CUSTOMS LAWS, RULES, REGULATIONS, ETHICS AND CUSTOMS BROKER PRACTICES (25%)

1. PRINCIPLES OF CUSTOMS ADMINISTRATION: 45%

2. Bureau of Customs and Commissioner of Customs
• Functions of the Bureau of Customs
• Functions of the Commissioner
3. Liability of importers for duties and taxes on imported goods
• Persons liable for the payment of duties and taxes
• Owners of imported goods
• When duties and taxes due on imported goods
• Tentative assessment
• Final assessment
• Legal interest on unpaid duties, taxes, fines and penalties
• Surcharge on unpaid duties, taxes, fines and penalties
• Lien on imported goods
• Abatement
•
• When abatement may be availing
4. Customs Control and Jurisdiction
• Customs Jurisdiction
• Customs Territory
• Separate customs territory
• Hot pursuit within the Philippine territory
• Hot pursuit up to high seas or international air space
• When importation begins
• When importation deemed terminated
• Period of limitation
• Customs Control Over Goods
• Power of the President to Subject Premises to Customs Jurisdiction
• Trespass or Obstruction of Customs Premises
• Surveillance for the Protection of Customs Revenue and Prevention of Smuggling
• Temporary Storage of Goods
• Customs Control.
• Informed Compliance
• Information of General Application
• Information of Specific Nature
• Pre-entry control
• Third Parties
o Declarant
o Relationship Between the Bureau of Customs and Third Parties
o Administrative proceedings on cases involving third parties
• Advance Manifest System
• Customs clearance control
• Goods to be Imported Through Customs Office
• Importations Subject to Goods Declaration
o Penalties for errors in goods declaration
• Customs cannot assess on an amount lower than entered value
• Government’s right of compulsory acquisition
• Risk Management
o Selectivity
▪ Examination
o Advance Clearance.
▪ Bulk and break-bulk cargo clearance enhancement program
 ▪ Advance Customs Clearance and Control Program
o Release of goods.
▪ Release of Goods after Payment of Duties and Taxes
▪ Release of Goods to the Holder of Bill of Lading or Airway Bill
▪ Release of Goods Without Production of Bill of Lading or Airway Bill
▪ Release of Goods Upon Order of Importer
▪ Withholding Release Pending Satisfaction of Lien
▪ Release of goods subject to fines and surcharge
▪ Release upon tentative assessment
o Post Clearance Control
▪ Readjustment of appraisal, classification
▪ Commissioner’s visitorial power
▪ Post clearance audit and records keeping requirements
• Persons that may be subjected to post clearance audit
• Persons required to keep records and retention period
o Excluded: Specific records to be kept
• Period to conduct post clearance audit
o Post clearance audit procedures
• Prior Disclosure Program (PDP)
• Penalties but no computation
• Civil remedies in the collection of deficiency in the payment
of duties and taxes discovered after the conduct of post
clearance audit
• When may or not be required
• Forms of security

CUSTOMS PROCEEDINGS 45%

1. Abandonment
• Types
• Proceedings
• Reclaiming impliedly abandoned goods
• Amounts of penalties, docket fees not included
2. Misdeclaration, misclassification and undervaluation in goods declaration

3.1. Valuation, classification and ROO dispute settlement process.

3.2. Appeal procedures.

4.1. Police authority.

4.1.1. Nature of authority.

4.1.2. Where authority may be exercised.

4.1.3. Persons with police authority under CMTA.

4.1.3. Authority, limitation and obligation of persons exercising police authority

4.2. Alert Order and Pre-Lodgment Control Order (PLCO)

4.3. Forfeiture proceedings

4.3.1. Property subject to forfeiture

4.3.2. Conditions for forfeiture

4.3.3. WSD

4.3.3.1. Condition for issuance

 4.3.3.2. Service

4.3.4. Hearing.

4.3.5. Compromise

4.3.6. Decision of District Collector

4.3.7. Appeal: Regular review and automatic review.

4.3.8. Disposition of property under customs custody.

• Proceedings on cases other than protest and forfeiture cases

• Proceedings against third parties
• Lien on imported goods

REGULATION OF THE CB PROFESSION 10%

1. A. No. 9280, as amended, and its implementing rules and regulations

2. Code of Ethics and Technical Standards for Customs Brokers
3. Continuing Professional Development (CPD) Law and its implementing rules and regulations
4. List of covered laws, rules and regulations
5. CMTA, CAOs, CMOs,JMO etc. etc.

Question exclusions

Trivia type questions like history of the Bureau of Customs, acronyms, dates, names, places, R.A. Number, PRC Resolution Number,
CAO number, Section Number, case titles of Supreme Court decisions.

CUSTOMS DOCUMENTATIONS, CLEARANCE AND PROCEDURES 25%

CUSTOMS CLEARANCE THROUGH FORMAL AND INFORMAL ENTRY PROCESS 70%

1. Import Clearance Formalities: Complete Declaration, Provisional Goods Declaration and Modification and Cancellation of
Single Administrative Document (SAD)
• Consumption
▪ Regular importation
▪ Conditionally free importations
▪ SGL and AEO clearance procedures
▪ Release for consumption with ETRACC electronic customs seal
▪ Goods valued at more than the de minimis value but not more than P50,000.00
• Warehousing
▪ Transfer from port of discharge
• Deposit through transit
• Deposit through warehousing goods declaration
▪ Transfer from other warehouse or free zone
▪ Withdrawal Procedures
• For export
• For condemnation
• For transfer to another CBW
• For admission to free zone
• For consumption
▪ Admission
• Direct
• Admission Through Transit
▪ Transit
• Transfer to Off-Dock CY- CFS
• Transfer to Customs Inland Office: CBW and PEZA
• Transfer from customs inland office to another customs inland office
 • Empty container for export
▪ Transshipment
• Airport and sea transshipment
2. Special Procedures
• Traveler and Passenger Baggage
• Postal Item or Mail
• Express Shipment
• Relief Consignment
• SGL and Authorized Economic Operator (AEO)

3. Export Clearance and Formalities

3.1. Regular exports.

3.2. Export of conditional imports

3.3. Conditional exports

3.4. Exports from customs bonded warehouse

3.5. Exports from free zone

3.6. Export for drawback

4. CUSTOMS PORT OPERATIONS 15%

Customs Bonded Warehouse

• Application to operate.
• Liquidation of warehousing entry.
• Closure

Customs Facilities Warehouse

• Application to operate
• Closure

Entrance and Clearance of Vessels and Aircrafts

• Pre-entrance Rules and Formalities

• Entrance Formalities
• Departure Formalities
• Stores
5. MISCELLANEOUS TOPICS 15%
6. Refund Procedures

1.1. Drawback

1.1.1. Goods entitled to drawback

1.1.2. Drawback procedures

1.2. Customs duty and value-added tax (VAT)

7. Accreditation and Registration of Third Parties

• Importers
• Customs Brokers
• Authorized Economic Operator (AEO)