Lingkod sa Kapwa Pilipino (LINKAPIL)

Lingkod sa Kapwa Pilipino or LINKAPIL is a program designed by the Commission on Filipino Overseas (CFO) in 1988 to tap the potentials of overseas Filipinos as partners in nation building. The program provides a mechanism for the transfer of assistance from overseas Filipinos to beneficiaries in the Philippines.

I. Assistance to Donors and Beneficiaries

II. Types of Assistance under LINKAPIL

III. Who may Donate

IV. Who are Qualified to Receive Donations

V. Donated Items Eligible for Duty-Free Entry

VI. Procedures for Processing Donations

I. Assistance to Donors and Beneficiaries

Under this program, CFO extends the following support and assistance to donor institutions and recipient communities or organizations:

1. For Donors

• Short list prospective beneficiary institutions/individuals
• Provide advice and information on existing procedures and guidelines governing duty-free importation of donations
• Monitor donations
• Prepare monitoring and evaluation reports to donors
• Coordinate assistance with beneficiaries

2. For Beneficiaries

• Coordinate assistance with donor associations
• Provide advice on procedures for duty-free importation of donations
• Promote or market projects among prospective donors
• Assist in report preparation
  
• Coordinate with agencies involved in the donation process

CFO primarily serves as a conduit between donor Filipino associations and their project beneficiaries in the Philippines. Material and financial assistance may be channeled directly by the donor associations to their beneficiaries.

II. Types of Assistance under LINKAPIL

The types of activities where Filipinos overseas can provide support are in the following areas:

1. Livelihood

To enhance the socio-economic status and foster the concept of self-help among community members, assistance may be given for the establishment of small-scale alternative income-generation activities. This may be done through any of the following means:

• Provision of cash capitalization
• Donation of equipment for livelihood-related projects
• Extension of low-interest loans

2. Education

Generally directed toward providing educational and professional development opportunities for Filipino youth, Filipino overseas may:

Under this program area, memoranda of understanding are forged between donor Filipino associations or individuals and the implementing educational institution.

• Provide scholarship grants to underprivileged but deserving youth, under the Adopt-the-Scholar Program, to fun college degrees and/ or technical/vocational courses. Assistance may be given to schools in the form of an endowment fund or regular yearly allocation for the entire term of schooling of the scholar.
• Donation of books and teaching materials to schools and learning institutions in the country

3. Health and Welfare

Filipino medical associations abroad can help promote the health and welfare of medically underserved areas in the country through various activities, namely:

• Conduct of medical missions, which includes the provision of health services in rural areas
• Donation of medicines and medical equipment
• Provision of relief assistance to calamity-stricken areas and to charity institutions through donation of funds, food, and other basic necessities

4. Infrastructure

Filipinos overseas can augment government’s efforts in building community infrastructures by allocating funds for construction of water systems in less-developed areas through the Tubig ay Yaman Project. Filipinos overseas may also provide funds for the construction of social centers, libraries, health centers, classrooms, housing units, and sanitary facilities. As a counterpart, the beneficiary-community provides the labor requirement for the project.

III. Who may Donate

Any individual, group, or organization abroad can send donations to the Philippines.

IV. Who are Qualified to Receive Donations

The following are among the agencies or entities in the Philippines that may receive material donations on a duty-free basis:

1. Non-profit, welfare, religious, and charitable organizations registered with the Securities and Exchange Commission (SEC) and duly licensed/accredited by the Department of Social Welfare and Development (DSWD)

2. Educational institutions accredited by the Department of Education, Culture and Sports (DECS) that are enjoying tax incentives as authorized by the Department of Finance (DOF)

3. Educational, scientific, and cultural institutions or societies, and similar organizations duly approved and accredited by DECS and the United Nations Educational, Scientific, and Cultural Organization (UNESCO) National Commission of the Philippines

4. Other non-profit, religious, charitable institutions (except civic, service, cultural, and scientific organizations), and duly registered primary and secondary hospitals upon prior recommendation by the National Economic and Development Authority (NEDA)

5. Other organizations covered by bilateral or international agreements to which the Philippines is a signatory and by Presidential decrees and other special laws.

NOTE: To avail of duty-free entry of donations, there are certain conditions and requirements that have to be compiled with under existing rules and regulations governing the importation of donations. Not all material donations may be allowed duty-free entry. There are also qualifications, which organizations have to meet before they can be authorized to receive donations that are duty-free. The duty-free entry of donations, regardless of the status of the intended recipient, is subject to pre-screening by authorities concerned prior to the issuance of clearance.

All importation of donated articles are subject to the payment of the Value Added Tax (VAT) unless expressly exempt from such imposition under Title IV, Chapter I, Section I of the VAT law. The VAT is equivalent to about 10% of the landed cost of the shipment.

V. Donated Items Eligible for Duty-Free Entry

Goods or items, which are allowed duty-free entry by the Government include:

• Food items and non-food commodities for relief dispensing organizations;
• Medicines and medical supplies/equipment;
• Books and other educational, scientific, or cultural materials;
• Essential machinery and equipment, including their spare parts and accessories; and
• Essential consumer goods not available locally in times of calamities and/or fortuitous events.

VI. Procedures for Processing Donations

Before Shipment

1. Donor

1. Prepares and submits the following documents to the Philippine Embassy/Consulate for authentication:
   • Deed of Donation
   • Pro-forma/Commercial Invoice and Packing List/Inventory of Donated Items (including technical description of instruments or equipment)
2. Provides shipping documents (bill of lading or airway bill) to beneficiaries/ consignees through the Philippine Embassy/Consulate
   • Donors must ensure that all information about the consignee (name, address, etc.) are accurately and consistently reflected in the Deed of Donation and shipping documents.
   • Donors must also ensure that the shipment contains only the items indicated in the Packing List

2. Philippine Embassy/Consulate (DFA)

1. Refers prospective donations to CFO for checking and coordination with concerned agencies
2. Advises donor on the eligibility of donee/consignee to accept donations free from duties and taxes, as well as donation that may be exempted from duties/customs
3. Decides whether or not to authenticate deed of donation
4. If donation is authenticated, sends advance copies of documents to CFO for onward transmittal to beneficiaries/consignees.
   

3. Commission of Filipinos Overseas

Coordinates with appropriate government agencies, beneficiaries, and Philippine Embassy/Consulate concerned to:

• Check if intended donations are eligible for duty-free entry
• Verify if beneficiary is accredited or allowed to accept donations free from duties and taxes
• Give feedback to Philippine Embassy/Consulate concerning verification and local coordination

During Shipment

1. Donor

1. Sends or ships donations to the Philippines
2. Sends original copies of documents authenticated by the Philippine Embassy/Consulate to the donee/consignee at least 3 weeks before expected arrival of shipment for processing of application for duty-free entry of donation.

2. CFO

1. Guides donee/consignee or beneficiaries on the procedures/process for obtaining duty-free certification
2. Links beneficiaries to agencies concerned in the donation process

3. Donee/Consignee

1. Upon receipt of advance copies of required documents from the donor, recipient should submit letter of request and seek favorable endorsement for the duty-free importation of donation to the approving agencies which are as follows:
   • Department of Social Welfare and Development (DSWD), for food and non-food relief goods
     Note: DSWD-accredited NGOs should also submit and seek endorsement for the : (a) Notarized Deed of Acceptance and (b) Distribution Plan in the DSWD Regional Office where the NGO is based.
   • Department of Health (DOH), for food, medical supplies, and equipment duly registered with the Bureau of Food and Drug (BFAD)
   • Department of Education, Culture and Sports (DECS) for books and educational materials \
   • National Economic Development Authority (NEDA), for machinery, equipment and accessories United Nations Educational, Scientific, and Cultural Organization (UNESCO) National Commission of the Philippines, for books, publications not published for advertising purposes, visual and auditory materials, scientific instruments/apparatus
2. Monitors arrival of shipment by coordinating with the shipping agency..

4. DSWD/ DOH/ DECS/ NEDA/ UNESCO

• Recommends/ endorses to the Department of Finance (DOF) to either approve exemption from customs duties, if meritorious, or deny request for exemption from duties and taxes, if donation does not satisfy guidelines.

5. Department of Finance (DOF)

1. Issues clearance
2. Forwards clearance to Central Records Division of the Bureau of Customs (BOC)

Note: Consignee or donee should obtain a duplicate copy of the DOF clearance.

6. Bureau of Customs (BOC)

The Tax Exempt Division of this office will:

1. Endorse the release of donation
2. Forward endorsement to the Informal Entry Division of the BOC district office concerned (South Harbor, MICP, NAIA, etc.)

Release and Monitoring of Donation

1. BOC – Informal Entry Division

• Checks/ verifies, appraises, and examines the donated shipment upon arrival.

2. Consignee/ Donee

Pays the following fees and charges:

• Arrastre and wharfage changes
• Storage fees kept at the storage area if the cargo is not withdrawn within seven (7) working days
• Demurrage fees (charged by shipping lines) for use of containers/ vans, if not withdrawn within 7 – 10 days upon arrival
• Trucking fees to transport cargo from the container yard to the recipient /consignee’s warehouse
• Customs brokerage fees, if the services of a customs broker/ brokerage firm is availed of
• Shipment cost from port of origin to port of entry

Note: The donor and donee should discuss arrangements for payment of fees if the donee is not financially capable of paying for the aforementioned charges.

3. Bureau of Customs

Releases the shipment to the consignee in the presence of representatives from the DSWD and the Economic Intelligence Bureau who will escort the donation to the designated warehouse of the consignee.

4. Consignee/ Donee

1. Conducts an inventory of the donated shipment
2. Submits an inventory and distribution report to the concerned government agencies and to the donor. If requested by donor, CFO may be present during the inventory

5. CFO

Upon request of the Philippine Embassy/ Consulate or the donor, CFO prepares a monitoring report on the donation and provides a feedback to the donor on the utilization of the goods/ equipment.

Note: It is important that donations be shipped only after acquiring all the necessary clearances from government agencies to avoid unnecessary delays in the release of donations form the Bureau of Customs.

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