President
Benigno Aquino III has signed into law the Customs Modernization and Tariff Act
(CMTA) which will also increase the tax-exempt value of items sent by overseas
Filipino workers to their families back home.
Aquino signed
last May 30 the CMTA or Republic Act No. 10863 which generally aims to
simplify, modernize and align with global best practices the country’s customs
procedures including import clearances and valuations, making the release of
goods much faster, regardless of whether you are an individual entrepreneur or
a large multinational.
The new law
also mandates the use of information and communications technology and other
appropriate applications that speed up not only the inner-workings of Customs,
but also make it more transparent.
The CMTA
reinforces Bureau of Customs’ functions as trade facilitator rather than just
being a revenue-generating agency, and imposes higher penalties against
smuggling.
Under CMTA
which as Senate Bill No. 2968 was sponsored by Senator Sonny Angara, the tax
exemption ceiling that the OFWs will be enjoy on their balikbayan boxes will be
increased from the present PHP10,000 to PHP150,000 in a year.
On top of the
tax and duty-free balikbayan boxes, Filipinos, who have stayed in a foreign
country for at least 10 years and are returning to the Philippines, will also
be granted tax exemption for the personal and household effects, not exceeding
PHP350,000, they will be bringing with them when they return to the country.
As for
Filipinos who have lived overseas for at least five years, they will be
entitled to tax and duty free personal and household effects amounting to
PHP250,000, while those who have stayed abroad for less than five years can
enjoy PHP150,000 tax-free ceiling.
The CMTA also
raises the de minimis value, which refers to the value of tax and duty free
goods and the minimum cost of goods required to undergo formal Customs entry,
from the present PHP10 to PHP10,000. (PNA)
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