Customs Administrative Order Quiz

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Questions and Answers

What is the purpose of this Customs Administrative Order (CAO)?

  • To define the rights and obligations of all individuals involved in the operation of CBWs.
  • To establish new regulations for Customs Bonded Warehouses (CBWs).
  • To align customs regulations on CBWs with international standards and best practices.
  • To consolidate existing CAOs and implement specific sections of the Customs Modernization and Tariff Act (CMTA). (correct)

What is NOT a stated objective of this CAO regarding CBWs?

  • To protect revenue through safeguarding and controlling CBWs.
  • To establish a system for managing raw materials using information and communications technology.
  • To improve the level of compliance with customs warehousing laws and regulations.
  • To promote economic development and job creation through the establishment of CBWs. (correct)

Which of the following is NOT considered a type of Customs Bonded Warehouse (CBW) as defined by the CAO?

  • Commercial Customs Bonded Warehouse (CCBW).
  • Manufacturing Customs Bonded Warehouse (MCBW).
  • Industry-specific Customs Bonded Warehouse (ICBW).
  • Retail Customs Bonded Warehouse (RCBW). (correct)

According to the CAO, what is an 'Accountable Officer'?

<p>A person designated by the operator to be accountable for all operational aspects of the warehouse. (D)</p> Signup and view all the answers

What is the primary difference between 'Raw Materials' and 'Accessories' as defined in the CAO?

<p>Raw materials are essential for the production of goods, while accessories are optional enhancements. (C)</p> Signup and view all the answers

What does the term 'Accredited Client-Exporter' refer to, according to the CAO?

<p>An exporter authorized to receive manufactured goods from Manufacturing Customs Bonded Warehouses (MCBWs) for export purposes. (B)</p> Signup and view all the answers

Which of the following is NOT a stated goal of the CAO regarding CBWs?

<p>To simplify the process of importing and exporting goods through CBWs. (B)</p> Signup and view all the answers

Which of the following is CORRECTLY identified as a type of Customs Bonded Warehouse (CBW) based on information in the excerpt?

<p>Manufacturing Customs Bonded Warehouse (MCBW), Industry-specific Customs Bonded Warehouse (ICBW), Commercial Customs Bonded Warehouse (CCBW). (A)</p> Signup and view all the answers

What is the new designation for existing public bonded customs warehouses?

<p>Customs Facilities and Warehouse (C)</p> Signup and view all the answers

What is a requirement for a Customs Bonded Warehouse (CBW) operator?

<p>A designated area for examination and storage of imported goods (B)</p> Signup and view all the answers

What entity can be accredited as a sub-contractor of a MMBW, GTMBW or an accredited member of a CCBW?

<p>A Free Zone Locator/Enterprise (B)</p> Signup and view all the answers

What is the consequence of operating a bonded warehouse without a valid customs authority?

<p>Barring from any warehousing privileges (D)</p> Signup and view all the answers

Who has the final authority to create or dissolve certain types of warehouses?

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

Which of these actions is considered grounds for disapproval of a CBW application?

<p>Misrepresentation of information on the application (D)</p> Signup and view all the answers

What does the term "non-transferability of authority" refer to in the context of CBWs?

<p>The warehouse operator cannot sell the CBW to another party (C)</p> Signup and view all the answers

What is the primary purpose of the examination and storage area in a CCBW or ICBW?

<p>To provide a safe and secure environment for inspecting imported goods (A)</p> Signup and view all the answers

What is the role of the Garments and Textile Industry Development Office (GTIDO) in the context of bonded warehouses?

<p>The GTIDO assists the Bureau in granting authority to operators wishing to become members or subcontractors of a warehouse involved in the manufacture of garments or textiles for export. (C)</p> Signup and view all the answers

What is the purpose of a Transfer Note?

<p>To provide evidence of the delivery of bonded imported goods to their intended destination. (B)</p> Signup and view all the answers

Which of the following is NOT a requirement for a company to become a 'Member' in a CCBW?

<p>The company must specialize in manufacturing goods solely for domestic market consumption. (C)</p> Signup and view all the answers

What is 'Transit' in the context of customs procedures?

<p>The transportation of goods under customs control from one customs office to another. (A)</p> Signup and view all the answers

What does the term 'Liquidation of Raw Materials' specifically refer to within the context of bonded warehouses?

<p>The process of accounting for the usage of bonded raw materials, including any wastages, in the production of exported finished goods. (B)</p> Signup and view all the answers

What distinction is made between 'Goods Declaration' and 'Lodgement' within the context of bonded warehouse regulations?

<p>Goods Declaration is a formal statement made by importers, while Lodgement is the process of registering that declaration with the Bureau. (A)</p> Signup and view all the answers

What is considered 'Unauthorized Repacking' in a Customs Bonded Warehouse?

<p>Concealing, removing, or repacking merchandise fraudulently. (A)</p> Signup and view all the answers

Which of the following actions is considered 'Unauthorized Withdrawal' from a Customs Bonded Warehouse?

<p>Substituting imported materials with local materials for processing. (A), Transferring imported materials directly to an Accredited Member without passing through the CBW. (B)</p> Signup and view all the answers

Which of the following is NOT a characteristic of a Multinational Regional Bonded Warehouse?

<p>It is specifically designed for the storage of goods solely for domestic consumption within the Philippines. (B)</p> Signup and view all the answers

In the context of bonded warehouses, what is the primary function of the 'Bureau'?

<p>The Bureau is the primary authority regarding the importation and exportation of all goods within the Philippines, including those related to bonded warehouses. (B)</p> Signup and view all the answers

What is the purpose of the Wastage Valuation Data Base (WVDB)?

<p>To assess taxes and duties on imported goods that are not exported. (B)</p> Signup and view all the answers

Who is responsible for designating and establishing customs warehouses?

<p>The District Collector, subject to the approval of the Commissioner. (B)</p> Signup and view all the answers

What is the main difference between a regular CCBW and a Multinational Regional Bonded Warehouse?

<p>A regular CCBW focuses on manufacturing using imported duty-free materials for export, while a Multinational Regional Bonded Warehouse primarily serves as a supply depot for multinational companies. (B)</p> Signup and view all the answers

According to the provided information, what is a 'Member' in the context of a CCBW?

<p>A company that is accredited to operate under an existing CCBW, specializing in manufacturing goods for export. (D)</p> Signup and view all the answers

What does a Customs Bonded Warehouse (CBW) include, according to the provided text?

<p>The warehouse building, surrounding premises, processing areas, and areas for storing finished products. (D)</p> Signup and view all the answers

What activities are allowed within a Customs Bonded Warehouse (CBW)?

<p>Storing, processing, repacking, and manufacturing imported raw materials. (D)</p> Signup and view all the answers

What are the allowed withdrawal options for goods stored in a CBW?

<p>Manufacture into export products, repacking, distribution to foreign markets, sale to MCBW, transfer to subcontractors or members of CCBWs, or transfer to accredited clients/end user. (D)</p> Signup and view all the answers

What is the period for submitting documents when goods are fully exported from a CBW?

<p>60 days from the date of complete and full exportation (A)</p> Signup and view all the answers

Which of the following items are exempted from duties and taxes when stored in a CBW?

<p>Raw materials, accessories, spare parts, labels, hangers, cartons, and packaging materials used in manufacturing export goods (A)</p> Signup and view all the answers

What is the maximum period allowed for submitting complete liquidation documents for a warehousing entry, regardless of the export completion date?

<p>30 days from the expiration of the storage period. (D)</p> Signup and view all the answers

What is the role of customs officials in the exportation of goods manufactured by an MCBW?

<p>Customs officials supervise the exportation process, ensuring compliance with regulations and procedures. (D)</p> Signup and view all the answers

What is the consequence of submitting liquidation documents after the 30-day period from the expiration of the storage period?

<p>The importer is subject to potential penalties as prescribed under the relevant CAO. (D)</p> Signup and view all the answers

What type of approval is required for a CBW to import goods?

<p>An approved SMRMIR authorized by the Bureau (A)</p> Signup and view all the answers

Which of the following is NOT an exemption from duty and tax for goods stored in a CBW?

<p>Construction materials for repairing or operating the CBW (A)</p> Signup and view all the answers

What is the process for an applicant to have their application for a Customs Bonded Warehouse (CBW) reconsidered after being rejected by the District Collector?

<p>The applicant must provide the lacking documents and/or address the grounds for rejection if they have ceased to exist. (C)</p> Signup and view all the answers

What are the responsibilities of the Customs Bonded Warehouse Committee (CBWC)?

<p>The CBWC reviews and approves applications for the establishment and operation of CBWs. (C)</p> Signup and view all the answers

What information is required for the CWBC to recommend approval of an application for a CBW?

<p>The type of CBW, allowed raw materials, import volume, and, in the case of CCBWs and ICBWs, the members or clients/end-users. (A)</p> Signup and view all the answers

Who is responsible for issuing the Certificate of Authority to Operate a CBW?

<p>The Commissioner of Customs. (B)</p> Signup and view all the answers

After receiving the recommendation from the CBWC, how much time does the Commissioner of Customs have to act on the application?

<p>20 working days (D)</p> Signup and view all the answers

In the case of a rejection, what is the proper course of action for the applicant?

<p>The applicant can request a reconsideration by the District Collector. (C)</p> Signup and view all the answers

What are CCBWs and ICBWs?

<p>Types of CBWs that allow for the transfer or sale of imported raw materials to designated members or clients/end-users. (D)</p> Signup and view all the answers

What is the role of the Deputy Commissioner for Assessment and Operation Coordinating Group (AOCG) in the CBW process?

<p>The AOCG chairs the Customs Bonded Warehouse Committee (CBWC). (D)</p> Signup and view all the answers

Flashcards

Transfer Note

A customs document accompanying the transfer of bonded goods.

Transit

Customs procedure for transporting goods between offices under control.

Unauthorized Repacking

Fraudulent concealment or alteration of merchandise in customs warehouses.

Unauthorized Withdrawal

Removing goods from a customs warehouse without proper documentation.

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Wastage Valuation Data Base (WVDB)

Information bank for assessing taxes on unusable goods.

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Customs Warehouse (CBW)

Designated facility for storing imported goods and processing.

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Collector of Customs

Authorized person overseeing customs operations and document verification.

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Free Zone locator/enterprise

Entity that operates within a Free Zone, handling imported goods.

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GTIDO

Government agency aiding the garment and textile industry.

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Goods

Articles and items subject to import or export.

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Goods Declaration

Statement indicating procedure for importing goods.

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Importation

Bringing goods from foreign territory to the Philippines.

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Liquidation of Raw Materials

Accounting for bonded raw materials used in manufacturing.

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Lodgement

Registration of a goods declaration with the Bureau.

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Member (CCBW)

Entity accredited to operate under CCBW for exports.

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Multinational Regional Bonded Warehouse

Storage for spare parts and materials for multinational companies.

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Exemption from Duty

Goods in CBWs are not subject to duties and taxes during storage.

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Withdrawal Conditions

Goods must be withdrawn for specific purposes like export or repacking.

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Duties on Domestic Consumption

Goods withdrawn for local use must pay duties and taxes.

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Exclusions from Exemption

Some tools and machinery are not exempt unless essential for export.

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Certificate of Qualification

Needed for exemption on certain supplies used in production for export.

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Liquidation Period

Importers must submit documents for liquidation within 60 days of export.

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Late Submission Penalties

Documents submitted after 30 days are late and incur penalties.

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Raw Materials Importation

CBWs can import goods per approved SMRMIR authorized by the Bureau.

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Notice of Rejection

An official communication from the District Collector outlining reasons for application rejection.

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Reconsideration Request

A petition by the applicant to reconsider after addressing rejection issues or document deficiencies.

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Customs Bonded Warehouse Committee (CBWC)

A group headed by the Deputy Commissioner to evaluate applications for CBW operation authority.

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CBW Authority to Operate

Permission granted to a Customs Bonded Warehouse to legally operate and accept specific imports.

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Application Recommendation

The CBWC's endorsement to the Commissioner regarding an applicant's authority to operate a CBW.

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Commissioner's Action

The decision made by the Commissioner on an application within twenty working days after receiving the CBWC's recommendation.

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Certificate of Authority

A document issued by the Commissioner confirming approval for a CBW to operate, displayed on site.

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Supporting Documents

Necessary paperwork provided by the applicant for the CBWC to process their application.

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Customs Bonded Warehouses (CBWs)

Warehouses authorized by Customs for storing goods without immediate duty payment.

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Customs Modernization and Tariff Act (CMTA)

Philippine law aimed at modernizing customs processes and tariff regulations.

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Objectives of CAO 01-2022

Provide guidelines, protect revenue, define rights and duties, and improve compliance regarding CBWs.

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Accountable Officer

Designated official responsible for operational aspects of a CBW.

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Accredited Client/End-User

Person or entity authorized to use a specific type of CBW by the Bureau.

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Accredited Client-Exporter

Exporters accredited to receive goods from Manufacturing CBWs for exports.

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CBW Raw Materials Management System

System for managing raw materials in CBWs through technology for better control.

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Penalties for Non-Compliance

Consequences imposed on CBW operators who fail to comply with regulations.

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Public Bonded Warehouse Reclassification

Existing public bonded warehouses are reclassified as Customs Facilities and Warehouse (CFW) to comply with CAO No. 9-2019.

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Examination and Storage Area

A designated secure area for inspecting and storing imported goods before delivery to clients.

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Non-Transferability of Authority

The Authority to Operate a Customs Bonded Warehouse (CBW) is personal and cannot be transferred.

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Creation or Dissolution of CBW Types

The Secretary of Finance can create or dissolve warehouse types with consultations based on economic situations.

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Accreditation as Sub-contractor

A Free Zone Locator/Enterprise can be accredited to work under a MMBW, GTMBW, or CCBW member.

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Operation without Authority

Operating a bonded warehouse without customs authority leads to disqualification from warehousing privileges.

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Misrepresentation Consequences

Giving false information in applications can lead to disapproval and possible legal actions.

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Terms and Conditions of CBW Authority

Specific rules govern the operation of a Customs Bonded Warehouse, ensuring compliance with laws.

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Study Notes

Customs Administrative Order (CAO) No. 01-2022

  • This CAO implements sections of the Customs Modernization and Tariff Act (CMTA)
  • This order consolidates existing CAOs dealing with Customs Bonded Warehouses (CBWs)

Scope

  • Applies to all types of CBWs listed in the CMTA
  • Includes any created by the Secretary of Finance, recommended by the Commissioner

Objectives

  • Provide guidelines for CBW establishment, operation, supervision, and control
  • Protect revenue through safety and control measures
  • Define operators' rights and obligations, including those of sub-contractors and members
  • Improve CBW operators’ compliance with customs laws, outlining penalties for non-compliance
  • Develop a raw materials management system using technology (for more transparent operations)
  • Align CBW regulations with international standards and best practices

Definitions

  • Accessories: Goods not raw materials or supplies, which enhance finished products
  • Accountable Officer: Official of CBW, responsible for operational aspects
  • Accredited Client/End-User: Natural/juridical person authorized by the Bureau
  • Accredited Client-Exporter: Client-exporters accredited by the Bureau
  • Airlines Customs Bonded Warehouse/Airlines Catering Customs Bonded Warehouse: Industry-specific Customs Bonded Warehouses (ICBW)
  • Alert Order: Notice by Commissioner, District Collector, or other customs officers about possible non-compliance
  • Authority to Operate: Bureau approval allowing CBW operation
  • Authority to Transfer or Sell (ATS): Document permitting transfer or sale of imported goods to another related entity
  • Automated Inventory Management System (AIMS): System used by CBW operator to monitor and determine stock inventory
  • Automated Bonds Management System (ABMS): Bureau system used for monitoring and cancellation of bonds
  • Bureau: Bureau of Customs
  • Certificate of Authority to Operate: Document signed by the Commissioner of Customs
  • Certificate of Identification (CI): Document specifying a finished product's status from a particular warehouse entry
  • Certificate of Importer Accreditation: Document to register electronically lodging goods declaration
  • Certificate of Inspection and Loading (CIL): Certificate confirming inspection and loading of exported goods.
  • Client-Exporter: Natural or juridical person engaged in product export utilizing goods from a CBW
  • Client Profile Registration System (CPRS): Bureau stakeholder registration system
  • Compliance Rate System (CRS): Procedure for assessing warehouse operator compliance
  • Customs Bonded Warehouse (CBW): Warehouse authorized to import, receive, and store goods without duties/taxes, under a bond
  • Customs Bonded Warehouse Committee (CBWC): Committee responsible for approval of CBW activities (operations, new applications, etc.)
  • Customs Bonded Warehouse Operator: Individual/entity operating a CBW
  • Customs Premises: Offices, facilities, warehouses, ports, airports, wharves, etc under Bureau control
  • Diversion: Customs law violation
  • Entry: Act of bringing imported goods into the customs territory
  • Examination and Storage Area: Specific area in CBW for examination/storage of goods
  • Exportation: Bringing goods out of Philippine territory
  • Extension Warehouse: Authorized warehouse to function as part of existing CBW
  • Free Zone: Economic zones registered with PEZA, with specific legislation
  • Formula of Manufacture (FOM): Formula issued by the Industrial Technology Development Institute (ITDI) for raw materials
  • Garments and Textile Industry Development Office (GTIDO): Government agency for assistance with CBW operations related to garments and textiles
  • Goods: Articles, wares, or merchandise
  • Goods Declaration: Statement specifying imported goods for entry and/or warehousing details
  • Importation: To bring goods into Philippine territory
  • Lodgement: Registration of a goods declaration
  • Member: Accredited entity to operate a CBW, potentially including a sub-contractor or affiliated business unit.
  • Multi-Purpose Declaration: Customs single declaration
  • Manufacturing Customs Bonded Warehouse (MCBW): Warehouse for manufacturing goods utilizing raw materials
  • Miscellaneous Manufacturing Bonded Warehouse (MMBW): A special type of MCBW, specifically designed for raw materials manufacturing.
  • Nonmanufacturing Customs Bonded Warehouse (NCBW): Warehouse for storing goods duty-free, pending withdrawal
  • Physical Security Feature: System for monitoring and securing production areas of a CBW
  • Raw Material Liquidation System (RMLS): Automated system for raw materials liquidation
  • Security: Guarantee, surety bond, letter of credit
  • Semi-Finished Products: Goods partially manufactured for export
  • Sub-contractor: A person or company contracted to operate within a CBW.
  • Transfer Note: Document relating to transfer/transit goods and acknowledging their receipt
  • Transit: Procedure for transporting goods under customs control between locations
  • Unauthorized Repacking: Fraudulent repacking or modifications to goods
  • Unauthorized Withdrawal: Removing goods without proper documentation
  • Wastage Valuation Data Base (WVDB): Database for raw material or byproduct values
  • Warehouse Operator: Person/company that operates and is responsible for a CBW

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Customs Administrative Order (CAO) 01-2022 - Customs Bonded Warehouses PDF

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