(NAR) VOL. 29 NO. 3/ JULY - SEPTEMBER 18
[ CUSTOMS ADMINISTRATIVE ORDER NO. 01-2018, August 16, 2018 ]AMENDED RULES ON CONSOLIDATED SHIPMENT OF "BALIKBAYAN BOXES"
Adopted: 09 August 2018
Date Filed: 16 August 2018
Introduction. This CAO implements Section 800 (9), Chapter 1, Title VIII; Section 423, Chapter 3, Title IV; and other related provisions of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA) in so far as the consolidated shipment of Balikbayan Boxes is concerned.
Section 1. Scope. This covers consolidated shipments of Balikbayan Boxes entered through any port of entry sent to families or relatives by Qualified Filipinos While Abroad. Balikbayan Boxes brought in through means other than consolidated shipments shall be covered by a different CAO.
Section 2. Objectives.
2.1 To prescribe simplified customs clearance procedures for consolidated shipment of Balikbayan Boxes sent by Qualified Filipinos While Abroad to their families or relatives in the Philippines;
2.2 To facilitate customs clearance of consolidated shipment of Balikbayan Boxes with the aid of risk management techniques and Information and Communication Technology (ICT)-enabled monitoring and control systems consistent with the Bureau's revenue collection and border protection function; and
2.3 To adopt clear and transparent customs rules, regulations, policies and procedures, consistent with international standards and customs best practices.[1]
Section 3. Definition of Terms. For purposes of this CAO, the following terms are defined as follows:
3.1 Availment - shall refer to the determination by the Bureau or by the qualified senders that the Balikbayan Boxes brought in or sent are counted as first, second or third within a calendar year and thus entitled to duty and tax exemption pursuant to Section 800 (g), Chapter 1, Title VIII, CMTA. Any amount in excess of the allowable non-dutiable and non-taxable value shall be subject to the applicable duties and taxes.
Shipment that is above the de minimis threshold shall be automatically considered as one availment. De minimis importation shall not be included in the counting of availment; provided that the Qualified Filipinos While Abroad can only send to one ultimate consignee in one consolidated shipment.
3.2 Balikbayan Box – shall refer to a corrugated box or other container or receptacle up to a maximum volume of two hundred thousand (200,000) gross cubic centimeters without regard as to the shape of the container or receptacle.
For purposes of duty and tax exemption, the Balikbayan Box should contain only personal and household effects that shall neither be in commercial quantities nor intended for barter, sale or for hire sent by Qualified Filipinos While Abroad often shipped by freight forwarders specializing in Balikbayan Boxes by sea or air.
3.3 Calendar Year - shall refer to the period from January 1 to December 31 of the same year.[2]
3.4 Commercial Quantity - shall refer to the quantity for a given kind or class of articles which are in excess of what is compatible with and commensurate to the person's normal requirements for personal use.[3] For a single sender with multiple ultimate consignees, commercial quantity of a given class shall be determined based on the total quantity thereof sent by the sender to all the consignees.
3.5 Consolidated Cargo Manifest - shall refer to the true and correct manifest of all the individual shipments/consignments in a consolidated shipment destined to be unladen in a port of entry in the Philippines, the same being attached as a rider to the Inward Foreign Manifest of the carrying vessel or aircraft.[4]
3.6 Consolidated Shipments - shall refer to two (2) or more shipments from two (2) or more individual consignors/senders abroad, assembled and consolidated at one point of origin or exportation and shipped together under a single master ocean bill of lading or master air waybill of lading by a consolidator to its Deconsolidator in the Philippines.[5]
