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Questions and Answers
What does unauthorized repacking refer to?
What does unauthorized repacking refer to?
- Withdrawal of goods stored in a CBW with permission.
- Proper packaging of imported raw materials.
- Removing usable parts from imported articles.
- Fraudulent alteration or concealment of merchandise. (correct)
What is a surety bond considered in the context of security?
What is a surety bond considered in the context of security?
- A loan taken against goods stored in the warehouse.
- A temporary permit for exporting goods.
- A guarantee ensuring the satisfaction of an obligation. (correct)
- A type of insurance policy for imported goods.
What defines semi-finished products?
What defines semi-finished products?
- Fully completed goods ready for export.
- Products that are ready for distribution without further process.
- Raw materials unchanged from their imported state.
- Materials that have undergone processing but are not yet finished. (correct)
Who is referred to as a subcontractor in this context?
Who is referred to as a subcontractor in this context?
What is meant by unauthorized withdrawal?
What is meant by unauthorized withdrawal?
What does the Wastage Valuation Data Base (WVDB) provide?
What does the Wastage Valuation Data Base (WVDB) provide?
Which of the following best describes a Customs Common Bonded Warehouse (CCBW)?
Which of the following best describes a Customs Common Bonded Warehouse (CCBW)?
What constitutes allowable residue/wastage?
What constitutes allowable residue/wastage?
What does the term 'Member' refer to in the context of the economic zones?
What does the term 'Member' refer to in the context of the economic zones?
Which of the following functions does the Garments and Textile Industry Development Office (GTIDO) perform?
Which of the following functions does the Garments and Textile Industry Development Office (GTIDO) perform?
What is the purpose of the Formula of Manufacture (FOM)?
What is the purpose of the Formula of Manufacture (FOM)?
Which statement best describes the Multinational Regional Bonded Warehouse?
Which statement best describes the Multinational Regional Bonded Warehouse?
What condition is applied to the products manufactured in economic zones?
What condition is applied to the products manufactured in economic zones?
Which legislation is associated with the establishment of the Cagayan Special Economic Zone?
Which legislation is associated with the establishment of the Cagayan Special Economic Zone?
Who is responsible for issuing the Formula of Manufacture (FOM)?
Who is responsible for issuing the Formula of Manufacture (FOM)?
What is the primary function of the Freeport Area of Bataan?
What is the primary function of the Freeport Area of Bataan?
What is the primary purpose of the Non-manufacturing Customs Bonded Warehouse (NCBW)?
What is the primary purpose of the Non-manufacturing Customs Bonded Warehouse (NCBW)?
In what condition can goods stored in a Garments and Textile Customs Bonded Warehouse be withdrawn?
In what condition can goods stored in a Garments and Textile Customs Bonded Warehouse be withdrawn?
What does the acronym PCBW stand for?
What does the acronym PCBW stand for?
Which of the following best describes the items allowed in a NCBW?
Which of the following best describes the items allowed in a NCBW?
What is a key condition for goods stored in PCBWs to be exempted from import duties?
What is a key condition for goods stored in PCBWs to be exempted from import duties?
What is the guideline provided by the Bureau regarding importation into Customs Bonded Warehouses?
What is the guideline provided by the Bureau regarding importation into Customs Bonded Warehouses?
Which statement is true regarding stores for consumption?
Which statement is true regarding stores for consumption?
What is a significant limitation for the use of a Customs Bonded Warehouse concerning garments and textiles?
What is a significant limitation for the use of a Customs Bonded Warehouse concerning garments and textiles?
What types of goods are exempted from import duties and taxes for vessels, aircraft, or trains?
What types of goods are exempted from import duties and taxes for vessels, aircraft, or trains?
Which of the following is NOT included in the goods exempted from duties for operation and maintenance?
Which of the following is NOT included in the goods exempted from duties for operation and maintenance?
Under what condition can stores be taken away from vessels, aircraft, or trains?
Under what condition can stores be taken away from vessels, aircraft, or trains?
What must be considered when allowing the issue of stores for vessels undergoing repairs?
What must be considered when allowing the issue of stores for vessels undergoing repairs?
What is the Bureau’s role regarding goods on board during the stay of international transport?
What is the Bureau’s role regarding goods on board during the stay of international transport?
For what purpose are goods intended for use by passengers and crew classified?
For what purpose are goods intended for use by passengers and crew classified?
Which stipulation is made regarding the issuance of stores on board?
Which stipulation is made regarding the issuance of stores on board?
When an aircraft lands at multiple airports in the customs territory, what is allowed?
When an aircraft lands at multiple airports in the customs territory, what is allowed?
What conditions must be met for stores to be exempt from import duties and taxes when arriving in the customs territory?
What conditions must be met for stores to be exempt from import duties and taxes when arriving in the customs territory?
Which of the following stores are entitled to duty and tax exemption upon departing from the customs territory?
Which of the following stores are entitled to duty and tax exemption upon departing from the customs territory?
What is required of carriers to prevent unauthorized use of stores?
What is required of carriers to prevent unauthorized use of stores?
What might trigger the requirement to remove stores from the vessel, aircraft, or train during its stay in the customs territory?
What might trigger the requirement to remove stores from the vessel, aircraft, or train during its stay in the customs territory?
How should the information required for customs control be managed upon departure?
How should the information required for customs control be managed upon departure?
What options are available for stores on board upon arrival in the customs territory?
What options are available for stores on board upon arrival in the customs territory?
Which of the following best describes the Bureau's authority regarding stores?
Which of the following best describes the Bureau's authority regarding stores?
What factor is considered when determining the reasonable quantity of stores for operation and maintenance?
What factor is considered when determining the reasonable quantity of stores for operation and maintenance?
Study Notes
Customs Bonded Warehouses (CBW)
- Member: Entities accredited to operate in a CBW for the manufacture of products using imported duty and tax-free raw materials.
- Formula of Manufacture (FOM): Issued by the Industrial Technology Development Institute (ITDI) to the CBW operator and members. It determines the usage of raw materials and waste in the manufacturing process for export.
- Garments and Textile Industry Development Office (GTIDO): Government agency attached to the Department of Trade and Industry that assists in the manufacture of garments.
- Multinational Regional Bonded Warehouse: Industry-specific CBW authorized by the Board of Investments (BOT) to serve as a supply depot for spare parts, semi-finished products, and raw materials. They are also used for repackaging and labeling.
- Unauthorized Repacking: Fraudulent concealment, removal, or repacking of merchandise in a CBW.
- Security: Guarantees satisfaction of an obligation to the Bureau of Customs, like surety bonds or letters of credit.
- Semi-finished Products: Imported raw materials that have undergone initial processing for further manufacture into finished products for export.
- Sub-contractor: Person or company accredited by the Bureau, and the GTIDO for garments, to perform manufacturing operations or activities.
- Unauthorized Withdrawal: The withdrawal of any material or goods from a CBW without proper authorization, like a withdrawal or requisition slip.
- Wastage Valuation Data Base (WVDB): Information bank used by the Bureau to assess taxes and duties on allowable waste or by-products from imported materials.
Types of Customs Bonded Warehouses (CBW)
- International Customs Bonded Warehouse (ICBW)
- Established to import, receive, and store duty and tax-free raw materials (excluding garments and textiles) for manufacture into finished products.
- Garments and Textile Customs Bonded Warehouse: Jointly authorized by the Bureau and the GTIDO for importing, receiving, and storing raw materials and accessories, for garment or textile production.
- Customs Common Bonded Warehouse (CCBW): Authorized by the Bureau (or jointly with the GTIDO for garments) to import, receive, and store raw materials for manufacture. The goods are then exported after processing. The Bureau sets guidelines and parameters for end-user/clients (like international aviation) who use CCBWs.
- Non-manufacturing Customs Bonded Warehouse (NCBW): Goods stored here are duty and tax-free, but intended for eventual withdrawal for domestic consumption. The goods are only withdrawn after payment of taxes, duties, and other charges.
Stores for Consumption
- Stores for Consumption: Goods intended for passengers and crew on board vessels, aircraft, or trains, including goods necessary for their operation and maintenance.
- Stores to be Taken Away: Goods for sale to passengers and crew, with the intention of being landed.
- Exemption from Duties and Taxes: Stores carried on a vessel, aircraft, or train arriving in the customs territory are exempt from import duties and taxes, provided they remain on board.
- Stores for Vessels, Aircrafts or Trains departing for a foreign destination
- Are exempt from duties and taxes, including stores for consumption and operation and maintenance. The Bureau determines the reasonable quantity of stores necessary.
- Upon arrival in the customs territory, stores on board:
- Must be cleared for consumption or placed under another customs procedure. Alternatively, subject to prior Bureau authorization, they can be transferred to another vessel, aircraft, or train assigned to an international route.
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Description
Explore the essential concepts surrounding Customs Bonded Warehouses (CBW) including the role of accredited members, the importance of the Formula of Manufacture (FOM), and the functions of agencies like the Garments and Textile Industry Development Office. Understand the implications of unauthorized repacking and the operations of multinational bonded warehouses.
