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Questions and Answers
What is the purpose of the Customs Administrative Order (CAO)?
What is the purpose of the Customs Administrative Order (CAO)?
This Customs Administrative Order (CAO) implements sections relating to Customs Bonded Warehouses (CBWs) as outlined in the Customs Modernization and Tariff Act (CMTA) and consolidates all existing CAOs dealing on Customs Bonded Warehouses.
Which of the following is NOT a type of Customs Bonded Warehouse (CBW) as defined in the Customs Administrative Order (CAO)?
Which of the following is NOT a type of Customs Bonded Warehouse (CBW) as defined in the Customs Administrative Order (CAO)?
What is the primary function of an Accredited Client-Exporter?
What is the primary function of an Accredited Client-Exporter?
The ______ shall refer to the authority given by the Bureau allowing persons, natural or juridical, to establish and operate a CBW.
The ______ shall refer to the authority given by the Bureau allowing persons, natural or juridical, to establish and operate a CBW.
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What does the term "Alert Order" refer to?
What does the term "Alert Order" refer to?
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A member of a CCBW can operate a separate extension warehouse for production purposes as long as it is located within the same compound or building as the main warehouse.
A member of a CCBW can operate a separate extension warehouse for production purposes as long as it is located within the same compound or building as the main warehouse.
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What is the primary responsibility of the CBW operator?
What is the primary responsibility of the CBW operator?
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Which of the following is NOT a penalty that may be imposed on a CBW operator for violations of the CAO?
Which of the following is NOT a penalty that may be imposed on a CBW operator for violations of the CAO?
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The Bureau of Customs is responsible for any loss or damage of goods stored in a CBW.
The Bureau of Customs is responsible for any loss or damage of goods stored in a CBW.
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Study Notes
Customs Administrative Order (CAO) No. 01-2022
- Implements Sections 301 and 303, Chapter 2, Title III, and Sections 801-813, Chapter 2, Title VIII of Republic Act No. 10863 (CMTA) to consolidate existing CAOs on Customs Bonded Warehouses (CBWs).
Scope
- Applies to all types of CBWs listed in the CMTA and those created by the Secretary of Finance, recommended by the Commissioner.
Objectives
- Provide guidelines for establishment, operation, supervision, and control of CBWs.
- Protect revenue by instituting safeguards and control measures.
- Define operators' rights and obligations, and penalties for non-compliance.
- Improve compliance levels by providing penalties and improve management system for raw materials.
- Make CBW operations more transparent via technology and aid Bureau monitoring.
- Align CBW regulations with international standards and best practices.
Definitions
- Accessories: Goods that are not raw materials or supplies but enhance the finished products.
- Accountable Officer: Responsible official, designated by the operator, liable for warehouse operations.
- Accredited Client/End-User: Natural or juridical person authorized by the Bureau.
- Accredited Client-Exporter: Client-exporters accredited to receive finished goods.
- Airlines Customs Bonded Warehouse: Industry-Specific Warehouse handling supplies, spare parts, in-flight duty-free items, and essential goods.
- Alert Order: Written order by authorities, based on derogatory information, for potential CMTA/law violations.
- Authority to Operate: Bureau-issued authority for CBW operation.
- Authority to Transfer or Sell (ATS): District Collector-issued document allowing imported raw material, semi-finished/finished product transfer between CBWs, clients, and Freeport Zone.
- Automated Inventory Management System (AIMS): System for monitoring stock inventory of imported raw materials.
- Automated Bonds Management System (ABMS): System for managing and cancelling bonds.
- Bureau: Bureau of Customs.
- Certificate of Authority to Operate: Document from the Bureau authorizing CBW operation, renewable every three years.
- Certificate of Identification (CI): Document confirming finished product origin from a specific CBW entry.
- Certificate of Importer Accreditation: Document recognizing registered importer electronically lodging declarations.
- Certificate of Inspection and Loading (CIL): Document certifying export cargo inspection and loading.
- Client-Exporter: Entities engaged in manufacturing/exporting goods from a CBW utilizing its raw materials/members.
- Client Profile Registration System (CPRS): Bureau system for registration of stakeholders.
- Compliance Rate System (CRS): Procedure to assess CBW operators' compliance with regulations.
- Customs Bonded Warehouse (CBW): Licensed warehouse for importing, storing, and handling goods without payment of duties until export.
- Customs Bonded Warehouse Committee (CBWC): Committee dealing with CBW applications, renewal, etc.
- Customs Bonded Warehouse Operator: Natural or juridical person operating a CBW.
- Customs Premises: Customs offices, warehouses, etc., for exclusive customs control.
- Entry: Act of bringing imported goods into the customs territory.
- Examination and Storage Area: CCBW and ICBW area for examination and storage of goods.
- Exportation: Act of removing goods from Philippine territory.
- Extension Warehouse: Separate warehouse authorized, optimizing existing CBW operations.
- Free Zone: Special economic zones under specific legislation.
- Formula of Manufacture (FOM): Conversion formula issued by ITDI for CBW operator/members to determine raw materials usage/wastages.
- Garments and Textile Industry Development Office (GTIDO): Government agency from the Department of Trade and Industry (DTI) supporting the Bureau.
- Goods: Goods are articles, wares, merchandise.
- Goods Declaration: Statement indicating import procedures and items.
- Importation: Entering imported goods into Philippine territory.
- Lodgement: Registration of goods declaration with the Bureau.
- Member: Entity (accredited) operating under an existing CCBW.
- Multi-national Regional Bonded Warehouse: Industry-specific CBW authorized by the Board of Investments (BOI).
- Non-manufacturing Customs Bonded Warehouse (NCBW): Warehouse for goods storage before export, duty-free until withdrawal.
- Physical Security Feature: System to secure CBW premises and operations.
- Raw Material Liquidation System (RMLS): System for determining imported raw materials' volume/value.
- Security: Guarantee (surety, cash bond, etc.) ensuring an obligation to the Bureau.
- Semi-finished Products: Imported raw materials/goods undergoing processing for export.
- Sub-contractor: Accredited person/company within a CBW handling manufacturing operations.
- Transfer Note: Document verifying bonded imported goods transfer between entities or to a Freeport Zone.
- Transit: Goods transportation under customs' control from one customs office to another or a Free Zone Locator/Enterprise.
- Unauthorized Repacking: Fraudulent actions altering/concealing markings on goods.
- Unauthorized Withdrawal: Withdrawals without proper documentation.
- Wastage Valuation Data Base (WVDB): Database of reference values facilitating Bureau tax assessments.
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Description
This quiz covers the details of Customs Administrative Order No. 01-2022, which focuses on the regulations and guidelines for Customs Bonded Warehouses in accordance with Republic Act No. 10863. It aims to enhance compliance, transparency, and efficiency in CBW operations while protecting revenue. Test your knowledge on the objectives, definitions, and scope outlined in this important directive.
