Law Summary
Definitions of Key Terms
- "Balikbayan": Filipino citizens continuously out of the Philippines for at least one year, Filipino overseas workers, or former Filipino citizens who have been naturalized abroad and their families.
- "Family": spouse and children of the balikbayan traveling with them who are not balikbayan themselves.
Benefits and Privileges Granted to Balikbayan
- Tax-free purchase up to US$1,000 or equivalent at duty-free shops, subject to limitations.
- Special promotional/incentive programs by the national flag air carrier.
- Visa-free entry for one year for foreign passport holders, except restricted nationals.
- Travel tax exemption pursuant to specific laws (Presidential Decree No. 1183, Executive Order No. 283).
- Designated reception areas at authorized ports of entry for expedited document processing.
- Benefits are additional to existing laws, rules, and regulations.
Limitations on Tax-Free Purchases
- Purchases must be made in US dollars or other acceptable foreign currencies.
- Must be within 48 hours from date of arrival.
- Privilege is nontransferable and must be used personally.
- Can only be availed once per year per balikbayan.
- Only balikbayan of majority age can avail full privileges; minors limited to purchases not exceeding US$250.
- For non-consumables priced over US$200, only one item per category may be purchased.
Rulemaking Authority
- The Department of Tourism, in coordination with other government agencies, shall promulgate necessary rules and regulations for effective implementation.
Reporting Requirements
- The Department of Tourism must submit semiannual reports to the President (via the Secretary of Finance) and to both Houses of Congress.
- Reports to detail quantities and values of goods sold in Philippine duty-free shops, classified by Tariff and Customs Code categories.
Penalties for Unauthorized Use of Benefits
- Individuals who unlawfully avail of benefits face fines between P20,000 and P40,000 or imprisonment from 2 to 4 years, or both.
- Aliens guilty of violation are subject to summary deportation after serving sentence and permanent bar from reentry without Presidential permission.
Repeal of Conflicting Laws
- All laws, decrees, orders, rules, and regulations inconsistent with this Act are repealed or modified accordingly.
Mandatory Biennial Review
- The Balikbayan Program shall be reviewed by Congress two years after enactment and every two years thereafter.
Separability Clause
- If any provision is held invalid or unconstitutional, it does not affect the validity of the rest of the Act.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or at least two national newspapers, whichever is earlier.