WASHINGTON: The Bureau of Customs (BoC) said it plans to exempt from duties and taxes up to P350,000 worth of goods imported by returning Filipinos who have resided overseas. The planned exemption was outlined in a draft order posted on the Department of Finance’s Customs Modernization and Tariff Act (CMTA) microsite last week. The BoC and the Department of Finance (DoF) intend to implement the CMTA gradually through Customs Administrative Orders (CAOs).
Returning Filipino residents, which the CMTA defines as “a Filipino national who has stayed abroad for a period of at least six months and returning to the Philippines,” and overseas Filipino workers (OFWs) may avail of a one-time, duty free importation of up to P350,000 worth of goods on their arrival, with the size of the exemption based on their length of stay. These goods should only be for personal use and consumption, and exclude products such as alcohol and cigarettes.
Those who have resided overseas for six months to five years are entitled to up to P150,000 worth of household effects exempted from taxes; those who have stayed for more than five but less than 10 years are exempt to a limit of P250,000; while those living overseas 10 years or more will enjoy an exemption of up to P350,000. The BoC will also develop a means for returning residents and OFWs to avail of a pre-verification of their entitlement in advance.
The public consultation for the draft CAO is on Nov. 10 at the Port of Manila BoC building. This will be followed by a public consultation for the CMTA provisions on duty drawbacks, refunds and abatements on Nov. 17. The DoF plans to consolidate the orders implemented from this process to form the implementing rules and regulations (IRR) of the CMTA.
