Title
DOT Rules for RA 9174 Balikbayan Program
Law
Dot
Decision Date
Jan 3, 2003
A Philippine Jurisprudence case defines a balikbayan as a Filipino citizen who has been continuously out of the Philippines for at least one year, and grants them various benefits and privileges, including duty and tax-free purchases, visa-free entry, and access to designated reception areas and transportation facilities.

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.

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