Part 1. Definition of Terms

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Questions and Answers

What does abatement primarily involve?

The reduction or elimination of duties and taxes on unpaid amounts (correct)

The justification of duties and taxes based on import regulations

The permanent removal of products from free circulation

The assessment of customs compliance for exported goods

What describes the process of actual or outright exportation?

Importation of goods to free zones for trade

Temporary movement of goods across borders for display

The customs procedure for goods permanently leaving the territory (correct)

The reassessment of duties on goods in transit

What is the main purpose of an Airway Bill (AWB) in airfreight?

To assess the liability of the consignee

To document the shipping terms for maritime transport

To provide customs duties on imported goods

To serve as a contract of carriage detailing transport conditions (correct)

Which of the following best describes assessment in the context of customs?

The process of calculating duties and taxes on goods Signup and view all the answers

What defines an Authorized Economic Operator (AEO)?

A supply chain entity accredited based on international trade standards Signup and view all the answers

What is the primary function of an Airway Bill (AWB) in the context of air freight?

It acts as a transport document specifying the holder's rights. Signup and view all the answers

Which of the following is NOT an aspect of the Authorized Economic Operator (AEO) program?

Facilitation of domestic sales within the country. Signup and view all the answers

In the context of customs, what is the role of an appeal?

To seek redress for grievances regarding customs decisions. Signup and view all the answers

How does assessment relate to the context of customs duties?

It refers to determining applicable tariffs and charges. Signup and view all the answers

Why is admission important in the context of customs and free zones?

It facilitates the entry of goods into free zones. Signup and view all the answers

What is the significance of a Bill of Lading (B/L) in maritime shipping?

It acts as a receipt and contract for sea freight. Signup and view all the answers

What does abatement imply in customs duties?

Reduction of duties even if payment is due. Signup and view all the answers

What best describes actual or outright exportation?

Goods that will permanently leave the Philippine territory. Signup and view all the answers

What aspect is NOT generally contained in an Airway Bill?

Provider details for health and safety regulations. Signup and view all the answers

What does the process of appeal typically involve?

Challenging a customs decision through legal means. Signup and view all the answers

Study Notes

Customs and Trade Terminology

Abatement: Refers to the reduction or elimination of duties and taxes on goods when payment has not been made.
Actual or Outright Exportation: A customs procedure for goods in free circulation that leave the Philippine territory, intended to remain outside permanently.
Admission: The act of bringing imported goods into a free zone, either directly or through transit.
Airway Bill (AWB): A critical transport document for airfreight that:
- Identifies the holder or consignee with rights to claim the goods.
- Serves as a contract of carriage detailing carrier conditions, including liability limits and claims procedures.
- Includes transport instructions, a description of the goods, and applicable transportation charges.
Appeal: A process for individuals aggrieved by actions or decisions from the Bureau to seek redress from the Bureau, Secretary of Finance, or a competent court.
Assessment: The method for determining the duties, taxes, and other charges applicable to imported and exported goods.
Authorized Economic Operator (ABO): Entities accredited by the Bureau based on international trade frameworks, which include:
- Importers, exporters, customs brokers, freight forwarders, and transport providers.
- Promotes trade facilitation and secure movement of goods across borders, aligned with best practices and modern risk management.

Key Customs and Trade Terms

Abatement: Reduction of duties and taxes partially or fully when payment has not yet been made.
Actual or Outright Exportation: Customs procedure for goods that leave Philippine territory permanently and are in free circulation.
Admission: Process of bringing imported goods into a free zone, either directly or in transit.
Airway Bill (AWB):
- Transport document for airfreight specifying the holder or consignee.
- Rights include delivery claims at the destination port.
- Serves as a contract of carriage detailing carrier conditions, liability limits, and claims procedures.
- Contains instructions for transport, goods description, and the associated transportation charges.
Appeal: Legal remedy for individuals aggrieved by actions or decisions of the Bureau, directed towards the Bureau itself, Secretary of Finance, or a competent court.
Assessment: Process for determining applicable duties, taxes, and other charges on imported and exported goods.
Authorized Economic Operator (ABO):
- Entities like importers, exporters, customs brokers, and transport providers accredited by the Bureau.
- Recognized under international standards to facilitate secure global trade and promote smooth goods movement across borders using risk management and modern technology.
Bill of Lading (B/L):
- Transport document for maritime freight issued by carriers or freight forwarders.
- Grants holder rights to claim goods at destination.
- Functions as a contract of carriage that includes transportation instructions, goods descriptions, and applicable charges; also details liability limits and claims procedures.
Carrier: Entity responsible for the actual transportation of goods, including airlines, shipping lines, freight forwarders, and other transport operators.
Clearance: Completion of necessary customs and governmental processes for goods to either enter for consumption, be warehoused, transit, or export under other customs procedures.

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Description

Test your knowledge on essential customs and trade terminology. This quiz covers definitions and concepts essential for understanding customs procedures and trade documents, including terms like abatement, airway bill, and assessment. Perfect for students and professionals in trade and logistics.