Personal and Household Effects of Returning Residents and OFWs

The Philippine Bureau of Customs (BOC), through Customs Administrative Order (CAO) No. 06-2016, provides guidelines on the conditionally tax and/or duty-exempt importation of personal and household effects for returning residents and Overseas Filipino Workers (OFWs). The order implements Section 800(f) of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA). It grants qualified Filipinos duty-free and tax-free privileges for personal belongings, household effects, home appliances, and other durable goods brought into the Philippines under specific conditions.

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Who May Avail of the Tax and Duty-Free Privilege?

• Returning Residents - Filipino nationals and their dependents who stayed abroad for at least six (6) months
• OFWs - Filipino workers certified for overseas employment by DOLE, POEA, or authorized agencies

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General Provisions Under CAO 06-2016

• Previously exported household appliances, jewelry, and luxury items may be exempt from duties and taxes if covered by a Certificate of Identification (CI) issued before departure from the Philippines.
• Personal and household effects used abroad may qualify for tax and duty exemption if they accompany the owner upon return or arrive within 60 days from arrival in the Philippines.

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Tax and Duty Exemption Thresholds

Qualified Returning Residents and OFWs may avail of the following exemptions based on their length of stay abroad:

• Php 350,000 - stayed abroad for at least 10 years
• Php 250,000 - stayed abroad for 5 to 10 years
• Php 150,000 - stayed abroad for less than 5 years

Any value exceeding the allowable exemption thresholds shall be subject to corresponding duties and taxes.

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Additional Privileges for OFWs

Returning OFWs may avail of additional tax and duty exemptions for home appliances and durable goods worth up to Php 150,000, subject to the following conditions:

• Only one (1) unit per type of appliance is allowed
• Privilege may be availed once per calendar year
• Goods must arrive as accompanied baggage or within 60 days from the OFW's return

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How to Expedite Cargo Clearance

Returning Residents, OFWs, or authorized representatives must submit a Personal and Household Effects Declaration Form to the BOC for faster processing. The form must contain the shipper's complete name, date of birth and citizenship, passport number, Philippine and foreign address, contact details, contents with quantity and value, a detailed packing list, names and passport numbers of accompanying family members, and the estimated date of arrival. For unaccompanied shipments, a Duty and Tax Exemption Certificate (TEC) from the Department of Finance (DOF) is also required. A processing fee of Php 310.00 (inclusive of legal research fee) applies per shipment covered by a House or Master Bill of Lading/Airway Bill.

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Exclusions from the Privilege

The following items are excluded from tax and duty-free privileges:

• Luxury items not covered by a Certificate of Identification (CI)
• Vehicles, watercrafts, and aircrafts
• Animals
• Donations
• Goods intended for barter, sale, or hire
• Goods in commercial quantities
• Regulated goods exceeding allowable limits
• Prohibited and restricted goods

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Penal Provision

Returning Residents, OFWs, or authorized representatives who make false declarations to unlawfully avail of customs privileges shall face penalties under the CMTA.

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Basis: CAO 06-2016