Section 105 of the Tariff and Customs Code of the Philippines as amended by Executive Order No. 206 provides duty and tax free privileges to the following individuals, the extent of which depends on their particular status:

(1) Returning Resident. A Returning Resident is a Filipino national who had gone abroad and is now returning. Only those Returning Residents who have uninterrupted stay abroad for at least six (6) months prior to their return to the Philippines are entitled to duty and tax free privileges.

(2) Overseas Contract Worker (OCW). An OCW is a Filipino national who is working in a foreign country under an employment contract. Only OCWs who have uninterrupted stay abroad for at least six (6) months are entitled to duty and tax-free privileges.

(3) Former Filipino. A former Filipino national is one who has acquired foreign citizenship abroad and is now returning. Only former Filipinos who are coming to settle permanently in the Philippines and have stayed abroad for six (6) months are entitled to the duty and tax exemption privileges.

A “Balikbayan” is another term for an OFW or a former Filipino. A returning resident is also a BALIKBAYAN when he has stayed abroad for at least one (1) year. Therefore Balikbayans are entitled to duty and tax-free privileges.