REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099

[DATE]

CUSTOMS ADMINISTRATIVE ORDER (CAO)

NO. ___________

SUBJECT: CONSOLIDATED SHIPMENT OF DUTY AND TAX-FREE

“BALIKBAYAN BOXES”

Introduction. This CAO implements Section 800 (g), Chapter 1, Title VIII; Section
423, Chapter 3, Title IV; and other related provisions of Republic Act No. 10863
otherwise known as the Customs Modernization and Tariff Act (CMTA).
Section 1. Scope. This covers bringing in or sending of “Balikbayan Boxes” entered
through any port of entry sent to families or relatives by Qualified Filipinos While
Abroad.

Section 2. Objectives.

2.1 To prescribe simplified customs clearance procedures for

consolidated shipment of “balikbayan boxes” sent by Qualified
Filipinos While Abroad to their families or relatives, especially the
OFWs in recognition of their significant contribution to the Philippine
economy;

2.2 To facilitate customs clearance of consolidated shipment of

“balikbayan boxes” without sacrificing the Bureau’s other functions
of revenue collection and border protection through application of
risk management techniques and Information and Communication
Technology (ICT) enabled monitoring and control systems; and

2.3 To adopt clear and transparent customs rules, regulations, policies

and procedures, consistent with international standards and customs
best practices;1

1
cf CMTA, Title I, Chapter 2, Section 101 (b).

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Section 3. Definition of Terms. For purposes of this CAO, the following terms are
defined accordingly.

3.1 Availment – determination by the Bureau or the qualified

passengers or senders that the balikbayan boxes brought in or sent
are counted as first, second or third within a calendar year and thus
entitled to duty and tax exemption pursuant to Section 800 (g),
Chapter 1, Title VIII, CMTA. Any amount in excess of the allowable
non-dutiable value shall be subject to the applicable duties and taxes.

Shipment that is above the de minimis threshold shall be

automatically considered as one availment. De minimis importation
shall not be included in the counting; provided that the Qualified
Filipinos While Abroad can only send to one ultimate consignee in
one consolidated shipment.

3.2 Balikbayan Box – a corrugated box or other container or receptacle

containing personal and household effects that shall neither be in
commercial quantities nor intended for barter, sale or for hire sent
by Qualified Filipinos While Abroad often shipped by freight
forwarders specializing in balikbayan boxes by sea or air.

3.3 Calendar Year - the period from January 1 to December 31.2

3.4 Commercial Quantity – the quantity for a given kind or class of

articles which are in excess of what is compatible with and
commensurate to the person’s normal requirements for personal
use.3 For a single sender with multiple ultimate consignees,
commercial quantity of a given class shall be determined based on
the total quantity thereof sent by the sender to all the consignees.

3.5 Consolidated Cargo Manifest – a true and correct manifest of all

the individual shipments/consignments in a consolidated shipment
destined to be unladen in a port of entry in the Philippines, the same
being attached as a rider to the Inward Foreign Manifest of the
carrying vessel or aircraft.4

3.6 Consolidated Shipments – two (2) or more shipments from two

(2) or more individual consignors/senders abroad, assembled and
consolidated at one point of origin or exportation and shipped
together under a single master ocean bill of lading or master airway
bill of lading by a consolidator to its deconsolidator in the Philippines.5

2
CMTA, Title VIII, Chapter 1, Sec. 800 (g), par.2.
3
DOF DO 57-2011, 2 (b).
4
cf CMO 79-90, Section 2.1.6.
5
cf CMO 79-90, Section 2.1.1.

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 3.7 Consolidator – a foreign forwarding company acting as a Non-
Vessel Operating Common Carrier (NVOCC) which procures transport
of goods by sea or air and issues in its name house bill of lading or
house airway bill to consignors of shipments under its solicitation, to
whom it directly assumes the liabilities and responsibilities of a
common carrier for the transportation of such goods from the point
of receipt to the point of destination of such goods, and ships the
shipments together in its name under a master bill of lading/master
airway bill consigned to its deconsolidator at the port of destination
in the Philippines.6

3.8 Deconsolidator –a local freight forwarder or consolidator’s agent

that provides services to ungroup or deconsolidate shipments,
orders, goods, etc. to facilitate distribution.

3.9 De Minimis Value – the value of goods for which no duty or tax is
collected. Goods with De Minimis Value are considered importations
of negligible amount7 and entitled to immediate release.

3.10 Family – the spouse, father, mother, son, daughter, brother and/or
sister, by consanguinity or affinity, whether of the full or half blood.

3.11 FCA – an international commercial term covered by the Incoterms®

Rules 2010 developed by International Chamber of Commerce (ICC)
that refers to “Free Carrier” which means that the seller delivers the
goods to the carrier or another person nominated by the buyer at the
seller’s premises or another named place. The parties are well
advised to specify as clearly as possible the point within the named
place of delivery, as the risk passes to the buyer at that point.8

3.12 Filipino Residents of the Philippines – resident Filipino citizens

who temporarily stay abroad which may include holders of student
visa, holders of investors’ visa, holders of tourist visa and similar visas
which allow them to establish legal temporary stay abroad.

6
CAO 5-89 Part I (3).
7
cfCMTA, Title IV, Chapter 3, Section 423.
8
International Commercial Terms 2010.

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 3.13 Freight Forwarder – a local entity that acts as a cargo intermediary
and facilitates transport of goods on behalf of its clients without
assuming the role of a carrier, which also performs other forwarding
services, such as booking cargo space, negotiating freight rates,
preparing documents, advancing freight payments, providing
packing or crating, trucking and warehousing, engaging as an agent
or as a representative of a foreign NVOCC or as a cargo consolidator
named in a master bill of lading as consignee of a consolidated
shipment, and other related undertakings.9

3.14 House Airway Bill (HAWB)– an airway bill covering a single,

individual shipment or consignment issued by the freight forwarder
or consolidator to the consignor or sender containing the names and
addresses, respectively, of both the consignor or sender and the
consignee or receiver and the detailed, specific description of the
goods shipped through air.10

3.15 House Bill of Lading (HBL)– a bill of lading covering a single,

individual shipment or consignment issued by the freight forwarder
to the consignor or containing the names and addresses,
respectively, of both the consignor or sender and the consignee or
receiver and the detailed, specific description of the goods shipped
through sea.11

3.16 Household Effects – furniture, dishes, linens, libraries, and similar

household furnishing for personal use. 12

3.17 Master Airway Bill– an airway bill issued by a common air carrier
to a consolidator covering a consolidated shipment.13

3.18 Master Ocean Bill of Lading – an ocean bill of lading issued by a

common ocean carrier to a consolidator covering a consolidated
shipment.14

3.19 Non-Vessel Operating Common Carrier (NVOCC) – a transport

enterprise which publishes its own freight tariff, issues its own bills
of lading and assumes all responsibilities of a common carrier without
operating its own vessels.15

9
CMTA, Title I, Chapter 2, Sec. 102 (aa).
10
cfCMO 79-90 Section 2.1.5.
11
cfCMO 79-90 Section 2.1.5.
12
cfU.S. Customs Border Protection (CBP) Info Center.
13
cfCMO 79-90 Section 2.1.4.
14
cfCMO 79-90 Section 2.1.4.
15
DTI Department Administrative Order No.02 s.1995.

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 3.20 Other Filipinos – Filipinos who have availed of the benefits under
the Republic Act No. 9225 or the Citizenship Retention and Re-
acquisition Act of 2003 or those who have established permanent
residency abroad but have retained Filipino citizenship. This includes
Filipinos working abroad under job contracts not certified by
Department of Labor and Employment (DOLE) or the Philippine
Overseas Employment Administration (POEA).

3.21 Overseas Filipino Worker (OFW) – a holder of a valid passport

issued by the Department of Foreign Affairs (DFA) and certified by
DOLE or POEA for overseas employment purposes. This covers all
Filipinos working in a foreign country under employment contracts,
regardless of their professions, skills or employment status in a
foreign country.16

3.22 Personal Effects – commodities whether new or used, for personal

use or consumption and not for commercial purposes, such as
wearing apparel, personal adornments, electronic gadgets, toiletries,
or similar items. Tobacco, cigars, cigarettes, distilled spirits,
fermented liquor and wine are not considered as personal effects.17

3.23 Qualified Filipinos While Abroad - Any Filipino Resident of the

Philippines, Overseas Filipino Workers (OFWs) or other Filipinos while
residing abroad.

3.24 Regulated Importation – goods which are subject to regulation

and may be imported or released only after securing the necessary
clearances, permits, licenses, and any other requirements.18

3.25 Relatives – other family members up to the fourth (4th) civil degree
of consanguinity or affinity.

3.26 Sender of Balikbayan Box – shall be limited to Qualified Filipinos

While Abroad. Although sole proprietorships and juridical entities,
such as cooperatives, corporations and partnerships may send
balikbayan boxes, they are not qualified to avail of the benefits under
this CAO.

3.27 Ultimate Recipient or Consignee – the Family Member or

Relative of the Sender of the Balikbayan Box who will be the ultimate
beneficiary of the same.

16
cf CMTA, Title VIII, Chapter 1, Sec. 800 (g), par.2.
17
cf RKC, Specific Annex J, Chapter 1, Item E4.
18
cfCMTA,Title I, Chapter 3, Sec.117.

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Section 4. General Provisions.

4.1 Qualified Filipinos While Abroad are allowed to bring in or send to

their Families or Relatives in the Philippines balikbayan boxes which
shall be exempt from the payment of duties and taxes, up to three
(3) times in a calendar year; provided that balikbayan boxes brought
in by Qualified Filipinos from abroad as accompanied or
unaccompanied baggage as passengers shall be included in counting
the availment; and, provided further, that de minimis importation
shall not be included in the counting. A shipment that is above Php
10,000.00 shall be automatically considered as one availment.

4.2 Balikbayan boxes shall contain personal and household effects only
and shall neither be in commercial quantities nor intended for barter,
sale or for hire and that the total FCA value for all balikbayan boxes
per sender shall not exceed one hundred fifty thousand pesos
(P150,000.00) in any calendar year.

4.3 The Bureau shall establish a monitoring system to ensure that this
exemption is availed of up to three (3) times only in a calendar year.

4.4 In coordination with the concerned government agencies and with

the cooperation of the consolidators abroad through their respective
local agents, the Bureau shall establish a registration system and/or
database of deconsolidators, Qualified Filipinos While Abroad, as well
as their respective families and relatives as ultimate recipients or
consignees, who may enjoy the benefits of such exemption.

4.5 For purposes of counting the frequency of availment of the privilege

which is up to maximum of three (3) times per calendar year,
shipment of balikbayan boxes sent by a qualified sender, regardless
of the number of ultimate consignees and number of balikbayan
boxes in one consolidated shipment covered by one master bill of
lading or master airway bill, shall be considered as one availment.

4.6 As far as practicable, ICT shall be used in the processing, monitoring

and control of balikbayan boxes.

4.7 For the availment of the tax and duty exemption pursuant to Section
800 (g) of the CMTA, a processing fee of Php 300.00 (inclusive of the
legal research fee of Php 10.00) shall be collected per house bill of
lading/house airway bill.

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 4.8 Strict Compliance to Due Notice Requirement. In case of
consolidated shipments of Balikbayan Boxes for which no goods
declaration has been lodged or which remain unclaimed, the Bureau
shall undertake measures to identify the names of the individual
consignees and their addresses and send them Notice to File Entry
or Claim within fifteen (15) days from receipt of the Notice.

The Bureau shall prescribe in the Customs Memorandum Order

(CMO) the more detailed rules and procedures to be applied for the
individual release of balikbayan boxes by their respective consignees
and for the lodgement of the goods declaration within the required
period.

Section 5. Obligations of the Parties.

5.1 Obligations of the Sender of Balikbayan Boxes.

5.1.1 Ensure that only personal effects and household goods are
sent through consolidated shipment of balikbayan boxes.

5.1.2 Accomplish, sign and submit the Information Sheet19 which

shall serve as the packing list in a format to be designed by
the Bureau and attached as an annex to the CMO to be issued
by the Commissioner for the effective implementation of this
CAO and shall contain the following basic information:

a. Complete name of the shipper/sender, date of birth,

citizenship, passport details, address abroad and in
Philippines, contact number and e-mail address, if any;
b. Total value of contents and number of Balikbayan boxes;
c. Packing List Information which shall contain an itemized
listing of all goods in each Balikbayan Box and their
respective quantities and description;
d. Relationship of the shipper/sender to the consignee;
e. Number of Availments within the calendar year;
f. Contact number, postal and e-mail address of the
Consignee; and
g. Other essential information as may be required by the
Bureau.

The Information Sheet form is downloadable from the BOC website: www.customs.gov.ph.
19

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 5.1.3 Submit the following documents:
a. Photocopy of the pertinent page of the Philippine passport
with personal information, picture and signature or in case
of dual Filipino citizen without Philippine passport,
photocopy of foreign passport with personal information,
picture and signature plus copy of proof of dual Filipino
citizenship; and
b. Invoice, receipt or equivalent document covering the
goods contained in the balikbayan box, if any.

5.2 Obligations of the Deconsolidator.

5.2.1 The deconsolidator shall apply for registration with the

Bureau, in addition to the registration requirements imposed
by other government agencies, together with the following
documentary requirements:

a. Duly filled – up application form;

b. Copy of the Service Contract with all the annexes; and
c. Such other documents as may be required by the Bureau
in the supplemental customs regulations.

5.2.2 The deconsolidator shall cause the inclusion of the following

provisions in the service contract as obligations of the
consolidator:

a. Before accepting from the sender the shipment of

balikbayan boxes, the consolidator shall require the
sender to comply with his obligations under Section 5.1 of
this CAO;
b. Within twenty-four (24) hours from the departure of the
carrying vessel at the original port of loading for
consolidated shipment transported by sea, the
consolidator shall transmit electronically the consolidated
cargo manifest and the duly accomplished and signed
Information Sheet in Portable Document Format (PDF
form);
c. For consolidated shipment transported by air, the
consolidator shall transmit electronically the consolidated
cargo manifest and the duly accomplished and signed
Information Sheet in Portable Document Format (PDF
form) to the deconsolidator who shall submit the same to
the Bureau not later than the time of arrival of the
carrying aircraft; and
d. The consolidator shall comply with all the regulations
pertaining to consolidated shipment of balikbayan boxes.

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 5.2.3 The deconsolidator shall be required to post an annual
Performance Bond of fifty million pesos (Php 50, 000,000.00)
which shall answer for the various charges that may be
incurred in the event of abandonment.
5.2.4 Within one year from the effectivity of this CAO, each
deconsolidator must establish its own Customs Facility and
Warehouse (CFW) equipped with CCTVs and baggage x-ray
machine for the conduct of examination, as may be required
by the Bureau.

Section 6. Sanctions. Failure of the deconsolidator to comply with its obligations

under this CAO and to lodge the required goods declaration within the prescribed
period may compel the Bureau to conduct a rigid procedure for the clearance and
release of consolidated balikbayan shipments handled by the particular deconsolidator
and to impose the following sanctions, aside from the penalties provided under Title
XIV of the CMTA:
a. First Offense – Warning;
b. Second Offense –Penalty of Php 100,000.00;
c. Third Offense - Penalty of Php 200,000.00; and
d. Subsequent Offenses – Penalty of Php 300,000.00 per offense.

Section 7. Exclusions from the Duty and Tax Exemption and/or Simplified
Clearance Procedure. The following shipments shall be excluded from duty and tax
exemption and/or simplified clearance procedure:

a. Shipment of Balikbayan box, the contents of which have FCA value

exceeding Php150,000.00;
b. Goods in Commercial Quantity, except if qualified as de minimis
importation;
c. Regulated Goods in Commercial Quantity;
d. Donations;
e. Container mixed with other types of goods (e.g. donations,
commercial and regulated goods, and goods for temporary
admission); and
f. Failure of the sender to comply with any of the obligations
enumerated under Section 5.1.2.

Section 8. Additional Regulations. The Bureau shall issue a CMO for the following
purposes:

8.1 To prescribe the format of the Information Sheet and the Goods
Declaration;
8.2 To provide the detailed procedures for the lodgment, processing and
clearance of consolidated shipments of balikbayan boxes;
8.3 To prescribe the additional requirements for registration of the
deconsolidators; and
8.4 To provide other details for the effective implementation of this CAO.

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Section 9. Periodic Review. Unless otherwise provided, this CAO shall be reviewed
every three (3) years and be amended or revised, if necessary.

Section 10. Repealing Clause. This CAO specifically amends or repeals previously
issued CAOs and CMOs which are inconsistent with the provisions herein stated.

Section 11. Separability Clause. If any part of this CAO is declared unconstitutional
or contrary to existing laws, the other parts not so declared shall remain in full force
and effect.
Section 12. Effectivity. This CAO shall take effect fifteen (15) days after its complete
publication in the Official Gazette or a newspaper of general circulation.

The Office of the National Administrative Register (ONAR) of the UP Law Center shall
be provided three (3) certified copies of this CAO.

NICANOR E. FAELDON
Commissioner

APPROVED:

CARLOS G. DOMINGUEZ III

Secretary of Finance

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Informational Section. As the title denotes this only provide information and does
not give rise to any substantive or formal rights or obligations.

History. This CAO is amendatory to all the previous issuances of the Bureau
of Customs relating to Balikbayan Boxes.
Related Policies.
 DTI Department Advisory dated October 2015
 CAO 7-86 dated September 22, 1986 - Inbound Consolidation
Shipments
 CAO 5-89 dated May 19, 1989 - Revised Rules and Regulations
Governing Inbound Consolidated Shipments By Sea
 CMO 54-89 dated May 29,1989 - Clearance of Consolidated
Shipment
 CMO 55-89 dated June 6, 1989 - Further to CMO 54-89 dated May
29, 1989 Regarding the 100% Examination of Consolidated Cargoes
and the Requirement of Prior Clearance From Commissioner,
Requiring All Consolidators to Register with the CIIS in Accordance
with CMO 149-88
 CMO 64-89 dated June 28, 1989 - Rules and Regulations Further
Implementing and Supplementing CAO 7-86 dated 22 September
1986 Re: Inbound Sea/Air Consolidated Shipments
 CMO 32-90 dated April 16, 1990 - Rules and Regulations Further
Implementing CAO 5-89 dated 19 May 1989, Covering Non-
Commercial Inbound Consolidation Shipments from Filipinos Abroad
 CMO 79-90 dated September 28, 1990 - Revised Rules and
Regulations Governing the Entry of Non-Commercial Inbound
Consolidation Shipments from Filipino Abroad, Repealing for the
purpose CMO 32-90
 CMO 10-91 dated February 01,1991 - Containerized Shipments
Declared as Personal Effects (100% Examination and Clearance
from OCOM)
 CMO 64-91 dated July 9, 1991 - Rules and Regulations on the
Examination of Non-Commercial Inbound Consolidated Shipments
with the use of X-Ray Equipment at a Facility Within the Customs
Zone Duly Authorized for the purpose
 CMO 104-91 dated December 09, 1991 - Simplified Clearance
Procedure for Informal Entries (One-Stop-Shop)
 CMO 11-94 - Clarificatory Guidelines in the Implementation of CAO
1-94, More Particularly in Connection with Consolidated Shipment
(Php250.00 for each original IEIRD Formal & Informal Entries)
 CMO 20-2002 dated May 3, 2002 - Pre-Liquidation for Informal
Entries
 CMO 25-2002 dated June 21, 2002 - Amendment to Section 3.2 on
the Filing of Informal Import Entry Under the Operational Provisions
of CMO 79-90 (10 cartons per entry)

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  CMO 7-2004 dated March 12, 2004 - 100% Examination of
Shipments Processed Under Informal Entry
 CMO 22-2011 dated May 23, 2011 - Requiring All Consolidated
Shipments Under Informal Entry to Undergo the Mandatory X-Ray
Inspection and/or Manual Examination
 CMO 10-2011 dated 02/08/2011 - Conduct of Physical and X-Ray
Examination
 CMO 6-2014 dated 02/14/2014 - Realignment of the XIP to the
Enforcement Group and Designation of Duty Customs Examiners at
the XIP Designated Examination Area/Field Office by the District
Collector
 CAO 8-2014 dated November 20, 2014 - Guidelines on the
Imposition of Customs Documentary Stamp and Import Processing
Fee for Informal Entries
 CMO 27-2015 dated August 27, 2015 - Revised Rules and
Regulations on the Importation of "Balikbayan Boxes" from
Overseas Filipino Workers

Webpage, Forms, Handbooks and other References.

 International Commercial Terms 2010
 Revised Kyoto Convention
 RA 10863 “Customs Modernization and Tariff Act”
 Republic Act 9334 “An Act Increasing the Excise Tax Rates
Imposed on Alcohol and Tobacco Products, Amending for the
Purpose Section 131, 141, 142, 143, 144, 145, and 288 of the
National Internal Revenue Code of 1997, As Amended”
 Department of Finance Department Order 57-2011

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