Balikbayan Boxes

Balikbayan boxes are large packages sent by Filipinos abroad to their families and relatives in the Philippines. These boxes usually contain personal belongings, clothing, food items, toys, household products, gadgets, and gifts. The Philippine government recognizes the contribution of Overseas Filipino Workers (OFWs) and overseas Filipinos through tax and duty-free privileges for qualified balikbayan box shipments under Customs Administrative Order (CAO) No. 05-2016.

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

The privilege applies to Qualified Filipinos While Abroad (QFWA), including:

• Overseas Filipino Workers (OFWs)
• Non-resident Filipino citizens
• Filipinos staying abroad temporarily

The privilege only applies to individual Filipinos abroad - not to businesses or commercial shipments. The balikbayan box must be sent to family members or relatives in the Philippines.

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Tax and Duty-Free Limits

Qualified Filipinos abroad may send tax and duty-free balikbayan boxes up to three times per year, with a total annual value limit of PHP 150,000. Shipments beyond this limit may become subject to duties and taxes.

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Conditions for Tax and Duty-Free Status

A balikbayan box qualifies for tax and duty exemption if the sender follows the rules under CAO 05-2016. The shipment must meet these conditions:

1. The Sender Must Be Qualified - Only qualified Filipinos abroad may use the privilege.
2. The Contents Must Be for Personal Use - The box should contain personal belongings, household items, or gifts for family members.
3. The Shipment Must Not Contain Commercial Quantities - Large quantities of identical items may trigger inspection and possible taxation.
4. The Sender Must Declare the Contents Properly - Accurate declaration of contents and estimated value is required.
5. The Shipment Must Stay Within the Allowed Value Limit - Monitor the total value of all shipments within the year to avoid exceeding the PHP 150,000 cap.

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Required Documents

• Copy of Philippine passport
• Proof of Filipino citizenship
• Information sheet or declaration form
• Packing list or inventory of items
• Bill of lading or airway bill
• Valid identification of consignee or recipient
• Receipts or proof of value for certain items, if requested

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Common Reasons Balikbayan Boxes Get Taxed

• Exceeding the PHP 150,000 annual limit
• Sending more than three tax-free shipments in one year
• Including commercial quantities
• Incorrect declaration of contents
• Lack of supporting documents
• Shipment intended for resale
• Inclusion of restricted or prohibited items

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Prohibited and Restricted Items

Senders should avoid placing prohibited or restricted items inside balikbayan boxes, including illegal drugs, firearms and ammunition, explosives, hazardous chemicals, counterfeit products, large commercial quantities of goods, and restricted agricultural and food products. Violations may result in confiscation and penalties.

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Basis: CAO 05-2016