Senate Bill No. 2373: Amending Sec. 709, Tariff and Customs Code

For the Overseas Filipino Workers (OFW), going back home to the Philippines is something they look forward to. And part of this experience is putting up a package of gifts to bring home to family, relatives and friends. The balikbayan box has been the symbol for the OFWs – of their sacrifices and travails going abroad, of their desire to provide better lives for their loved ones.

Yet, sending a balikbayan box home becomes burdensome for these modern-day heroes. Currently, these packages undergo a tedious process in the customs and are charged fees that are discouraging for OFWs to send more regularly. Thus, there is a need to provide the ten million Filipinos abroad, who have been already contributing greatly to the economy the past four decades, a better customs administration by reducing the de minimis threshold.

The de minimis threshold is the minimal volume of declaration of goods in the customs for consignments. low thresholds for customs declaration signify increased documentation and processes for shipments at entry pOints in the country. Increased documentation leads to larger turnover and delivery time of goods, and larger administration costs that would yield lower revenue impact for both businesses and government.

Presently, the Philippines has the lowest de minimis threshold in the ASEAN, at PhP10 or US$0.23.  The ASEAN average threshold is at a hundred dollars, which is four hundred times’ that of the Philippines’. The extremely low Philippine threshold has not been changed since 1957 and is clearly antiquated. It needs to be updated to be reflective of current prices.

By increasing the de minimis level to Ten Thousand Pesos (PhP10,000.00), the proposed measure provides a more realistic and relevant threshold. It enables the Bureau of Customs to focus its efforts in looking out for high-value, high-risk and high-revenue goods for collection and enforcement, thereby making customs processes more efficient.

Then, the balikbayan boxes and other low-value and low-risk packages and of OFWs and others, such as entrepreneurs and individuals, who purchase small goods online, are allowed to go through customs faster with minimum fees.

As the saying goes, MAMI: minimum activities for maximum impact for government, private institutions and individuals.

In view of the foregoing, the approval of this bill is earnestly sought.

 

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