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BUREAU OF CUSTOMS P1 MILLION DAILY COLLECTION CLARIFIED

PHILIPPINE CONSULATE GENERAL - NEWS RELEASE
30 June 2005

New York, NEW YORK --- In reply to numerous questions received by the Philippine Consulate General in New York and other Philippine Foreign Service Posts concerning the Bureau of Customs’ P1M daily collection quota starting May 1, 2005, Customs Commissioner Alberto Lina has issued a clarification through the Department of Foreign Affairs.

In his letter, Commissioner Lina explained that “the daily revenue collection target (of P1 Million) is merely a component part of the annual revenue collection goals of the Bureau of Customs. ”It is not in any way intended to restrict, limit or curtail the benefits and privileges enjoyed by overseas contract workers, returning residents, balikbayan, tourist and other foreign travelers.”

Specifically responding to questions whether the pasalubong usually brought home by OFWs and balikbayan will now be subjected to customs duty, Lina added that “the main thrust of the program is simply the collection of the correct duties and taxes on luxury items, jewelries, expensive wrist watches, electronic and digital software, communication devices and [other] articles of commercial quantity brought in by foreign and Filipino travelers who are neither classified as overseas contract workers, returning residents, or balikbayan.”

With this clarification, Consul General Cecilia Rebong said, “Our kababayans should not worry that their pasalubong will be taxed by customs agents upon their arrival in the Philippines.” “As explained to us by the Bureau of Customs, for as long as your pasalubong is not of commercial quantity, you are safe,” Rebong added.

Under the Philippine Tariff and Customs Code, food or non-food items are considered of commercial quantity if their amount is clearly in excess of the usual and ordinary requirements of a returning resident or OFW.