Import Regulations and Prohibited Goods Quiz
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Questions and Answers

What is the maximum value for goods to be classified as Low-Value, Non-Dutiable?

  • Php20,000.00
  • Php5,000.00
  • Php10,000.00 (correct)
  • Php15,000.00

Which of the following goods is considered prohibited?

  • Written goods inciting rebellion against the government (correct)
  • Generic household items
  • Standard food products
  • Goods containing advertisements for legal drugs

Which of the following items is NOT classified as a Package?

  • Box
  • Envelope
  • Contents of a consignment (correct)
  • Carton

Which of the following is true about Regulated Goods?

<p>They require necessary clearances and licenses prior to importation. (A)</p> Signup and view all the answers

Which of these items would be prohibited under the definition provided?

<p>Drugs intended for unlawful abortion (D)</p> Signup and view all the answers

What defines the value threshold for Low-Value, Non-Dutiable goods?

<p>The Freight On Board (FOB) or Free Carrier (FCA) value (C)</p> Signup and view all the answers

What type of goods requires clearances before importation but may allow submission of requirements post-arrival?

<p>Regulated Goods (B)</p> Signup and view all the answers

Which of the following goods can be imported under the condition of meeting legal standards?

<p>Generic drugs under regulatory scrutiny (B)</p> Signup and view all the answers

What happens to shipments during manual processing due to technical problems?

<p>Pre-clearance and other expedited measures are suspended. (D)</p> Signup and view all the answers

Which of the following is classified as a technical problem?

<p>Payment System is offline. (A)</p> Signup and view all the answers

What must the document processor verify about the CIFCM?

<p>It includes both correspondence and documents. (C)</p> Signup and view all the answers

What should occur if the CIFCM includes non-correspondence items?

<p>It will be segregated for separate filing. (B)</p> Signup and view all the answers

What is required for a customs examiner to proceed with clearance?

<p>The approved amendment of the CIFCM. (D)</p> Signup and view all the answers

Which of the following is a non-technical problem related to air shipments?

<p>Misinformation about the ownership of goods. (A)</p> Signup and view all the answers

What does CIFCM stand for?

<p>Correspondence and Documents for Customs Management (A)</p> Signup and view all the answers

Who approves the amendment of the CIFCM based on the recommendation of the customs examiner?

<p>The customs appraiser. (B)</p> Signup and view all the answers

What must the examiner do if the result of non-intrusive scanning is negative for a suspicious object?

<p>Open the sealed green courier bag in the presence of the AECO representative. (B)</p> Signup and view all the answers

If a suspicious object is detected, what is the next step according to the protocol?

<p>Open the bag and segregate the tagged Correspondence or Document for inspection. (B)</p> Signup and view all the answers

What occurs if the physical examination reveals no issues?

<p>Matching of the actual number in the green courier bag against the CIFCM is performed. (A)</p> Signup and view all the answers

What must happen after the examiner completes the matching process?

<p>The customs appraiser approves the clearance and release. (C)</p> Signup and view all the answers

When a physical examination is positive, what action is required regarding the CIFCM?

<p>Segregate the Correspondence or Document and amend the CIFCM. (B)</p> Signup and view all the answers

How should the amendment of the CIFCM be processed if there are segregated shipments?

<p>One CIFCM for cleared items and another for segregated shipments is required. (A)</p> Signup and view all the answers

What is the maximum timeframe for the Bureau to process and approve an amendment application?

<p>24 hours. (C)</p> Signup and view all the answers

What procedures must the examiner and representatives follow after completing the evaluation?

<p>Conduct further examination, inventory, and prepare a report. (B)</p> Signup and view all the answers

Which of the following statements accurately defines Free Zones?

<p>They are special economic zones registered with the Philippine Economic Zone Authority. (A)</p> Signup and view all the answers

What should the customs examiner do if the physical examination result is positive?

<p>Segregate the shipment and amend the CIFCM. (C)</p> Signup and view all the answers

What is the minimum value for goods to be classified as High-Value Shipments?

<p>Php50,000.00 (D)</p> Signup and view all the answers

Which term describes the seller's responsibility in delivering goods to the carrier or buyer's nominated person?

<p>Free Carrier (FCA) (B)</p> Signup and view all the answers

How many CIFCMs must be processed for segregated and cleared shipments?

<p>Two CIFCMs: one for each shipment category. (A)</p> Signup and view all the answers

What is the time frame for the Bureau to process and approve amendments to the CIFCM?

<p>24 hours from application. (C)</p> Signup and view all the answers

Under which international commercial term does the risk pass to the buyer when goods are on board the vessel?

<p>Free On-Board (FOB) (B)</p> Signup and view all the answers

What is required for pre-clearance of shipments under the informal entry process?

<p>Submission of e-CIFCM two hours prior to departure. (A)</p> Signup and view all the answers

What value range characterizes Low-Value, Dutiable Shipments?

<p>Php10,001.00 to Php50,000.00 (C)</p> Signup and view all the answers

Which of the following is NOT one of the recognized Free Zones mentioned?

<p>Batanes Freeport Zone (C)</p> Signup and view all the answers

Which Box in the Single Administrative Document (SAD) denotes the Model of Declaration for informal entries?

<p>Box 1: Model of Declaration (D)</p> Signup and view all the answers

What happens if the AECO does not submit the e-CIFCM on time for informal entry?

<p>The shipment may not be processed for clearance. (C)</p> Signup and view all the answers

Which of the following terms best describes the responsibility of sellers and buyers in cargo shipment as per the internationally recognized rules?

<p>International Commercial Terms (Incoterms) (B)</p> Signup and view all the answers

Which law governs the establishment and operation of Free Zones in the Philippines?

<p>Republic Act No. 7916 (C)</p> Signup and view all the answers

What document must be used for filing the goods declaration for released packages?

<p>Individual Air Waybill (A)</p> Signup and view all the answers

What should be done with shipments that pass the physical examination?

<p>They may continue processing and release. (C)</p> Signup and view all the answers

What is the required Customs Value for express shipment to be applicable?

<p>Between P10,000.00 and P50,000.00 (B)</p> Signup and view all the answers

Which payment option is NOT valid for Financial and Banking Data (Box 28)?

<p>C3 for credit transfer (D)</p> Signup and view all the answers

If an examiner finds no negative findings, what happens to the Goods Declaration after six hours?

<p>It is assessed by the system. (D)</p> Signup and view all the answers

What course of action should be taken if the Goods Declaration is re-routed to Yellow?

<p>Submission of required permits, licenses, or clearances. (A)</p> Signup and view all the answers

What color indicates a need for physical examination based on the examiner's findings?

<p>Red (C)</p> Signup and view all the answers

What must the appraiser provide back to the examiner after reviewing the Goods Declaration?

<p>Findings and comments (B)</p> Signup and view all the answers

In what circumstance can the extended procedure code be entered as 000?

<p>When seeking a tax exemption (B)</p> Signup and view all the answers

What is the maximum time the examiner has to review the Goods Declaration?

<p>Six hours (B)</p> Signup and view all the answers

Flashcards

High-Value Shipments

Goods with a value of Php50,000 or more.

Low-Value, Dutiable Shipments

Commercial goods valued between Php10,000 and Php50,000.

Free Carrier (FCA)

Seller delivers goods to a carrier at a specified location.

Free On-Board (FOB)

Seller delivers goods onboard a vessel at a named port.

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International Commercial Terms (Incoterms)

Set of rules defining seller/buyer responsibilities in international trade.

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Free Zones (Special Economic Zones)

Designated economic zones managed by PEZA, in the Philippines.

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FOB Value

Value of goods at the port of shipment.

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FCA Value

Value of goods at the named location.

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Non-Intrusive Scanning

All shipments must undergo a non-intrusive scan before clearance. This involves analyzing the shipment without physically opening it.

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Regulated, Restricted, Prohibited Goods

These goods have special rules for import/export due to safety, security, or other regulations.

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Technical Problems (Shipment Processing)

Problems that prevent automated processing of shipments due to computer system issues.

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Non-Technical Problems (Shipment Processing)

Problems that prevent automated processing of shipments due to errors in the shipping information or location of the goods.

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CIFCM (Correspondence and Documents)

A document containing details of goods declared as correspondence and documents.

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Document Processor's Role

Reviews the CIFCM to ensure it only contains correspondence and documents.

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Segregation of Non-Correspondence Items

Items that are not correspondence, documents, or carrier media are separated for separate processing.

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Amendment Approval Process

The CIFCM is amended by the AECO and approved by the customs appraiser after non-intrusive scanning and recommendation by the examiner.

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Low-Value, Non-Dutiable Goods

Goods with a value of Php10,000 or less, not subject to import taxes or duties.

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Package (in Shipping)

A sealed container, like a box, carton, or envelope, used to hold goods for shipment or transport.

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Prohibited Goods

Goods that are illegal to import or export. Examples include items related to sedition, harmful substances, or counterfeit products.

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What are some examples of prohibited goods?

Prohibited goods include: items inciting rebellion, illegal abortion materials, obscene content, goods with false metal purity markings, adulterated food/drugs, counterfeit goods, and other items specifically prohibited by law.

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Regulated Goods

Goods that require special permits, licenses, or clearances for import or export.

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What are some things required for importing regulated goods?

For importing regulated goods, you often need clearances, licenses, and other documents. These requirements may need to be submitted before or after the goods arrive in the country.

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CIFCM Matching

Verifying that the number of items in the green courier bag matches the count listed in the CIFCM (Consolidated Import and Export Freight Clearance Manifest).

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Suspicious Object

An item that raises concerns for the customs examiner, potentially indicating illegal or prohibited goods.

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Physical Examination

A detailed inspection of a package or its contents by a customs examiner.

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Segregation

Separating suspicious items or documents for further examination.

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CIFCM Amendment

Correcting the CIFCM when the physical examination reveals discrepancies or errors.

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Customs Appraiser

A customs officer responsible for evaluating the value of goods for import or export purposes.

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Goods Declaration

A document that provides information about the goods being imported or exported, used for customs clearance.

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Automated Tally System

A computer system that helps customs officials quickly count and track items in a shipment.

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Segregated Shipment

A shipment that is separated from the rest because of discrepancies found during physical examination. This could be due to incorrect documentation, missing items, or other issues.

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What happens when the physical examination is positive?

The customs examiner will separate the problematic shipment and return the detailed CIFCM to the AECO for amendment. The cleared shipments will continue to be processed while awaiting the revised CIFCM.

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Pre-clearance for Low-Value Shipments

The process of reviewing documents and calculating duties before the low-value shipment arrives. This allows for faster clearance once the shipment reaches the destination.

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Single Administrative Document (SAD)

The form used to submit goods declarations for low-value shipments. It contains information about the shipment and the importer.

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Model of Declaration (IES)

The specific form used when submitting a goods declaration for low-value shipments through electronic means. This applies for shipments not yet handed to the ultimate consignee.

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What happens if documents are turned over to the consignee?

The consignee, the ultimate receiver of the goods, uses form IE4 to submit the goods declaration instead of IES.

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Why is pre-clearance important for low-value shipments?

Pre-clearance helps expedite the processing of low-value shipments by allowing for the calculation of taxes and duties beforehand, minimizing delays at the airport.

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Express Shipment Eligibility

Express shipment is NOT available for goods valued between P10,000 and P50,000.

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PASS5 Payment Options

For goods valued between P10,000 and P50,000, payment options include: 01 (basic) or A1 (letter of credit) through PASS5, B0 (pre-payment) for AECO, or B9 (cash through in-house bank or BOC cashier).

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Informal Entry Commercial Goods

The Procedure Code 4500 applies to goods valued between P10,000 and P50,000 and classified as 'Informal Entry Commercial Goods.'

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Goods Declaration Validation

E2M system validates and registers the Goods Declaration and applies risk management based on its contents.

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Examiner and Appraiser Review

The examiner and appraiser have six hours to check the Goods Declaration for any findings or discrepancies.

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Automated Assessment

If the Goods Declaration is approved within six hours, the system automatically assesses it.

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Yellow Selectivity

Yellow selectivity means the Goods Declaration requires additional permits or licenses from regulatory agencies.

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Red Selectivity

Red selectivity means a physical inspection of the goods is required based on the examiner's or appraiser's findings.

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Study Notes

Customs Memorandum Order (CMO) No. 09-2021

  • Aims to provide guidelines for the implementation of Customs Administrative Order (CAO) No. 05-2020 on customs clearance procedures for express shipments.
  • Outlines objectives for accreditation of Air Express Cargo Operators (AECOs) and clearance of express shipments.
  • Includes procedures for providing a uniform application of rules and regulations for express shipments.
  • Implements methodology for risk-based control procedures, focusing on facilitation for low-risk shipments and control for high-risk ones.

Definitions

  • Air Express Cargo Operator (AECO): A company arranging fast transport and delivery of express shipments.
  • Air Waybill (AWB): A transport document for airfreight, detailing the recipient of the bill. Subdivided into Master Air Waybill (MAWB) and House Air Waybill (HAWB).
  • Bureau: The Bureau of Customs.
  • Cargo Manifest: A detailed list of cargo, with commercial details. Subdivided into Inward Foreign Cargo Manifest (IFCM) and Consolidated Inward Foreign Cargo Manifest (CIFCM).
  • Outward Foreign Cargo Manifest (OFCM): A list of House Airway Bills and/or Master Airway Bills, containing information about a transshipment cargo departing on a flight (electronic format is e-OFCM).
  • Transshipment Foreign Cargo Manifest (TFCM): Cargo manifest of shipments intended for temporary unloading in the Philippines, subject to re-exportation to other countries (electronic format is e-TFCM).
  • Clearance: Completing customs and other government formalities for import or export.
  • Admission: Bringing imported goods directly or through transit to a Free Zone,
  • Consumption: Entering goods for domestic or local use.
  • Transit: Goods transported under customs control from one customs office to another, or a free zone.
  • Transshipment: Transferring goods under customs control from one mode of transport to another.
  • Warehousing: Entering and storing goods under security in a Customs Bonded Warehouse (CBW) .
  • De Minimis Value: The value of goods for which no duty or tax is collected.
  • Express Shipments: Time-sensitive goods usually shipped under a door-to-door service arrangement, with guaranteed delivery.
  • Free Zones: Special economic zones with registered companies. Examples like Clark Freeport Zone, Clark Special Economic Zone, and Subic Bay Freeport Zone.
  • High-Value Shipments: Commercial shipments with an FOB or FCA value exceeding PHP50,000.00.
  • Low-Value, Dutiable Shipments: Commercial shipments with an FOB or FCA value between PHP10,000.00 and PHP50,000.00.
  • Low-Value, Non-Dutiable Shipments: Commercial shipments with an FOB or FCA value of PHP10,000.00 or less.
  • Package: Container holding cargo to be transported.
  • Prohibited Goods: Goods whose import or export is prohibited by law or regulation.
  • Regulated Goods: Goods whose import or export is subject to specific regulations.
  • Restricted Goods: Goods whose import or export is restricted, and allowed only when specifically authorized by law or regulation.

Objectives

  • Guidelines for AECO accreditation
  • Guidelines for express shipment clearance
  • Uniform application of all rules and regulations for express shipments
  • Facilitation of low-risk shipments and control of high-risk ones
  • Defining duties and responsibilities for personnel

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Related Documents

BoC-Customs-Memorandum-Order-No-09-2021 PDF

Description

Test your knowledge on import regulations, focusing on low-value, non-dutiable goods and prohibited items. This quiz also covers what defines regulated and package goods in the context of customs and importation. Challenge yourself to see how well you understand the classifications and requirements for various imported goods.

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