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?

They require necessary clearances and licenses prior to importation. Signup and view all the answers

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

Drugs intended for unlawful abortion Signup and view all the answers

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

The Freight On Board (FOB) or Free Carrier (FCA) value Signup and view all the answers

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

Regulated Goods Signup and view all the answers

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

Generic drugs under regulatory scrutiny Signup and view all the answers

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

Pre-clearance and other expedited measures are suspended. Signup and view all the answers

Which of the following is classified as a technical problem?

Payment System is offline. Signup and view all the answers

What must the document processor verify about the CIFCM?

It includes both correspondence and documents. Signup and view all the answers

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

It will be segregated for separate filing. Signup and view all the answers

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

The approved amendment of the CIFCM. Signup and view all the answers

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

Misinformation about the ownership of goods. Signup and view all the answers

What does CIFCM stand for?

Correspondence and Documents for Customs Management Signup and view all the answers

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

The customs appraiser. Signup and view all the answers

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

Open the sealed green courier bag in the presence of the AECO representative. Signup and view all the answers

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

Open the bag and segregate the tagged Correspondence or Document for inspection. Signup and view all the answers

What occurs if the physical examination reveals no issues?

Matching of the actual number in the green courier bag against the CIFCM is performed. Signup and view all the answers

What must happen after the examiner completes the matching process?

The customs appraiser approves the clearance and release. Signup and view all the answers

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

Segregate the Correspondence or Document and amend the CIFCM. Signup and view all the answers

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

One CIFCM for cleared items and another for segregated shipments is required. Signup and view all the answers

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

24 hours. Signup and view all the answers

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

Conduct further examination, inventory, and prepare a report. Signup and view all the answers

Which of the following statements accurately defines Free Zones?

They are special economic zones registered with the Philippine Economic Zone Authority. Signup and view all the answers

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

Segregate the shipment and amend the CIFCM. Signup and view all the answers

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

Php50,000.00 Signup and view all the answers

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

Free Carrier (FCA) Signup and view all the answers

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

Two CIFCMs: one for each shipment category. Signup and view all the answers

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

24 hours from application. 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?

Free On-Board (FOB) Signup and view all the answers

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

Submission of e-CIFCM two hours prior to departure. Signup and view all the answers

What value range characterizes Low-Value, Dutiable Shipments?

Php10,001.00 to Php50,000.00 Signup and view all the answers

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

Batanes Freeport Zone Signup and view all the answers

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

Box 1: Model of Declaration Signup and view all the answers

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

The shipment may not be processed for clearance. 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?

International Commercial Terms (Incoterms) Signup and view all the answers

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

Republic Act No. 7916 Signup and view all the answers

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

Individual Air Waybill Signup and view all the answers

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

They may continue processing and release. Signup and view all the answers

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

Between P10,000.00 and P50,000.00 Signup and view all the answers

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

C3 for credit transfer Signup and view all the answers

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

It is assessed by the system. Signup and view all the answers

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

Submission of required permits, licenses, or clearances. Signup and view all the answers

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

Red Signup and view all the answers

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

Findings and comments Signup and view all the answers

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

When seeking a tax exemption Signup and view all the answers

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

Six hours Signup and view all the answers

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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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.