment list (not included) identifying affected categories.
Kabuhayan shopping provides an additional duty- and tax-exempt purchase of US$2,000 exclusively for livelihood tools. The total amount mentioned for Rule IV and Rule V(f) may be used for the kabuhayan shopping program, subject to the limitations imposed on balikbayans under the rules.
The rules include: (1) special promotional/incentive program by domestic carriers; (2) visa-free entry for foreign passport holders for a maximum stay of one (1) year (with exceptions and subject to BI rules); (3) travel tax exemption under specified laws; (4) especially designated reception areas; (5) use of accredited transportation facilities; and (6) kabuhayan shopping for livelihood tools.
It uses a control system coordinated with the Bureau of Customs and Bureau of Immigration: issuance of a balikbayan shopping card after confirmation of status, random checks by Customs, passport stamping/marking by Duty Free Philippines, and shopping cards indicating purchase date, value, and quantities. Kabuhayan shopping also uses registration and passport/e-card checks, with shopping card limits (e.g., US$4,500 total shown on the card).
The OFW completes a waiver form obtained from OWWA, submits it to OWWA for validation, and turns the approved waiver to the authorized immediate family member. The authorized family member then presents the waiver and ID at the DFP CRR counter. After Customs checks the OWWA endorsement, the CRR issues a shopping card and the passport is marked “B” indicating absentee shopping privilege for livelihood items has been availed.
Government-owned/controlled/operated duty-free shops must ensure that at least ten percent (10%) of goods sold (as far as practicable) are sourced from Philippine-based manufacturers of prominence, considering competitiveness, design, excellence, marketability, regional representation, and world-class appeal.
DOLE through OWWA, in coordination with TLRC, TESDA, Livelihood Corporation, and other agencies provides entrepreneurial training and livelihood skills and marketing assistance for balikbayans availing of kabuhayan shopping in line with reintegration programs. For non-OFW balikbayans, DOT arranges with TLRC and other training institutions for possible livelihood training.
It takes effect immediately after its publication in at least two (2) newspapers of general circulation.