Generalized System of Preference (GSP) Form A
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Questions and Answers

What is the highest amount of privilege that can be availed by a returning resident?

  • PhP150,000.00
  • PhP250,000.00
  • PhP350,000.00 (correct)
  • PhP500,000.00

    • How long must a returning resident have stayed abroad to be eligible for PhP250,000.00 privilege?

  • At least 10 years
  • At least 5 years (correct)
  • More than 10 years
  • Less than 5 years

    • What is the privilege amount for a returning resident who has stayed abroad for less than 5 years?

  • PhP250,000.00
  • PhP350,000.00
  • PhP50,000.00
  • PhP150,000.00 (correct)

    • What is the time period during which a returning resident cannot avail of the privilege again?

    <p>10 years prior to arrival</p> Signup and view all the answers

    Who is eligible for the PhP350,000.00 privilege?

    <p>Those who have stayed abroad for at least 10 years</p> Signup and view all the answers

    What is the purpose of the privilege for returning residents?

    <p>To encourage returning residents to settle back in the Philippines</p> Signup and view all the answers

    What is the primary purpose of the Generalized System of Preference (GSP) Form A?

    <p>To exempt certain importations from taxes and duties</p> Signup and view all the answers

    What type of products are exempt from taxes and duties under the GSP?

    <p>Aquatic products</p> Signup and view all the answers

    What is the condition for personal and household effects to be exempt from taxes and duties?

    <p>They must not be in commercial quantities</p> Signup and view all the answers

    Who is considered a 'returning resident'?

    <p>Nationals who have stayed in a foreign country for at least 6 months</p> Signup and view all the answers

    What type of equipment is exempt from taxes and duties?

    <p>Equipment for use in the salvage of vessels or aircraft</p> Signup and view all the answers

    What is the condition for medals and badges to be exempt from taxes and duties?

    <p>They must be bestowed as trophies or prizes</p> Signup and view all the answers

    What type of goods can be brought into the Philippines for repair, processing, or reconditioning?

    <p>Goods to be reexported upon completion of the repair, processing, or reconditioning</p> Signup and view all the answers

    What is the requirement for cost of repairs to be exempt from taxes and duties?

    <p>The cost of repairs excludes the value of the goods used</p> Signup and view all the answers

    What is the maximum value of personal and household effects that can be brought in duty-free?

    <p>$150,000</p> Signup and view all the answers

    What is the time limit for bringing in duty-free home appliances and other durables?

    <p>60 days</p> Signup and view all the answers

    What type of containers are exempt from duties and taxes?

    <p>All of the above</p> Signup and view all the answers

    What is the purpose of the balikbayan boxes?

    <p>For personal and household effects</p> Signup and view all the answers

    What type of goods can be imported duty-free for the use of foreign embassies?

    <p>Official use</p> Signup and view all the answers

    What is required for imported goods donated to the Philippine government?

    <p>All of the above</p> Signup and view all the answers

    What type of goods can be imported duty-free for the use of scheduled airlines?

    <p>All of the above</p> Signup and view all the answers

    What is the requirement for importing trailer chassis?

    <p>Posting a security of 100% of the duties</p> Signup and view all the answers

    What type of books are exempt from duties and taxes?

    <p>All of the above</p> Signup and view all the answers

    What can be imported duty-free for repair or processing?

    <p>Goods exported from the Philippines</p> Signup and view all the answers

    What is the purpose of a dumping duty?

    <p>To raise the price of imported products to a level where the domestic industry can compete</p> Signup and view all the answers

    What is the form of a provisional countervailing measure?

    <p>Security by cash deposit or bond</p> Signup and view all the answers

    What is the effect of a countervailing duty?

    <p>To raise the price of imported products to a level where the domestic industry can compete</p> Signup and view all the answers

    What is the purpose of a safeguard measure?

    <p>To protect domestic industries from surge of unexpected and unforeseen increased imports</p> Signup and view all the answers

    What is the form of a provisional safeguard measure?

    <p>Tariff increase</p> Signup and view all the answers

    What is the purpose of a countervailing duty?

    <p>To raise the price of imported products to a level where the domestic industry can compete</p> Signup and view all the answers

    What is the difference between the normal value and the export price of the protested article?

    <p>The estimated difference between the normal value and the export price of the protested article</p> Signup and view all the answers

    What is the purpose of a dumping relief measure?

    <p>To raise the price of imported products to a level where the domestic industry can compete</p> Signup and view all the answers

    What is the main purpose of applying safeguard measures?

    <p>To prevent serious injury to domestic producers</p> Signup and view all the answers

    What is the primary goal of setting the cash bond level?

    <p>To prevent serious injury to domestic producers</p> Signup and view all the answers

    What form do definitive safeguard measures generally take?

    <p>An increase in tariffs or imposition of tariffs</p> Signup and view all the answers

    What is the result of increased import competition?

    <p>Serious injury to domestic producers</p> Signup and view all the answers

    What is the purpose of quantitative restrictions?

    <p>To limit the quantity of imported products</p> Signup and view all the answers

    What is the basis for applying definitive safeguard measures?

    <p>Global basis</p> Signup and view all the answers

    What is the Minimum Access Volume related to?

    <p>Tariff rate quotas</p> Signup and view all the answers

    What is recommended to address the underlying cause of the increase in imports?

    <p>Initiation of international negotiations</p> Signup and view all the answers

    What is the primary purpose of a post-clearance audit?

    <p>To ascertain the correctness of goods declarations and determine importer's liability</p> Signup and view all the answers

    What is the applicable penalty for negligence in duties and taxes paid for imported goods?

    <p>Administrative fine of 125% of the revenue loss</p> Signup and view all the answers

    What is the applicable penalty for fraud in duties and taxes paid for imported goods?

    <p>Administrative fine equivalent to six times the revenue loss and/or imprisonment</p> Signup and view all the answers

    What can be imposed under the CMTA aside from the administrative fine?

    <p>Interest of 20% per annum</p> Signup and view all the answers

    What is the purpose of a post-clearance audit investigation?

    <p>To verify the correctness of goods declarations</p> Signup and view all the answers

    Who is liable for duties, taxes and other charges during a post-clearance audit?

    <p>The importer</p> Signup and view all the answers

    What is the basis for imposing penalties during a post-clearance audit?

    <p>Degree of culpability</p> Signup and view all the answers

    What is the purpose of imposing penalties during a post-clearance audit?

    <p>To deter non-compliance with import regulations</p> Signup and view all the answers

    What is the time frame for counting interest from the receipt of a demand letter by an importer arising from an audit?

    <p>15 days</p> Signup and view all the answers

    What is 'negligence' in the context of import regulations?

    <p>Failure to exercise reasonable care and competence</p> Signup and view all the answers

    What is an example of 'fraud' in import regulations?

    <p>Submission of false documents knowingly and voluntarily</p> Signup and view all the answers

    What is the purpose of an audit in import regulations?

    <p>To determine the accuracy of statements made</p> Signup and view all the answers

    What is the consequence of non-compliance with import regulations?

    <p>Both fine or penalty and deficiency duties and taxes</p> Signup and view all the answers

    Who conducts findings on deficiency duties, taxes, and other charges as well as fine or penalty?

    <p>MATA-PEREZ TAMAYO &amp; FRANCISCO</p> Signup and view all the answers

    What is the range of regular customs duty rates under Section 1610 CMTA?

    <p>0% to 60%</p> Signup and view all the answers

    What is referred to as a condition that creates a probable cause to make the Commissioner of Customs believe the invoice value is inaccurate?

    <p>Reasonable doubt</p> Signup and view all the answers

    Which of the following Free Trade Agreements offers preferential duty rates?

    <p>ASEAN - Australia and New Zealand</p> Signup and view all the answers

    What is the purpose of the Form D under the ASEAN Trade In Goods Agreement?

    <p>To claim preferential duty rates</p> Signup and view all the answers

    How many ASEAN member countries are part of the ASEAN Trade In Goods Agreement?

    <p>10</p> Signup and view all the answers

    Which of the following is NOT a type of free trade agreement that offers preferential duty rates?

    <p>ASEAN - USA</p> Signup and view all the answers

    What is the basis for the Commissioner of Customs to suspect that the invoice value of imported goods is inaccurate?

    <p>Reasonable doubt</p> Signup and view all the answers

    Which of the following forms is used to claim preferential duty rates under the Philippine - Japan Economic Partnership Agreement?

    <p>Form PJ</p> Signup and view all the answers

    Study Notes

    Generalized System of Preference (GSP) - Form A

    • Conditionally free importations of aquatic products, equipment for salvage of vessels or aircraft, cost of repairs, and more
    • Goods brought into the Philippines for repair, processing, or reconditioning to be reexported upon completion
    • Medals, badges, cups, and other small goods bestowed as trophies or prizes
    • Personal and household effects belonging to returning residents who have stayed in a foreign country for at least 6 months

    Returning Residents

    • Returning residents are nationals who have stayed in a foreign country for at least 6 months
    • Privileges include tax and duty-free importation of personal and household effects, limited to FCA or FOB value of:
      • Php 350,000 for those who have stayed in a foreign country for at least 10 years
      • Php 250,000 for those who have stayed in a foreign country for 5-10 years
      • Php 150,000 for those who have stayed in a foreign country for less than 5 years
    • Returning OFWs can bring in, tax and duty-free, home appliances and other durables, limited to one of every kind once in a given calendar year

    Other Exempt Importations

    • Residents of the Philippines, OFWs, or other Filipinos while residing abroad or upon their return to the Philippines can bring in or send balikbayan boxes, exempt from duties and taxes
    • Wearing apparel and personal effects
    • Professional instruments and implements, tools of trade, occupation, or employment
    • Goods used exclusively for public entertainment, display in public expositions, or exhibition or competition for prizes
    • Imported goods donated to or for the account of the Philippine government or any duly registered relief organization
    • Containers, holders, and other similar receptacles made of any material
    • Supplies necessary for the reasonable requirements of a vessel or aircraft in its voyage or flight outside the Philippines
    • Goods and salvage from vessels recovered
    • Coffins or urns containing human remains, bones, or ashes
    • Samples of the kind, in such quantity and dimension as to render them unsaleable or of no commercial value
    • Economic, technical, vocational, scientific, philosophical, historical, and cultural books or publications
    • Philippine goods previously exported from the Philippines and returned without having been advanced in value or improved in condition
    • Aircraft, equipment, and machinery spare parts, commissary, and catering supplies, aviation gas, fuel, and oil
    • Machineries, equipment, tools for production, plans to convert mineral ores into saleable form, spare parts, supplies, materials, accessories, explosives, chemicals, and transportation and communications facilities
    • Spare parts of vessels or aircraft of foreign registry engaged in foreign trade

    Dumping Relief Measures

    • Provisional dumping measure takes the form of a provisional duty or security by cash deposit or bond
    • Dumping duty raises the price of the imported product to a level at which the unfair advantage enjoyed by the exporter is eliminated

    Countervailing Relief Measures

    • Provisional countervailing measure takes the form of a security by cash deposit or bond
    • Countervailing duty raises the price of the imported product to a level at which the domestic industry can compete

    Safeguard Relief Measures

    • Provisional safeguard measure takes the form of a tariff increase, paid through a cash bond
    • Definitive safeguard measures are applied on a global basis and may take the form of an increase in tariffs, decrease in tariff-rate quotas, or quantitative restrictions

    Post Clearance Audit (PCA)

    • PCA covers the examination, verification, and investigation of records related to Goods declarations filed by an importer to ascertain their correctness and determine the liability of the importer for duties, taxes, and other charges, including fine or penalty.

    Penalties

    • Penalties are imposed on importers found to have incurred deficiencies in duties and taxes paid for imported goods after a PCA audit.
    • There are two degrees of culpability:
      • Negligence: applicable penalty is an administrative fine of 125% of the revenue loss.
      • Fraud: applicable penalty is an administrative fine equivalent to six (6) times the revenue loss and/or imprisonment of not less than two (2) years, but not more than eight (8) years.
    • Additional 20% interest (per annum) on deficiency duties, taxes, and other charges (plus fines and penalties, if any) can be imposed under the CMTA.

    Customs Duty Rates

    • Most Favored Nation (MFN) rates: regular rates range from 0% to 60% under Section 1610 CMTA.
    • Preferential duty rates are applicable under Free Trade Agreements (FTAs), including:
      • ASEAN Trade In Goods Agreement (ATIGA) - Form D.
      • ASEAN – China – Form E.
      • ASEAN – Korea – Form K.
      • ASEAN – Australia and New Zealand – Form AANZ.
      • ASEAN – Japan – Form AJ.
      • ASEAN – India – Form AI.
      • Philippine - Japan Economic Partnership Agreement (PJEPA) – Form PJ.

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    Description

    This quiz covers the Generalized System of Preference (GSP) Form A, including conditionally free and exempt importations.

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