Coverage; program rules governed
- These rules govern the benefits enumerated under Republic Act No. 9174 under Rule I.
- Eligibility and availment of incentives operate within the limits and conditions stated in these DOT rules, including document requirements and shopping limitations under Rules II, III, IV, and V.
- The shopping privilege limits are implemented through a monitoring/control system coordinated with the Bureau of Customs and the Bureau of Immigration and Deportation under Rule VI.
Core definitions for applicants and benefits
- “Balikbayan” means a Filipino citizen continuously out of the Philippines for at least one (1) year from the date of last departure, a Filipino overseas worker, or a former Filipino citizen and his or her family who had been naturalized abroad and comes or returns to the Philippines under Rule II (1).
- “Family” means the spouse and children of the balikbayan who are not balikbayans in their own right but travel with the balikbayan under Rule II (1).
- “Minor” means an individual whose age does not exceed 18 years old under Rule II (1).
- “Livelihood tools” means instruments used by hand or machine necessary to a person’s trade, vocation or profession (including specified examples such as hand tools, power tools, precision tools, farm tools, dressmaking tools, shoe repair tools, beauty parlor/barber shop tools), as may be determined by the Overseas Workers Welfare Administration (OWWA) for purposes of application or use in a livelihood undertaking, and includes a computer unit and its accessories under Rule II (2).
Balikbayan status categories; proof requirements
- Balikbayan status is recognized through the following categories under Rule III:
- Filipino citizen continuously out of the Philippines for at least one (1) year from the date of last departure.
- Filipino overseas worker.
- Former Filipino with a foreign passport and members of his or her family (spouse and children who are not balikbayans in their own right but are traveling with the balikbayan).
- Applicants must present specified documents to show proof of Balikbayan status for availment of incentives, without prejudice to requirements for travel tax exemption under existing laws under Rule III (b).
- Filipino citizen (continuous absence): must present a Philippine passport showing date of last departure under Rule III (b)(a).
- Filipino overseas worker: must present a passport and any of the following under Rule III (b)(b):
- POEA approved contract of employment
- Certificate/Contract of employment by the foreign employer
- Certificate of employment by the Philippine Embassy/Consulate
- Contract Worker stamp on passport
- Seaman’s Service Record Book
- E-Card (OFW Electronic Identification Card)
- Foreign passport holder (former Filipino citizen): must present a passport and any of the following under Rule III (b)(c):
- Old Philippine passport
- Foreign, naturalization papers to show former Philippine citizenship
- Certification issued by the embassy or consulate of adoptive country that the individual is a former Filipino citizen
- Family members traveling with the balikbayan must present a passport and, as applicable, Birth Certificate for children, Marriage Certificate for spouse, or adoption papers (proof of adoption) for legally adopted children under Rule III (b)(d).
Duty- and tax-free maximum purchases
- Eligible participants must be entitled to duty- and tax-free maximum purchase of goods at Philippine duty-free shops operated by Duty Free Philippines under Executive Order No. 46 Section 86, in the amount of One Thousand Five Hundred United States Dollars (US$1,500) or its equivalent in Philippine Peso and other acceptable foreign currencies under Rule IV (a).
- Purchases must be made in US dollars or its equivalent in Philippine Peso and other acceptable foreign currencies based on the Bangko Sentral ng Pilipinas list of acceptable foreign currencies under Rule IV (a)(1).
- The duty- and tax-free shopping privilege is subject to the following time and use limitations under Rule IV (b):
- Purchases must be made within fifteen (15) calendar days from the date of arrival.
- During the Christmas Season (November 15 to January 15), the privilege extends to thirty (30) calendar days from the date of arrival.
- The privilege is availed of on a one-time shopping basis only.
- Senior citizens and handicapped balikbayans may enjoy the privilege within one (1) year from date of arrival.
- The privilege is non-transferable, and purchases must be made personally by the balikbayan, except for the following circumstances under Rule IV (c):
- A balikbayan who has gone back abroad may still avail the Kabuhayan shopping privilege within a maximum period of one (1) year from date of arrival, and immediate family members may claim the kabuhayan tools purchased under Rule IV (c.1).
- An OFW, duly certified as such by the POEA, OWWA, Philippine Overseas Labor Officer, or by a Philippine embassy/consulate in the country where deployed, taking into account evidence of remittance, may endorse in writing the kabuhayan shopping privilege to immediate family members residing in the Philippines under Rule IV (c.2):
- immediate family members within the second degree of consanguinity or affinity;
- endorsed once within two (2) years from the date of effectivity of the contract; and
- only during the duration of the same.
- The privilege may be availed of by a balikbayan only once a year under Rule IV (d).
- Only balikbayans of majority age under Philippine laws may enjoy the privilege, but family members who are minors continue to be entitled to purchase privilege not exceeding the allowable duty and tax-exempt limit for arriving passengers under Customs Administrative Order No. 4-92 under Rule IV (e).
- In addition to limits on consumables under Customs Administrative Order No. 4-92, a balikbayan may buy only one (1) item of every consumer durable product category whose selling price exceeds US$200.00 under Rule IV (f).
- Duty- and tax-free shopping privilege availment is personal in nature, and purchases jointly made by the balikbayan family are treated on an individual basis for purposes of the value limitation under Rule IV (attached).
Additional benefits, visa-free entry, and kabuhayan shopping
- In addition to duty- and tax-free purchases under Rule IV, a balikbayan and family are entitled to the other privileges listed in Rule V (a-f).
- All domestic carriers must establish a special promotional/incentive program for balikbayans pursuant to Republic Act No. 9174 under Rule V (a).
- Foreign passport holders are entitled to visa-free entry for a maximum stay of one (1) year (except restricted nationals), subject to fees and the rules and regulations of the Bureau of Immigration and Deportation under Rule V (b).
- Qualified balikbayans are entitled to travel tax exemption under Presidential Decree No. 1183, Executive Order No. 283, and other related laws under Rule V (c).
- Balikbayans are entitled to specially designated reception areas at authorized ports of entry for expeditious processing of documents under Rule V (d).
- Balikbayans are entitled to use of accredited transportation facilities ensuring safe and convenient trips upon arrival under Rule V (e).
- Kabuhayan shopping privilege is granted through an additional duty- and tax-exempt purchase of US$2,000.00 or its equivalent in Philippine Peso and other acceptable foreign currencies, exclusively for livelihood tools at government-owned-and controlled/operated Duty-Free Shops under Rule V (f).
- The total duty- and tax-exempt maximum purchase amount described in Rule IV and Rule V (f) may be used for the kabuhayan shopping program, subject to limitations imposed on the balikbayan under these rules under Rule V (second paragraph).
Monitoring system; shopping cards and passports
- The control system monitors:
- the purchase period limit under Rule IV (b); and
- the maximum allowable purchase under these rules,
coordinated with the Bureau of Customs and the Bureau of Immigration and Deportation under Rule VI (a).
- For balikbayan shopping, Duty Free Philippines issues a balikbayan shopping card only after confirmation of the buyer’s Balikbayan status and subject to further random check by a Bureau of Customs representative as to veracity under Rule VI (1)(a).
- For balikbayan shopping, the balikbayan’s passport is stamped with a balikbayan identifying mark by the Duty Free Philippines representative after confirmation under Rule VI (1)(b).
- The shopping card indicates the date of purchase, value of purchase for both consumables and non-consumables, and quantity of non-consumables under Rule VI (1)(c).
- For kabuhayan shopping, upon registration at the Duty Free Philippines Customer Relations & Registration (CRR) Counter, the OFW must present a passport or seaman’s book for checking of POEA sticker, Last departure date, Arrival date, and OFW E-Card, and confirmation automatically entitles an additional US$2,000.00 worth of livelihood shopping privilege under Rule VI (2.1)(a).
- For kabuhayan shopping (OFW), the passport (or seaman’s book) is marked by the Duty Free Philippines representative after confirmation under Rule VI (2.1)(b).
- For kabuhayan shopping (OFW), the shopping card reflects a shopping limit of US$4,500.00 and indicates the date of purchase, value of purchase for both consumables and non-consumables, and quantity of non-consumables under Rule VI (2.1)(c).
- For kabuhayan shopping (Non-OFW), the non-OFW presents a passport for checking of last departure date and arrival date under Rule VI (2.2)(a), and the passport is marked after confirmation under Rule VI (2.2)(b).
- For kabuhayan shopping (Non-OFW), the shopping card reflects a shopping limit of US$4,500.00 and indicates the date of purchase, value of purchase for both consumables and non-consumables, and quantity of non-consumables under Rule VI (2.2)(c).
- For kabuhayan shopping (Retirees), upon registration at the CRR Counter the retiree presents a passport, the passport is marked after confirmation, and the shopping card reflects a shopping limit of US$4,500.00 and includes the same purchase/value/quantity indicators under Rule VI (2.3)(a-c).
Absentee kabuhayan shopping; waivers and endorsement
- Absentee-shopping under the kabuhayan program proceeds through an authorization and waiver process under Rule VI (3)(a).
- The OFW arrival contract worker secures a waiver form (one copy) from the OWWA representative and completely accomplishes it, which signifies consent to assign livelihood shopping privilege to an immediate family member defined under Rule IV (c.2) under Rule VI (3)(a.1).
- The OFW must indicate the complete name of the family member authorized to exercise the shopping privilege under Rule VI (3)(a.1).
- The OFW submits the accomplished waiver form to the OWWA representative for validation under Rule VI (3)(a.2).
- The OWWA representative signs the waiver form after validating by examining the passport, E-Card, and employment contract, indicating approval or authenticity of the data under Rule VI (3)(a.3).
- The OFW turns over the validated waiver form to the authorized family member under Rule VI (3)(a.4).
- For the authorized family member’s shopping procedure, the family member presents the accomplished and signed waiver form together with an ID to the Duty Free Philippines CRR Representative under Rule VI (3)(b.1).
- The CRR Representative issues a shopping card only after checking the Bureau of Customs endorsement on the waiver form under Rule VI (3)(b.2).
- The CRR Representative marks the passport with the letter “B” indicating that the absentee shopping privilege for livelihood items has been availed of under Rule VI (3)(b.3).
Philippine-made goods quota in duty-free shops
- Government-owned and controlled/operated duty-free shops must ensure that, as far as practicable, at least ten percent (10%) of goods sold are sourced from Philippine-based manufacturers of prominence, factoring competitiveness, design, excellence, marketability, regional representation, and world-class appeal under Rule VII.
- This sourcing quota is implemented in coordination with the Department of Trade and Industry under Rule VII.
Training and reintegration support programs
- DOLE, through OWWA, in coordination with TLRC, TESDA, Livelihood Corporation, and other concerned agencies, must provide entrepreneurial training, livelihood skills programs, and marketing assistance to a balikbayan and immediate family members who avail of the kabuhayan shopping privilege under the government’s re-integration program under Rule VIII (a).
- In the case of non-OFW balikbayans, the Department of Tourism makes arrangements with TLRC and other training institutions for possible livelihood training under Rule VIII (b).
Semi-annual duty-free sales reporting
- The Department of Tourism must submit semi-annual reports to the President through the Secretary of Finance and to both Houses of Congress under Rule IX (a).
- The reports must contain statement of the quantities and the value of goods sold by the government-owned and controlled/operated duty-free shops under Rule IX (a).
- Reporting follows the classification categories in the Tariff and Customs Code of the Philippines, as amended under Rule IX (a).
Repeal; separability; additional rules
- Rules and regulations inconsistent with these DOT rules are repealed, amended, or modified accordingly under Rule X.
- The provisions are separable, and invalidity of one provision does not affect the validity of the remaining provisions under Rule XI.
- The Department of Tourism, in coordination with other concerned government agencies, issues additional rules and regulations from time to time whenever necessary or as the need arises for effective implementation of the Balikbayan Program under Republic Act No. 9174 under Rule XII.