18 Questions
Goods of commercial nature with FOB value of more than fifty thousand pesos are required to go through a formal entry process.
True
Personal and household effects, even if in commercial quantity, are always subject to duties and taxes.
False
Importations under CMTA Section 800 include balikbayan boxes sent by Filipinos living abroad.
True
Shipments containing goods for personal use of travelers may not be subject to any conditions set by the Department of Finance and the Bureau of Customs.
False
Motor vehicles importation is explicitly mentioned as one of the types of goods that can be cleared through an informal entry process.
False
Qualified Filipinos living abroad can send consolidated shipments of duty and tax-free balikbayan boxes according to CAO 6-2016.
False
Goods sold without prior payment of duty, tax, or charges that should have been paid at the time of entry, will not be subject to forfeiture.
False
The President has the authority to suspend, disallow, or withdraw any conditionally free importation without the recommendation of the Secretary of Finance.
False
Imported goods for donations are classified under Conditional Importations according to Section 800 of CMTA.
True
Aquatic products are not considered a type of importation under Section 800 of CMTA.
False
The importation of coffins is exempt from duties and taxes according to the general provisions.
False
Importations for consumption in the customs territory are not subject to any conditions according to the Customs Memorandum and Issuances.
False
Equipment for use in the salvage of vessels or aircrafts can be conditionally imported without giving security for exportation or payment of corresponding duties, taxes, and other charges.
False
Goods brought into the Philippines for repair, processing, or reconditioning do not require any security for exportation or payment of corresponding duties, taxes, and other charges.
False
Wearing apparel, goods of personal adornment, and portable tools accompanying travelers are exempt from any duties, taxes, and charges.
False
Importations for special 'class' persons include non-residents of the Philippines.
False
The Bureau may extend the time for exportation or payment of duties beyond 6 months from the original period for goods intended for repair, processing, or reconditioning.
True
Supplies for vessels and aircrafts are subject to conditional importation requirements if they are not available locally.
True
Study Notes
Importation Exemptions
- Importations of aircrafts, vessels, and machineries are exempt from duties and taxes.
- Cost of repairs upon vessels or aircrafts, supplies for vessels and aircrafts, and equipment used for domestic operations are also exempt.
- Importations for special "class" persons, such as returning residents, overseas Filipino workers, and residents of the Philippines and other Filipinos while residing abroad, are exempt.
Conditional Importation
- Equipment for salvaging vessels or aircrafts can be imported conditionally, provided it is not available locally, and a security equal to 100% of the ascertained duties and taxes is given.
- Goods brought into the Philippines for repair, processing, or reconditioning can be imported conditionally, provided they are re-exported upon completion of the process, and a security equal to 100% of the duties and taxes is given.
- Wearing apparel, goods of personal adornment, toilet goods, portable tools and instruments, and theatrical costumes can be imported conditionally, provided they are necessary and appropriate for the wear and use of the accompanying travelers.
Shipments to be Cleared through Informal Entry Process
- Goods of commercial nature with a value of less than P50,000 can be cleared through informal entry process.
- Personal and household effects or goods, not in commercial quantity, can be cleared through informal entry process.
- Conditionally tax and/or duty-exempt importations, such as those of returning residents, overseas Filipino workers, and balikbayan boxes, can be cleared through informal entry process.
Conditionally Tax and/or Duty Exempt Importation
- Importations can be exempt from payment of duties and taxes upon compliance with formalities prescribed by the Commissioner and the Secretary of Finance.
- Goods sold, bartered, hired, or used for purposes other than intended without prior payment of duties and taxes shall be subject to forfeiture and constitute a fraudulent practice against customs laws.
Classification of Importations under Section 800, CMTA
- Conditional importations, previously exported importations, and importations for consumption in the customs territory can be classified under Section 800, CMTA.
- Examples of classified importations include aquatic products, medals, badges, cups, imported goods for donations, coffins, samples, animals, and books.
This quiz covers the provisions for exemptions from the payment of import duties upon compliance with prescribed formalities. It includes conditions for goods sold, bartered, or used for unintended purposes without prior payment of duties. Test your knowledge on tax exemptions and import regulations.
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