CONDITIONALLY-FREE AND DUTY-EXEMPT IMPORTATIONS

The CMTA introduces modifications to Section 105 of the TCCP, as amended, on

conditionally-free importations now named conditionally-free and duty-free
importations under Section 800.

One of the more well-known privileges recognized under Section 800 is the duty and
tax-free importation of personal and household effects by “returning residents” which
has been defined as nationals who have stayed in a foreign country for a period of at
least six months.

The conditions for exemption (aside from the requirements that the same should
neither be of commercial quantity nor intended for barter, sale or hire) are as
follows:

 For those who have stayed in a foreign country for a period of at least 10 years,
the Free on Board (FoB) or Free Carrier Arrangement (FCA) value shall not
exceed P350,000 and that the privilege is not availed of within 10 years prior to
the returning resident’s arrival.

 If the stay is at least five years, the FCA or FOB value shall not exceed
P250,000 and that the privilege is not availed of within five years prior to the
returning resident’s arrival.

 If the stay is less than five years, the FCA or FoB value shall not exceed
P150,000 and that the privilege is not availed of within six months prior to the
returning resident’s arrival.

In addition to the above, returning Overseas Filipino Workers (OFWs) shall have the
privilege to bring in tax and duty free home appliances and other durables (limited to
one of every kind) once in a given calendar year accompanying them on their return or
arriving within a reasonable time (not exceeding 60 days after every returning OFWs
return).

Residents of the Philippines, OFWs or other Filipinos, while residing abroad or upon
their return to the Philippines, are also allowed to bring in or send to their families or
relatives in the Philippines “balikbayan boxes” (containing personal and household
effects only) duty and tax-free, provided that the FCA value shall not exceed P150,000
and the items are not in commercial quantities or intended for barter, sale or for hire.
This can be availed up to three times in a calendar year.

Any amount in excess of the above threshold values shall, however, be subject to
duties and taxes.