AN ACT AMENDING REPUBLIC ACT NUMBERED 6768

Case Overview and Summary

Summary of Republic Act No. 9174

Balikbayan Program
- Instituted under the Department of Tourism to attract overseas Filipinos to visit the Philippines. (Section 1)
- Recognizes their contribution to the economy through foreign exchange inflow and revenues.
- Includes a kabuhayan shopping privilege for tax-exempt purchase of livelihood tools.
- Showcases competitive and outstanding Filipino-made products.

Definition of Terms
- "Balikbayan" refers to a Filipino citizen who has been continuously out of the Philippines for at least one (1) year, a Filipino overseas worker, or a former Filipino citizen and their family who had been naturalized in a foreign country and returns to the Philippines. (Section 2a)
- "Family" means the spouse and children of the balikbayan traveling with them to the Philippines. (Section 2b)
- "Livelihood tools" means instruments used for trade, vocation, or profession, such as hand tools, power tools, precision tools, farm tools, tools for dressmaking, shoe repair, beauty parlor, barber shop, and the like, as determined by the Overseas Workers Welfare Administration (OWWA). A computer unit and its accessories are also considered livelihood tools. (Section 2c)

Benefits and Privileges of the Balikbayan
- Tax-exempt maximum purchase of One Thousand five hundred United States dollars (US$ 1,500.00) or its equivalent at government-owned and -controlled/operated duty-free shops, subject to limitations. (Section 3a)
- Domestic carriers shall establish a special promotional/incentive program for the balikbayan. (Section 3b)
- Visa-free entry to the Philippines for a period of one (1) year for foreign passport holders, except for restricted nationals. (Section 3c)
- Travel tax exemption as provided under Presidential Decree No. 1183, Executive Order No. 283, and other allied laws. (Section 3d)
- Designated reception areas at authorized ports of entry for expeditious processing of documents. (Section 3e)
- Accredited transportation facilities to ensure safe and convenient trips upon arrival. (Section 3f)
- Kabuhayan shopping privilege and additional tax-exempt purchase of Two Thousand United States dollars (US$ 2,000.00) or its equivalent for the purchase of livelihood tools at government-owned and -controlled/operated duty-free shops. (Section 3g)
- The total tax-exempt maximum purchase may be used for the kabuhayan program, subject to limitations. (Section 3)

Limitations on Tax-exempt Purchases
- Purchases shall be made within fifteen (15) calendar days from the date of arrival, or thirty (30) calendar days during the Christmas season (November 15 to January 15). (Section 4a)
- The privilege can be availed of by the balikbayan only once a year. (Section 4b)
- The privilege is non-transferable; purchases shall be made personally by the balikbayan, except for senior citizens, handicapped balikbayan, and Overseas Filipino Workers (OFWs) who can endorse the privilege to immediate family members under certain conditions. (Section 4c)
- Only a balikbayan of majority age under Philippine laws can enjoy the privilege, but family members who are minors are entitled to the allowable tax-exempt limit for arriving passengers. (Section 4d)
- A balikbayan shall be entitled to buy only one (1) item of every product category of non-consumables whose selling price exceeds Two Hundred United States dollars (US$ 200.00). (Section 4e)

Philippine-made Products in Duty-Free Shops
- A minimum of ten percent (10%) of the goods being sold in government-owned and -controlled/operated duty-free shops shall be sourced from Philippine-based manufacturers, as far as practicable. (Section 5)
- The Department of Tourism (DOT) shall coordinate with the Department of Trade (DTI) in the selection of Philippine-made goods, considering competitiveness, design, excellence, marketability, regional representation, and world-class appeal. (Section 5)

Training Programs
- The Department of Labor and Employment (DOLE) through the OWWA, in coordination with other agencies, shall provide entrepreneurial training, livelihood skills programs, and marketing assistance to balikbayans and their immediate family members who avail of the kabuhayan program, in accordance with the government's reintegration program. (Section 6)
- For non-OFW balikbayans, the Department of Tourism shall arrange livelihood training with the Technology and Livelihood Resource Center (TLRC) and other training institutions. (Section 6)

Semi-annual Reports
- The Department of Tourism shall submit semi-annual reports to the President and Congress, containing a statement of the quantities and value of goods sold by government-owned and -controlled/operated duty-free shops, in accordance with the classification categories in the Tariff and Customs Code of the Philippines. (Section 8)

Implementation
- The Department of Tourism, in coordination with other concerned agencies, shall promulgate the necessary rules and regulations for the effective implementation of this Act within thirty (30) days from its effectivity. (Section 8)
- All laws, decrees, rules, and regulations inconsistent with this Act are hereby repealed or modified accordingly. (Section 9)
- This Act shall take effect fifteen (15) days after publication in the Official Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier. (Section 10)