Podcast
Questions and Answers
What is the maximum time frame for refunding a disapproved payment made by the Offeror?
What is the maximum time frame for refunding a disapproved payment made by the Offeror?
- Fifteen days (correct)
- Ten days
- Five days
- Twenty days
What threshold value distinguishes Small Value Items eligible for disposal through a Garage Sale?
What threshold value distinguishes Small Value Items eligible for disposal through a Garage Sale?
- Php50,000.00 (correct)
- Php75,000.00
- Php25,000.00
- Php100,000.00
Which of the following goods cannot be condemned?
Which of the following goods cannot be condemned?
- Goods with commercial value (correct)
- Goods prohibited by law
- Injurious goods
- Restricted goods that are dangerous
What is one possible method of condemning goods identified for destruction?
What is one possible method of condemning goods identified for destruction?
What document must be prepared upon receiving a notice of finality for destruction or condemnation?
What document must be prepared upon receiving a notice of finality for destruction or condemnation?
What does 'As is Where Is' imply regarding the sale of goods?
What does 'As is Where Is' imply regarding the sale of goods?
In the event of a tie for the highest bid, what procedure follows?
In the event of a tie for the highest bid, what procedure follows?
What is the primary objective of the Customs Administrative Order (CAO) No. 03-2020?
What is the primary objective of the Customs Administrative Order (CAO) No. 03-2020?
What happens to the winning bidder's bond if they fail to pay the balance?
What happens to the winning bidder's bond if they fail to pay the balance?
Which of the following best describes the term 'As is Where Is'?
Which of the following best describes the term 'As is Where Is'?
What does the term 'Forfeiture Fund' refer to in the context of CAO No. 03-2020?
What does the term 'Forfeiture Fund' refer to in the context of CAO No. 03-2020?
What defines a 'Clustering' situation in bidding?
What defines a 'Clustering' situation in bidding?
What requirement must the highest bidder meet after the bidding concludes?
What requirement must the highest bidder meet after the bidding concludes?
Who is referred to as a 'Customs Officer' under this CAO?
Who is referred to as a 'Customs Officer' under this CAO?
What is the consequence if there is multiple sale lots and the first bid is not met?
What is the consequence if there is multiple sale lots and the first bid is not met?
Which mode of disposition is specifically mentioned for goods valued at Php50,000 or less?
Which mode of disposition is specifically mentioned for goods valued at Php50,000 or less?
What role does information and communications technology (ICT) play in the CAO?
What role does information and communications technology (ICT) play in the CAO?
What is the minimum percentage that must be raised in an open bid after a clustering situation?
What is the minimum percentage that must be raised in an open bid after a clustering situation?
What is the role of the Auction and Cargo Disposal Division (ACDD) before delivery of goods?
What is the role of the Auction and Cargo Disposal Division (ACDD) before delivery of goods?
Which Republic Act does CAO No. 03-2020 implement provisions from?
Which Republic Act does CAO No. 03-2020 implement provisions from?
What is the purpose of public auctions as stated in the CAO?
What is the purpose of public auctions as stated in the CAO?
What is the amount of the guarantee cash deposit required from the Offeror after acceptance of their offer?
What is the amount of the guarantee cash deposit required from the Offeror after acceptance of their offer?
What must happen within twenty-four hours of receiving the notice of acceptance?
What must happen within twenty-four hours of receiving the notice of acceptance?
Which scenario qualifies as a failed negotiated sale?
Which scenario qualifies as a failed negotiated sale?
What happens if the highest Offeror fails to comply with payment requirements?
What happens if the highest Offeror fails to comply with payment requirements?
What document is issued after full payment and presentation of official receipts?
What document is issued after full payment and presentation of official receipts?
Who is responsible for approving or disapproving a Negotiated Sale?
Who is responsible for approving or disapproving a Negotiated Sale?
What percentage of the total amount is required to be paid within forty-eight hours after the notice of approval?
What percentage of the total amount is required to be paid within forty-eight hours after the notice of approval?
What happens to the guarantee cash deposit if the offer is rejected by the Department of Finance?
What happens to the guarantee cash deposit if the offer is rejected by the Department of Finance?
What must the accredited contractor submit to the District Collector after every condemnation?
What must the accredited contractor submit to the District Collector after every condemnation?
What is one of the potential sanctions that may be imposed on a contractor for defaulting on the condemnation plan?
What is one of the potential sanctions that may be imposed on a contractor for defaulting on the condemnation plan?
Who issues the gatepass and Notice of Condemnation for the release of condemned goods?
Who issues the gatepass and Notice of Condemnation for the release of condemned goods?
What is the maximum sanction that can be recommended by the Accreditation Committee for serious defaults?
What is the maximum sanction that can be recommended by the Accreditation Committee for serious defaults?
To which entity are dynamite and other explosives turned over after the Order of Forfeiture?
To which entity are dynamite and other explosives turned over after the Order of Forfeiture?
Which goods are to be turned over to PAGCOR?
Which goods are to be turned over to PAGCOR?
What document does the Chief of Piers Inspection Division issue together with a customs guard during the release of condemned goods?
What document does the Chief of Piers Inspection Division issue together with a customs guard during the release of condemned goods?
What type of sanctions may the District Collector impose based on recommendations from the Accreditation Committee?
What type of sanctions may the District Collector impose based on recommendations from the Accreditation Committee?
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Study Notes
Customs Administrative Order (CAO) No. 03-2020
- This CAO covers all modes of disposition of seized, abandoned, and forfeited goods by the Bureau of Customs (BOC), following the Customs Modernization and Tariff Act (CMTA).
- The primary objectives of this CAO are to simplify and streamline disposition procedures, maximize revenue generation, ensure proper disposal of harmful goods, and protect government interests.
- The CAO utilizes modern technologies like information and communications technology (ICT) for monitoring and disposition of seized goods.
- This CAO applies to goods offered for sale on an "As is Where Is" basis, meaning there is no warranty on their quality, state, or condition.
- The Bureau of Customs is responsible for determining the quantity, number, weight, or measurement of goods before delivery to buyers.
- The CAO emphasizes the importance of conducting sealed bid auctions, where the highest bid wins, except in cases of clustering.
- Clustering in an auction occurs when the gap between the highest and second-highest bids is within 10% of the highest bid, necessitating an open bidding among all bidders.
- Winning bidders are required to pay 50% of the bid price upon announcement of the winning bid, and the remaining balance within 48 hours.
- The CAO outlines the process for negotiated sales, where the government accepts the most advantageous offer after reviewing by the Secretary of Finance.
- Offers can be rejected by the Department of Finance, leading to a refund of payments made by the offeror.
- Goods with a value under Php50,000 or those considered personal effects are disposed of through a garage sale. This threshold value can be adjusted by the Commissioner of Customs.
- Certain goods are subject to condemnation, including dangerous and prohibited items, goods with no commercial value, and those injurious to public health.
- Condemnation methods include rendering, crushing, burning, breaking, and shredding.
- An accredited contractor is assigned to handle goods condemned through various methods, and they are obligated to submit a completion report after each condemnation.
- The CAO defines sanctions for defaulting contractors ranging from suspension to permanent disqualification.
- Specific types of goods including explosives, gambling equipment, and lottery tickets are turned over to respective government agencies after the finality of the Order of Forfeiture.
- The CAO establishes a clear protocol for the release of condemned goods with designated gatepasses and transfer notes.
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