AN ACT INSTITUTING A BALIKBAYAN PROGRAM

Case Overview and Summary

Summary of Republic Act No. 6768 (Balikbayan Program)

Balikbayan Program
- Instituted under the Department of Tourism to attract overseas Filipinos to visit the Philippines. (Section 1)

Definition of Terms
- "Balikbayan" refers to:
    - Filipino citizen continuously out of the Philippines for at least 1 year
    - Filipino overseas worker
    - Former Filipino citizen naturalized in a foreign country and their family (Section 2a)
- "Family" refers to the spouse and children of the balikbayan traveling with them. (Section 2b)

Benefits and Privileges of the Balikbayan
- Tax-free maximum purchase of $1,000 or equivalent at Philippine duty-free shops, subject to limitations. (Section 3a)
- Special promotional/incentive program from the national flag air carrier. (Section 3b)
- Visa-free entry to the Philippines for 1 year for foreign passport holders, except 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)

Limitations on Tax-Free Purchases
- Purchases must be made in US dollars or other acceptable foreign currencies. (Section 4a)
- Purchases must be made within 48 hours from date of arrival. (Section 4b)
- Privilege is non-transferable and must be availed personally by the balikbayan. (Section 4c)
- Privilege can be availed only once a year. (Section 4d)
- Only balikbayans of majority age under Philippine laws can enjoy the privilege, except minors can purchase up to $250. (Section 4e)
- Only one item of every non-consumable product category exceeding $200 can be purchased. (Section 4f)

Implementing Rules and Regulations
- Department of Tourism, in coordination with other concerned agencies, shall promulgate rules and regulations for effective implementation. (Section 5)

Semiannual Reports
- Department of Tourism shall submit semiannual reports to the President and Congress containing the quantities and value of goods sold by Philippine duty-free shops. (Section 6)

Penalty Clause
- Fine of P20,000 to P40,000 or imprisonment of 2 to 4 years, or both, for willfully deriving benefits without being entitled. (Section 7)
- Aliens found guilty shall be deported and permanently barred from re-entering without the President's permission. (Section 7)

Repealing Clause
- All inconsistent laws, decrees, orders, rules and regulations are repealed or modified accordingly. (Section 8)

Biennial Review
- The Balikbayan Program shall be reviewed by Congress every 2 years after approval. (Section 9)

Separability Clause
- If any part of the Act is held invalid or unconstitutional, the rest of its provisions shall remain in effect. (Section 10)

Effectivity Clause
- The Act shall take effect 15 days after publication in the Official Gazette or in at least two national newspapers of general circulation, whichever comes earlier. (Section 11)