Amend EXECUTIVE ORDER NO. 206 of June 30, 1987 to protect OFW Duty & Tax Privileges - dito lang po matatapos ang issues with Phil. BOC!

The recent statement made by Belinda Copioso, Assistant Chief, Arrival Operations Division, BOC-NAIA, sounded alarm bells in all "balikbayan" Filipinos' minds. She said something to the effect that anything balikbayans / OFWs bring in which is imported from abroad will be taxed upon arrival.

This brings to mind the law BOC had been quoting even during the recent "balikbayan box" controversy – that is, the extremely dated Executive Order No. 206 which also has a section in Philippine embassy websites under "Duty and Tax Free Privileges" or "Tax Exemption Privileges" (depending on which embassy website you are looking at).

While the said law was timely when it was executed, the amount set as a condition (PHP 10,000) is no longer justifiable today because EO No. 206 was signed in 1987 (28 YEARS AGO!) by the late President Corazon Aquino herself! Clearly, changes must be made!!!

This may be confusing for some, but please read the copy of EO No. 206 stated in the petition letter.

The law has to be amended/updated so it remains true to its spirit!

(Image courtesy of http://www.jbsolis.com)

Dear President Noynoy Aquino,


Kindly look into Executive Order No. 206 which was signed by your mother, the late President Corazon Aquino, way back in 1987. We believe the law needs to be updated for its spirit to be preserved, and for it to truthfully and effectively serve the people it was meant to help.


Thank you.


Very truly yours,


Your Kabayans Abroad


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Dear OFWs/Balikbayan Filipinos,


Below is  copy of Executive Order No. 206 of 1987. It may be long and tedious to read, but it affects us all. This copy is taken from "The LAWPHiL Project" of the Arellano Law Foundation website (http://www.lawphil.net/executive/execord/eo1987/eo_206_1987.html):


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EXECUTIVE ORDER NO. 206 June 30, 1987


AMENDING SECTION 105 OF THE TARIFF AND CUSTOMS CODE


OF THE PHILIPPINES


WHEREAS, there is a need to adjust the maximum dutiable value of conditionally free importations of personal and household effects belonging to residents of the Philippines returning from abroad to a realistic level;


WHEREAS, to curb abuses in conditionally free importations under Section 105 (f) of the Tariff and Customs Code of the Philippines, the conditions for such importations must be restricted;


WHEREAS, there is also a need to recognize the magnitude of the contribution of the overseas contract workers whose lonely sacrifices in foreign lands bring in a considerable amount of foreign exchange annually thereby contributing to the national recovery effort;


NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:


Sec. 1. Section 105 (f) of the Tariff and Customs Code of the Philippines is hereby amended and a new subsection (f-1) is hereby added thereto, to read as follows:


Conditionally-Free Importations. . . .


(f) Personal and household effects belonging to residents of the Philippines returning from abroad including jewelry, precious stones and other articles of luxury which were formally declared and listed before departure and identified under oath before the Collector of Customs when exported from the Philippines by such returning residents upon their departure therefrom or during their stay abroad; personal and household effects including wearing apparel, articles of personal adornment (except luxury items), toilet articles, instruments related to one's profession and analogous personal or household effects, excluding vehicles, watercraft, aircraft and animals purchased in foreign countries by residents of the Philippines which were necessary, appropriate and normally used for their comfort and convenience during their stay abroad, accompanying them on their return, or arriving within a reasonable time which, barring unforeseen and fortuitous events, in no case shall exceed sixty (60) days after the owner's return: Provided, That the personal and households effects shall neither be in commercial quantities nor intended for barter, sale or hire and that the total dutiable value of which shall not exceed Ten Thousand Pesos (P10,000.00): Provided, further, That the returning resident has not previously availed of the privilege under this section within three hundred sixty five (365) days prior to his arrival: Provided, finally, That a fifty percent (50%) ad valorem duty across the board shall be levied and collected on the personal and household effects (except luxury items) in excess of Ten Thousand Pesos (P10,000.00).


For the purposes of this section, the phrase "returning residents" shall refer to nationals who have stayed in a foreign country for a period of at least six (6) months.


(f-1) In addition to be privilege granted under the immediately preceding paragraph, returning overseas contract workers shall have the privilege to bring in, duty and tax free, used home appliances, limited to one of every kind once in a given calendar year accompanying them on their return, or arriving within a reasonable time which, barring unforeseen and fortuitous events, in no case shall exceed sixty (60) days after the owner's return upon presentation of their original passport at the Port of Entry: Provided, That any excess of Ten Thousand Pesos (P10,000.00) for personal and household effects and/or of the number of duty and tax-free appliances as provided for under this section, shall be subject to the corresponding duties and taxes provided under this Code.


For purposes of this section, the following words/phrases shall be understood to mean:


a. Overseas Contract Workers Holders of valid passports duly issued by the Department of Foreign Affairs and certified by the Department of Labor and Employment/Philippine Overseas Employment Agency for overseas employment purposes. It covers all nationals working in a foreign country under employment contracts, including Middle East Contract Workers, entertainers, domestic helpers, regardless of their employment status in the foreign country.


b. Calendar Year shall cover the period from January 1 to December 31."


Sec. 2. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.


Sec. 3. This Executive Order shall take effect immediately.


Done in the City of Manila, this 30th day of June, in the year of Our Lord, nineteen hundred and eighty-seven.


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