The Philippine Customs plans to increase the fees for handling the entire container of Balikbayan Box returned overseas Chinese. The fee for a single container will be raised from 80,000 pesos to 120,000 pesos, an increase of 50%. The policy aims to curb smuggling chaos in the duty-free channel. The cost will be passed on to downstream freight forwarders and overseas Filipinos. The official effective time is to be announced by the customs.

The Philippines plans to increase the Balikbayan Box container fee, and the logistics cost of returned overseas Chinese boxes will rise.

The Balikbayan Box is a unique logistics model in the Philippines. It is specially used for overseas Filipino workers and Filipinos living abroad to send family gifts back to the country. According to the current regulations in the Philippines, compliant return boxes can enjoy tax-free import privileges with a value of up to 150,000 pesos. A large number of personal small goods are assembled into whole containers for import, which is an important link between overseas Filipinos and their families in China. Recently, the Philippine Customs proposed an adjustment plan to increase the comprehensive handling fee for returnee boxes and consolidated containers at the port of destination from the current 80,000 Philippine pesos per container to 120,000 Philippine pesos. A single container will increase by 40,000 pesos, an increase of 50%, which has attracted widespread attention in the logistics industry.

The core background of this price adjustment is that the customs has long faced the regulatory problem of abuse of the returned overseas Chinese box channel. Returned overseas Chinese boxes have the benefit of the tax-free policy, but some unscrupulous freight forwarders take advantage of policy loopholes to disguise batches of commercial trade goods as personal family gifts and mix them into the cabinets to avoid import duties and cause a loss of national tax revenue. There have also been many cases in the market of illegal freight forwarders abandoning containers and leaving goods stranded at ports. A large number of containers are backlogged at the terminal, which increases the administrative pressure on customs inspection, disposal, and warehousing. The customs hopes to raise the cabinet-level fees to increase the cost of illegal operations, strengthen the supervision of assembled cabinets, and crack down on smuggling and concealment activities carried out in the name of returned overseas Chinese boxes.

From a cost transmission point of view, a standard 40-foot container can usually carry about 400 small boxes of returned overseas Chinese. The container-level fee increases by 40,000 pesos, which is spread evenly to a single box, and the cost of each package increases by approximately 100 pesos. This counter fee is a fixed fee generated at the destination port. In most cases, it will be transmitted downstream by the local customs clearance agent in the Philippines, and will ultimately be borne by the overseas shipping agent or the overseas Filipino who sends the shipment. The door-to-door quotation in the subsequent market may increase to a certain extent. For small and medium-sized freight forwarding companies, profit margins are being squeezed. If they fail to update their quotations in a timely manner, they will also face the risk of disputes over additional fees at the destination port.

It needs to be made clear that this adjustment is for comprehensive container handling fees. It does not mean that the tax-free qualification of returned overseas Chinese boxes will be cancelled. . Qualified overseas Filipinos who send gifts for home use can still enjoy the established tax-free policy. However, the compliance red line will not be relaxed. It is strictly prohibited to mix commercial goods or large quantities of the same goods in the cabinet. Once the customs inspection finds false declarations, the entire container of goods will be detained, resulting in high fines, and even the relevant freight forwarding companies will be included in the customs blacklist Philippines...

At present, the price adjustment is only a proposed implementation plan, and a formal customs administrative order has not yet been issued. The exact effective time is subject to the official announcement of the Philippine Customs. Freight forwarding companies engaged in the returnee box business need to continue to track policy developments, confirm the fee implementation status with local agents in the Philippines before shipment, and do a good job in cost calculation and customer notification. At the same time, it is necessary to strictly control the compliance of goods, distinguish personal items from trade goods, and avoid major logistics risks such as confinement and fines.

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