Customs Administrative Order No. 03-2020
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Questions and Answers

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?

  • Php50,000.00 (correct)
  • Php75,000.00
  • Php25,000.00
  • Php100,000.00

    • 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?

    <p>Breaking</p> Signup and view all the answers

    What document must be prepared upon receiving a notice of finality for destruction or condemnation?

    <p>Detailed Condemnation Plan</p> Signup and view all the answers

    What does 'As is Where Is' imply regarding the sale of goods?

    <p>The buyer assumes all responsibility for the condition of the goods at the location they are sold.</p> Signup and view all the answers

    In the event of a tie for the highest bid, what procedure follows?

    <p>A new sealed bid auction is held among the tied bidders.</p> Signup and view all the answers

    What is the primary objective of the Customs Administrative Order (CAO) No. 03-2020?

    <p>To streamline the rules for disposing of seized goods.</p> Signup and view all the answers

    What happens to the winning bidder's bond if they fail to pay the balance?

    <p>The bond is forfeited, and additional penalties may apply.</p> Signup and view all the answers

    Which of the following best describes the term 'As is Where Is'?

    <p>A condition of sale where goods are sold without any claims of quality.</p> Signup and view all the answers

    What does the term 'Forfeiture Fund' refer to in the context of CAO No. 03-2020?

    <p>An account for proceeds from public auctions of seized goods.</p> Signup and view all the answers

    What defines a 'Clustering' situation in bidding?

    <p>The difference between the highest and second highest bid is ten percent or less.</p> Signup and view all the answers

    What requirement must the highest bidder meet after the bidding concludes?

    <p>They must pay fifty percent of the winning bid price immediately.</p> Signup and view all the answers

    Who is referred to as a 'Customs Officer' under this CAO?

    <p>A person performing discretionary duties in the Bureau.</p> Signup and view all the answers

    What is the consequence if there is multiple sale lots and the first bid is not met?

    <p>Subsequent lots will not be opened until the first lot is paid.</p> Signup and view all the answers

    Which mode of disposition is specifically mentioned for goods valued at Php50,000 or less?

    <p>Garage sale.</p> Signup and view all the answers

    What role does information and communications technology (ICT) play in the CAO?

    <p>To monitor and dispose of seized goods efficiently.</p> Signup and view all the answers

    What is the minimum percentage that must be raised in an open bid after a clustering situation?

    <p>3%</p> Signup and view all the answers

    What is the role of the Auction and Cargo Disposal Division (ACDD) before delivery of goods?

    <p>To determine the measurement, weight, or quantity of the goods.</p> Signup and view all the answers

    Which Republic Act does CAO No. 03-2020 implement provisions from?

    <p>Republic Act No. 10863.</p> Signup and view all the answers

    What is the purpose of public auctions as stated in the CAO?

    <p>To maximize revenue from seized goods.</p> Signup and view all the answers

    What is the amount of the guarantee cash deposit required from the Offeror after acceptance of their offer?

    <p>20%</p> Signup and view all the answers

    What must happen within twenty-four hours of receiving the notice of acceptance?

    <p>The Offeror must pay a guarantee cash deposit.</p> Signup and view all the answers

    Which scenario qualifies as a failed negotiated sale?

    <p>There is no offer submitted.</p> Signup and view all the answers

    What happens if the highest Offeror fails to comply with payment requirements?

    <p>The Offeror will be disqualified from future sales.</p> Signup and view all the answers

    What document is issued after full payment and presentation of official receipts?

    <p>Notice of Award</p> Signup and view all the answers

    Who is responsible for approving or disapproving a Negotiated Sale?

    <p>The Secretary of Finance</p> Signup and view all the answers

    What percentage of the total amount is required to be paid within forty-eight hours after the notice of approval?

    <p>80%</p> Signup and view all the answers

    What happens to the guarantee cash deposit if the offer is rejected by the Department of Finance?

    <p>It is refunded.</p> Signup and view all the answers

    What must the accredited contractor submit to the District Collector after every condemnation?

    <p>A completion report</p> Signup and view all the answers

    What is one of the potential sanctions that may be imposed on a contractor for defaulting on the condemnation plan?

    <p>Suspension for five years</p> Signup and view all the answers

    Who issues the gatepass and Notice of Condemnation for the release of condemned goods?

    <p>The Chief of ACDD</p> Signup and view all the answers

    What is the maximum sanction that can be recommended by the Accreditation Committee for serious defaults?

    <p>Perpetual disqualification</p> Signup and view all the answers

    To which entity are dynamite and other explosives turned over after the Order of Forfeiture?

    <p>Armed Forces of the Philippines</p> Signup and view all the answers

    Which goods are to be turned over to PAGCOR?

    <p>Loaded dice and marked cards</p> Signup and view all the answers

    What document does the Chief of Piers Inspection Division issue together with a customs guard during the release of condemned goods?

    <p>Transfer note</p> Signup and view all the answers

    What type of sanctions may the District Collector impose based on recommendations from the Accreditation Committee?

    <p>Suspension or disqualification</p> Signup and view all the answers

    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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    Related Documents

    CAO 03-2020: Disposition of Seized, Abandoned Goods PDF

    Description

    Explore the key elements of Customs Administrative Order No. 03-2020, which outlines the procedures for the disposition of seized, abandoned, and forfeited goods. Learn about the incorporation of technology, auction processes, and responsibilities of the Bureau of Customs in ensuring proper disposal and revenue generation.

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