MB1-CDP PDF

1. A customs officer boards a foreign a. The search is lawful as the customs vessel docked at a Philippine port. officer has the authority to inspect and During the inspection, they find a false seize goods. partition in one of the storage room...

1. A customs officer boards a foreign a. The search is lawful as the customs vessel docked at a Philippine port. officer has the authority to inspect and During the inspection, they find a false seize goods. partition in one of the storage rooms, b. The search is unlawful without a which contains undeclared goods. The warrant, and the goods must be vessel captain claims that damage was returned. caused to the vessel while the officer c. The search is lawful only if the owner of was removing the partition. What is the the plane consents. proper course of action regarding the claim for damage? d. The search is unlawful, but the seizure a. The captain can file a claim for of goods is valid. damages only if gross negligence or abuse of authority is proven. 4. A customs officer stops a truck b. The captain may file for compensation suspected of carrying smuggled goods. regardless of the customs officer's Upon searching the vehicle, the officer conduct. finds goods subject to forfeiture. The c. The captain can immediately stop the driver argues that the search was inspection and sue for damages. conducted without probable cause. d. The customs officer must halt the What is required for the customs officer inspection and evaluate the damage. to perform a lawful search of the vehicle? 2. A customs officer inspects a container a. The officer must have probable cause to suspected of carrying prohibited goods. believe the truck is carrying dutiable or The container holds human remains prohibited goods. being repatriated to the Philippines. b. The officer must obtain a warrant before What can the customs officer legally do searching the vehicle. in this situation. c. The officer must receive permission from a. The officer cannot open the container due the driver to search the vehicle. to the sensitivity of the contents. d. The officer can search any vehicle at any b. The officer can search the container as it is time without any justification. within their authority under the CMTA. c. The officer must secure a court order before proceeding with the search. 5. A traveler arriving from a foreign country d. The officer must request permission from is detained by customs officers who the consignee before opening the suspect that the traveler is carrying container. dutiable goods. The traveler argues that the detention is unlawful. Under what 3. A private plane from an international circumstances can a customs officer detain a traveler? flight lands in the Philippines. The a. The officer can detain the traveler only customs officer on duty boards the with a court order. plane to conduct a search and finds b. The officer can detain the traveler upon undeclared prohibited goods. The goods reasonable cause, respecting the are seized, and the plane's owner claims traveler’s dignity. that the search was unlawful because c. The officer can detain the traveler the officer did not provide a warrant. without cause as long as it is for a What is the status of the search? maximum of 24 hours.  d. The officer can detain the traveler only b. The body search is required only if if they are caught with prohibited probable cause is established. goods. c. The customs officer can conduct a body search if the operator provides an appropriate area. 6. A private aircraft lands in a remote d. The customs officer must first obtain a location outside of the regular airport search warrant from a local court. terminal. The customs officer on duty requests documentation from the operator of the aircraft. Which of the 9. An aircraft operator arriving in a non- following documents is NOT explicitly terminal port fails to provide the required by the customs formalities customs officer with a stores list. The under the CMTA? customs officer informs the operator a. Cargo manifest with airway bill or bill of lading that the inspection cannot proceed information without the required documents. What b. Health clearance from the last airport of is the primary purpose of the stores list departure in customs formalities? c. List of goods intended for in-flight consumption a. To verify the passengers' personal d. Maintenance records of the aircraft for the past belongings six months b. To check for undeclared commercial goods 7. A foreign vessel arrives at a designated c. To account for in-flight goods intended for port area outside of the regular customs consumption during the journey terminal. The customs officer requests the d. To ensure that prohibited items are not passenger manifest from the vessel's being smuggled into the country operator. Which information must the passenger manifest include according to the customs formalities? 10. A cargo vessel arrives in a designated a. Names and ages of passengers non-terminal port with a substantial b. Nationality and passport numbers of passengers load of goods. The customs officer c. Places of embarkation and destination of requests the cargo manifest from the passengers operator. Which of the following is an d. Passengers’ occupation and home address essential component that must be included in the cargo manifest? a. Details of the vessel's last maintenance 8. A private yacht docks at a non-terminal check port, and customs formalities must be b. Number of packages corresponding to completed. The crew refuses to undergo each airway bill or bill of lading number a body search requested by the customs c. Names and addresses of the consignees officer, claiming it violates their rights. d. A detailed list of items consumed by the Under what condition can a body search crew during the voyage be lawfully conducted by the customs officer? a. The crew must consent to the search 11. A qualified Filipino while abroad sends voluntarily. a Balikbayan Box to their family in the Philippines. The shipment contains  personal household items with a total d. The cooperative can only send Balikbayan FCA value of Php12,000. How will this Boxes under commercial shipment shipment be treated? rules. a. The shipment will be considered as one availment since it exceeds the de minimis 14. A Balikbayan Box arrives as value of Php10,000. unaccompanied baggage and the total b. The shipment will not be counted as an shipment value is Php8,000. How will availment because the FCA value is below the customs authorities handle this Php20,000. shipment? c. The shipment is automatically exempt a. The shipment will not be counted as one from duties and taxes since it is a personal availment because its value is shipment. below Php10,000. d. The shipment will be allowed without b. The shipment will be counted as one availment limitation as long as it is sent within the because it is sent as unaccompanied baggage. calendar year. c. The shipment will be taxed on the excess value beyond Php10,000. d. The shipment will be included in a different 12. A Filipino family receives their fourth CAO because it is below the de Balikbayan Box of the year from a minimis value. relative abroad. The Bureau of Customs discovers that the total FCA value of all the boxes exceeds Php150,000 for the 15. The Bureau of Customs monitors a calendar year. What will happen to this qualified Filipino while abroad who latest shipment? sends Balikbayan Boxes through a. The shipment will be fully exempt from duties different means such as postal items, and taxes as long as it is a express shipments, and accompanied personal shipment. baggage. How does this affect the b. The shipment will be subject to duties and frequency of availment? taxes as it exceeds the limit of a. Each method of sending Balikbayan Boxes is three availments per year. counted separately, allowing for c. The fourth shipment will be accepted but all more than three availments. future shipments will be taxed. b. All shipments are counted towards the three d. The excess value over Php150,000 will be availments regardless of the taxed, but the first Php150,000 is still method of shipment. exempt. c. Only shipments sent via consolidated cargo count towards the limit of three 13. A local cooperative in the Philippines availments. attempts to send Balikbayan Boxes to its d. Postal items and express shipments are not members abroad. How will this included in the availment count shipment be treated? under the CMTA. a. The cooperative can send the boxes as long as it registers with the Bureau of 16. A deconsolidator in the Philippines is Customs. expecting a shipment coming from a b. The cooperative is not qualified to avail of the consolidator in Europe with a 15-day Balikbayan Box exemption shipping time. What is the and will be subject to duties and taxes. deconsolidator’s obligation in terms of c. The cooperative can send the boxes, but only submitting the information sheet and three times per year.  supporting documents to the Bureau of c. 72 hours prior to the arrival of the shipment Customs? d. 1 hour prior to the arrival of the shipment a. Submit the documents 6 hours before arrival. b. Submit the documents 10 days prior to arrival. c. Submit the documents 1 hour before arrival. 20. A deconsolidator fails to transmit the d. Submit the documents 48 hours before arrival. required information sheet within the prescribed period for a shipment 17. A freight forwarder acting as a arriving from the Middle East. Which of deconsolidator for consolidated the following is the most likely shipments by air receives goods from consequence? Asia. How long before the arrival of the a. the shipment will be delayed until the required aircraft must the deconsolidator documents are submitted. transmit the information sheet and b. The shipment will be allowed entry but subject supporting documents to the Bureau of to penalties. Customs? c. The shipment will be confiscated by the Bureau a. 6 hours prior to arrival of Customs. b. 24 hours prior to arrival d. The deconsolidator will be suspended from c. 48 hours prior to arrival handling future shipments. d. 1 hour prior to arrival 21. The Commissioner of Customs, with the 18. A deconsolidator has been operating for approval of the Secretary of Finance, several months without establishing its has reassigned certain personnel from own Customs Facility and Warehouse the Bureau of Customs (BOC) to the (CFW) equipped with CCTV and x-ray Post-Clearance Audit Group (PCAG). machines. What is the deconsolidator's Under what condition can the obligation regarding the x-ray facility? Commissioner further change the a. The deconsolidator must establish its own staffing pattern of the PCAG? CFW with baggage x-ray a. The Commissioner can make changes machines, subject to Bureau oversight. without further approval as long as it b. The deconsolidator may choose to use public improves efficiency. CFWs indefinitely without b. The Commissioner can only make establishing its own. changes if it is approved by the c. The deconsolidator must only ensure that a third-party operator provides the Department of Budget and Management required x-ray services. (DBM). d. The deconsolidator is exempt from this c. The Commissioner can change the requirement as long as its import volume staffing pattern, subject to the approval of is low. the President. 19. A deconsolidator is aware that a d. The Commissioner can make shipment will arrive in 5 days via sea recommendations to change the staffing transport from a nearby Asian country. pattern When is the latest that the with approval from Congress. deconsolidator should submit the required information sheet and 22. An importer’s goods declaration has documents to the Bureau of Customs? a. 24 hours prior to the arrival of the shipment been cleared by customs, and the final b. 48 hours prior to the arrival of the shipment payment of duties and taxes has been  made. Three years later, the Post- d. The audit process can begin Clearance Audit Group (PCAG) initiates immediately after identifying the an audit of the importer’s records. What candidate without is the primary purpose of this further approval. audit? a. To identify potential smuggling activities 25. After an audit is conducted by the within the industry. PCAG-CAO, what is the primary report b. To ensure the importer followed the that must be submitted to the correct customs procedures at the time Commissioner of Customs? of import. a. A report of audit findings and c. To review compliance with the latest recommendations. trade agreements. b. A summary of financial penalties d. To verify the accuracy of financial imposed on the importer. statements submitted to the Bureau of c. A list of future audit candidates for the Customs. following year. d. A compliance scorecard based on 23. The PCAG-TIRAO is tasked with industry benchmarks. developing a risk-based management system for auditing importers. Which of 26. An importer receives an Audit the following steps must the group take Notification Letter (ANL) from the Post before implementing such a system? Clearance Audit a. Seek approval from the Commissioner Group (PCAG). The importer believes of Customs only. that the audit is being conducted b. Obtain approval from the Secretary of unfairly. What must the importer do if Finance upon recommendation of they want to request a reinvestigation of the Commissioner. the audit findings after receiving the c. Develop and implement the system Demand Letter? without seeking external approvals. a. File a request for reinvestigation within d. Have the system evaluated by an fifteen (15) days and submit independent third-party auditor before supporting documents within thirty (30) use. days. b. Submit a request for reinvestigation 24. A potential audit candidate has been within thirty (30) days with all supporting identified by the PCAG using the trade documents. data and benchmarks developed by the c. File the request within fifteen (15) days PCAG-TIRAO. What is the next step and submit all supporting documents before the audit can commence? within sixty (60) days. a. The audit candidate must be notified d. Request an extension for submission of and allowed to submit a counter-argument supporting documents within fifteen (15) before the audit begins. days. b. The audit work plan, scope, and approach must be prepared and approved 27. The PCAG audit team starts an audit on by the Commissioner of Customs. an importer and realizes they will not c. The audit team must seek court complete the audit within the 120- approval before conducting the audit. calendar day limit. What is the audit  team required to do if they cannot meet a. The certified copies are considered the deadline? inadmissible unless the originals are a. Submit the Final Audit Report to the provided. Commissioner immediately upon b. The certified copies are admissible in completion. court as if they were the original b. Request an extension directly from the copies. importer before the deadline. c. The certified copies must be verified by c. Submit a status report to the a third-party auditor before being Commissioner five (5) days prior to the accepted. expiration of the period with reasons for d. The certified copies can only be used if the delay. they are submitted with additional d. Halt the audit and reschedule the review documentation. of the importer’s documents after 30 days. 30. The PCAG is required to issue a Demand Letter for payment of deficiency. How 28. An importer receives a Demand Letter must the Demand Letter be served to from the PCAG following the completion the importer? of a post-clearance audit, which states a. By registered mail only. a deficiency in duties and taxes. The b. By personal service, registered mail, or importer pays electronic notice sent to the the amount within fifteen (15) days as registered official electronic mail address. required. What is the next step that the c. By electronic notice only, as registered Bureau mail is not valid for this purpose. must take? d. By serving it to the nearest port office for a. Immediately issue an the importer to collect. Acknowledgement Letter confirming receipt of 31. A customs broker lodges a goods payment and audit completion. declaration and inadvertently inputs the b. Send a confirmation of payment to the wrong port of departure in the Department of Finance and Bureau of documentation. The customs officer Internal Revenue only. identifies the error as clerical and c. Request the importer to file for a final without fraudulent intent. What penalty audit report from the Bureau within thirty will be imposed on the broker? (30) days. a. Php10,000 for a clerical error d. Require the importer to submit b. Php5,000 for each clerical error additional supporting documents to c. 250% surcharge of the duties and taxes finalize the d. No penalty as it was an honest mistake audit. 32. An importer declares 100 units of a 29. A post-clearance audit is initiated on an product, but after assessment, the importer, and the audit team requests customs office finds 120 units in the the presentation of original certified shipment. What is the consequence of true copies of documents. What will be this misdeclaration? the status of the certified copies a. The importer will pay a fine of Php5,000 submitted by the importer? for a clerical error.  b. The importer will face a surcharge of assessed exceeds 10%. What penalty 250% of the duties and taxes on the will be imposed on the importer? misdeclared quantity. a. Php5,000 fine for clerical error c. The importer will be required to pay b. 250% surcharge on the duties and taxes duties and taxes only for the additional 20 due for the misclassification units. c. The importer will only need to pay the e. The importer will not face any penalties as correct duties and taxes the error was inadvertent. d. Php10,000 fine for misclassification 33. A shipment of electronics is declared 36. An importer declares a shipment under with a total value of Php1,000,000. After a specific tariff heading, but the a post-assessment audit, it is customs officer rejects the discovered that the actual value should classification after assessment. The have been importer claims that the tariff Php1,200,000. If the discrepancy in classification was based on a difficult duties and taxes is more than 10%, what and highly technical question. Under surcharge will be imposed on the what condition will the surcharge be importer? waived? a. Php5,000 for undervaluation a. The importer must prove that the b. 250% surcharge of the duty and tax discrepancy is less than 10%. discrepancy b. The tariff heading must be rejected in a c. The importer will only need to pay the formal customs dispute process or difference in duties and taxes based on an official government ruling. d. 150% surcharge of the duty and tax c. The importer must correct the discrepancy declaration before final assessment. d. The discrepancy must be greater than 34. A customs declaration inaccurately lists 30%. the weight of the goods imported. The customs 37. An importer voluntarily amends their office identifies the error, which goods declaration, correcting a resulted in a significant discrepancy in misdeclaration before the final duties owed. What is the proper assessment by customs. What penalty penalty? will apply? a. Php5,000 fine for clerical error a. A 250% surcharge will be imposed due b. 250% surcharge of the duties and taxes to the misdeclaration. due on the misdeclared weight b. A Php5,000 fine will be applied for each c. No penalty as long as the discrepancy clerical error. was less than 10% c. No surcharge will be imposed as the d. Php10,000 fine for misdeclaration amendment was made prior to final assessment. 35. A shipment is found to be misclassified d. A 10% surcharge will be applied due to upon customs assessment. The the correction. customs officer determines that the duty and tax discrepancy between what 38. A customs officer discovers that an was declared and what was undervaluation discrepancy of 8%  exists between the declared value and 41. An importer has goods under a the assessed value of goods. What Provisional Goods Declaration and action will be taken in terms wants to release them. What is required of surcharges? by the District Collector to allow the a. No surcharge will be imposed as the release of these goods? discrepancy is less than 10%. a. Payment of the full amount of duties and b. A 250% surcharge will be imposed for taxes only undervaluation. b. Posting of security equivalent to the c. A surcharge will be imposed based on applicable duties and taxes the discrepancy regardless of the c. Submission of a written request for percentage. tentative assessment d. A formal investigation will be initiated d. Payment of a fine and clearance from due to the undervaluation. regulatory agencies 39. A shipment is misclassified, and the resulting discrepancy in duties and 42. A shipment has been flagged by taxes exceeds 30%. What consequence customs for laboratory analysis to verify will the importer face? its declared classification. However, the a. The importer will be fined Php5,000 for laboratory analysis will also determine each clerical error. if the goods require a permit from a b. The shipment will be subject to seizure regulatory agency. What action will the as there is prima facie evidence of Bureau take regarding the release of the fraud. shipment? c. A 10% surcharge will be imposed due to a. The shipment will be released under the misclassification. security until the analysis is completed d. The importer will only need to correct b. The shipment will not be released if the the misclassification before final laboratory analysis is to determine assessment. the need for permits c. The shipment can be released with 40. An importer is involved in a customs tentative assessment, provided the dispute over the valuation of goods. The importer declared value is rejected, and the posts security importer claims that the valuation issue d. The shipment will be released once a involves a difficult technical question. written expert opinion is obtained Will a surcharge be imposed? a. Yes, because the declared value was 43. An express shipment handled by an rejected. accredited air express cargo operator b. No, because the issue involves a arrives at the port. To expedite its difficult or highly technical question release, the operator asks if the related to customs valuation. shipment can be released before paying c. Yes, but the importer can appeal the duties and taxes. Under what condition decision to avoid the surcharge. can this request be granted? d. No, because the discrepancy was a. The operator must submit an corrected before final assessment. undertaking to pay duties and taxes within 30 days  b. The operator must post sufficient assessed duties and taxes. To avoid security before the shipment is released forfeiture of the bond, what must the c. The operator must request a provisional OFW submit within the next 5 days? goods declaration a. The Tax Exemption Certificate (TEC) d. The operator must provide proof that the issued by the Department of Finance shipment is for non-commercial use b. A request for a final assessment of the duties and taxes 44. Goods imported for warehousing are c. A formal letter of explanation for the declared under a warehousing entry. delayed submission What is required for the release of these d. An application for a refund of the cash goods into a customs bonded bond warehouse? a. Payment of duties and taxes before the 47. A traveler brings dutiable goods in their goods are warehoused accompanied baggage and intends to b. Posting of security equivalent to the re-export the goods within two months. computed duties and taxes What are the traveler’s options to c. Submission of proof of compliance with ensure the release of the goods? regulatory permits a. Post a cash bond equal to 100% of the d. Posting of security only if the goods are assessed duties and taxes or for temporary storage deposit the goods for safekeeping b. Request an exemption from paying 45. An importer disputes the accuracy of duties and taxes due to the intent to re- the declared value and classification of export their shipment. To avoid delays, they c. Apply for an exemption under Section wish to release the goods while the 800 (g) of the CMTA issue is being resolved. What is required d. Submit a security bond for the for the District Collector to allow the safekeeping of the goods until departure release of the shipment? a. Payment of the full amount of duties and 48. A shipment belonging to a returning taxes based on the importer’s resident arrives ahead of their actual self-assessment date of return. The shipment is b. Posting of security equivalent to the conditionally released under a tentative disputed amount of duties and taxes assessment, and the resident c. Immediate payment of the disputed fails to submit the required TEC within amount to secure the release of goods the required time frame. What will d. Submission of a formal request for happen to the reclassification and reevaluation posted cash bond? a. The bond will be returned to the 46. A returning Overseas Filipino Worker importer in full (OFW) arrives 40 days after their b. The bond will be forfeited to cover the shipment has been conditionally duties and taxes due on the released upon the posting of a cash shipment bond equivalent to 100% of the c. The bond will be transferred to a trust fund for future use  d. The bond will be reduced, and the domestic consumption. remaining amount will be returned to the c. The CBW must apply for a special permit importer to withdraw the goods without duties and taxes. 49. A traveler arrives with dutiable goods d. The CBW will pay only a portion of the but intends to leave the Philippines duties and taxes, depending on the time in within three months. To avoid paying storage. duties and taxes, the traveler opts to leave the goods in a deposit facility for 52. A CBW imports spare parts and safekeeping. What is the maximum machinery to be used for the operation duration the goods can be kept in and maintenance of the warehouse. Are the deposit facility before they must be these imports exempt from duties and re-exported? taxes? a. 30 days from the date of arrival a. Yes, as all goods within a CBW are b. 45 days from the date of release exempt from duties and taxes. c. 60 days from the date of departure b. No, unless they are certified as d. 3 months from the date of acceptance indispensably needed in the production of of the goods export goods. c. Yes, as long as they are used for repair or 50. An importer posts a cash bond for a operation within the CBW. shipment subject to final assessment. d. No, all spare parts and machinery are After the final assessment, the duties always subject to duties and taxes. and taxes due are less than the amount of the cash bond. What will happen to 53. A CBW completes the exportation of the excess amount of the bond? goods and has 60 days to submit the a. It will be remitted to the General Fund in required liquidation documents. What full will happen if the CBW submits these b. It will be forfeited and kept by the Bureau documents 45 days after the prescribed of Customs 60-day period? c. It will be refunded to the importer in the a. The documents will be accepted, but a form of a check penalty will be imposed for late d. It will be held in the trust fund for future submission. use by the importer b. The documents will be rejected, and the CBW will face immediate closure. 51.. A customs bonded warehouse (CBW) c. The CBW will be given an additional 30- withdraws goods for domestic day extension to submit the documents consumption that were originally without penalty. imported for repacking and export. d. The CBW will need to reapply for What is the correct procedure for liquidation but will avoid penalties. handling the duties and taxes on these goods? 54. The Bureau of Customs is conducting an a. The goods will remain exempt from audit of a CBW to assess its compliance duties and taxes. with laws and regulations. How long b. The CBW must pay the applicable duties must the CBW keep records related to and taxes upon withdrawal for its operations for  audit purposes? c. File a complaint with the Bureau of a. 1 year Customs for unlawful rejection. b. 3 years d. Appeal the decision directly to the c. 5 years Commissioner without addressing the d. 10 years missing information. 55. A CBW imports raw materials for manufacturing, based on its approved 58. The District Collector is reviewing an SMRMIR. Who must authorize these application for the establishment of a imports? customs bonded warehouse (CBW). a. The Bureau of Customs Which of the following is not required in b. The Department of Finance the initial documentary submission? c. The Department of Trade and Industry a. Feasibility study d. The Board of Investments b. Lease contract or Certificate of Title c. Certificate of Title for goods to be 56. A company applies for the authority to warehoused operate a customs bonded warehouse d. Monthly requirement list of materials to (CBW) and submits all required be imported documents except the lease contract for the property where the warehouse is 59. After evaluating the completeness of located. What will likely happen to the documents submitted for a customs application? bonded warehouse (CBW) application, a. The District Collector will automatically what is the next step that the District approve the application without the lease Collector must take? contract. a. Recommend the approval of the b. The District Collector will reject the application to the CBWC without further application for being incomplete. review. c. The District Collector will proceed with b. Conduct a physical inspection and take physical inspection and approve the photographs of the proposed application. warehouse premises. d. The District Collector will recommend c. Issue a permit immediately based on the approval to the Commissioner. documents submitted. d. Refer the application to the Bureau of 57. A customs bonded warehouse (CBW) Internal Revenue for further evaluation. applicant receives a notice of rejection from the District Collector due to a lack of material information in their 60. An application for a CBW is rejected by application. What can the applicant do the District Collector due to fraud in the next? submission of documents. The a. Reapply for a new CBW permit with applicant claims the rejection was different documents. unjust. What is the District Collector's b. Submit a request for reconsideration responsibility regarding the rejection? upon completing the missing a. The District Collector must refer the documents and correcting the grounds for case to the Commissioner for final review. rejection.  b. The District Collector must file criminal preparing to dispose of them. If the charges against the applicant. goods are determined to have c. The District Collector must send a commercial value, how should notice of rejection clearly stating the they be disposed of? grounds for the rejection. a. The goods must be destroyed to prevent d. The District Collector must provide a misuse refund for the application fee and suggest b. The goods must be sold to the importer a at fair market value new submission. c. The goods can be auctioned, but the importer and broker cannot 61. A company is found to have imported participate in the bidding agricultural products through multiple d. The goods must be returned to the shipments, each under the threshold country of origin amount for large-scale smuggling, but with an apparent intent to evade 64. If an importer is caught smuggling customs duties. What action can the agricultural goods and the company is a Bureau of Customs take based on the juridical person, who will face criminal pattern of shipments? liability? a. Calculate the fair market value for each a. The warehouse workers who handled individual shipment the goods b. Aggregate the value of all shipments to b. The president, chief operating officer, or determine if it surpasses the responsible officer of the company smuggling threshold who consented to or tolerated the c. Dismiss the case as each shipment falls smuggling below the threshold c. Only the customs broker of the d. Impose a fine for each individual company shipment without further investigation d. All employees of the company involved in the importation process 62. A consignee is found in possession of rice that was smuggled into the 65. How does the Bureau of Customs Philippines without going through ensure the integrity of import permits Bureau-controlled ports and without the for agricultural products? necessary permits. What is the legal a. By requiring all importers to reapply for implication of this possession? permits after goods arrive a. The rice will be subject to a fine but not b. By sharing information with regulatory seizure agencies through the NSW system b. The possession is considered prima c. By physically inspecting all imported facie evidence of smuggling agricultural products upon arrival c. The consignee can avoid liability by d. By verifying permits after goods are proving ignorance of the rice’s origin released from customs custody d. The rice will be returned if the consignee obtains a permit after the fact 66. A company owner knowingly stores smuggled agricultural products in a 63. After agricultural products are seized warehouse. The total value of the for smuggling, the Bureau of Customs is smuggled goods is Php 10 million, and  the avoided taxes amount to Php 2 million. What penalty will be imposed 69. A government official is convicted of on the owner? smuggling agricultural products into the a. Imprisonment of not less than 12 years country. In addition to imprisonment, and a fine equal to the value of the what additional penalties will be smuggled goods imposed? b. Imprisonment of not less than 14 years a. A fine equal to the value of the goods and a fine equal to the value of the and temporary suspension from public goods plus the avoided taxes office c. Imprisonment of not less than 17 years b. Perpetual disqualification from public and a fine equal to double the value of office and the right to vote, along the goods with a maximum imprisonment penalty d. Imprisonment of not less than 10 years c. A reduced sentence but perpetual and forfeiture of the goods disqualification from participating in elections 67. A registered owner of a six-wheeler d. Only the imprisonment penalty as truck knowingly transports smuggled prescribed by law agricultural products subject to economic sabotage. What penalty will 70. The president of a private fish landing be imposed under the law? site allows smuggled agricultural a. Imprisonment of not less than 14 years products to enter the country through and a fine equal to the fair value of the facility. What is the potential penalty the smuggled goods for this offense? b. Imprisonment of not less than 12 years a. Imprisonment of not less than 12 years and a fine based on the weight of the and disqualification from public office goods b. Imprisonment of not less than 14 years c. Imprisonment of not less than 17 years and a fine equal to the fair value of the and confiscation of the vehicle goods d. Imprisonment of not less than 10 years c. Imprisonment of not less than 17 years and a fine equal to the value of the and a fine equal to the value of the avoided taxes goods plus avoided taxes d. Imprisonment of not less than 10 years 68. An alien is found guilty of transporting and a reduced fine due to the nature of smuggled agricultural goods but is the offense sentenced to a term of imprisonment not exceeding 14 years. What happens 71. An importer fails to mark their goods as after the alien serves their sentence? required at the time of importation. The a. They will be fined and allowed to stay in dutiable value of the goods is Php the country 2,000,000. What marking duty will be b. They will be deported immediately imposed on the goods? without further proceedings a. Php 50,000 c. They will be subject to another trial for b. Php 100,000 deportation c. Php 200,000 d. They will be allowed to apply for a visa d. Php 500,000 renewal 72. An importer has goods of foreign origin d. A written undertaking from the importer held in customs custody. The importer to mark the goods after release requests that the marking be conducted at their warehouse instead of the 75. An importer receives a notice to mark customs office. Under what condition their goods but fails to comply within the can this request be granted? specified 30-day period. How will these a. The request will only be granted if a DTI goods be treated? representative is available to supervise a. The goods will be subject to a special the marking. fine but allowed for release. b. The request will be automatically b. The goods will be auctioned or disposed granted with no further conditions. of according to abandonment c. The marking must be supervised by both provisions. the Bureau of Customs and a DTI c. The goods will be marked by customs representative if applicable. personnel at the importer's expense. d. The importer must pay an additional d. The importer will face criminal charges marking fee to conduct it at their for failure to comply. warehouse. 76. An importer brings in crude substances 73. What happens if an importer refuses to that require further processing before mark their goods within 30 days after they can be used or sold. Under which being notified of the marking exemption category would these goods requirement? fall with regard to marking a. The goods will be seized and destroyed requirements? by customs. a. Goods that cannot be marked prior to b. The goods will be subject to additional shipment duties and penalties. b. Goods imported for use by the importer c. The goods will be deemed abandoned and not for sale and disposed of under the CMTA c. Crude substances requiring further provisions. processing d. The importer will be given another 30 d. Goods incapable of being marked due days to comply with the marking to their nature requirement. 77. An imported product is marked only on 74. A shipment of foreign goods is held in its container because the container customs custody due to a failure to reasonably indicates the origin of the mark the containers. What is required goods. Does this satisfy the marking for the release of these goods? requirement? a. Payment of a fine and submission of a a. Yes, as long as the container reasonably written request for release indicates the origin b. The goods must be marked in b. No, the product itself must always be compliance with the order and the marked marking c. Yes, but only if the goods are for duty paid immediate export c. A permit from the DTI allowing the d. No, unless the marking on the container release of unmarked goods also lists the importer  Collector for Assessment 78. A company imports goods that cannot b. Deputy Collector for Assessment, be marked before shipment to the District Collector, Principal Appraiser, Philippines without damage. Which Chief of exemption applies in this situation? Formal Entry Division a. Goods that are crude substances c. Principal appraiser, Chief of Formal b. Goods that cannot be marked due to Entry Division, Deputy Collector for economic prohibitions Assessment, District Collector c. Goods that cannot be marked without d. District Collector, Deputy Collector for injury Assessment, Principal Appraiser, Chief of d. Goods to be processed by the importer Formal Entry Division 79. An importer brings in products over 20 82. An importer is disputing a tariff years old. Are these goods exempt from classification involving chemicals. The the marking requirements? goods appear to be classifiable under a. Yes, goods produced more than 20 years more than one AHTN heading, and the prior to importation are exempt product description is not clearly b. No, all goods must be marked specified. How will this issue be regardless of age categorized? c. Yes, if the importer provides a a. A common dispute requiring immediate declaration of the goods' age reclassification d. No, unless the importer files for a b. A valid but simple tariff classification special exemption with customs dispute c. A difficult or highly technical tariff 80. A shipment of raw materials is imported classification issue into the Philippines and will be used to d. An issue requiring immediate final manufacture a new product with a assessment by the District Collector different name and use. Who is considered the "ultimate purchaser" of 83. The District Collector informs an the imported raw materials? importer that their goods involve a a. The foreign exporter difficult tariff classification issue and b. The local manufacturer processing the refers the matter to the Tariff raw materials Commission. What steps must the c. The consignee who imports the goods importer take to request the release of d. The final consumer who buys the their goods? finished product a. Request tentative assessment and pay the duties as reclassified without posting 81. During the documentary check of a a security goods declaration, the customs officer b. Request tentative assessment, pay reclassifies the goods under a different duties as declared, and post sufficient tariff heading. If the importer disagrees security for the disputed amount with the reclassification, what is the c. File a formal protest and refuse to correct order of escalation? release the goods until final assessment a. Principal appraiser, Chief of Formal Entry Division, District Collector, Deputy  d. Await the final ruling of the Tariff b. Deputy Collector for Assessment, Commission before requesting release of Principal Appraiser, District Collector, the Chief of goods Formal Entry Division c. Principal Appraiser, Chief of Formal Entry Division, Deputy Collector for 84. If the Tariff Commission resolves to Assessment, District Collector classify goods under a higher tariff rate d. Chief of Formal Entry Division, Principal than initially declared, what will happen Appraiser, District Collector, Deputy next? Collector for Assessment a. The importer will not be required to pay additional duties or taxes 87. An importer is notified that a valuation b. The District Collector will refund the issue involves difficult or highly security posted by the importer technical questions. The District c. The District Collector will collect Collector asks both the importer and additional duties and taxes based on the customs officer to submit position higher tariff rate papers. What is the deadline for d. The ruling will automatically be submission of these papers? appealed to the Secretary of Finance a. Two (2) days from receipt of the notice without b. Five (5) days from receipt of the notice payment of additional duties c. Seven (7) days from receipt of the notice d. Ten (10) days from receipt of the notice 85. In the event that the Tariff Commission classifies goods under a lower tariff rate 88. During a customs valuation dispute, an than declared, how will the security importer requests the release of their posted by the importer be handled? goods under Tentative Assessment. a. It will be refunded or cancelled, as What conditions must be met for the appropriate goods to be released? b. It will be forfeited in favor of the Bureau a. Payment of all duties and taxes, and of Customs submission of a guarantee letter c. It will remain in place for future disputes b. Payment of duties and taxes as d. It will be partially refunded based on the declared, and posting of sufficient security discrepancy in duties to cover the disputed amount c. Submission of position papers and 86. After lodging a goods declaration, the payment of additional fees for tentative customs officer challenges the assessment declared dutiable value of the goods. d. Posting of a cash bond and written The importer disagrees with the approval from the District Collector revaluation. What is the correct order of escalation for this dispute? 89. If the District Collector rules in favor of a. Principal Appraiser, Chief of Formal the customs officer's valuation and the Entry Division, District Collector, Deputy importer disagrees, what options does Collector for Assessment the importer have? a. Request a reconsideration from the Commissioner of Customs  b. File a protest or appeal in accordance d. Packing list or other similar documents with the relevant customs rules c. Refuse to pay the duties and taxes until 93. An importer is unable to lodge their the case is further reviewed goods declaration online through the d. Request another inspection of the Bureau's E2M system due to technical goods by a third-party examiner issues. What alternative form must be used for manual filing 90. After a valuation dispute is resolved, during this period? and the ruling is adverse to the importer, a. Import Entry Declaration Form BC No. what happens if the goods were 101 released under Tentative Assessment? b. Informal Import Declaration and Entry a. The importer must immediately pay the (IIDE) BC Form No. 177 additional duties and taxes c. Import Authority Filing Form BC No. 202 b. The importer’s posted security will be d. Temporary Import Filing Form BC No. used to cover the deficiency in 175 duties and taxes c. The goods will be seized until the full 94. An importer misses the deadline for payment is made lodging a goods declaration and fails to d. The ruling will be appealed request an extension within the original automatically to the Commissioner of 15-day period. What is the next possible Customs step for the importer to take? a. The importer may file a Provisional 91. An importer fails to lodge the goods Goods Declaration declaration within the initial 15-day b. The importer can request another 30- period from the discharge of goods. day extension from the Collector of Which of the following grounds can be Customs used to request an additional 15-day c. The importer must pay a fine and extension for lodging the declaration? proceed with manual filing a. The importer forgot to submit the d. The importer is allowed to re-lodge the documents goods declaration within 10 days with no b. The importer experienced a technical penalty issue certified by the MISTG c. The importer was out of the country 95. How long does the Collector of during the 15-day period Customs have to act upon a written d. The importer disagreed with the request for an extension to lodge a dutiable value assigned by customs goods declaration? a. 5 working days 92. When lodging a goods declaration, b. 7 working days which of the following is not required to c. 3 working days be submitted as a supporting d. 10 working days document? a. Bill of Lading (BL) or Air Waybill (AWB) 96. Goods imported under the Temporary b. Commercial invoice or any other Admission provisions must be intended verifiable document evidencing value for which of the following purposes? c. Gate Pass BC Form No. 201 for sea ports a. Permanent importation  b. Re-exportation within the specified the Philippines, what should the holder period do? c. Sale to local markets a. Abandon the goods to customs d. Immediate consumption authorities b. Request the issuance of replacement 97. An importer using an ATA Carnet for papers from the NIGA goods temporarily imported into the c. Apply for a new ATA Carnet with a new Philippines realizes that the re- validity period exportation period will exceed the d. Pay the full import duties and taxes to validity of the ATA Carnet. What recover the goods action must the importer take? a. Request an extension of the original ATA Carnet from the Bureau of Customs b. Submit a new goods declaration and pay duties c. Obtain replacement papers from the association that issued the original ATA Carnet e. Re-export the goods before the expiration of the ATA Carnet 98. The Philippines does not accept the ATA Carnet for which of the following items? a. Scientific and pedagogic material b. Packings and articles used only for advertising c. Goods for temporary scientific research d. Items used for educational exhibitions 99. If goods covered under an ATA Carnet are seized by the Bureau of Customs, what happens to the requirement for re- exportation? a. The goods must be re-exported immediately b. The re-exportation requirement is suspended for the duration of the seizure c. The importer must pay duties and taxes on the goods d. The goods are forfeited and cannot be re-exported 100. In the event that an ATA Carnet is lost or destroyed while the goods are in