Law Summary
Key Definitions
- "Balikbayan": Includes Filipino citizens out of Philippines for at least one year, Filipino overseas workers, and former Filipino citizens naturalized abroad and their immediate families.
- "Family": Spouse and children accompanying the balikbayan who themselves are not balikbayans.
- "Minor": Individual under 18 years old.
- "Livelihood tools": Includes hand or machine tools used in trade or profession and computer units with accessories.
Determination of Balikbayan Status
- Categories: Filipino citizen absent for at least one year, Filipino overseas worker, former Filipinos naturalized abroad, and their immediate family.
- Proof documents vary: passports, contracts, employment certificates, naturalization papers, birth or marriage certificates for family members.
Benefits and Privileges
- Duty and tax-free shopping privileges at government-operated duty-free shops up to US$1,500.
- Purchases must be made in acceptable currencies within defined periods; extended period during Christmas season.
- Privilege is generally personal and one-time per year but with exceptions allowing purchase by family members within specified conditions.
- Senior citizens and handicapped balikbayans can avail privilege within one year of arrival.
- Limits on certain consumable goods and purchase of only one item per consumer durable category costing over US$200.
Additional Benefits
- Special promotional programs by domestic carriers.
- Visa-free entry for foreign passport holders excluding restricted nationals, valid for maximum one year.
- Travel tax exemptions under existing laws.
- Access to designated reception areas and accredited transportation for convenience and safety.
- Additional livelihood or "kabuhayan" shopping privilege worth US$2,000 at government duty-free shops.
- Total combined tax-free purchase is subject to program limits.
Monitoring and Control System
- Issuance of a balikbayan shopping card upon confirmation of status.
- Passport marking to indicate balikbayan status.
- Shopping cards show purchase date, value, and quantity details.
- Separate registration and monitoring for OFWs and non-OFWs with distinctions on required proofs.
- Procedures established for absentee shopping privileges allowing authorized family members to shop using a validated waiver form.
Support for Philippine-Made Products
- Government duty-free shops must source at least 10% of goods from Philippine manufacturers of prominence considering competitiveness, design, and marketability.
Training and Livelihood Programs
- Entrepreneurial and skills training provided to balikbayan and immediate family by DOLE via OWWA and other agencies.
- Non-OFW balikbayan offered livelihood training by DOT in coordination with training institutions.
Reporting Requirements
- DOT must submit semi-annual reports on quantities and values of goods sold in government duty-free shops categorized under tariff classifications.
Legal Provisions
- Repeal of inconsistent rules.
- Separability clause ensuring unaffected validity of other provisions if part declared invalid.
- Power given to DOT and related agencies to promulgate additional rules as necessary.
- Immediate effectivity upon publication in at least two newspapers of general circulation.