Title
DOT Rules on Balikbayan Program Implementation
Law
Dot
Decision Date
Jan 3, 2003
A memorandum issued by the President of the Philippines directs Cabinet Members to encourage officials and employees to passively monitor security measures in public places, aiming to enhance citizen's security awareness and participation in the fight against terrorism.
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Definition of Key Terms

  • "Balikbayan": Filipino citizen abroad for at least one year, Filipino overseas worker, former Filipino citizen naturalized abroad, and their accompanying family (spouse and children who are not balikbayans).
  • "Family": Spouse and children traveling with the balikbayan.
  • "Minor": Individual 18 years old or younger.
  • "Livelihood tools": Instruments necessary for vocation or profession, including hand/power tools and computers.

Criteria for Balikbayan Status

  • Categories: Filipino abroad for one year; Filipino overseas worker; former Filipino citizen with family traveling together.
  • Documents required:
    • Filipino citizen: Passport with last departure date.
    • OFW: Passport plus employment contract, certificate, or related official documentation.
    • Former Filipino: Foreign passport plus previous Philippine passport or naturalization papers.
    • Family members: Passport plus birth certificate, marriage certificate, or adoption papers.

Benefits and Privileges

  • Duty- and tax-free shopping privilege up to US$1,500 at Philippine duty-free shops.
  • Purchases must be in US dollars or accepted foreign currencies.
  • Shopping limits:
    • 15 days from arrival (30 days during November 15 to January 15).
    • One-time shopping privilege per year.
    • Senior citizens and handicapped balikbayans: one year to avail privilege.
  • Privilege is personal and non-transferable except:
    • Balikbayan returning abroad may still allow immediate family to claim purchased livelihood tools within one year.
    • OFWs may endorse privilege in writing to an immediate family member within two years of contract.
  • Minor family members may purchase up to allowable duty and tax-exempt limits.
  • Limits on quantity of consumables and restriction to one item per product category exceeding US$200.

Additional Balikbayan Benefits

  • Special promotional programs by domestic carriers.
  • Visa-free entry for foreign passport holders for up to one year (excludes restricted nationals).
  • Travel tax exemption under applicable laws.
  • Designated reception areas for expedited processing at ports.
  • Use of accredited transportation upon arrival.
  • Additional livelihood shopping privilege of up to US$2,000 exclusively for livelihood tools.

Monitoring and Control System

  • Balikbayan shopping card issued upon verification of status.
  • Passport stamped with balikbayan mark.
  • Shopping card records purchase date, value, and quantity.
  • Separate registration for OFWs and non-OFWs, reflecting a combined shopping limit of US$4,500 including livelihood tool purchases.
  • Absentee shopping authorized through OWWA-endorsed waiver form allowing privilege assignment to immediate family.

Promotion of Philippine-Made Products

  • Duty-free shops must maintain at least 10% of goods sourced from recognized Philippine manufacturers.
  • Selection considers competitiveness, design, marketability, and cultural representation.

Livelihood Training and Support

  • DOLE, OWWA, TESDA, TLRC, and other agencies to provide entrepreneurial and livelihood training.
  • DOT to coordinate livelihood training for non-OFW balikbayans.

Reporting and Accountability

  • DOT to submit semi-annual sales reports to the President, Secretary of Finance, and Congress detailing quantities and value of duty-free goods sold.

Amendments and Separability

  • All inconsistent rules repealed or amended.
  • Provisions declared separable; invalidity of one does not affect others.

Authority and Implementation

  • DOT authorized to issue additional implementing rules and regulations as necessary.

Effectivity

  • The Administrative Order takes effect immediately after publication in two newspapers of general circulation.

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