Customs Facilities and Warehouses CAO Quiz

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Questions and Answers

According to this CAO, what is the purpose of establishing, operating, and controlling Customs Facilities and Warehouses (CFWs)?

  • To promote the growth of domestic industries only
  • To protect government revenues and prevent customs fraud (correct)
  • To increase the cost of imports
  • To facilitate the illegal movement of goods

What is the primary focus of Section 3 of this CAO?

  • Outlining procedures for customs inspections
  • Providing details on legal penalties for customs violations
  • Defining the rights and obligations of CFW operators. (correct)
  • Defining the responsibilities of importers

Who is responsible for issuing the Authority to Operate for Customs Bonded Warehouses (CFWs)?

  • Philippine Coast Guard (PCG)
  • Bureau of Customs (correct)
  • Local Government Units (LGUs)
  • Port Authorities

According to this CAO, which of the following is NOT considered an abandoned or overstaying good?

<p>Goods that have been marked within the prescribed period by the owner (D)</p> Signup and view all the answers

What happens to the Authority to Operate for a CFW in case of a merger, sale, or transfer?

<p>The new entity must apply for a new Authority. (D)</p> Signup and view all the answers

This CAO primarily utilizes the term 'CFW' throughout the document. What does 'CFW' stand for?

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

What is the role of the District Collector in relation to CFWs?

<p>Assign customs personnel to CFWs for supervision and control. (B)</p> Signup and view all the answers

Which of the following is NOT a purpose listed in this CAO regarding the management of Customs Facilities & Warehouses?

<p>To create a system to track and monitor the transportation of goods through customs (D)</p> Signup and view all the answers

What is the status of off-dock and off-terminal CFWs in relation to the port?

<p>They are considered extensions of the port. (D)</p> Signup and view all the answers

According to Section 1, This CAO applies to all types of Customs Facilities and Warehouses (CFWs) listed in the CMTA and those that may be created by whom?

<p>The Secretary of Finance, upon recommendation by the Commissioner of Customs (C)</p> Signup and view all the answers

What entities are consulted when creating or dissolving certain types of warehouses?

<p>National Economic and Development Authority (NEDA) and the Department of Trade and Industry (DTI) (B)</p> Signup and view all the answers

What is the impact of the general powers of the Local Government Units (LGUs), the Philippine Coast Guard (PCG) and law enforcement agencies on customs control?

<p>Customs control is exercised without prejudice to the general powers of LGUs, PCG and law enforcement agencies. (A)</p> Signup and view all the answers

This CAO is intended to implement specific sections of which law, mentioned as CMTA?

<p>Republic Act No. 10863, The Customs Modernization and Tariff Act (D)</p> Signup and view all the answers

Which of the following is NOT mentioned as a specific section of the CMTA implemented by this CAO?

<p>Section 808 (B)</p> Signup and view all the answers

Which of the following statements is TRUE about the registration of CFWs?

<p>Only CFWs granted with Authority to Operate are registered. (B)</p> Signup and view all the answers

What are the consequences of violating the rules and regulations governing the operation of CFWs?

<p>The operator faces fines and other sanctions. (D)</p> Signup and view all the answers

Who makes the final decision on whether to approve or deny an application to establish an off-dock or off-terminal CFW?

<p>Commissioner (A)</p> Signup and view all the answers

What steps are involved in evaluating an application for an off-dock or off-terminal CFW?

<p>Document review, physical inspection, and recommendation by the District Collector (C)</p> Signup and view all the answers

What is the maximum time allowed for the District Collector to recommend approval of an application after completing the document review and inspection?

<p>5 working days (B)</p> Signup and view all the answers

What happens if the Commissioner fails to act on an application within the prescribed 20-day timeframe?

<p>The application is automatically approved. (A)</p> Signup and view all the answers

What is the purpose of an applicant filing a Letter of Appeal to the District Collector?

<p>To request a review of an application that has been denied by the Commissioner. (D)</p> Signup and view all the answers

What are the grounds that the applicant must state in their Letter of Appeal?

<p>The details of why they were denied the application by the District Collector. (C)</p> Signup and view all the answers

What is the purpose of the acknowledgement receipt and official receipt for payment of fees?

<p>To grant the applicant the authority to operate an off-dock or off-terminal CFW. (A)</p> Signup and view all the answers

Which of the following is NOT a required document for the application process?

<p>Letter of Appeal (D)</p> Signup and view all the answers

What happens to the CFW when a decision to close it is made?

<p>The decision can be challenged by appealing to the Commissioner within ten days of receiving the decision. (A)</p> Signup and view all the answers

In what scenario would a CFW operator be required to post a security bond?

<p>When the CFW is involved in the transfer of goods including empty containers to an off-dock or off-terminal location. (D)</p> Signup and view all the answers

What is the purpose of the Transfer Note mentioned in the content?

<p>To provide detailed information about the origin and destination of goods transferred to an off-dock or off-terminal CFW. (D)</p> Signup and view all the answers

When is the CFW operator relieved of any financial responsibility for goods stored within the facility?

<p>None of the above, the operator remains liable for the goods until they have been officially disposed of. (D)</p> Signup and view all the answers

Which of the following is NOT a detail required to be included in the Transfer Note?

<p>The port of destination. (A)</p> Signup and view all the answers

What is the minimum amount of security that an off-dock or off-terminal CFW operator must post?

<p>The higher of the two options mentioned above. (C)</p> Signup and view all the answers

Who has the authority to approve the closure of a CFW?

<p>The District Collector. (D)</p> Signup and view all the answers

What is the maximum time provided for an appeal against the decision to close a CFW?

<p>Ten days from the date of notification. (D)</p> Signup and view all the answers

What is the primary action required from the District Collector for the renewal of an off-dock or off-terminal CFW's Authority to Operate?

<p>Initiate an inspection of the facility and request a Certificate of No Accountability from customs. (D)</p> Signup and view all the answers

In what scenario is the Authority to Operate deemed automatically extended?

<p>When the District Collector fails to renew the authority before it expires. (D)</p> Signup and view all the answers

What happens when an application for an extension or additional facilities is submitted for a CFW located outside the jurisdiction of the District Collector where the main facility is situated?

<p>The application is considered a new application, following the rules for establishing a new off-dock or off-terminal CFW. (A)</p> Signup and view all the answers

What is the role of the Bureau in relation to the rates charged by off-dock and off-terminal CFWs?

<p>The Bureau ensures that the rates comply with existing rules and regulations, but doesn't directly determine them. (A)</p> Signup and view all the answers

Which of the following is NOT a potential consequence of failing to submit required documentation for the renewal of the Authority to Operate for an off-dock or off-terminal CFW within the prescribed period?

<p>Issuing a notice to the Secretary of Finance for further investigation. (D)</p> Signup and view all the answers

Which of the following statements is TRUE regarding the effectivity of the renewed Authority to Operate for an off-dock or off-terminal CFW?

<p>The renewed authority is effective from the first day immediately after the expiration of the previous authority. (B)</p> Signup and view all the answers

What is the primary difference between an application for an extension of a CFW facility and an application for an additional facility?

<p>Both applications are treated the same, only the location of the new facilities differs. (C)</p> Signup and view all the answers

What is the main point of the document regarding the rates charged by off-dock and off-terminal CFWs?

<p>The rates are initially governed by existing rules and regulations, but are reviewed and adjusted by the Bureau within one year. (A)</p> Signup and view all the answers

Based on the information provided, what is the full form of 'CAO'?

<p>Customs Administration Order (D)</p> Signup and view all the answers

According to this CAO, what is the role of the Office of National Administrative Register (ONAR) of the UP Law center?

<p>To receive certified copies of the CAO (D)</p> Signup and view all the answers

Which of these CMOs specifically addresses the Rules and Regulations for the Establishment, Supervision and Control of Wharves, Container Yards, Container Freight Stations, Warehouses, Examination Areas and Other Facilities within the Customs Zone?

<p>CMO No. 30-2015 (A)</p> Signup and view all the answers

Which of the following is NOT mentioned as a relevant policy in relation to Customs Bonded Warehouses (CBW)?

<p>CMO No. 36-98. Monitoring Of Warehousing Operations (C)</p> Signup and view all the answers

What is the primary purpose of the Informational Section in this CAO document?

<p>To provide details about the history and background of the CAO (C)</p> Signup and view all the answers

Which of the following is NOT a relevant policy mentioned in the 'Related Policies' section of this CAO?

<p>Rules governing the Approval of Applications to Operate Off-Dock CY/CFS (ODCY/CFS) (D)</p> Signup and view all the answers

Which of these CMOs focuses on the addendum to the Revised Rules and Regulations for Off-Dock Container Yards and/or Container Freight Stations (OCC)?

<p>CMO No. 37-2015 (D)</p> Signup and view all the answers

Flashcards

Authority to Operate

A permit issued by the Bureau for Customs Facilities Warehouses (CFWs), outlining operator rights and requirements.

Non-transferability

The Authority to Operate for a CFW cannot be transferred to another entity without applying for a new one.

Registration of CFWs

CFWs granted Authority to Operate must be registered with the Bureau of Customs (BOC) profile system.

Creation of CFWs

The Secretary of Finance can establish new types of CFWs based on economic needs.

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Dissolution of CFWs

CFWs can be dissolved based on the recommendation of the Commissioner and other consultations.

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Customs Premises

Locations like ports and terminals under customs jurisdiction for monitoring and control.

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District Collector

The official responsible for overseeing customs operations at designated locations, including CFWs.

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Off-Dock and Off-Terminal CFWs

CFWs located away from the main port but still under customs supervision.

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Customs Administrative Order (CAO)

A directive for implementing customs facility guidelines under the CMTA.

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Customs Facilities and Warehouses (CFWs)

Structures for storage, supervision, and control of customs goods.

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Republic Act No. 10863

The law known as the Customs Modernization and Tariff Act (CMTA).

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Abandoned or Overstaying Goods

Goods that are left unclaimed or not processed as required by regulations.

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Expressly Abandoned Goods

Goods intentionally given up by the owner as per customs laws.

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Impliedly Abandoned Goods

Goods that are considered abandoned due to inaction by the owner.

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Permit to Operate

Approval granted to terminal operators to manage customs facilities.

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Customs Fraud Prevention

Measures to protect revenue and ensure legitimate customs operations.

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Evaluation of Documents

The process where the District Collector checks the completeness of application documents.

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Physical Inspection

A hands-on assessment and photographing of the premises by the District Collector.

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Recommendation Timeline

The District Collector must recommend application approval within 5 working days after inspections.

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Application Approval

The action taken by the Commissioner based on the District Collector's recommendation within 20 working days.

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Automatic Approval

If the Commissioner does not act within 20 days, the application is automatically approved if all requirements are met.

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Denial Notification

A letter sent to the applicant detailing reasons for denial if the District Collector rejects the application.

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Appeal Process

The applicant can appeal the denial by submitting a Letter of Appeal within 15 working days.

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Letter of Appeal

A formal request by the applicant to have the District Collector reconsider their denial.

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District Collector's Role

Responsible for inspecting off-dock CFW and renewing the Authority to Operate.

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Certificate of No Accountability

Document required from customs offices for Authority to Operate renewal.

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Automatic Extension

The Authority to Operate extends automatically if not renewed on time.

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Application for Extensions

File this with the District Collector for new or additional facilities.

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New Application Criteria

An extension outside jurisdiction is treated as a new application.

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Annual Supervision Fee

Fees imposed for supervising off-dock and off-terminal CFW operations.

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Fee Review Process

The Bureau reviews and recommends adjustments to rates charged by CFWs.

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Informational Section

Part of a document that provides information without legal obligation.

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Off-Dock Container Yards

Facilities for container storage outside customs zones, regulated by revised rules.

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Customs Bonded Warehouse (CBW)

A facility where imported goods can be stored without paying duties until they are released.

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CAO No. 5-96

Regulations on approving applications to operate Off-Dock CY/CFS.

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Tariff and Customs Code

Legal framework governing customs duties and regulations in the Philippines.

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Revised Rules and Regulations

Updated guidelines for customs procedures and facility operations.

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Authorization of CBWs

Process to allow operation of Customs Bonded Warehouses, involving licensing and oversight.

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Monitoring of Warehousing Operations

Oversight mechanisms to ensure compliance with customs regulations in warehousing.

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Closure of CFW

The formal ending of operations at a Customs Free Warehouse, requiring District Collector approval.

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Liability for duties

Operators remain liable for duties and taxes despite discontinuing warehouse use.

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Criminal liability

Operators cannot escape legal consequences for tariff violations, even during closure.

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Contract provisions

Closure of CFWs with government contracts must align with existing agreements and regulations.

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Security for transferred goods

Operational security for duties on lost or damaged goods must be posted by the CFW operator.

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Transfer Note

Document needed for transferring goods to off-terminal CFWs, detailing container and voyage information.

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Transfer Note details

Essential information in a Transfer Note includes container number, vessel name, and arrival date.

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Study Notes

Customs Administrative Order (CAO) No. 09-2019

  • This CAO establishes, maintains, and details operations of Customs Facilities and Warehouses (CFWs)
  • Implements sections of Republic Act No. 10863 (Customs Modernization and Tariff Act - CMTA)
  • Applies to all CFWs listed in the CMTA, including those created by the Secretary of Finance

Section 2: Objectives

  • Provide guidelines for CFW establishment, operation, supervision, and control to protect government revenue, prevent customs fraud, and secure imported goods
  • Provide guidelines for CFW operation by terminal facility operators (with port authority permits)
  • Provide a system for the temporary storage of exports/imports and documentation of abandoned, overstaying, or forfeited goods.
  • Define the rights and responsibilities of CFW operators
  • Develop and maintain a CFW management system utilizing ICT (Information and Communication Technology)

Section 3: Definitions

  • Abandoned or Overstaying Goods: Goods falling under circumstances like:

    • Failure to file goods declaration within the prescribed period
    • Failure to pay duties/taxes
    • Failure to fulfill clearance requirements within the prescribed period
    • Failure to claim duty-paid imported goods within the prescribed period
    • Failure to mark goods within the prescribed period
    • Imported goods exceeding the allowable temporary storage period due to customs enforcement (e.g., alerts, holds, seizures)

  • Authority to Operate: Permission from the Bureau allowing persons (natural or juridical) to establish and operate a CFW. This does not impact existing permits from other regulatory Agencies.

  • Certificate of Authority to Operate: Document issued by the Bureau to authorized CFW operators.

  • Certificate of Registration: Document issued by the Bureau for CFW terminal operators demonstrating compliance with CAO requirements

  • Customs Premises: Customs offices, facilities, warehouses, ports, airports, wharves, and other areas within customs districts under exclusive Bureau control

  • Customs Facilities and Warehouses (CFW): Facilities for the temporary storage of goods, authorized by the Bureau under CMTA Title VIII, Chapter 2. This includes container yards, container freight stations, temporary storage warehouses, etc.

  • Dangerous or Hazardous Goods: Substances, materials, and articles covered by the IMDG Code or defined by law requiring special handling, and storage

  • Designated Areas for Abandoned, Overstaying, and Forfeited Goods: Specific areas within CFWs for abandoned, overstaying, and confiscated goods.

  • Extension or Additional Facility: Separate CFW facility granted by the Bureau to an existing CFW operator to enhance capacity/efficiency.

  • Goods: Any articles, wares, merchandise subject to import/export.

  • Goods Declaration: Statement (per Bureau/agency procedures) that specifies import/export procedures for goods.

  • Importation: Act of bringing goods into Philippine territory—whether for consumption, warehousing, or admittance

  • Lodgement: Registration of goods declaration with the Bureau

  • Perishable Goods: Goods susceptible to rapid deterioration in storage.

  • Permit to Operate: Permission granted by port authorities allowing terminal facility operators to operate CFWs

  • Port Authorities: Agencies (e.g., PPA, SBMA, PIA, CPA) overseeing ports

  • Security: Guarantees satisfying an obligation—e.g., surety bond, cash bond, standby/irrevocable credit letter, or liability insurance

  • Transfer Note: Document accompanying imported goods transfer from terminal to CFW, acknowledging delivery and destined location

  • Unauthorized Removal or Delivery of Goods: Removal/transfer/disposal of goods held in CFWs without bureau permission.

  • Wharves: Structures alongside waterways (rivers, canals, etc.) for receiving/discharging cargo

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CAO No. 09-2019 Customs Facilities and Warehouses PDF

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