Tag Archives: balikbayan box

Government

ANOTHER EMBARRASSMENT FOR PHILIPPINES’ BUREAU OF CUSTOMS

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imageThe Philippines’ Bureau of Customs ( BOC ) has been under fire recently for its policy of checking contents of Balikbayan boxes for taxable items, earning the ire of Overseas Filipino Workers and their families over social media.

Now, the agency is being criticized for taxing a Filipino woman boxer for the prize belt she won representing the Philippines in the international light flyweight title of the Women’s International Boxing Association.

Jujeath Nagaowa, 27, had to pay 5,819 pesos (about $123) in taxes in order for her to claim the championship belt as part of her prize when it arrived in the Philippines.

According to the BOC’s computation, Nagaowa’s belt has a dutiable value of P20,147.15. She has to pay P3,022.00 for customs duty aside from the P2,782.00 value-added tax.

Nagaowa said she fought 10 rounds and agonized as she waited for her belt to arrive, only to be greeted by a breakdown of how much money she has to shell out to claim it.

Only in the Philippines does someone who brings great honor to his or her country can become the target of taxation from a government agency that’s desperate for cash and notorious for dumb policies.

BOC also announced that henceforth, all Filipina beauty queens who win international beauty pageants like Miss Universe, Miss World and Miss International will have to pay tax on their crown if they decide to bring it home to the Philippines.

Government, International, Travel

OVERSEAS FILIPINO WORKERS DITCHING THE BALIKBAYAN BOX IN FAVOR OF SUITCASES TO AVOID CUSTOMS TAX

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Suitcases in lieu of balikbayan boxes

NINOY AQUINO INTERNATIONAL AIRPORT, Philippines (The Adobo Chronicles® ) – The Philippines’ Bureau of Customs (BOC) has come under very intense fire in recent weeks from overseas Filipino workers (OFWs) because of its recent announcement that balikbayan boxes will be opened and inspected to determine whether any of  the items contained inside are subject to tax.

Balikbayan boxes are those corrugated cardboard boxes used by overseas Filipinos to ship gifts and household items for their families back home. Until recently, balikbayan boxes were free of inspection and customs tax.

In order to avoid inspection and customes duties, many OFWs have ditched the balikbayan box in favor of huge suitcases.  They would rather bring their gifts with them when they travel back to the Philippines than have them sent through shipping companies and vendors. This way, they would be physically present when their luggages are inspected by Customs upon their arrival in Manila.

The new modus operandi is causing huge problems for the airlines because the multiple checked suitcases are creating long lines at airport counters. Airlines are also concerned about  potential overloading of the aircraft.

It has also resulted in long lines at the arrival lounges at the Ninoy Aquino International Airport and has prompted BOC to deploy more customs inspectors.

Well, BOC has brought this upon itself.

Business, Government, International

FILAM SHIPPING COMPANIES SUSPEND BALIKBAYAN BOX SERVICE IN PROTEST OF PHILIPPINE CUSTOMS NEW REGULATION

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Contents of a typical balikbayan box
Contents of a typical balikbayan box

SAN FRANCISCO, California  (The Adobo Chronicles® ) – The Pilipino American Shippers’ Association (PASA) announced today that its members are suspending the shipping of all balikbayan boxes to the Philippines effective immediately. That could mean less corned beef, SPAM, chocolates and designer shoes or clothing for the families of Overseas Filipino Workers (OFW). PASA includes top shippers like Forex, Atlas and LBC.

The move is in protest of the Philippine Bureau of Customs’ recent announcement that it will be inspecting balikbayan boxes arriving in the country from OFWs.

Until recently, OFWs could send balikbayan boxes to their loved ones in the Philippines, free of inspection or taxes.

New customs regulations require that the contents of a balikbayan box must not exceed US$500.00 in value. Canned goods, grocery items and other household effects must not exceed a dozen a kind, while apparel, whether used or new, must not exceed 3 yards per cut. Only one consignment per sender during a one-month period is allowed,” Customs Commissioner Bert Lina reminded Filipinos abroad.

Lina gave the reminder to warn smugglers who exploit the use of balikbayan boxes to circumvent the law. He also said that the BOC is allowed by law to check the boxes.

“Home appliances are not allowed unless these are consigned to returning Filipino residents and overseas contract workers….We will seize these prohibited shipments and revoke registrations of forwarders or consolidators if we find any violations,” Lina said.

OFWs used social media to express their anger over the announcement by BOC.

In the meantime, the Bureau of Internal Revenue (BIR) is reportedly preparing to issue new regulations that would impose a 30% tax on dollar remittances from OFWs.

“The BIR needs to find new ways to raise revenue and taxing dollar remittances from Filipinos living abroad would be a great way to meet the agency’s revenue goals,” BIR Commissioner Kim Henares said.