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Questions and Answers

What is the Short Title of the "Customs Modernization and Tariff Act (CMTA)"?

Customs Modernization and Tariff Act (CMTA)

According to the "Customs Modernization and Tariff Act (CMTA)", what is the key objective of the State in regards to customs and tariff administration?

To prevent customs fraud and illegal acts.

To enhance government revenue and facilitate international trade.

To protect and enhance government revenue, institute fair and transparent customs and tariff management, and modernize customs and tariff administration. (correct)

To facilitate international trade and promote trade facilitation.

Which of the following is NOT a function of the Bureau of Customs?

Reviewing and deciding disputed assessments and other matters related thereto, subject to the review by the Secretary of Finance.

Assessment and collection of customs revenues from imported goods and other dues, fees, charges, fines and penalties.

Supervision and control over the handling of foreign mails arriving in the Philippines.

Conducting a compensation study for personnel. (correct)

The Bureau of Customs may only clear goods through a customs office.

False Signup and view all the answers

What does the term "Actual or Outright Exportation" refer to, as defined in the CMTA?

The customs procedure applicable to goods which, being in free circulation, leave the Philippine territory and are intended to remain permanently outside it. Signup and view all the answers

What does the term "Airway Bill (AWB)" refer to, as defined in the CMTA?

A transport document for airfreight used by airlines and international freight forwarders which specify the holder or consignee of the bill Signup and view all the answers

Define "Appeal" as per the CMTA.

The remedy by which a person who is aggrieved or adversely affected by any action, decision, order, or omission of the Bureau seeks redress before the Bureau, the Secretary of Finance, or competent court, as the case may be. Signup and view all the answers

According to the CMTA, what is the process of determining the amount of duties and taxes and other charges due on imported and exported goods called?

Assessment Signup and view all the answers

What is the function of the "Authorized Economic Operator (ABO)" under the CMTA?

The importer, exporter, customs broker, forwarder, freight forwarder, transport provider, and any other entity duly accredited by the Bureau based on the World Customs Organization (WCO) Framework of Standards to Secure and Facilitate Global Trade. Signup and view all the answers

Explain "Bill of Landing (B/L)" as defined in the CMTA.

A transport document issued by shipping lines, carriers and international freight forwarders or non-vessel operating common carrier for water-borne freight. Signup and view all the answers

What is the meaning of "Customs Territory" as per the CMTA?

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

As per the CMTA, what is "Entry"?

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

According to the CMTA, what is "Exportation"?

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

What is an "Export Declaration" as defined by the CMTA?

A statement made in the manner prescribed by the Bureau and other appropriate agencies, by which the persons concerned indicate the procedure to be observed for taking out or causing to be taken out any exported goods and the particulars of which the customs administration shall require. Signup and view all the answers

According to the CMTA, "Flexible Clause" refers to the President's power to only increase, reduce or remove existing protective tariff rates of import duty.

False Signup and view all the answers

The CMTA defines "Free Zone" as special economic zones registered with the Philippine Economic Zone Authority (PEZA) under Republic Act No. 7916, as amended.

True Signup and view all the answers

Explain "Goods Declaration" as per the CMTA.

A statement made in the manner prescribed by the Bureau and other appropriate agencies, by which the persons concerned indicate the procedure to be observed in the application for the entry or admission of imported goods and the particulars of which the customs administration shall require. Signup and view all the answers

What is "Importation" as defined in the CMTA?

The act of bringing in of goods from a foreign territory into Philippine territory. Signup and view all the answers

Define "Freight Forwarder" as per the CMTA.

A local entity that acts as a cargo intermediary and facilitates transport Signup and view all the answers

Study Notes

Republic Act No. 10863 (CMTA)

Modernizes Customs and Tariff Administration in the Philippines
Policy of the State: protect and enhance government revenue, institute fair and transparent customs and tariff management, efficiently facilitate international trade, prevent customs fraud and illegal acts, and modernize customs administration.
Develop and implement programs for continuous enhancement of customs systems and processes that harmonize customs procedures
Adopt clear and transparent customs rules, regulations, policies, and procedures consistent with international standards and customs best practices
Establish a regime of transparency of and accessibility of customs information, customs laws, regulations, administrative policies, and practices in order to ensure compliance with customs practices and procedures by stakeholders
Consult, coordinate, and cooperate with other government agencies and the private sector in implementing and developing customs policy
Provide a fair and expeditious administrative and judicial appellate remedy for customs related grievances and matters
Employ modern practices in customs administration and utilize information and communication technology in the implementation of customs functions
Institute professionalism and meritocracy in customs tax administration by attracting and retaining competent and capable customs officers and personnel to enforce the provisions of this Act.
Definitions:
- Abatement: reduction or diminution of duties and taxes
- Actual or Outright Exportation: customs procedure for goods leaving the Philippine territory permanently
- Admission: bringing imported goods directly into a free zone
- Airway Bill (AWB): transport document for airfreight
- Appeal: remedy for grievances against the Bureau
- Assessment: process of determining duties and taxes
- Authorized Economic Operator (ABO): importers, exporters, customs brokers, etc. duly accredited by the Bureau
- Bill of Lading (B/L): transport document for water-borne freight
- Bureau: Bureau of Customs
- Carrier: the person actually transporting goods
- Clearance: completion of customs and other government formalities
- Commission: Tariff Commission
- Conditional Importation: temporary admission of goods, relieved from import duties and taxes
- Customs Broker: person with valid registration/identification card
- Customs Office: administrative unit performing customs functions
- Customs Officer: person exercising discretion in performing Bureau functions
- Customs Territory: areas in Philippines where customs and tariff laws are enforced
- Entry: documentation and process of bringing imported goods into the customs territory
- Exportation: act, documentation, and process of bringing goods out of Philippine territory
- Export Declaration: statement by concerned persons on procedures for taking out exported goods
- Foreign Exporter: person whose name appears on export documentation
- Free Zone: special economic zones in the Philippines (PEZA, Clark Freeport, Subic Bay)
- Goods: articles, wares, merchandise, and any other items subject to importation or exportation
- Goods Declaration: statement by concerned parties on procedures for application for entry of imported goods
- Importation: act of bringing imported goods into Philippine territory
- Jurisdictional Control: power and rights of the Bureau to oversee coastal waters, bays, rivers, etc.
- Lodgement: registration of a goods declaration
- Non-Vessel Operating Common Carrier (NVOCC): entity providing point-to-point transport service
- Port of Entry: place where imported goods come into the Philippine territory
- Port of Discharge: place where shipments leave a vessel, ship, aircraft or train
- Reexportation: process of exporting imported goods
- Release of Goods: Bureau's act of permitting cleared goods to the party concerned
- Refund: return of duties and taxes paid on goods
- Security: guarantee to satisfy an obligation to the Bureau
- Smuggling: fraudulent act of importing or exporting goods
- Taxes: taxes, fees, charges, fines, and penalties
- Traveler: person temporarily in a country they don't usually live
- Third Party: person dealing with the Bureau on behalf of another individual
- Transit: procedure for transporting goods from one customs office to another
- Transshipment: transferring goods from one means of transport to another within the same customs office
- Traveler: temporary visitor to the Philippines
- Transit: transporting goods between customs offices (either by land, air, or sea)
- Goods Declaration: a statement explaining the procedures to be followed when importing/exporting goods
- Taxable Goods: goods that are liable to be taxed/duties
- Customs Territory: the area within the Philippines in which customs laws are enforced
- Customs Control: the regulations and actions that are imposed on goods entering and leaving the Philippines
- Special Economic Zones: the locations that are designated as free ports by the government, exempt certain goods from import duties