2019 TUTORIAL ON

CUSTOMS DOCUMENTATION AND PROCEDURES

SESSION 10

1.What is the rule with regard to the customs clearance of salvaged goods from derelicts?
a. Salvaged goods shall be customs cleared at the port where it was forwarded by the salvor
b. Salvaged goods may only be customs cleared at the original port of destination
c. Salvaged goods may either be customs cleared at the port where forwarded by the salvor or
the original port of destination
d. Subject to the rules issued by the Commissioner of Customs subject to approval of the Secretary
of Finance

2.For purposes of determining dutiable value, how shall shipments covered by 1 MBL or MAWB but with
several house BL or AWB with single or multiple invoices with the same consignee and shipper be treated
for purposes of assessing duties and taxes?
a. They shall be treated as several shipments depending on the number of house BL or AWB
b. They shall be treated as several shipments depending on the number of invoices
c. They shall be treated as a single shipment
d. It depends on the value of the shipment per house bill of lading or AWB

3.Customs Broker “A” delivered a shipment consisting of 4X40’ STC 5,000 sets tables and chairs to
Importer “B”. However, upon delivery “B” informed “A” that he just decided to abandon the goods and
requested the latter to return the shipment to BOC and request for refund. “B” gave “A” a letter
addressed to the District Collector expressing his intention to abandon the goods.
Is “B” entitled to refund?
a. Yes, as long as the seal in the containers are still intact.
b. Yes, if the reason for the return is fortuitous event.
c. No, in all instances duties and taxes already paid may not be refunded anymore.
d. No, because the goods have been taken out of customs custody

4.A mode of payment where the importer can secure delivery of the goods subject of contract of sale
between him and the foreign supplier even if payment has not been made.
a. D/P
b. At sight L/C
c. Pre-paid
d. D/A

5.May a cargo manifest be amended even if the covering goods declaration has been lodged and routed
to the Green Lane but the SAD and supporting documents have not been submitted to EPU?
a. No, because the importer may try to cover up a fraud which may have been committed
b. No, because when the goods declaration has been routed to the Green Lane the system
automatically registers the commercial invoice with the Formal Entry Division.
c. Yes, by way of an amendment under oath by the consignee and the amendment is attached to
the original manifest.
d. Yes, but a physical examination must be first requested by the importer

6.The rule is that the Bureau of Customs cannot assess on an amount lower than entered value. What is
the exception to the rule?
a. When the Commissioner of Customs subject to approval of the Secretary of Finance approves the
request of an importer to accept a goods declaration with an entered value which shall be subject
to adjustment after final assessment
b. When the Commissioner of Customs approves the lodging of a goods declaration for
consumption with a higher value subject to adjustment if the Bureau of Customs acts favorably on a
pending case of a similar importation which was previously disputed by the Bureau.
c.When the Commissioner of Customs subject to recommendation of the District Collector makes an
approval
d. There is no exception to the rule

7.A type of goods declaration where the goods covered shall be transported from the port of discharge to
its final port of destination in the Philippines.
a. Goods declaration for admission
b. Goods declaration for transit
c. Goods declaration for warehousing
d. All of the above
8.When the Bureau requires laboratory analysis of samples how may release of goods be effected even
before the completion of the analysis?
a. There is no choice for the importer but to wait for the results of the analysis of samples.
b. Importer must request for tentative release
c. Importer may request for tentative assessment and post sufficient security
d. Submit provisional goods declaration

9.A goods declaration covering 1X20’ STC Laser Pointers was routed to the Green Lane and an on-line
release instruction has been given to the cargo handling operator. While the container was being loaded
to the delivering truck it fell which resulted to the total damage of the cargo.

May the declarant request for refund of duties and taxes?

a. No, as damage was done after customs formalities was finished
b. Yes, as damage was incurred while shipment is still in customs custody
c. No, as payment has been made.
d. Yes, as damage was not intentional

10. How may a salvor be regarded consignee of imported goods?

a. When the salvor has made successful salvage
b. Upon determination by the District Collector
c. When the consignee or underwriter fails to claim the salvaged goods
d. When salvage was done with prior authority from the District Collector

11. Which of the following has the authority to accredit exporters registered operating in a special
economic zone under PEZA for purposes of CPRS registration with the Bureau of Customs?
a. AMO
b. DOF
c. DTI
d. PEZA

12. What type of shipment may not be allowed transit from port of discharge to final port of
destination?
a. Goods imported for use by accredited CBWs
b. Goods imported for immediate exportation
c. Goods imported for admission to free zones
d. All of the choices may be allowed transit from port of discharge to its final port of destination.

13. When the business of the port requires such facilities who shall designate and approve the
establishment warehouses for use as public and private bonded warehouses, yards, or for other
purposes?
a. Commissioner of Customs subject to approval of the Secretary of Finance
b. District Collector subject to approval of the Commissioner of Customs
c. Committee on Customs Bonded Warehouse subject to approval of the Commissioner of Customs
d. Committee on Customs Bonded Warehouse subject to approval of the District Collector

14.Customs bonded warehouses and premises designated and established for the purpose shall be
subject to the supervision of which of the following? That person shall impose such conditions as may be
deemed necessary for the protection of the revenue, and of the goods stored therein.
a. District Collector
b. Commissioner
c. Operating Division Chiefs
d. Commissioner subject to approval of the Secretary of Finance

15.When the conditions so warrant under the law who has the authority to discontinue operations of a
customs bonded warehouse or in case of a private warehouse, upon written request from the operator?
a. District Collector
b. Commissioner
c. District Collector subject to approval of the Commissioner
d. Commissioner subject to approval of the Commissioner

16. A shipment consigned to the wife of the Ambassador of United Kingdom to the Philippines
consisting of personal effects may enter duty and tax free?
a. No, as only the Ambassador is entitled to duty and tax free importation of personal effects.
b. Yes, as long as the personal effects are consumed when the wife of the Ambassador in
inside the UK embassy.
c. Yes, as a matter of provision of law.
d. No, based on existing international comity.

17. It is a contract of carriage that includes carrier conditions, such as limits of liability and claims
procedures. In addition, it contains transport instructions to airlines and carriers, a description of the
goods, and applicable transportation charges.
a. Bill of lading
b. Airway bill
c. Common carrier
d. Transport document

18. It refers to the completion of customs and other government formalities necessary to allow
goods to enter for consumption, warehousing, transit or transshipment, or to be exported or placed
under another customs procedure.
a. Customs formalities
b. Clearance
c. Release
d. Customs procedures

19. In RKC term, It is a process in which certain goods can be brought into a customs territory
conditionally relieved, totally or partially, from payment of import duties and taxes; such goods must be
imported for a specific purpose and must be intended for re-exportation within a specified period and
without having undergone any substantial change except due to normal depreciation.
a. Bonded warehouse operations
b. Free zone admission
c. Temporary admission
d. Constructive importation

20. It is a type of customs bonded warehouse where the operator is engaged in manufacturing but
its total production output is consumed in the customs territory.
a. Miscellaneous customs bonded warehouse
b. This is not a customs bonded warehouse
c. Customs common bonded warehouse
d. Private customs bonded warehouse

21. What is the condition under CMTA for a traveler to be permitted to export goods for commercial
purposes?
a. Payment for the goods must be with the used of foreign currency.
b. Subject to compliance with the necessary export formalities and payment of export duties, taxes
and charges, if any.
c. Subject to filing of an export declaration.
d. All of the above

22. What may evidence intent to re-export goods that are arriving in the principal port of entry
under the customs procedure constructive werehousing for immediate exportation?
a. The intention must be through a formal communication sent by the importer to the District
Collector.
b. The intention may be shown in the bill of lading.
c. The intention must be relayed to the District Collector prior to the discharge of the shipment
d. The intention must be shown with good faith by posting re-export bond.

23. In case of goods for transshipment, how many days from arrival should the same be exported?
a. Within thirty (30) days from arrival
b. Within fifteen (15) days from arrival
c. Within ninety (90) days from arrival
d. There is time frame to re-export in CMTA

24. In order to facilitate the direct transfer of the goods from carrying vessel to the exporting vessel
what shall be designated constructively as the warehouse in the case of entry for immediate re-
exportation?
a. Pier
b. Cargo handling operator
c. Carrying vessel
d. Exporting vessel

25. Under CMTA what is to be required for goods transported under customs transit?
a. GPS tracking on the transporting carrier
b. Transit permit
c. Accreditation with the Bureau of Customs
d. Bond to be posted by the receiving party of the goods for transit

26. Who of the following has the authority to suspend, disallow or completely withdraw, in whole or
in part, any conditionally free-importation in the CMTA?
a. Commissioner of Customs upon the recommendation of the District Collector
b. Secretary of Finance upon the recommendation of the Commissioner of Customs
c. District Collector upon the recommendation of the Formal Entry Division
d. President of the Philippines upon the recommendation of the Secretary of Finance.

27. In the case of conditionally free-importation of equipment to be used for the salvage of vessel or
aircrafts what is the reckoning point of the six (6) month re-exportation period?
a. Arrival of the vessel
b. Discharge of the shipment from the carrying vessel
c. Acceptance of the goods declaration
d. Posting of the required security

28. In the case of conditionally free-importation of equipment to be used for the salvage of vessel or
aircraft, which of the following statements is wrong?
a. Equipment must be re-exported within six (6) months
b. The re-exportation period is subject to extension of another six (6) months
c. Security equivalent to 150% of the duties and taxes due on the equipment
d. The count of the six (6) month re- exportation period is from acceptance of goods declaration.

29. It refers to the customs procedure under which goods are transferred under customs control
from the importing means of transport to the exporting means of transport within the area of one
Customs office, which is the office of both importation and exportation.
a. Customs release
b. Transshipment
c. Transit
d. Admission

30. What is the rule for conditionally free-importation on repair made abroad on vessels or aircrafts
registered in the Philippines?
a. Only cost of repair is conditionally free
b. Only the value of the goods used in the repair is conditionally free
c. Both the cost of repair and value of the goods in the repair are conditionally free
d. Only cost of labor in the repair is conditionally free

31. To whom shall applications to operate a CBW be filed?

a. Commissioner of Customs
b. Department of Trade and Industry
c. District Collector
d. CBW Committee

32. Upon receipt of the application to operate a CBW what is the responsibility of the person
authorized to receive the application to operate CBW?
a. Approve the application
b. Examine the premises of such proposed warehouse particularly its location, construction and
storage facilities
c. Refer the matter to the Secretary of Finance
d. Refer the matter to the Department of Trade and Industry

33. May a Filipino resident who stayed abroad for less than six (6) months entitled to duty and tax
free privilege of household and personal effects?
a. Should have stayed in a foreign country for a period of at least six (6) months
b. Should have stayed in a foreign country for a period of at least three (3) months
c. Should have stayed in a foreign country for a period of at least one (1) year
d. Should have stayed in a foreign country for a period of at least six (6) years

34. Avon Cosmetics Philippines, Inc. ordered Lotus Essential Oil from its parent company in USA. The
shipment was cleared at customs. However, when the company was compounding the essential oil into
perfumes it discovered that the essential oil is not pure.
Would the company be entitled to duty and tax refund if it returns the essential oil to Avon USA?
a. No, as the essential oil has been used.
b. No, as the essential oil has been taken out of customs custody.
c. Yes, as long as the essential oil is covered by a CPR
d. Yes, even if the essential oil has been partially used.

35. Where should the District Collector bring a vessel arrested for reason that she departed before
entry?
a. Back to his Collection District
b. Back to the port where the vessel should discharge her cargo
c. To the nearest port
d. None of the choices

36. In case of goods entered for immediate re-exportation a security shall be posted. How shall the
security be released?
a. By presenting an Inspector’s Report of Actual Loading
b. By presenting a duly authenticated bill of lading
c. By presenting proof of landing beyond the limits of the Philippines
d. By presenting proof of actual re-exportation

37. Which of the following goods are not covered by the re-exportation rule in order to be imported
conditionally free of duties and taxes?
a. Equipment for salvage of vessels or aircrafts
b. Goods for public exhibit
c. Motor vehicles imported by foreign embassies
d. Goods for repair in the Philippines

38. A vessel engaged in foreign trade which docks at the designated port entry shall be subject to the
authority of who of the following?
a. Shipping line
b. Philippine Coast Guard in coordination with the District Collector
c. District Collector
d. District Collector in coordination with MARINA

39. At the time of clearance, the master of a departing vessel shall be required to indicate the time of
intended departure. What is the maximum period of time from the intended departure may the vessel
stay in port, otherwise the master of the vessel has to report to the District Collector for extension of
departure?
a. Twenty four (24) hours
b. Thirty six (36) hours
c. Forty eight (48) hours
d. Seventy two (72) hours

40. A condition for trailer chassis to enter conditionally-free from duties and taxes is that customs
supervision fee has to be paid. Who has the authority to fix such customs supervision fee?
a. District Collector
b. Commissioner of Customs
c. Secretary of Finance upon the recommendation of the Commissioner of Customs
d. Commissioner of Customs upon the recommendation of the District Collector

41. Trailer chassis that entered conditionally free from duties and taxes when not in use shall be
deposited to which of the following?
a. Any place in the Philippines is acceptable as government is protected since re-export bond is a
requirement
b. Customs zone
c. Any of the choices
d. CBW

42. In case of goods exported from the Philippines for repair and reimported advanced in value,
whether or not imported in their original states, what shall be the rate of duty to be imposed?
a. Thirty (30) percent rate of duty
b. Duty rate of the tariff heading of the reimported goods
c. Duty rate at the time of exportation of the goods
d. Any of the above depending on the situation of a particular case

43. In case the physical examination of a shipment is by reason of the selectivity module in the e2m
Customs System, who shall shoulder the cost of examination?
a. Customs
b. Importer
c. It depends on the situation
d. Shipping line

44. A newly married Filipino resident couple took the Virgin Island Cruise via S/S Virgo Star which
docked at the Port of Manila yesterday. The cruise took two (2) months. For their “pasalubong” to their
“biyenans” the couple purchased “stores to be taken away” worth US$1,000.00.
Are these “stores to be taken away” subject to payment of duties and taxes when the couple disembarks
at POM?
a. Yes, as the value of the goods exceeds the P10,000 de minimis value.
b. No, as they are entitled to much more than the de minimis value
c. Yes, if the goods are not covered by official receipts issued by the cruise ship
d. No, as it shall be considered as local purchase as the vessel is docked at the Port of Manila

45. Which of the following is not considered as transit?

a. Transport from port of entry to another port of entry as exit point for outright exportation.
b. Transport from inland customs office to a port of entry as exit point for outright
exportation.
c. Transport from one port of entry or inland customs office to another port of entry or inland
customs office.
d. All the above are considered as transit

46. Who of the following has the authority to adjust the amount of carrier’s security?
a. District Collector upon approval of the Commissioner of Customs
b. Commissioner of Customs upon approval of the Secretary of Finance
c. Commissioner of Customs
d. District Collector

47. What is the distance that unauthorized tugboats and other vessels should maintain from vessels
engaged in foreign trade?
a. Not less than one hundred (100)meters
b. Not less than fifty (50) meters
c. Sufficient distance for safety purposes
d. As may be allowed by Philippine Coast Guard regulations

48. It refers to the action by the Bureau to permit goods undergoing clearance to be placed at the
disposal of the party concerned.
a. Customs clearance
b. Border release
c. Delivery of goods
d. Release of goods

49. What is being guaranteed by a carrier’s security?

a. Payment of duties and taxes
b. Complete and immediate delivery of goods transported
c. Goods transported are re-exported
d. Goods transported are in accordance with customs rules and regulations

50. How may release of goods be effected without production of bill of lading or airway bill?
a. Upon posting of sufficient security
b. Upon written order of the carrier
c. Upon presentation of a promissory note to produce the bill of lading or airway bill
d. Upon approval of the Commissioner of Customs

51. What is the condition with regard to the release of goods which are subject to any fine or
surcharge?
a. The goods shall only be released upon prior clearance from the Commissioner of Customs.
b. The goods shall only be released upon payment of duties and taxes.
c. The goods shall only be released after final liquidation of the goods declaration.
d. The goods shall only be released after the payment of the fine or surcharge.

52. How may release to another person of goods stored in bonded warehouse be made?
a. Upon written authorization of the importer
b. Upon approval of the Commissioner of Customs
c. Upon payment of duties and taxes
d. Upon payment of storage charges to warehouse operator

53. Who has the authority to determine the amount of supervision fee to be paid by the CBW
operator?
a. District Collector
b. Commissioner of Customs
c. Secretary of Finance
d. Secretary of the Department of Budget and Management

54. Upon arrival of an aircraft from a foreign port who of the following should the Bureau of Customs
provide electronic copy of the manifest?
a. Administrator, Philippine Statistics Authority
b. Director General, NEDA
c. Commanding General, Philippine Coast Guard
d. Chairperson, COA

55. The 1st port of call of S/S Misouri is MICP and the 2nd port of call is Port Cebu. Would the fuel oil
to be used by vessel in its voyage from Manila to Cebu subject to payment of duties and taxes?
a. Yes, because the voyage is within the Philippines
b. Yes
c. No, but the voyage must have prior permit from the Commissioner of Customs
d. No

56. It refers to the return, in whole or in part, of duties and taxes paid on goods.
a. Abatement
b. Tax Credit
c. Refund
d. Tax rebate

57. S/S New York while docked at the Port of Iloilo was hit by a strong waved and capsized causing
damage to all the cargo on board. Are the owners of the damaged cargo entitled to abatement?
a. No, as the damage occurred while the vessel may be considered as still in voyage.
Completion of voyage means the all the cargo on board the vessel has been discharged.
b. No, as the cause of damage may be considered as force majeure.
c. Yes
d. Yes, provided that the vessel has already submitted the required inward foreign manifest.

58. In case a returning resident exceeds the amount allowed by law what shall be the rate of duty to
be applied on the excess?
a. 50% rate of duty
b. 30% rate of duty
c. Rate of duty on the goods imported as provided for in the AHTN
d. 10% rate of duty

59. It refers to any person who temporarily enters the territory of a country in which he or she does
not normally resides (non-resident), or who leaves that territory, and any person who leaves the territory
of a country in which he or she normally resides (departing resident) or who returns to that territory
(returning resident).
a. Tourists
b. Arriving passengers
c. Travelers
d. In-bound passengers

60. To enter duty and tax free under the conditionally tax provision of CMTA aquatic products must
be gathered by fishing vessels of Philippine registry. What is the rule with regard to the vessel carrying
the aquatic products to the Philippines?
a. The carrying vessel may or may not be of Philippine registry
b. The carrying vessel must be of Philippine registry
c. The carrying vessel must also be the gathering vessel
d. Any of the choices

61. The records keeping retention period for free zone locators who sell to entities in the customs
territory for consumption?
a. Three (3) years from final payment of duties and taxes due on the goods sold to the customs
territory
b. Three (3) years from customs clearance
c. Three (3) years from lodgment of goods declaration for admission
d. Three (3) years from lodgment of goods declaration for consumption

62. In the course of determining the accuracy of entered value, may the Commissioner of Customs
compel an authorized agent bank to disclose the actual remittance made to a foreign supplier?
a. No, as only the BSP can compel AAB’s to make the disclosure
b. No, as this will be in violation of the bank secrecy law
c. Yes, as clearly provided for by law
d. Yes, provided that the importer would grant permission to the AAB to disclose the amount.

63. Under conditionally free importation of aquatic products the rule is that the products should not
have been landed in any foreign territory. If landed, what is the condition?
a. It should have been landed solely for transshipment without having been advanced in condition
b. It should have been landed only if the gathering vessel needs repair
c. It should have been landed only if the there is need for the aquatic products to undergo some
processing to prevent spoilage
d. All of the above are correct

64. What is the appeals procedure if the Commissioner of Customs imposes penalties after the
conduct of post clearance audit?
a. The aggrieved party may appeal to the Secretary of Finance
b. The aggrieved party may file for a motion for reconsideration
c. The aggrieved party may appeal to CTA
d. Any of the choice is proper depending on the amount of penalty imposed

65. It refers to an entity, which may or may not own or operate a vessel that provides a point-to-
point service which may include several modes of transport and/or undertakes group age of less container
load (LCL) shipments and issues the corresponding transport document.
a. International freight forwarder
b. NVOCC
c. Total logistics service provider
d. Freight forwarder

66. A Filipino physician is set to leave the Philippines for United Kingdom to practice his profession.
He is bringing with him his medical practice apparatuses and equipment. With intention to come back to
the Philippines after one (1) year of medical practice abroad, what shall he secure at the airport of
departure to ensure that when he comes back all his apparatuses and equipment will be considered as
conditionally-free importation?
a. He needs to file export declaration
b. He needs to secure re-importation bond
c. He needs to secure a Certificate of Identification
d. He needs to present his working visa at the time of arrival

67. In the e2m Customs System what is the next step after a goods declaration is routed to the Green
Lane?
a. Payment of duties and taxes
b. Sending of payment instructions to AAB
c. Assessment
d. Validation of goods declaration

68. Which of the following type of conditionally free importation whose re-exportation period may
not be extended?
a. Goods for public exhibit
b. Equipment for the salvage of vessel
c. Household effects for belonging to foreign consultants hired by the government
d. Containers, holders and other similar receptacles fresh fruits for export

69. Ambassador Jigo was posted last June 25, 2018 to Thailand as Ambassador Extraordinary and
Plenipotentiary. Yesterday he received a recall order for his to come back to the Philippines by August 23,
2019 to be appointed DFA Undersecretary. May he bring back to the Philippines the car he purchased in
Thailand for his personal use duty and tax free?
a. Yes, provided that the DFA Secretary makes an official request to the Secretary of Finance.
b. Yes, provided that the car is in his name.
c. No, even if the car is registered in his name
d. No, provided the car is registered under the name of the Philippine Embassy

70. What is the legal responsibility of the government over the safekeeping of goods stored in any
customs warehouse?
a. Government has legal responsibility as customs guards are assigned to guard the premises
b. Government assumes no legal responsibility
c. It depends on the situation
d. Government and operator are jointly responsible

71. How shall goods be withdrawn from a free zone for consumption in the customs territory?
a. By means of a transit permit
b. By payment of duties and taxes
c. By filing of goods declaration for consumption
d. By securing the approval of the free zone authority

72. In order that drawback may be given when should the imported raw materials processed into
finished products be exported?
a. Must be exported within 6 months from date of importation
b. Must be exported within 1 year from date of importation subject to extension of another 6
months
c. Must be exported within 1 year from date of importation
d. Must be exported within 6 months from date of importation but importer may request for
extension of another 6 months. However, the request must be made before the expiration of
the original 6 month period.

73. Discontinuance of the use of any warehouse shall be effective upon approval by the District
Collector. When should the District Collector inform the Commissioner of his action?
a. As soon as possible
b. Within fifteen (15) days
c. Within thirty (30) days
d. Within ten (10) days
74. Which of the following agencies shall certify that educational, scientific and cultural materials
imported conditionally free are covered by international agreements or commitments binding upon the
Philippine government?
a. Office of the President
b. Department of Foreign Affairs
c. Department of Education
d. Department of Finance

75. What is the responsibility of the District Collector with regard to any vessel of commercial
registry manifestly built for warlike purposes and about to depart from the Philippines with a cargo
consisting principally of arms and munitions of war, when the number of men on board or other
circumstances render it probable that such vessel is intended to be employed by the owner or owners to
cause or commit hostilities upon the subjects, citizens or property of any foreign principality or state or of
any colony, district or people with whom the Philippines is at peace.
a. Detain the vessel
b. Report the matter to proper authorities
c. Report the matter to proper authorities or detain the vessel
d. Report the matter to the proper authorities of the country to which the vessel is cleared for
sailing

76. The District Collector may allow release of a detained warlike vessel with arms and munitions on
board upon posting of security by the owner or owners of the vessel. How much is the amount of the
security?
a. Equivalent to triple the value of vessel and cargo
b. Equivalent to double the value of vessel and cargo
c. Equivalent to the duties and taxes due on the vessel and cargo
d. Equivalent to the value of vessel and cargo

77. If a provisional goods declaration is accepted by the Bureau of Customs what is the maximum
period by which an importer may be allowed to submit a completion goods declaration?
a. 45 days
b. 60 days
c. 75 days
d. 90 days

78. Under current regulations how much is the performance bond to be posted by an operator of a
customs bonded warehouse?
a. Equivalent to the estimated duties and taxes due on the imported goods deposited to the CBW
b. P200,000.00
c. As determined by the Commissioner of Customs
d. As determined by the District Collector depending on the value of the goods to be stored in the
CBW

79. Importations for the official use of foreign embassies may enter conditionally free upon specific
instructions from the Secretary of Finance pursuant to whose official request?
a. Office of the Ambassador
b. Office of the President
c. Department of Foreign Affairs
d. Office of the Consul General

80. When should examination of goods be conducted?

a. It shall be conducted even if the goods have not been discharged
b. It shall be conducted after discharge of the goods
c. It shall be conducted after submission of IFM
d. It shall be conducted after lodgment of goods declaration

81. Under CMTA goods from CBW may be withdrawn for consumption, exportation or transit to a
free zone or another CBW. What do you think is missing in the law?
a. Withdrawal for condemnation
b. Withdrawal for transfer to special economic zone
c. Withdrawal in case of sale from a free zone to the customs territory
d. All of the above
82. It refers to a place where a vessel, ship, aircraft or train unloads its shipments, from where they
will be dispatched to their respective consignees.
a. Port of entry
b. Port of discharge
c. Port of destination
d. Principal port

83. Upon the issuance of the authority to establish a customs bonded warehouse who shall have the
authority to accept the required security for its operation and maintenance?
a. Bonds Division of the Collection District
b. District Collector
c. Commissioner of Customs
d. Head of the Operating Division

84. Upon arrival of a vessel engaged in foreign trade who of the following are allowed to board the
vessel without the permission of the customs officer concerned?
a. Pilot
b. Consul
c. Quarantine Officers
d. All of the above

85. Company “A” imported cartons and used the same for the packaging of Cavendish bananas that
it exported to Japan. Supposing the Japanese exporter has already sold the bananas and would want to
export the empty cartons to the Philippines, may such cartons enter duty and tax free?
a. Yes, if “A” would post sufficient security
b. Yes, if “A” must secure from NEDA that the empty cartons are not available in the Philippines
at competitive price
c. Yes, if “A” would be the importer
d. The empty cartons may not enter duty and tax free as they have already enjoyed the
privilege before.

86. For perishable goods, what is the maximum period of storage in a CBW?
a. One (1) year from filing of warehousing entry
b. Three (3) months from arrival at the CBW extendible to another three (3) months
c. One (1) year from the deposit of the perishable goods to the CBW
d. Six (6) months from arrival at the port of entry

87. Which of the following shipments may be released prior to payment of duties and taxes?
a. Shipments belonging to SGL accredited importers
b. Shipments of accredited air express cargo operators
c. Shipments belonging to SGL Plus accredited importers
d. All of the above

88. What is that mode of payment where the foreign supplier directly sends the shipping documents
to the buyer in the Philippines and payment is made at an agreed future date?
a. D/A
b. D/P
c. L/C
d. O/A

89. What is the re-exportation period for containers, holders and other receptacles for locally
manufactured cement for export, including certain agricultural products as condition to be considered as
conditionally free importation?
a. Six (6) months with no extension
b. Six (6) months with extension
c. Three (3) months
d. Three (3) months with extension
90. In the course of conducting Post Clearance Audit may the Commissioner of Customs request
from a bank the amount of deposit of an importer?
a. Yes, if the amount of deposit would establish the accuracy of entered value
b. Yes, if the BSP would authorize such query
c. No
d. No, unless the importer committed fraud in the importation of the goods covered by a goods
declaration which is subject of post clearance audit.

91. When may physical examination of imported goods be conducted?

a. It may only be conducted after lodgment of goods declaration
b. It may be conducted even while on board the carrying vessel
c. It may only be conducted after discharge from the carrying vessel
d. It may only be conducted by reason of selectivity module

92. Vessel “A” while in voyage from Brazil to the Philippines collided with another vessel resulting to
the death of 1,000 cows on board which is consigned to Importer “B”. In spite of the accident “A”
managed to continue her journey to the Philippines.
May customs still collect duty on the dead cows?
a. Yes, because the death of the cows happened during voyage of the vessel to the Philippines
b. Yes, because customs would assess based on the number of cows discharged regardless of
whether the cows are dead or alive.
c. No, because death occurred before arrival of the vessel
d. None of the choices

93. A foreigner on board a cruise ship docked at Port of Manila purchased goodies at the ship’s store
for his beloved exotic girl friend. The goodies amounted to US$150.00. If he disembarks would the
goodies be subject to payment of duties and taxes?
a. Yes, because the general rule is that all imported goods are subject to payment of duties
and taxes
b. No
c. No, because the goods are not for sale nor for barter
d. Yes

94. Goods used exclusively for public entertainment, and for display in public expositions, or for
exhibition or competition for prizes, and devices for projecting pictures and parts and appurtenances
thereof may be considered as conditionally free importations. What is the re-exportation period of this
type of goods?
a. Six (6) months subject to another extension of six (6) months
b. Six (6) months and not subject to extension
c. Three (3) months subject to another extension of three (3) months
d. Three (3) months without extension

95. Based on the results of the Selectivity Module of the e2m Customs System the Bureau of
Customs conducted physical examination on a shipment. The shipment was found to be in order.
Who shall shoulder the cost of physical examination?
a. Bureau of Customs
b. Importer
c. It depends on the cost
d. Any of the choice

96. What is the period of limitation?

a. Three (3) years from the date of vessel’s arrival
b. Three (3) years from date of final payment of duties and taxes
c. Three (3) years from date of goods declaration lodgment
d. Three (3) years from release of shipment

97. If a particular product was exported and drawback was paid at the time of exportation, how
much shall be the customs duty due on the product if it shall be re-imported under conditionally free
importation rules?
a. Regular rate of duty at the time of importation
b. Duty free
c. Duty shall be equal to the amount of drawback given
d. Duty rate shall be zero upon presentation of Certificate of Origin
98. Such appraisal, classification or return as finally passed upon and approved or modified by the
District Collector shall not be altered or modified except which of the following choices?
a. Within one (1) months after such payment, upon request for reappraisal or reclassification
addressed to the Commissioner by the District Collector
b. Within one (1) year after such payment, upon request for reappraisal or reclassification
addressed to the Commissioner by the District Collector
c. Within six (6) months after such payment, upon request for reappraisal or reclassification
addressed to the Commissioner by the District Collector
d. Within fifteen (15) days after such payment upon request for reappraisal or reclassification
addressed to the Commissioner by the District Collector

99. A foreign vessel engaged in foreign trade is in dry dock at Mariveles Shipyard for emergency
repairs. During the length of her stay in the dry dock the crews on board made withdrawals from the ship
store and consumed them. Are these subject to payment of duties and taxes?
a. Yes, because the withdrawals and consumption were made when the vessel was not in voyage
b. Yes, because the vessel is already in the Philippines. Duty and tax free treatment may only be
availed when the vessel is in the high seas
c. No
d. No, as long as the goods consumed are not considered as luxurious goods.

100. When may goods and salvage from vessels be recovered from the date of filing marine protest
before such goods and salvage may be considered as conditionally free importation?
a. Recovery may be made at any day after filing of marine protest
b. Recovery must be made after a period of two (2) years from filing of marine protest
c. Recovery must be made within two (2) years from filing of marine protest
d. There is no time frame and whether goods and salvage from vessels may enter as conditionally
free importation totally depends on the difficulty of salvage