The newly signed Customs Modernization and Tariff Act will boost the capability of the Bureau of Customs and the overall competitiveness of the country in global trade, Malacañang said on Wednesday.
In a statement, Presidential Communications Secretary Herminio Coloma Jr. said Republic Act No. 10863 “to boost the capability of the Bureau of Customs (BoC) as one of the top two revenue collecting agencies of the government.”
President Benigno S. Aquino III signed Republic Act No. 10863 on May 30.
It is a consolidation of House Bill No. 5525 and Senate Bill No. 2968 which was finally passed by the House of Representatives and the Senate on February 2, 2016.
“Moreover, the CMTA will boost the country’s overall competitiveness in global trade due to the adoption of technology and updating of regulatory frameworks that ‘…reduce opportunities for corruption and streamline client experience…’ with the BoC,” Coloma further noted.
Under the new law, the tax-exemption for gift-packages or Balikbayan Boxes was increased to P150,000 from P10,000 “to address the needs of Overseas Filipino Workers.”
Returning residents, or those nationals who have stayed in a foreign country for at least six months, shall have tax and duty exemption on personal and household effects provided that: it shall not be in commercial quantities and it is not intended for batter sale or for hire.
The value will also be limited to P350,000 for those who have stayed in a foreign country for at least 10 years and have not availed of the privilege within 10 years prior to arrival; P250,000 for those who have stayed in a foreign country for at least five years but not more than 10 years and have not availed of this privilege within five years prior to arrival; and P150,000 for those who have stayed in a foreign country for a period less than five years and have not availed of this privilege within six months prior to arrival.
Coloma said CMTA allows the country to “align customs management and tariff administration with the standards and practices of 140 other countries, who are signatories to the 1999 Kyoto Convention that promotes predictability and efficiency in international trade.”
In June 1999, the World Customs Organization (WCO) Council adopted the revised Kyoto Convention “as the blueprint for modern and efficient Customs procedures in the 21st century,” according to WCO. PND (kt)