Title
Amendments to Balikbayan Program Benefits
Law
Republic Act No. 9174
Decision Date
Nov 7, 2002
Republic Act No. 9174 amends the Balikbayan Program to provide additional benefits and privileges to overseas Filipinos returning to the Philippines, including tax-exempt purchases, training opportunities, and the promotion of Filipino-made products.

Law Summary

Definitions Under the Act

  • "Balikbayan": Filipino citizens out of the country continuously for at least one year, overseas Filipino workers, or former Filipino citizens naturalized abroad returning to the Philippines
  • "Family": Spouse and children of balikbayan traveling with them who are not balikbayan themselves
  • "Livelihood tools": Instruments essential to trades, vocations, or professions as defined by the OWWA; includes hand/power tools and computer units with accessories

Benefits and Privileges of the Balikbayan

  • Tax-exempt purchase privilege amounting to US$1,500 at government-operated duty-free shops
  • Special promotional or incentive programs by all domestic carriers
  • Visa-free entry for one year for foreign passport holders except restricted nationals
  • Travel tax exemption under relevant laws
  • Designated reception areas and accredited transportation for expedient processing and safe travel
  • Additional tax-exempt purchase of US$2,000 exclusively for livelihood tools (kabuhayan program)
  • Benefits are cumulative with existing privileges under other laws

Limitations on Tax-exempt Purchases

  • Purchases must be made within 15 days of arrival, extended to 30 days during Christmas season (Nov 15-Jan 15)
  • Shopping privilege limited to one-time per visit and once a year usage
  • Non-transferable and must generally be made personally by the balikbayan
  • Senior citizens and handicapped balikbayan may avail privileges within one year of arrival
  • Kabuhayan shopping can be claimed by immediate family for balikbayan gone abroad within one year
  • OFWs certified by POEA or related agencies may endorse kabuhayan shopping privilege to immediate family once during contract period
  • Only majority-age balikbayan can avail privilege; minors may purchase up to the passenger tax-exempt limits
  • Only one item of non-consumables over US$200 may be purchased per product category

Promotion of Philippine-made Products in Duty-free Shops

  • At least 10% of goods sold in government-operated duty-free shops to be Philippine-made
  • DOT to coordinate with DTI in product selection considering competitiveness, design, marketability, and world-class standards

Training and Livelihood Support Programs

  • DOLE with OWWA, TLRC, TESDA, and other agencies to provide entrepreneurial training, skills development, and marketing assistance
  • Focus on balikbayan and immediate family members utilizing kabuhayan program
  • For non-OFW balikbayan, DOT coordinates livelihood training arrangements

Reporting and Implementation

  • DOT to submit semi-annual reports on goods sold in duty-free shops to the President, Secretary of Finance, and Congress
  • Reports to include quantity and value of goods by tariff category
  • DOT, in coordination with other agencies, to promulgate implementing rules within 30 days of effectivity

Repealing Clause and Effectivity

  • Inconsistent laws, decrees, regulations repealed or modified
  • Act takes effect 15 days after publication in Official Gazette or in two national newspapers, whichever is earlier

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.