Republic Act No. 10863 Quiz

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Questions and Answers

What is the primary focus of actual importation?

The process of bringing goods into Philippine territory from a foreign territory (correct)

The entry of goods into a bonded warehouse

Goods shipped from one domestic location to another

Goods exported to foreign countries

Which of the following best describes 'clearance for home use' in the context of importation?

Goods designated specifically for export

Goods that are exempt from import duties

The temporary storage of goods in customs

The customs procedure that allows imported goods to enter free circulation after duties are paid (correct)

What is the main characteristic of warehousing as a type of importation?

It involves the importation of goods for resale in foreign markets

Goods are brought into the Philippines without any restrictions

Goods in a bonded warehouse are immediately cleared for domestic use

Imported goods are placed in a bonded warehouse under customs control (correct)

Constructive importation relates to which of the following?

Purchasing goods from free zones or bonded warehouses for domestic use Signup and view all the answers

In terms of customs jurisdiction, what defines 'Customs Territory'?

The area where customs laws of a Contracting Party are applicable Signup and view all the answers

How far does the contiguous zone extend from the territorial sea according to customs jurisdiction?

12 nautical miles Signup and view all the answers

What does the term 'goods in free circulation' imply?

Imported goods available for domestic sale without customs restrictions Signup and view all the answers

Which of the following is NOT a type of importation mentioned?

Exportation Signup and view all the answers

What major change does the Customs Modernization and Tariff Act (CMTA) aim to implement within the Bureau of Customs?

Focus on trade facilitation Signup and view all the answers

What is the definition of 'Customs' as per the Revised Kyoto Convention?

The Government service administering Customs law and collecting duties Signup and view all the answers

Which of the following is defined as a tax imposed on imported or exported goods?

Duties Signup and view all the answers

What type of penalties does the CMTA propose for violations of its provisions?

Heavier and more stringent penalties Signup and view all the answers

According to the CMTA, what is the purpose of full electronic processing of documents?

To streamline import and export processes Signup and view all the answers

What are the primary sources of the CMTA?

The Tariff and Customs Code of the Philippines and the Customs laws enacted Signup and view all the answers

How does the CMTA align with the Philippines' commitments under the Revised Kyoto Convention?

By simplifying trade procedures for better international trade Signup and view all the answers

What aspect of trade does the CMTA focus less on compared to prior regulations?

Revenue generation Signup and view all the answers

What does Customs Territory refer to?

Areas in the Philippines where customs and tariff laws may be enforced Signup and view all the answers

What does Exportation specifically address?

The act, documentation, and process of bringing goods out of Philippine territory Signup and view all the answers

What is included in the definition of Entry?

The act and documentation of bringing imported goods into the customs territory Signup and view all the answers

What is the purpose of the Export Declaration?

To indicate the procedure for taking out exported goods Signup and view all the answers

What does the Flexible Clause allow the President to do?

Change protective tariff rates and impose import quotas based on recommendations Signup and view all the answers

Who is considered a Foreign Exporter?

A person whose name appears on documentation attesting to the export of products to the Philippines Signup and view all the answers

What distinguishes a Free Zone?

It is a special economic zone registered with the Philippine Economic Zone Authority Signup and view all the answers

Which of the following statements about customs regulation is accurate?

Import quotas can be established for any commodity as necessary Signup and view all the answers

What triggers the beginning of importation in the Philippines?

The carrying vessel or aircraft entering Philippine territory Signup and view all the answers

What is required for importation to be deemed terminated?

All duties, taxes, and charges must be paid or secured Signup and view all the answers

Who is classified as a third party in relation to the Bureau?

A person acting on behalf of another regarding customs Signup and view all the answers

What does the term 'importation' refer to?

Bringing goods from a foreign territory into Philippine territory Signup and view all the answers

When does the jurisdiction of the Bureau of Customs over imported goods begin?

After importation has begun Signup and view all the answers

What is the definition of a perishable good?

Goods that depreciate easily while stored or cannot be kept without significant expense. Signup and view all the answers

Which of the following describes a Port of Entry?

A domestic port open to both domestic and international trade. Signup and view all the answers

Which of the following defines the completion of importation?

The taxable commodity is brought within the limits of the port of entry Signup and view all the answers

What does the term 'Port of Discharge' refer to?

A place where a vessel unloads its shipments. Signup and view all the answers

What is the exception to the definition of importation regarding transit cargo?

Transit cargo entered for immediate exportation Signup and view all the answers

What is true about goods deemed free of duties and charges?

They must legally leave the Bureau’s jurisdiction Signup and view all the answers

Which of the following best describes re-exportation?

Exportation of goods that have been imported. Signup and view all the answers

What does the term 'Release of Goods' entail?

The action by the Bureau to allow clearance of goods to the concerned party. Signup and view all the answers

What does 'Refund' imply in this context?

The partial or total return of duties and taxes paid on goods. Signup and view all the answers

In relation to customs, what is meant by 'Security'?

Any form of guaranty ensuring the satisfaction of an obligation to the Bureau. Signup and view all the answers

Which of the following accurately defines smuggling?

The act of fraudulently importing goods into a country. Signup and view all the answers

Study Notes

Republic Act No. 10863 (CMTA)

Signed into law on May 30, 2016, by former President Benigno S. Aquino III.
Aims to modernize the Bureau of Customs, shifting its focus from revenue generation to trade facilitation.
Seeks to achieve global standards by fully electronically processing documents and streamlining import/export examination and valuation.
Enacts heavier penalties for violations.

Customs Definitions (per RKC)

Customs: The government service administering customs laws, collecting duties and taxes, and applying laws/regulations regarding goods import, export, movement, and storage.
Customs Law: Statutory and regulatory provisions related to goods import, export, movement, or storage, specifically charged to Customs, including Customs-made regulations.

Tariff Definition

A tax imposed on imported or exported goods; synonymous with customs duties.

CMTA Section 102: Key Terms

Customs Territory: Philippine areas where customs and tariff laws are enforced.
Entry: Act, documentation, and process of bringing imported goods into the customs territory, including goods from free zones.
Exportation: Act, documentation, and process of bringing goods out of Philippine territory.
Export Declaration: Statement indicating procedures for exporting goods and required particulars.
Flexible Clause: Presidential power (upon NEDA recommendation) to increase, reduce, or remove protective tariff rates (max 100% ad valorem), establish import quotas or bans, and impose additional import duty (max 10% ad valorem).
Foreign Exporter: One whose name appears on export documentation to the Philippines, regardless of manufacturer's name on the invoice.
Free Zone: Special economic zones registered with PEZA.
Perishable Goods: Goods liable to perish or depreciate greatly in value during storage.
Port of Entry: Domestic port (including principal and subports) open to domestic and international trade; includes airports.
Port of Discharge (Unloading): Place where a vessel unloads shipments.
Re-exportation: Exportation of imported goods.
Release of Goods: Bureau action permitting cleared goods' disposal to the concerned party.
Refund: Return of duties and taxes paid on goods.
Security: Guaranty (surety bond, cash bond, letter of credit) ensuring obligation satisfaction to the Bureau.
Smuggling: Fraudulent import of goods into the Philippines or assisting in such activity.
Third Party: Person dealing directly with the Bureau on behalf of another.

CMTA Section 103: Importation

Importation Begins: When the carrying vessel or aircraft enters Philippine territory intending to unload.
Importation Terminated: When duties, taxes, and charges are paid or secured, or when goods are free from charges and legal withdrawal permits are granted. Jurisdiction of the Bureau of Customs over imported goods applies only after importation begins and ends when importation is deemed terminated.
Importation: Act of bringing goods from a foreign territory into Philippine territory (for consumption, warehousing, or admission).

Alternative Importation Definitions

Bringing an article into the country from outside; complete when the dutiable commodity is within the port of entry's limits.
Bringing merchandise into the customs territory intending to unload it. Exception: Transit cargo for immediate export.
Bringing goods into port; complete before entry into the Customs House.

Types of Importation

Actual Importation: Goods brought into Philippine territory from a foreign territory (as per CMTA Section 103).
- Consumption: Importation for domestic use (equivalent to "home use" under RKC).
- Warehousing: Placing imported goods in a bonded warehouse under customs control.
Constructive Importation: Purchase of goods from free zones, bonded warehouses, etc., falling under constructive exportation (CMTA, Sec. 102(b)).

Customs Jurisdiction and Territory

Customs Territory (RKC): Territory where a Contracting Party's customs law applies.
Bureau of Customs Jurisdiction: Contiguous zone extending up to 12 nautical miles from the territorial sea; allows limited jurisdiction to prevent infringement of customs, fiscal, immigration, and sanitary laws (UNCLOS).
Territorial Sea: The area of sea extending 12 nautical miles from the baseline of a coastal state.

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Description

Test your knowledge on Republic Act No. 10863, also known as the Customs Modernization and Tariff Act (CMTA). This quiz covers important aspects such as the laws governing customs, trade facilitation efforts, and key definitions related to customs regulations. Brush up on your understanding of customs terminology and their implications!