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Questions and Answers
Which act is being implemented by this Customs Administrative Order (CAO)?
Which act is being implemented by this Customs Administrative Order (CAO)?
The Customs Modernization and Tariff Act (CMTA)
What does the abbreviation "CMTA" stand for?
What does the abbreviation "CMTA" stand for?
Customs Modernization and Tariff Act
Which of the following is NOT a type of Customs Bonded Warehouse according to the content?
Which of the following is NOT a type of Customs Bonded Warehouse according to the content?
The Bureau of Customs is responsible for the licensing of all Customs Bonded Warehouses.
The Bureau of Customs is responsible for the licensing of all Customs Bonded Warehouses.
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The Bureau of Customs is liable for any loss or damage of the goods stored in a Customs Bonded Warehouse (CBW).
The Bureau of Customs is liable for any loss or damage of the goods stored in a Customs Bonded Warehouse (CBW).
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What process is the "Formula of Manufacture" (FOM) used for?
What process is the "Formula of Manufacture" (FOM) used for?
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Who is responsible for the management and operation of a Customs Bonded Warehouse (CBW)?
Who is responsible for the management and operation of a Customs Bonded Warehouse (CBW)?
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What is the maximum storage period for goods entered for warehousing in a Customs Bonded Warehouse (CBW)?
What is the maximum storage period for goods entered for warehousing in a Customs Bonded Warehouse (CBW)?
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The "Alert Order" is issued before a goods declaration is lodged.
The "Alert Order" is issued before a goods declaration is lodged.
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Who is responsible for the issuance of the "Authority to Operate" for a Customs Bonded Warehouse?
Who is responsible for the issuance of the "Authority to Operate" for a Customs Bonded Warehouse?
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The "Transfer Note" is a customs document used to accompany the transfer of bonded goods to another CBW or a Free Zone.
The "Transfer Note" is a customs document used to accompany the transfer of bonded goods to another CBW or a Free Zone.
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The "Certificate of Identification" (CI) is issued by the Bureau of Customs to confirm the source of finished products.
The "Certificate of Identification" (CI) is issued by the Bureau of Customs to confirm the source of finished products.
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The "Authorization to Operate" is a one-time grant and cannot be renewed.
The "Authorization to Operate" is a one-time grant and cannot be renewed.
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What is the maximum period allowed for the submission of documents required for the liquidation of the warehousing entry, even if complete exportation is made earlier?
What is the maximum period allowed for the submission of documents required for the liquidation of the warehousing entry, even if complete exportation is made earlier?
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What is the primary purpose of the "Compliance Rating System" (CRS)?
What is the primary purpose of the "Compliance Rating System" (CRS)?
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The Bureau of Customs is responsible for assigning customs officers and personnel to operate a Customs Bonded Warehouse (CBW).
The Bureau of Customs is responsible for assigning customs officers and personnel to operate a Customs Bonded Warehouse (CBW).
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A Customs Bonded Warehouse (CBW) operator is required to provide the Bureau of Customs with a suitable working space, including office equipment and supplies.
A Customs Bonded Warehouse (CBW) operator is required to provide the Bureau of Customs with a suitable working space, including office equipment and supplies.
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The "Warehousing Supervision Fee" is a one-time payment.
The "Warehousing Supervision Fee" is a one-time payment.
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The Bureau of Customs will automatically debit the assessed duties and taxes from the "Bond Account" in the Bureau's automated bonds management system (ABMS) for goods entered under warehousing.
The Bureau of Customs will automatically debit the assessed duties and taxes from the "Bond Account" in the Bureau's automated bonds management system (ABMS) for goods entered under warehousing.
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What is the main purpose of the "Principal Books of Accounts"?
What is the main purpose of the "Principal Books of Accounts"?
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The "Stock Inventory Report" must be submitted every quarter.
The "Stock Inventory Report" must be submitted every quarter.
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What is the primary purpose of the "Goods Declaration" for warehousing?
What is the primary purpose of the "Goods Declaration" for warehousing?
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The "Transit Goods Declaration" is filed when goods are transferred to another port of entry for warehousing.
The "Transit Goods Declaration" is filed when goods are transferred to another port of entry for warehousing.
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The Bureau of Customs requires that all imported goods be physically inspected before being transferred to a Customs Bonded Warehouse (CBW).
The Bureau of Customs requires that all imported goods be physically inspected before being transferred to a Customs Bonded Warehouse (CBW).
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The "Provisional Goods Declaration" allows importers to post a general warehousing bond as security for the goods stored in the CBW.
The "Provisional Goods Declaration" allows importers to post a general warehousing bond as security for the goods stored in the CBW.
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The Bureau of Customs is responsible for providing the specific form of "Goods Declaration" that needs to be used for the transfer of raw materials from a Free Zone to a Customs Bonded Warehouse (MCBW).
The Bureau of Customs is responsible for providing the specific form of "Goods Declaration" that needs to be used for the transfer of raw materials from a Free Zone to a Customs Bonded Warehouse (MCBW).
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What is the maximum storage period for perishable goods in a Customs Bonded Warehouse (CBW)?
What is the maximum storage period for perishable goods in a Customs Bonded Warehouse (CBW)?
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Bonded raw materials withdrawn within the prescribed storage period must be manufactured and exported within one year from the time of arrival.
Bonded raw materials withdrawn within the prescribed storage period must be manufactured and exported within one year from the time of arrival.
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The Commissioner of Customs can extend the storage period for specific bonded goods beyond one year, with the approval of the Secretary of Finance.
The Commissioner of Customs can extend the storage period for specific bonded goods beyond one year, with the approval of the Secretary of Finance.
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It is the responsibility of the Customs Bonded Warehouse (CBW) operator to ensure effective security measures for the warehouse, such as installing a 24-hour closed-circuit television (CCTV) system.
It is the responsibility of the Customs Bonded Warehouse (CBW) operator to ensure effective security measures for the warehouse, such as installing a 24-hour closed-circuit television (CCTV) system.
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The Customs Bonded Warehouse (CBW) operator is responsible for paying all the duties and other charges on goods that were lost or destroyed within the warehouse due to events beyond the operator's control.
The Customs Bonded Warehouse (CBW) operator is responsible for paying all the duties and other charges on goods that were lost or destroyed within the warehouse due to events beyond the operator's control.
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The Customs Bonded Warehouse (CBW) operator is required to provide access to the premises and assist authorized customs personnel, such as examiners, inspectors, and audit teams.
The Customs Bonded Warehouse (CBW) operator is required to provide access to the premises and assist authorized customs personnel, such as examiners, inspectors, and audit teams.
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It is the responsibility of the Customs Bonded Warehouse (CBW) operator to provide customs personnel assigned to the CBW with necessary office space, equipment, and supplies.
It is the responsibility of the Customs Bonded Warehouse (CBW) operator to provide customs personnel assigned to the CBW with necessary office space, equipment, and supplies.
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What is the maximum number of members allowed in a Customs Common Bonded Warehouse (CCBW)?
What is the maximum number of members allowed in a Customs Common Bonded Warehouse (CCBW)?
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The Bureau of Customs has the authority to suspend or close a Customs Bonded Warehouse (CBW) in case of false information in the application for renewal of the CBW Authority to Operate.
The Bureau of Customs has the authority to suspend or close a Customs Bonded Warehouse (CBW) in case of false information in the application for renewal of the CBW Authority to Operate.
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The Bureau of Customs is not allowed to impose any penalties when the CBW operator is found to be involved in illegal activities.
The Bureau of Customs is not allowed to impose any penalties when the CBW operator is found to be involved in illegal activities.
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The "Motion for Reconsideration" filed by an applicant whose application was denied for establishment or renewal of a Customs Bonded Warehouse (CBW) must be submitted within 10 days of receiving the Notice of Denial.
The "Motion for Reconsideration" filed by an applicant whose application was denied for establishment or renewal of a Customs Bonded Warehouse (CBW) must be submitted within 10 days of receiving the Notice of Denial.
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The "Mission Order" (MO) authorizes a representative to conduct inspections of the CBW and bonded goods and to examine the documents, books, and records of accounts related to the operation of the CBW.
The "Mission Order" (MO) authorizes a representative to conduct inspections of the CBW and bonded goods and to examine the documents, books, and records of accounts related to the operation of the CBW.
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The "Warehousing Monitoring and Audit Unit" (WMAU) of the Post Clearance Audit Group (PCAG) can conduct audit and inspection of Customs Bonded Warehouses (CBWs) based on information received from internal sources, such as the Customs Intelligence and Investigation Service (CIIS) and the Enforcement and Security Service (ESS).
The "Warehousing Monitoring and Audit Unit" (WMAU) of the Post Clearance Audit Group (PCAG) can conduct audit and inspection of Customs Bonded Warehouses (CBWs) based on information received from internal sources, such as the Customs Intelligence and Investigation Service (CIIS) and the Enforcement and Security Service (ESS).
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The Bureau of Customs may impose an annual warehousing supervision fee on the operations of Customs Bonded Warehouses (CBWs), which includes any extensions or additional facilities.
The Bureau of Customs may impose an annual warehousing supervision fee on the operations of Customs Bonded Warehouses (CBWs), which includes any extensions or additional facilities.
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The "Warehousing Supervision Fee" is based on the total assets of the Customs Bonded Warehouse (CBW), excluding real estate.
The "Warehousing Supervision Fee" is based on the total assets of the Customs Bonded Warehouse (CBW), excluding real estate.
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The Bureau of Customs may impose an administrative penalty, such as the closure of the CBW, for unauthorized withdrawal of goods from a CBW.
The Bureau of Customs may impose an administrative penalty, such as the closure of the CBW, for unauthorized withdrawal of goods from a CBW.
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The Bureau of Customs may impose additional administrative penalties on the operator of a CBW in addition to the criminal penalties for unauthorized withdrawal of goods from a CBW, as long as such action does not infringe on the operator's rights or due process.
The Bureau of Customs may impose additional administrative penalties on the operator of a CBW in addition to the criminal penalties for unauthorized withdrawal of goods from a CBW, as long as such action does not infringe on the operator's rights or due process.
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The operator of a Customs Bonded Warehouse (CBW) is liable for the unauthorized withdrawal of goods from the CBW, but the Customs personnel who failed to report such illegal withdrawal are exempt from liability.
The operator of a Customs Bonded Warehouse (CBW) is liable for the unauthorized withdrawal of goods from the CBW, but the Customs personnel who failed to report such illegal withdrawal are exempt from liability.
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The Bureau of Customs has the authority to suspend the warehousing privileges of a CBW operator for six (6) months as a first offense for unauthorized changes to the CBW lay-out.
The Bureau of Customs has the authority to suspend the warehousing privileges of a CBW operator for six (6) months as a first offense for unauthorized changes to the CBW lay-out.
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The Bureau of Customs may impose administrative penalties for late filing of the application for the renewal of the Authority to Operate a Customs Bonded Warehouse (CBW), ranging from suspension of privilege to closure of the CBW.
The Bureau of Customs may impose administrative penalties for late filing of the application for the renewal of the Authority to Operate a Customs Bonded Warehouse (CBW), ranging from suspension of privilege to closure of the CBW.
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If an importer fails to submit the complete documentation required for the liquidation of a goods declaration for warehousing within 30 days from the expiration of the storage period, they will be subject to a penalty of Php10,000.00.
If an importer fails to submit the complete documentation required for the liquidation of a goods declaration for warehousing within 30 days from the expiration of the storage period, they will be subject to a penalty of Php10,000.00.
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If an importer fails to submit the documents required for the cancellation of warehousing bonds within 30 days from the expiration of the storage period, they will be subject to a penalty of 2% of the amount of the bond or Php 5,000.00, whichever is higher.
If an importer fails to submit the documents required for the cancellation of warehousing bonds within 30 days from the expiration of the storage period, they will be subject to a penalty of 2% of the amount of the bond or Php 5,000.00, whichever is higher.
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If any person unlawfully enters a Customs Bonded Warehouse (CBW) and removes merchandise, or aids or abets such removal, they are subject to penalties as defined in Section 1422 of the Customs Modernization and Tariff Act (CMTA).
If any person unlawfully enters a Customs Bonded Warehouse (CBW) and removes merchandise, or aids or abets such removal, they are subject to penalties as defined in Section 1422 of the Customs Modernization and Tariff Act (CMTA).
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The Bureau of Customs may impose penalties on importers and CBW operators who violate provisions of this CAO for which there are no specific penalties otherwise provided by law.
The Bureau of Customs may impose penalties on importers and CBW operators who violate provisions of this CAO for which there are no specific penalties otherwise provided by law.
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The penalties imposed under this CAO are subject to the criminal and other liabilities imposed under the Customs Modernization and Tariff Act (CMTA) and other laws.
The penalties imposed under this CAO are subject to the criminal and other liabilities imposed under the Customs Modernization and Tariff Act (CMTA) and other laws.
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The Commissioner of Customs is required to review this CAO every three years and amend or revise it if necessary.
The Commissioner of Customs is required to review this CAO every three years and amend or revise it if necessary.
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The Commissioner of Customs is required to ensure that the rights, conditions, and obligations related to Customs Bonded Warehouses (CBWs), already acquired or vested prior to the effectivity of this CAO, are recognized and protected.
The Commissioner of Customs is required to ensure that the rights, conditions, and obligations related to Customs Bonded Warehouses (CBWs), already acquired or vested prior to the effectivity of this CAO, are recognized and protected.
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This existing CAO supersedes and replaces all previous CAOs related to Customs Bonded Warehouses.
This existing CAO supersedes and replaces all previous CAOs related to Customs Bonded Warehouses.
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This CAO will take effect immediately upon its publication in the Official Gazette or a newspaper of national circulation.
This CAO will take effect immediately upon its publication in the Official Gazette or a newspaper of national circulation.
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The Office of National Administrative Register (ONAR) of the UP Law Center is expected to receive three certified copies of this CAO.
The Office of National Administrative Register (ONAR) of the UP Law Center is expected to receive three certified copies of this CAO.
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Study Notes
Customs Administrative Order (CAO) No. 01-2022 - Customs Bonded Warehouses
- This CAO implements sections of the Customs Modernization and Tariff Act (CMTA) related to Customs Bonded Warehouses (CBWs).
- It consolidates existing CAOs on CBWs.
Scope
- Applies to all types of CBWs listed in the CMTA.
- May be expanded by the Secretary of Finance based on Commissioner's recommendations.
Objectives
- Establish, operate, supervise, and control CBWs.
- Protect revenue through safeguards and control measures.
- Define rights and obligations of CBW operators, sub-contractors, and members.
- Improve CBW operator compliance with customs laws, and penalties for non-compliance.
- Create a raw materials management system using information technology for improved monitoring and supervision.
- Align CBW regulations with international standards and best practices.
Definitions
- Accessories: Goods that are neither raw materials nor improve finished products for export.
- Accountable Officer: CBW operator's designated official responsible for warehouse operations.
- Accredited Client/End-User: A natural or legal person authorized by the Bureau to be a client.
- Accredited Client-Exporter: Client-exporters accredited by the Bureau.
- Airlines Customs Bonded Warehouse and Airlines Catering Customs Bonded Warehouse: Industry-specific CBWs (ICBW) for aircraft supplies, spare parts, duty-free items.
- Alert Order: Written order issued by officials for suspected non-compliance with CMTA regulations.
- Automated Inventory Management System (AIMS): System for inventory monitoring.
- Automated Bonds Management System (ABMS): System for monitoring and cancellation of bonds for warehouse entries.
- Bureau: Refers to the Bureau of Customs.
- Certificate of Authority to Operate: Document issued by the Bureau to authorized CBW operators.
- Certificate of Identification (CI): Document certifying exported goods from a particular warehouse entry.
- Certificate of Importer Accreditation: Document issued by Bureau recognizing an entity as a registered importer.
- Certificate of Inspection and Loading (CIL): Document certifying inspection and loading on an export carrier.
- Client-Exporter: A natural or legal entity engaged in manufacturing and exporting products.
- Client Profile Registration System (CPRS): System for CBW stakeholder registration.
- Compliance Rate System (CRS): System for assessing CBW operator compliance.
- Customs Bonded Warehouse (CBW): Licensed warehouse for importing, receiving, storing, or manufacturing goods for export.
- Customs Bonded Warehouse Committee (CBWC): Committee to handle CBW matters.
- Customs Bonded Warehouse Operator: Natural or legal person with approved Authority to Operate a CBW.
- Exclusion from Exemptions: Import/export of items from/to CBWs are not exempt from customs duties and taxes unless specified otherwise.
- Exportation: Process of bringing goods out of Philippine territory.
- Entry: Bringing imported goods into customs territory.
- Examination and Storage Area: Designated area for goods examination and storage.
- Extension Warehouse: Authorized warehouse extending capacity of an existing bonded warehouse.
- Free Zone: Special economic zones with specific customs regulations.
- Formula of Manufacture (FOM): Formula of conversion issued by ITDI determining raw material usage and wastage for export goods.
- Garments and Textile Industry Development Office (GTIDO): Government agency assisting the Bureau in garments industry issues.
- Goods: Articles, wares, merchandise, items for import/export.
- Goods Declaration: Statement for importing goods, providing details.
- Importation: Bringing goods from foreign countries into the Philippines.
- Industry-Specific Customs Bonded Warehouse (ICBW): Warehouse for specific industries.
- Liquidation of Raw Materials: Accounting for the use of bonded raw materials.
- Lodgement: Registration of goods declaration.
- Member: Accredited entity operating under an existing CBW.
- Multi-Purpose Declaration: Single document for imported goods declaration.
- Miscellaneous Manufacturing Bonded Warehouse (MMBW): Industry-specific CBW for general manufacture activities.
- Nonmanufacturing Customs Bonded Warehouse (NCBW): CBW focusing on storing goods for withdrawal.
- Perishable Goods: Goods susceptible to decay, often with short shelf life.
- Physical Security Feature: Security and monitoring systems for CBW premises.
- Raw Material Liquidation System (RMLS): System for determining raw material export and duties and taxes for exported waste material.
- Security: Security guarantees, including surety bonds and cash bonds.
- Semi-finished Products: Raw materials that have undergone processing.
- Sub-contractor: Accredited member working for a CBW, under a particular area of expertise.
- Trade: Import or export of goods.
General Provisions
- Establishment of customs warehouses by the District Collector based on business needs.
- Licensing, supervision, and control of CBWs by the Bureau.
Types of Customs Bonded Warehouses
- Manufacturing Customs Bonded Warehouse (MCBW): Warehouse for manufacturing products.
- Miscellaneous Manufacturing Bonded Warehouse (MMBW): Warehousing and manufacturing of non-garment raw materials with duties cleared,
- Garments and Textile Manufacturing Bonded Warehouse (GTMBW): Industry specific to garments and textiles.
- Customs Common Bonded Warehouse (CCBW): Warehouse open to multiple types of exports.
- Industry-Specific Customs Bonded Warehouse (ICBW): Specialized warehouse for specific industries.
- Nonmanufacturing Customs Bonded Warehouse (NCBW): Duty-free storage of goods until withdrawal.
Operational Provisions
- Goods declaration and transfer procedures.
- Withdrawal of bonded goods and their usage.
- Procedures for manufacturing activities within bonded warehouses.
- Requirements to ensure CBW operations are in accordance with regulations.
Other Important Factors
- Penalties for non-compliance, including closure.
- Membership requirements for Customs Common Bonded Warehouses (CCBW).
- Appeals mechanism for rejected applications.
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Description
This quiz covers Customs Administrative Order (CAO) No. 01-2022, focusing on Customs Bonded Warehouses (CBWs) as specified in the Customs Modernization and Tariff Act (CMTA). It explores the objectives, scope, and definitions related to CBWs and their operations. Test your understanding of the regulations and compliance standards for CBW operators.
