Frankly Speaking: Balikbayan Box Issues and Discussion
Roland Paez

“Your balikbayan boxes will be delivered in 21 days!”

Those days are gone. It is now misleading for a balikbayan box company to be offering an ocean cargo balikbayan box from the USA to Manila with this claim.

Prior to the year 2010, balikbayan box companies were being inspected by uniformed and undercover US Homeland Security agents at the facility of the balikbayan box companies.

In the beginning of 2010, The US Homeland Security reinforced its Out-Bound Exam Team personnel and initiated a new operation that inquired them to randomly detain balikbayan box containers for 100% examination at the Central Examination Station (CES) in Southern California; as well as the Price Transfer Complex, located in Carson, CA.

At the CES facility, all contents of the container would be unloaded so that the contents could be elicited at random and searched by US Homeland Security Out-Bound Exam Police Officers.

The usual balikbayan box container contains an average of 400 balikbayan boxes. A few or sometimes majority of these boxes are opened and inspected by law enforcement officers.

These law enforcement officers are trained to conduct police-grade searches. So, one should not expect that the balikbayan boxes will be returned to its original condition. When a package gets inspected, the sender who diligently folded each shirt, carefully arranged the toys, and the earnestly organized each canned good should not expect the same condition when their loved ones receive it.

The inspection is done on a random basis, but is conducted rather frequently to out-bound containers. Though there few claims that void the new law, no balikbayan box company is exempted. If one is aware of any balikbayan box company that is not being inspected, let the US Homeland Security knows as this might be the conduit of illegal activities.

The volume of containers being inspected hinders on the exam team, causing delays of up to three weeks. However, homeland security is everybody's responsibility.

When containers are not allowed to be loaded on their scheduled vessel, the shipment has to wait for the next available vessel which now takes at least 21- 30 days as to the 17 days back in the early 2000s.

Such inspections are not free. Balikbayan box companies can pay from $1,500 up to $5,000 for each container that is inspected. This is an average of $10 additional expense per box.

This, along with Murphy’s Law, results in some missing or broken items that the US Homeland Security, the inspection facility and Price Transfer take no responsibility in.

Numerous consumer complaints to Price Transfer Claims Department have been denied.

Although these new shipping laws cause complications for most balikbayan box companies, shipments with a balikbayan box company like Manila Forwarder that move their shipments through Great American Insurance, are protected in these kinds of cases.

In cases where a balikbayan box is found to have an illegal or a restricted shipment in accordance to US Laws, the shipper and consignee well be identified and an investigation will be conducted by US Homeland Security Task Force, US Customs, and US Alcohol, Tobacco, & Firearms (US ATF), and other appropriate law enforcement agencies from both the USA and Philippines for prosecution.

The Out-Bound Inspection may sound suspicious and some skeptics may argue that they are being excessively cautious in curtailing the freedom and privacy of Americans as out going shipment has nothing to do with the security of USA. This, however, is dependent on ones perspective as terrorists and economic saboteurs use various transit points in their conducting of business.

a) One may also argue that this scheme is a money making tools for the US government to swindle income from small entrepreneurs. This is in contrary to the Principle of Supply-Side Economics to lessen governmental regulations to stimulate the declining US economy.

b) The two year result of analyzing balikbayan box companies yields minimal discovery of illegal shipments. The most common restricted items found in balikbayan boxes are:

1) Small amounts of weapons parts that are intended for some military, police officers, or individuals allowed by law to carry firearms into the Philippines.

2) Items with military applications like military helmet, flak jacket, or gloves. Items purchased from any military surplus stores, however, can be legally shipped within the Continental USA. International shipping is restricted in accordance with US Department of Commerce against proliferation of weapons and technology. The US Government fears of other nations using reverse engineering, the result may be catastrophic, economically, politically, and militarily.

3) Small amounts of marijuana, which is legally available at pain clinics in California with a doctor’s consent, is a crime when internationally shipped.

Protecting US, but parisiting us.

The following are the known results, based on public research and interviews, of the US Homeland Security when it comes to balikbayan boxes.

1) A balikbayan box shipment containing contraband, huge amounts of weapons and weapons parts, from an organized entity that shipped their contraband through ACE Cargo. ACE Cargo closed in 2011.

This illegal shipment of small weapons, hidden in balikbayan boxes and shipped in various containers mixed with other balikbayan boxes, was discovered. However, it was not by random inspection of a US Out-Bound Exam team, but by the undercover police work of US Homeland Security’s Immigration and Customs Enforcement Team and US Alcohol Tobacco and Firearms.

Some of the containers had to be reverted by the balikbayan box company back to US at US Homeland Security’s command because the investigation was compromised. The Philippine Customs Law Enforcement Agents asked the Philippine media to cover the discovery during the ongoing covert investigation.

Now, the Philippine Government is under the leadership of Pres. Benigno Aquino, Jr and the Philippine Bureau of Customs under Commissioner Rufino Biazon. Both public officials own the highest trust rating amongst the international community. This allows some to argue that the US Homeland Security’s (USHS) Out-Bound Examination is no longer necessary. The USHS’s ongoing inspections on balikbayan box shipment hows the lack of trust to the present Philippine government, which is now equipped with x-ray machines that is more powerful than the USHS’s x-rays and conducts 100% examination of all incoming shipments.

There was also Weapons of Mass Destruction (WMD) detection equipment donated by the US Government that is now used by the Philippine government.

2) A shipment of small weapon parts, from a licensed weapons importer in the Philippines, used the balikbayan box shipping instead of the formal and legal entry of such. This shipment was discovered by the Philippine authorities and the balikbayan box company itself. The balikbayan box company reported and cooperated with US Homeland Security and ATF for the prosecution of the entities involved.

Just Applying the Law or Disguised Discrimination?

One might argue that the inspections are intended to discriminate against immigrants who are the patrons of the balikbayan box industry, as some policy-makers observed the resiliency of some Filipino-Americans.

Some affected consumers are being subjected to legal issues though they are law-abiding citizens. This is a policy problem that can only be rectified by political action, and some Filipino-Americans make their complaints known to their US Representatives in Congress and Senate.

Some utilize the World Wide Web and make online complaints to the US Homeland Security website, click here

One balikbayan box company, Manila Forwarder, maintains a link to this US Homeland Security Complaint and Suggestion web page and it can be found at Manilaforwarder.com

However, some consumers just vent their ire to the balikbayan box companies’ staff. Consumers are encouraged to use the system accordingly for the staff has no power to ease the dilemma.

Many customers may worry about the high price of using insured companies. Indulging in the low prices of a balikbayan box company is a common feeling in customers. However, the lack of insurance will not allow the consumer to make any reimbursement in cases of loss or damage during inspections . Uninsured companies are not in a financial condition to pay the consumer’s claim of loss. This is due to the prevailing low prices in the market and balikbayan box companies are having a hard time keeping out of the red.

The majority of Balikbayan Box Companies do not insure their shipment with an appropriate insurance company, due to the market demand for low prices.

Manila Forwarder is just one of the few known company that offers such insurance protection.

Sadly, some consumers, even after being offered the insurance coverage, avoid paying the extra insurance premium to save money, but at the same time claim that they have thousands of dollars worth in their shipment.

US consumers are blinded by the soap operas and high profile news they see on TV about US consumer protection. It is like seeing a police response in 3 minutes after dialing a 911 call. It’s all in the movies.

Those that are knowledgeable in the industry know that the US Federal Maritime Commission, the agency that is tasked to regulate international shipping including balikbayan box companies, have not closed down any existing illegal balikbayan box company. This is why there is an unhealthy low price prevailing in the market.

These illegal companies do not have the same expenses compared to legally established balikbayan box companies, offering their services below the cost of law-abiding companies.

It is only after these illegal companies have committed their crime of not delivering their packages and instead selling the balikbayan boxes overseas for a profit, that the US FMC is notified by the consumer.

This type of consumer feels like they have discovered a secret store that sells merchandise for a bargain. They keep patronizing the illicit store and will only make complaints when they get short changed.

The US Federal Maritime Commission is counting on the consumers to report any unlicensed company at US FMC's Office of Consumer Affairs at (202) 523-5807 before they victimize your kababayans.

The formidable segment of the market thinks otherwise and do not mind paying the premium shipping cost to get protection for their shipment and choosing the right company and buying extra insurance coverage.

Another incident that US Homeland Security Agents at an airport discovered that out-bound passengers, who are relocating back to the Philippines, committed an economic crime of carrying over $10,000 of undeclared cash.

Established financial institutions are the safest conduit of cash, legally.

If the balikbayan box gets unchecked, money laundering through balikbayan box is not a remote possibility, as in some cases of currency trafficking taking place in South America and Asia.

Low Prices and Consumer Protection

It is observed that majority of balikbayan box consumers, those that belong to lower economic segment, take their chances with low-priced balikbayan box companies even after being victimized.

These consumers take advantage of various government or philanthropic dole in which they receive free canned goods and other items that the consumer collects to be shared to their loved ones in the Philippines.

Since most of the items that they ship are free, they can afford to take their chances in case their shipment gets abandoned.

Claims against Loss Due to US Homeland Security Inspections

The Pilipino American Shipper’s Association has been extensively careful in representing the complaints of balikbayan box consumers pertaining to the reported loss of items in the balikbayan box.

The US Homeland Security has been notified of such problems, which in turn, notified the inspection facility, the Price Transfer.

The Price Transfer, on the other hand, points to the US Homeland Security for answers.

The fact is that when a balikbayan box container gets inspected, aside from the delays that it would cause, may result in some missing items. It is reported that Balikbayan Box Companies in the Philippines find some items scattered on the floor of the container when they receive it. A similar condition to that of a police raid.

An independent surveillance conducted by a Balikbayan Box Company, outside the Price Transfer Inspection facility showed some of its personnel coming out of their workplace with backpacks or bags.

Price Transfer claims that their facility is secure and protected by surveillance cameras to avoid container theft among its personnel.

No one is allowed inside Price Transfer inspection facility except their personnel and US Homeland Security Officers.

Seizures

Confiscated items from balikbayan boxes are seized by US Homeland Security for processing. A letter is usually sent to the shipper or the balikbayan box company to notify whoever it may concern. However, some seizures require investigation that needs to be done covertly and in these cases the shipper will not be notified until charges have been filed.

Consumer Recourse

A. Majority of balikbayan box companies are owned and operated by hard working kababayans that are trying to help connect families in different countries. Some companies, however, are crooks.

When you suspect a balikbayan box company to be operating illegally, report them to authorities for them to be investigated before they victimize you or your loved ones.

B. The market demands the industry’s price and bringing it to a level that is dangerously low will be detrimental not only to the balikbayan box industry but significantly to the consumers.

Spend a few dollars more and only utilize legally accredited companies. Avoid and warn your friends about the dangers of patronizing illegal balikbayan box companies.

Please make a checklist for your next Christmas Balikbayan Box:

1) Do not ship any restricted or illegal items in your balikbayan box. Although marijuana is available legally in CA, it does not mean that you can ship it via balikbayan box.

Another item commonly mistaken for legal shipping is guns, its parts, and accessories. It does not make it legal even if it is going to a law enforcement officer or someone with a Weapons Permit to Carry.

For a complete list of restricted or illegal items for shipment, please visit www.manilaforwarder.com or call 1.800.210.1019.

2) Fill up the shipping form completely. Provide all the information of the sender and the recipient; this includes the complete address, phone numbers, email, and government issued identification number. Do not assume that the same person who delivered your package in the past will be the same person that will deliver again. Aside from helping to facilitate a faster delivery, this will also prevent your shipment from being flagged for inspection.

Itemize the list of the contents of your balikbayan box. Include the value of each item. Keep copies of all the receipts. This will protect you in case of insurance claim. An insurance claim without any supporting documents has less chance of being paid compared to a well documented claim. This is how the law works and there is no loophole. This will also prevent you from being charged with the crime of misdeclaration.

Do not just declare household goods and personal effects. This is a red flag for inspection.

3) Only patronize the company that is licensed by the US Federal Maritime Commission and Philippine Shipper’s Bureau.

4) Use only the company that insures their shipment and avoid companies that claim self-insurance. If your shipment needs coverage exceeding the amount of protection of the basic insurance, invest in insurance premium. If something happens, you are protected. The correct procedure is insuring the landed cost (Value of contents, shipping cost, insurance cost, and other cost up to your door) and not just the value of your shipment. Make sure you read the fine print of your contract. It is not excusable in court to say that the contract was not explained to you.

Some companies may claim that that your shipment is insured. You have the right to demand a copy of the insurance certificate. If you find someone misrepresenting themselves, you may report them to the Office of Consumer Affairs or the CA Department of Insurance.

Conclusion

Patronizing a low-priced Balikbayan Box Company is risking your belonging. Invest a few extra dollars and ship to a reputable company.

Use Air Cargo. With the frequency of US Homeland Security inspections, most ocean cargo balikbayan boxes now take more than a month to reach the Philippines. Shipping via Manila Forwarder air cargo takes only a week and can cost as low $35 for a few clothes and shoes. If you need send just a few gifts, air cargo is the best recourse.

Now the decision is in your side. It is up to you to protect yourself and your loved ones. You spend hundreds if not thousands of dollars for your shipment(s). A few extra dollars more for your protection is the prudent choice. Please make the reasonable decision so that your loved ones in the Philippines will have a Merry Christmas. Be a Smart Pinoy!



About The Author:



Roland Paez is a college freshman at Pasadena City College. He studied at Downtown Business Magnet and John Marshall in High School. He appeared in the first TV commercial for Manila Forwarder as the boy inside the jumbo box.

Roland is the son of Manny Paez, founder of Manila Forwarder USA Corp and Manila Forwarder Philippines, Inc.

Roland was born at National Naval Medical Center, Bethesda, Maryland.

For more information, please visit www.manilaforwarder.com or call 1.800.210.1019 that is manned on a rotating basis by Manila Forwarder’s USA and Philippine Offices. Manila Forwarder’s team who works in two shifts can pick up your balikbayan box anytime.