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Aside from defending the agency’s plan to open balikbayan boxes, Bureau of Customs (BOC) chief Alberto “Bert” Lina reminded the public that all of the said boxes are taxed.
READ: BOC chief on opening balikbayan boxes: ‘I have my duty to protect this country’
In his interview on ANC’s Headstart, Lina noted that only returning overseas Filipino workers are given tax exemptions for items with value of up to PHP10,000, based on a presidential decree issued by then President Fidel Ramos.
In fact, Lina emphasized that “every item sent via balikbayan box is taxable.”
He stated: “[If you live abroad], you can bring anything but you will be taxed. There is no exemption. If you are a balikbayan with the intention of coming back to our country, with your passport and everything, like people who have studied abroad or returning OFWs, these are the only people given the privilege to bring in goods and that will not be taxed if the value of the goods is PHP10,000 and below.”
Lina denied that the actual exemption is USD$500 and below, saying the exchange rate then when the presidential decree was issued was about USD$1 = PHP7 or about PHP3,500. He said the exemption has been raised to PHP10,000.
Lina said items sent via balikbayan box will need to be assessed for duties and value-added tax. He said Customs inspectors need to open the boxes to check the items unless there is a packing list and invoice attached to the box.
Overseas Filipinos can list the items and present it to a broker, which will present the list to Customs. Lina, however, noted that brokers and freight forwarders do not submit these lists to Customs “so they would not have to pay duties and taxes.”
“The duty is 1 percent and VAT is 12 percent. The duty can go higher to 3 percent, 5 percent or 10 percent, depending on item that you are bringing into this country,” he said.
He cited as an example overseas Filipinos sending flatscreen TVs to their loved ones, saying these items should still be taxed 12 percent plus an additional 1 percent duty.
“We are asking our kababayan to declare right away, when they send a shipment there. They should email it or they should prepare a manifest together with the invoice so that the broker or the forwarder can file it properly.”
Even secondhand items such as bags or even a gift will need to be taxed.
“That is where the examiner will place a value. There is a secondhand value for Louis Vuitton bags here. That is the law, we have to follow the law,” he said.
Lina noted the bureau is mandated to prevent the entry of drugs, contraband items and even weapons of mass destruction, noting that various contraband items are being smuggled into the country through those boxes.
The Customs chief said the agency will get K-9 units to inspect balikbayan boxes for possible contraband items. The boxes will also be placed inside x-ray machines.
Lina warned that misdeclared items will be confiscated including microwave ovens, speakers and other household items. Items such as pornographic magazines will also be seized since these are banned.
He said confiscated items will be auctioned although the owner can still pay taxes “if that is really just a negligible thing.”
“If you are not honest, we will go after you. The word is honesty, here. You have to declare,” he said.
This article has been re-published with permission from ABS-CBNnews.com.
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