CBLE Mock Questions

1. A company imports a batch of goods that, upon inspection, are found to be

defective and not in accordance with agreed specifications. Which of the
following options is NOT available to the company concerning the duties and
taxes on these goods?
• a. The goods can be reexported to the supplier without being worked or repaired in the
country of importation, leading to an abatement or refund.
• b. The goods can be used in the country of importation to discover defects, and if found
defective, they can be reimported after their use.
• c. The goods can be abandoned, destroyed, or rendered commercially valueless under
customs control, but no abatement or refund will be granted if the company does not
bear the associated costs.
• d. The company can get an immediate refund without any conditions or further
processes if the goods are declared defective.

2. Section 1001 outlines the criteria for selecting firms to be audited. Which of
the following is NOT one of the criteria mentioned for selecting firms to be audited?
• a. The firm's technological advancement and adoption of modern practices.
• b. Relative Magnitude of Customs Revenue.
• c. Rates of Duties of the Firm's Imports.
• d. Compliance Track Records of the Firm.

3. An owner of seized goods fails to appear before the District Collector

within 15 days after the service of the warrant. What is the subsequent fate of
these goods?
• a. The goods remain in the custody of the District Collector until the owner claims them.
• b. The goods will undergo a judicial proceeding to determine their status.
• c. The goods are automatically forfeited in favor of the government, referred to as "ipso
facto" forfeiture.
• d. The District Collector will decide the fate of the goods based on the recommendation
of other customs officers.

4. An entity wishes to be accredited under the AEO Program. Which of the

following factors would the Bureau NOT evaluate when assessing the risk of
the applicant for AEO Membership Accreditation?
• a. Business ownership, structure, and organization.
• b. List of entities they've had a financial dispute with in the last 5 years.
• c. Customs compliance history.
• d. Internal customs compliance control.

5. Which of the following formulas accurately represents the relationship

between Dutiable Value (DV), Customs Value (CV), and Transaction Value (TV)
with adjustments as per the 1994 Agreement on Implementation of Article VII
of the GATT or the WVA?
• a. DV = CV + FRT + INS
• b. DV/CV = FOB + Adjustments
• c. DV = TV without any adjustments
• d. DV = CV = TV + Adjustments

6. The Bureau of Customs contemplates outsourcing certain operations

related to the monitoring and managing of foreign vessels' entrances. Which
of the following statements best describes this contemplated action?
• a. The operation can be outsourced since it falls under the non-sovereign functions of
the Bureau.
• b. Outsourcing is feasible as long as the private entity complies with the Data Privacy
Act of 2012.
• c. Such an operation cannot be outsourced as it pertains to a sovereign function.
• d. Outsourcing this operation requires only the recommendation of the Commissioner.

7. A Philippine company imports fuel which is then used for the propulsion of
vessels involved in coastwise trade. To what extent can the company avail of a
refund or tax credit on the duty imposed on the imported fuel?
• a. 50% of the duty imposed
• b. 99% of the duty imposed
• c. 100% of the duty imposed
• d. No refund or tax credit is allowed for fuel used in coastwise trade

8. After potential customs violations are identified, the District Collector's

decision regarding the goods is based on:
• a. Independent assessment without requiring input from other customs officers.
• b. A mandatory consultation with the Commissioner before taking any action.
• c. The recommendation of the alerting officer or any other customs officer in deciding to
issue an order of release or a warrant of seizure.
• d. Waiting for the importer to file a motion for the sale or release of the goods.

9. Juan, a Customs Broker, has decided to form a General Professional

Partnership (GPP) with his close friend, Marco. If Juan and Marco want to
register their GPP with the Bureau of Customs, which of the following
requirements must they meet?
• a. Each partner must complete a separate application form with a non-refundable fee of
Php5,000.
• b. They must submit a notarized list of representatives, undertakings, and verified
photocopies of each partner's NBI clearance.
• c. Only the Managing Partner needs to submit their latest ITR for the past three years.
• d. The partnership's Certificate of Registration is automatically cancelled upon the
resignation or retirement of any partner.

10. Regarding the exemption of Philippine goods previously exported and

returned, which of the following is NOT a condition?
• a. Philippine goods must have been advanced in value or improved in condition by any
process of manufacturing or other means.
• b. foreign containers previously imported, used in packing exported Philippine goods,
and returned empty must be imported by or for the account of the person or institution
who exported them from the Philippines.
• c. foreign goods previously imported must be returned after being exported and loaned
for temporary use abroad solely for exhibition, testing, and experimentation, or for
scientific or educational purposes.
• d. If Philippine goods have been allowed drawback or bounty, they will be subject to a
duty equal to the amount of such drawback or bounty upon reimportation.

11. In the Bureau's effort to ensure streamlined processes and facilitate the
movement of goods, which among the following strategies could be adopted to
enhance the cross-border trade?
• a. Levying additional fees on traders who are recurrently non-compliant.
• b. Imposing mandatory inspection for all import and export cargoes.
• c. Adopting a single-window system for traders to submit all required documentation
electronically.
• d. Assigning additional Deputy District Collectors to oversee operations.

12. After an "expressly abandoned" declaration, the status of the ownership of

the goods:
• a. Can be reclaimed by the owner after 30 days provided all legal requirements are
fulfilled.
• b. Remains with the owner but is held under customs custody.
• c. Is automatically transferred to the government.
• d. Can be compromised upon by the Commissioner.

13. A private yacht, which is primarily used for recreational purposes by its
owner, was docked at a local marina Customs officers received a tip that prohibited
items might be on board. Which of the following statements is correct?
• a. The yacht cannot be searched because it is not used for transporting goods and is
outside the jurisdiction of customs enforcement.
• b. The yacht can be seized if involved in violations of customs laws but cannot be
searched without a warrant.
• c. The yacht can be both searched and seized by customs officers if they have reasonable
grounds to believe it contains prohibited items.
• d. Customs officers can only inspect yachts during official business hours.

14. A company has imported a consignment of machinery parts with a Free on

Board (FOB) value of forty thousand pesos (P40,000.00). Which of the
following processes would be most appropriate for clearing these imported
goods?
• a. They must go through the formal entry process, as their commercial nature demands
rigorous customs procedures.
• b. They can be cleared through an informal entry process due to their FOB value being
below the specified threshold.
• c. A goods declaration for customs bonded warehousing would be ideal, allowing the
goods to be stored duty-free until consumption.
• d. The goods should be admitted to a free zone, exempting them from duties and taxes
during storage.

15. In a scenario where a warrant of seizure is issued for certain goods, but the
owner is unknown, how should the warrant be properly served?
• a. It is not required to serve the warrant if the owner is unknown.
• b. The warrant must be personally handed to any person having possession of the goods
at the time of seizure.
• c. The warrant must be posted for 15 days in a public place within the concerned district
and must be communicated through electronic or printed publication.
• d. The District Collector should hold onto the warrant until the owner comes forward.

16. In a Customs District, the local government unit (LGU) attempts to assert
authority over customs-related premises, citing its general police powers.
Under the customs laws:
• a. The LGU's general police powers supersede any authority of the BOC within the
Customs District.
• b. The BOC has exclusive control, direction, and management of customs-related
premises, but this does not diminish the recognized general police powers of the LGU in
carrying out its functions.
• c. The LGU has no authority or presence within a Customs District, and the BOC is the
only body with jurisdiction.
• d. Customs Districts are considered international zones, where neither the BOC nor the
LGU has any jurisdiction.

17. At a major international airport, a customs officer has suspicions about a

passenger who has just disembarked from an international flight. The officer
believes that the individual might be carrying dutiable goods that have not
been declare Under the customs law provisions, which action is the officer NOT allowed
to perform?
• a. The officer can board and inspect the aircraft from which the passenger disembarked.
• b. The officer can physically search and examine the individual.
• c. The officer can search the passenger without any specific reason or evidence.
• d. The officer can seize any dutiable goods found on the passenger if they are in
violation of the CMTA.

18. A shipment of electronics is transported from the Manila Port to a customs

bonded warehouse in Cebu under customs transit. The party in charge of this
transport fails to deliver the goods within the prescribed timeframe. What is
the likely consequence?
• a. The goods will be confiscated by the Bureau of Customs.
• b. The goods are subjected to regular duties and taxes, and the party in charge might
face additional penalties, fines, and surcharges.
• c. The transport company will be barred from future customs transit operations.
• d. The customs bonded warehouse in Cebu will be held responsible for the delay.

19. A shipping company, Oceanic Ltd regularly transports imported goods under
customs transit from various ports of entry to other ports within the customs territory.
What requirement must Oceanic Ltd fulfills to ensure its compliance with customs
regulations for such transports?
• a. Oceanic Ltd must obtain a special permit for each transport operation.
• b. Oceanic Ltd must post a general transportation security of a minimum of fifty
thousand pesos (P50,000.00) to guarantee the payment of pertinent customs charges
and the safe delivery of goods.
• c. Oceanic Ltd must provide a detailed itinerary for each transport to the Bureau of
Customs.
• d. Oceanic Ltd must have each transport operation individually approved by the
Commissioner of Customs.

20. An importer has been granted conditional release of a returning resident

shipment and was required to provide a cash bond. The importer, however, failed
to submit the necessary Tax Exemption Certificate within 60 days from the shipment
release. What is the immediate consequence of this failure?
• a. The cash bond is forfeited, and a notice is sent to the importer.
• b. A demand letter is issued for the balance, and the cash bond is returned.
• c. The District Collector recommends actions for the importer to pay the obligations.
• d. The Bureau of Customs releases the amount via a check to the importer.

21. A private company is contracted by the Bureau to provide janitorial

services and, in another instance, to handle data processing as a Value Added
Service Provider. Which of the following conditions apply to the private
company?
• a. Only the provisions under the Government Procurement Reform Act need to be
followed for both services.
• b. The janitorial services fall under the exemptions, while the data processing service
must comply with the Data Privacy Act of 2012.
• c. Both services can be outsourced without the approval of the Secretary of Finance.
• d. The janitorial services require the company to adhere to the Official Development
Assistance Act of 1996.

22. An accredited importer has just inadvertently misdeclared the quantity of

imported goods. Which of the following statements is most accurate
concerning the implications for the importer?
• a. Inadvertent errors in goods declaration are exempted from penalties.
• b. Misdeclaration, even if inadvertent, can lead to the issuance of a Warrant of Seizure
and Detention and a possible preliminary suspension of accreditation.
• c. The importer has the right to request an examination after the lodgment without any
consequences.
• d. All misdeclarations are treated with a standard penalty regardless of the nature of the
error.

23. An importer wishes to obtain an advance ruling to ascertain whether their

product qualifies for preferential tariff treatment under a specific trade
agreement. Which section should the importer refer to, and with whom should
the application be filed?
• a. Refer to Section 1100 and file with the Tariff Commission.
• b. Refer to Section 1101 and file with the Commissioner of Customs.
• c. Refer to Section 1102 and file with the Commissioner of Customs.
• d. Refer to Section 1102 and file with the Tariff Commission.

24. An importer is bringing in a shipment with an FCA value of P9,800.00.

What would be the duty and tax implication for this shipment?
• a. The shipment would be subject to full duties and taxes as it exceeds the de minimis
value threshold.
• b. Duties and taxes would be collected but at a reduced rate due to its close proximity to
the de minimis value.
• c. No duties and taxes will be collected on the shipment as it falls below the de minimis
value threshold.
• d. Duties and taxes would be deferred until the de minimis value is adjusted by the
Secretary of Finance.

25. A customs officer is reviewing a shipment and finds discrepancies in the

classification of goods. After determining the correct classification, the officer
computes the duties and taxes. What is the next essential step for the officer?
• a. Releasing the shipment without any further documentation.
• b. Issuing a fine to the importer for incorrect classification.
• c. Preparing and submitting an assessment report outlining the classification, valuation,
and determined duties and taxes.
• d. Forwarding the shipment for a non-intrusive examination.

26. A customs officer, based on a reliable tip, believes that a residence within
the city limits has undeclared goods that have been smuggled into the country.
Before conducting a search, which of the following conditions must the officer
satisfy?
• a. The officer must have a subjective belief that the goods are inside the house, and this
belief would suffice for entry.
• b. A sworn application indicating probable cause should be presented to and approved
by any local authority to get permission for the search.
• c. A search warrant particularly describing the place and the goods to be seized must be
secured from a competent judge.
• d. The officer can enter the house, but only during daylight hours.
27. An importer submits a goods declaration and is awaiting examination. The
cargo consists of perishable goods. What should be the action taken by the
Bureau with respect to the examination?
• a. The Bureau should postpone the examination until they can coordinate with other
regulatory agencies.
• b. The goods should be examined immediately without any prioritization.
• c. The examination should be conducted immediately after other non-prioritized goods.
• d. The examination should be prioritized due to the nature of the goods.

28. A customs officer suspects that a warehouse in a seaport contains

smuggled goods. Upon inspection, it was found that two security guards reside
inside the warehouse for security purposes. Can the customs officer legally
search the warehouse without a warrant?
• a. No, because the warehouse is considered a dwelling house since security personnel
reside within it.
• b. Yes, because a warehouse used for storage of goods is not considered a dwelling
house even if employees reside within.
• c. No, because any structure with human occupants is automatically classified as a
dwelling house.
• d. Yes, but only the areas where the security personnel don't reside.

29. Which of the following statements accurately represents the provisions

related to the "Establishment and Supervision of Bonded Warehouses" as
outlined in Section 801?
• a. The District Collector can establish bonded warehouses without the Commissioner's
approval, as long as they adhere to revenue protection guidelines.
• b. Private contracts between operators and government agencies (e.g., PPA, SBMA, PIA)
can be overridden by the Bureau's implementation of the CMTA if deemed necessary.
• c. The District Collector's supervisory functions must not adversely impact existing
contracts with government agencies, preserving powers granted by law.
• d. Section 801 does not acknowledge private contracts with government agencies or
regulators.

30. Which of the following is NOT a reason for the cancellation of a public
bidding?
• a. Request from the regulating agency.
• b. No viewing was conducted.
• c. The highest bidder requested for cancellation.
• d. The District Collector disagreed with the starting price.

31. Cedric, a Customs Broker, is currently facing disciplinary action for certain
violations of customs laws. As part of the process, which office or entity is
likely to be informed or provided a list of brokers with pending or resolved
revocation cases?
• a. Bureau of Internal Revenue (BIR)
• b. Accredited Integrated Professional Organization (AIPO)
• c. Professional Regulatory Board for Customs Brokers (PRBCB)
• d. Account Management Office (AMO)

32. In the case of a negotiated sale, what happens if the offer is rejected by the
Secretary of Finance?
• a. The offeror loses their deposit without a refund.
• b. The offeror is permanently banned from future auctions.
• c. The deposit is refunded to the offeror.
• d. The offeror pays a penalty for making an unacceptable offer.

33. Which of the following statements accurately captures the distinction

between "stores for consumption" and "stores to be taken away"?
• a. "Stores for consumption" are goods meant for sale to passengers, while "stores to be
taken away" are goods necessary for the operation and maintenance of vessels,
aircrafts, or trains.
• b. "Stores for consumption" covers goods whether or not they are sold to passengers
and crew, whereas "stores to be taken away" only include goods sold to passengers and
crew.
• c. Both "stores for consumption" and "stores to be taken away" apply to international
traffic, but only "stores to be taken away" deals with goods that will be removed from
the transport at their destination.
• d. "Stores for consumption" are exclusive to air transport, while "stores to be taken
away" are specific to sea transport.

34. Within the organizational hierarchy of the Bureau of Customs, if a major

focus is on monitoring revenue collection, which of the following groups
would be directly responsible?
• a. Assessment and Operations Coordinating Group (AOCG).
• b. Internal Administration Group (IAG).
• c. Post Clearance Audit Group (PCAG).
• d. Revenue Collection Monitoring Group (RCMG).

35. Which of the following best describes the principle of free importation and
exportation in the Philippines, including its exceptions and related
documentation requirements?
• a. Most goods can be freely imported and exported without any declarations, permits, or
clearances.
• b. All goods require import and export permits, clearances, or licenses, regardless of
their nature or classification.
• c. While a majority of goods can be imported and exported freely, regulated goods may
require goods declarations, additional clearances, or licenses, and there are certain
goods subject to restrictions due to public health, national security, or other reasons.
• d. Only goods that pose potential risks require goods declarations, while all others can
be imported and exported without any documentation.
36. A Bureau investigation has just concluded, and it was found that an
importer provided false testimony and imported restricted goods without
appropriate permits. In consideration of penalties and consequences, which of
the following factors may NOT be considered?
• a. The importer's previous business track record.
• b. Remorse shown by the importer during the investigation.
• c. The amount of goods misdeclared by the importer in the past.
• d. The actual financial loss experienced by the government due to the importer's
actions.

37. Which of the following conditions is NOT required for importing aquatic
products like fishes, crustaceans, mollusks, marine animals, seaweeds, fish oil,
and roe from Philippine fishing vessels?
• a. They must be imported in the same Philippine vessels or crafts attached to them.
• b. They must be sold to foreign markets before being re-imported to the Philippines.
• c. They must be caught or gathered by fishing vessels of Philippine registry.
• d. If landed in any foreign territory, it should be solely for transshipment without any
advancement in condition.

38. An importer did not manage to lodge/file the Goods Declaration for a
particular shipment due to a major system outage at the port. While the
technical issue was certified by MISTG, the importer took 16 calendar days
after the original period to lodge/file the Goods Declaration, hoping to take
advantage of the 15-day extension based on valid grounds. The shipment has
not been disposed of by the Bureau yet, and the importer intends to reclaim it.
Given these circumstances, which of the following statements is most
accurate?
• a. The shipment is deemed expressly abandoned since the importer failed to file within
the 15-calendar-day extension.
• b. The shipment is not considered abandoned due to the certified technical issue on the
last day of the prescribed period, but the importer cannot reclaim it.
• c. The shipment is impliedly abandoned; however, the importer can reclaim it if he
lodges/files the Goods Declaration, pays all required dues and fees, and complies with
legal requirements within 30 calendar days post-lapse of the original period.
• d. The importer will not face any consequences as the failure to lodge/file was due to
technical issues, and the District Collector will automatically extend the period for
Lodgement or Filing of the Goods Declaration.

39. Section 803, which focuses on Customs Facilities and Warehouses (CFWs),
mentions the potential creation or dissolution of certain types of warehouses.
Who has the primary authority to enact such changes?
• a. The Commissioner of Customs after an internal review.
• b. The Secretary of Finance, subject to consultation with NEDA and DTI.
• c. The District Collector, with prior consent from government agencies like PPA, SBMA,
PIA.
• d. The Commissioner, after receiving recommendations from the private sector and
industry stakeholders.

40. Company X, registered under the Investment Incentives Act (Republic Act
No. 5186), previously enjoyed tax credits based on customs duties paid on
imported raw materials which were subsequently processed and reexported.
Which of the following is correct regarding Company X's eligibility for drawbacks on the
same importation?
• a. Company X is entitled to a drawback for the same importation since they reexported
the processed goods.
• b. Company X is not entitled to a drawback since enterprises registered under Republic
Act No. 5186 cannot avail of such incentives.
• c. Company X can avail of partial payments of drawbacks for the same importation.
• d. Company X is entitled to a drawback, but only if the drawback does not exceed 50% of
the duty imposed on the imported materials.

41. An importer is under audit by the Bureau of Customs to ascertain the

correctness of their goods declaration. The Bureau wants to assess the
importer's financial transactions related to import activities. Which of the
following is true regarding the Bureau's authority?
• a. The Bureau can access any bank deposit of the importer without limitations.
• b. The Bureau can only obtain information from the importer's bank related to
payments relevant to import transactions.
• c. The Bureau has unrestricted access to all the importer's financial records for any
purpose.
• d. The Bureau's authority to inquire into bank deposits extends to all persons or
entities.

42. An exporter from a foreign country sent a gift to his friend in the
Philippines through mail. The gift is a unique handcrafted vase, not in
commercial quantity. Upon arrival, how should this gift be processed for
customs clearance?
• a. It must be subject to the lodgement of a goods declaration for consumption.
• b. It can be cleared using an informal entry process as it is a personal effect, not in
commercial quantity.
• c. The vase needs to be admitted to a free zone as defined in the CMTA.
• d. The receiver must provide a letter of credit evidencing payment for the vase before it
can be cleared.

43. Suppose a company faces a dispute with the Bureau of Customs regarding
the declared customs value of a product and has not applied for an advance
valuation ruling. How should this matter be addressed?
• a. The company should submit the matter to the Tariff Commission.
• b. The company should file an application for an advance ruling on origin.
• c. The matter should be resolved in accordance with Section 1106 of the CMTA on
"protest".
• d. The company should wait for the Secretary of Finance to intervene.

44. XYZ Corp. imported goods to the Philippines. Upon review, it was
determined that the transaction value of the goods themselves couldn't be
established. However, there were other goods, which while not identical, had like
characteristics and similar component materials. These goods were sold for export to the
Philippines and exported at roughly the same time as XYZ Corp.'s goods. Which provision of
the CMTA would most likely be applicable in this situation?
• a. The dutiable value will be determined based on the transaction value of the goods
themselves.
• b. The dutiable value will be determined using the transaction value of identical goods
as per Section 702.
• c. The dutiable value will be determined using the transaction value of similar goods as
per Section 703.
• d. Neither the transaction value of the goods themselves nor the transaction value of
identical or similar goods can be used for customs valuation.

45. An importer failed to pay duties and taxes upon final assessment, resulting
in his imported goods being categorized as:
• a. Expressly abandoned goods.
• b. Impliedly abandoned goods due to failure to mark within the prescribed period.
• c. Impliedly abandoned goods due to customs enforcement intervention.
• d. Impliedly abandoned goods due to failure to pay duties and taxes upon final
assessment.

46. Goods are found in the possession of a third party who is suspected of
aiding in their illegal importation. Under Section 1115, which of the following
statements correctly addresses the potential action to be taken against these
goods?
• a. Forfeiture can only be affected if the goods are under the jurisdiction of customs
officers, irrespective of the third party's involvement.
• b. Goods in the custody of a third party cannot be subjected to forfeiture unless the third
party is the importer or exporter.
• c. The third party's possession, concealment, or act of transport with knowledge of
illegal importation allows for the possible forfeiture of the goods.
• d. Third parties are exempted from the scope of Section 1115, and their possession of
goods cannot be considered for forfeiture.

47. The leadership structure within the Bureau is designed to maintain both
continuity and meritocracy. In line with this goal, which of the following best
describes the appointment process for Deputy Commissioners?
• a. All Deputy Commissioners are directly chosen from external organizations to bring in
fresh perspectives.
• b. A minimum of four Deputy Commissioners must come from outside the ranks of the
Bureau to avoid internal biases.
• c. The President appoints Deputy Commissioners with the majority of them coming
from within the Bureau.
• d. The Bureau autonomously selects all of its Deputy Commissioners without the
President's intervention.

48. Which of the following goods is NOT prohibited for importation or

exportation in the Philippines?
• a. A book promoting rebellion against the Philippine government.
• b. A magazine detailing how to perform an unlawful abortion.
• c. A necklace made of gold without an accurate indication of its actual fineness.
• d. A gold necklace with a clear and accurate indication of its fineness.

49. A foreign vessel, suspected of carrying smuggled goods, has just left
Philippine territorial waters. Which of the following principles allows the
Bureau of Customs (BOC) to pursue the vessel into international waters based
on a violation that occurred within Philippine jurisdiction?
• a. Broad Jurisdiction
• b. Customs Control Scope
• c. Doctrine of Hot Pursuit
• d. Mutual Administrative Assistance Agreements

50. The floor price for a public auction:

• a. Should be less than the Landed Cost of goods.
• b. Is always computed based on the District Collector's recommendation.
• c. Can be computed using the average retail prices of similar articles.
• d. Should not be less than the Landed Cost of goods, considering normal depreciation.

51. When are imported goods considered "entered" in the Philippines for
consumption?
• a. When the goods physically arrive at the customs office.
• b. Upon the electronic lodging of the goods declaration and any necessary supporting
documents with the correct customs office.
• c. Once the customs duties and taxes have been paid.
• d. After the customs office has verified the accuracy of the goods declaration.

52. Under Section 405, which of the following statements accurately describes
the liability of an importer for duties, taxes, fees, and other charges associated
with the importation of goods?
• a. The liability remains a personal debt of the importer but does not serve as a lien on
the imported goods.
• b. The liability is discharged upon issuance of a provisional goods declaration.
• c. The liability constitutes a personal debt owed to the government and enforces a lien
on the imported goods while they are in customs custody.
• d. The liability is only valid for goods that are in perfect condition and meets all customs
standards.

53. An importer, who wishes to have their accreditation renewed, needs to

submit which of the following?
• a. A certificate proving attendance of 8 hours of training on duties and responsibilities.
• b. A current and detailed company profile with geotagged photos inclusive of latitude,
longitude, date, and time.
• c. The BCOR as proof of Processing Fee payment and printed CPRS with "STORED"
status.
• d. A written authorization from the District Collector for every item they intend to
import.

54. If an importer lodges a provisional goods declaration due to a lack of some

supporting documents, which of the following is a requirement that must be
met to qualify for such a declaration?
• a. The provisional goods declaration needs only minor details to qualify.
• b. The declarant can take as much time as they need to complete the information.
• c. The duty treatment of goods declared provisionally differs from those with a complete
declaration.
• d. The provisional goods declaration must substantially contain the necessary
information required by the Bureau.

55. A customs official stops a vehicle at a customs checkpoint based on a tip

that it may be carrying prohibited items inside a coffin. Before searching the
coffin, the customs officer should:
• a. Ensure that he has a written permission from the local health department to inspect
human remains.
• b. Have a clear and justifiable suspicion or reasonable cause that the vehicle is
transporting dutiable or prohibited goods.
• c. Wait for the next of kin or family members of the deceased to be present during the
search.
• d. Conduct the search only if the coffin is not sealed, as sealed coffins are exempt from
searches under customs laws.

56. Company Z, importing a product with a unique composition, seeks clarity

regarding its tariff classification. The company decides to obtain an advance
ruling. Who should Company Z address their application for an advance ruling
on tariff classification?
• a. The Commissioner of the Bureau of Customs.
• b. The Secretary of Finance.
• c. The Tariff Commission.
• d. The National Economic Development Authority.
57. XYZ Trading, a Philippine importer, has an endorsed bill of lading for a
shipment of furniture. How is the ownership of the imported goods
determined under Section 404?
• a. XYZ Trading is the consignee and thus the legal owner of the imported goods.
• b. XYZ Trading, being the holder of the endorsed bill of lading, becomes the legal owner
of the imported goods.
• c. The manufacturer from Vietnam is the owner until the goods are fully paid for.
• d. Ownership will be determined after customs authorities assess and collect duties.

58. A foreign salvage company plans to import equipment for use in the
salvage of a Philippine vessel. Which of the following conditions is NOT
applicable?
• a. Identification of the equipment.
• b. Providing a security equal to 50% of the ascertained duties, taxes, and other charges
on the equipment.
• c. Providing a security equal to 100% of the ascertained duties, taxes, and other charges
on the equipment.
• d. The Bureau may extend the time for exportation or payment of duties, taxes, and
other charges for an additional term not exceeding six (6) months.

59. Which of the following best describes a Tax Credit Certificate (TCC)?
• a. It is a peso-for-peso reduction from a taxpayer's tax liability directly subtracted from
the tax payable to the government.
• b. It is the amount due to a taxpayer resulting from an overpayment of a tax liability or
erroneous payment of a tax due.
• c. It is a certification issued to the taxpayer, acknowledging the taxpayer's entitlement to
a tax credit, which can be used for settling specific internal revenue tax liabilities,
converted as a cash refund, or otherwise disposed of as per guidelines.
• d. It is a formal documentation submitted by a taxpayer when requesting a refund due
to overcharged duties and taxes.

60. Which of the following statements best represents the Philippines' stance
on the importation and exportation of restricted goods?
• a. All restricted goods, such as explosives and narcotics, can be freely imported and
exported with a standard customs declaration.
• b. While most restricted goods are prohibited from trade, exceptions are made for items
like lottery tickets, gambling devices, and certain narcotics for medicinal purposes.
• c. All goods, including firearms, narcotics, and gambling devices, can be freely imported
and exported as long as they are transiting through the Philippines en route to another
destination.
• d. Goods such as explosives, narcotics, and gambling devices are generally prohibited
from importation and exportation, with some exceptions like narcotics for medicinal
purposes authorized by the Dangerous Drugs Board.
61. A local manufacturing company used imported materials to produce goods
which were then exported. If the goods were exported on January 10, 2023, what is the
last date by which the company must file a claim for a drawback for duties paid on the
imported materials used in their production?
• a. January 10, 2024
• b. December 31, 2023
• c. January 31, 2024
• d. The date of importation of the materials

62. Which of the following is NOT a valid ground for the Bureau to pre-
terminate VASP accreditation?
• a. A VASP's violation of the terms in the Service Level Agreement (SLA).
• b. A VASP's failure to pay the monitoring and supervision fee.
• c. Actions that harm the security and integrity of Bureau operations.
• d. VASP's violation of the Data Privacy Act.

63. Where are goods usually sold or disposed of during a public auction?
• a. At the place directed by the Commissioner.
• b. At a place chosen by the District Collector.
• c. At the port where they are located.
• d. At the port of entry.

64. Mr. Santos, an importer, declares a value for a shipment that is notably
higher than the actual dutiable value. He does this in anticipation of potential
appraiser value increases based on past experiences with similar goods. What
must Mr. Santos do to ensure the lower assessment of duty on this shipment?
• a. He must provide evidence of similar past appraisals where values were increased.
• b. He should obtain a certification from the Commissioner supporting his claim.
• c. He must certify at the time of entry that his declared value is higher than the dutiable
value and, if challenged, have his claim validated by a final decision from customs
authorities.
• d. He should provide a detailed explanation of the reason for the higher entered value
without any further certification.

65. Company G imports a shipment of fresh fruits, which is subjected to an

alert order. In this context, which of the following steps is required due to the
nature of the goods?
• a. The Bureau must conduct an inspection within 24 hours due to the perishable nature
of the goods.
• b. The Bureau must provide Company G with a certificate that proves the non-
perishable nature of the goods.
• c. The alert order is voided because perishable goods cannot be subject to alert orders.
• d. The Bureau conducts a standard inspection timeline irrespective of the nature of the
goods.
66. Which of the following goods are NOT subject to condemnation?
• a. Goods with commercial value.
• b. Goods that are injurious to public health.
• c. Absolutely prohibited goods, as specified by CMTA.
• d. Highly dangerous restricted goods.

67. A vessel documented in the Philippines underwent significant repairs in a

foreign country. Under which scenario are they allowed to claim the cost of
repairs without duties?
• a. Proof that the repairs were cheaper in the foreign country.
• b. Proof that the vessel underwent aesthetic upgrades for luxury purposes.
• c. Proof that the vessel, during its voyage, had to put into a foreign port due to weather
distress to make the repairs.
• d. Proof that the vessel wanted to employ foreign technicians for a routine upgrade.

68. An importer with suspended accreditation seeks to process goods for in-
transit arrivals. What condition must the importer explicitly adhere to
concerning the goods?
• a. The importer must only provide a bill of lading and consignee's details for processing.
• b. The importer is exempted from any form of physical examination of the goods.
• c. The importer must subject the goods to a 100% physical examination at their own
expense.
• d. Lodgement is allowed for all bills of lading, irrespective of the list provided to the
importer.

69. An agro-industrial company wishes to import aircrafts, spare parts, and

accessories for its operations. Which among the following conditions is NOT a
requirement for such importation?
• a. The goods must be certified by the Secretary of the DA or the DTI.
• b. The imported goods must be available locally in a reasonable quantity, quality, and
price.
• c. The imported items must be necessary or incidental to the proper operation of the
agro-industrial company.
• d. The importation period for mines is limited to five (5) years from the first date of
actual commercial production of saleable mineral products.

70. Company X had their AEO accreditation suspended by the Bureau. Which
of the following reasons is NOT a valid ground for suspension?
• a. Habitual delinquency in complying with AEO regulations or membership terms and
conditions.
• b. Failure to provide free training to the Bureau staff on their internal processes.
• c. Intentional violation of the CMTA or related laws, causing significant customs revenue
loss or serious public welfare injury.
• d. Recommendation based on evaluation indicating significant risk to customs revenue
or cargo supply chain security.
71. A registered importer was found to have discrepancies between the
application and the CPRS. How many calendar days does the importer have to
respond to the issue before the application can be potentially disapproved?
• a. 3 days
• b. 5 days
• c. 7 days
• d. 10 days

72. An importer submits a provisional goods declaration due to missing

documentation and awaits a tentative assessment. Later, the importer is able
to acquire the necessary documentation. What is the correct course of action
following this?
• a. The importer should hold onto the documentation and present it only if asked by the
customs officer.
• b. The importer should immediately submit the documentation to ensure completion of
the assessment within the timeframe specified by the CMTA.
• c. The importer should await a directive from the customs officer before submitting
additional documentation.
• d. The importer is not required to submit additional documentation since a provisional
declaration has been made.

73. An importer realizes there was an error in the distribution of charges on

the invoice of an imported item. What is the maximum period within which
they can report this error after the release of the goods from customs custody
to potentially avail a refund after its correction?
• a. Within 6 months
• b. Within 1 year
• c. Within 2 years
• d. Errors can only be rectified before the payment of duties

74. In a forfeiture proceeding involving a vessel under the CMTA, who bears
the burden of proving that the vessel should not be forfeited?
• a. The government, as it is their responsibility to prove any violations of customs laws
and regulations.
• b. The person or entity from whom the vessel was seized, as they are directly involved
in the case.
• c. The claimant, being the owner or the person asserting a right or interest in the seized
vessel.
• d. The District Collector, as they are responsible for all forfeiture proceedings under
their jurisdiction.

75. A surety company seeks to transact as a business entity with the Bureau
and has already settled 75% of its outstanding obligations as of the last
quarter. Which of the following statements is TRUE regarding the surety
company's status?
• a. The surety company can be granted ATBAS as it holds a valid Certificate of Authority
issued by the Insurance Commission.
• b. The surety company is ineligible for ATBAS because it has not settled at least 80% of
its outstanding obligations.
• c. The surety company's current status depends only on the maturity of its accounts
from the preceding quarter.
• d. The surety company can apply for ATBAS, provided it submits applications 15
working days before the start of the year.

76. XYZ Corporation has imported a shipment and has opted for a non-
intrusive examination metho
• d. Under what condition would the Bureau still proceed with a physical examination of
the shipment?
• a. The goods are part of a trade facilitation program of the Bureau.
• b. XYZ Corporation is recognized as an authorized economic operator.
• c. There are issues surrounding the goods declaration and import clearance process.
• d. non-intrusive examination methods are not internationally accepted for the type of
goods imported.

77. For a VASP applying for accreditation, which of the following statements is
accurate regarding their eligibility and process of application?
• a. Joint ventures are ineligible, even if they comply with the 60%-40% Filipino-foreign
ownership rule.
• b. An applicant VASP can electronically submit the Letter of Intent and other
documentary requirements.
• c. The VASP Accreditation Committee (VAC) will notify unqualified applicants within
seven working days after the submission deadline.
• d. Once a VASP is accredited, it can immediately commence its services without any
further notice from the VAC.

78. The Commissioner of the Bureau of Customs holds significant authority

and responsibilities within the organization. Which of the following tasks
CANNOT be delegated by the Commissioner?
• a. Issuance of rules and regulations.
• b. Assignment and reassignment of customs officers.
• c. Review of customs officers' actions.
• d. Exercise of general customs powers, duties, and functions.

79. During a declared state of calamity, how is the clearance and distribution
of relief consignments, such as food and medicine, facilitated?
• a. The clearance of relief consignments is subjected to rigorous and lengthy customs
procedures to ensure quality and safety.
• b. Relief consignments are subject to the standard duties and taxes to aid the country's
economy during a calamity.
• c. Clearance procedures for relief consignments are expedited with simplified goods
declarations, pre-arrival lodging, and potential exemptions from duties and taxes.
• d. The Department of Finance solely dictates the regulations for relief consignments,
making it the primary entity for relief goods management during calamities.

80. Officer John is a member of the Armed Forces of the Philippines (AFP) and
has detected a potential breach in customs regulations. Which of the following
conditions is necessary for Officer John to exercise police authority related to
customs enforcement?
• a. Officer John should obtain an endorsement from his immediate supervisor.
• b. Officer John should directly coordinate with the Bureau of Internal Revenue (BIR).
• c. Officer John should receive authorization from the Commissioner of Customs.
• d. Officer John should act within the specified tasks outlined in his general duty roster.

81. Company D imports a batch of electronic devices. During customs

clearance, the District Collector evaluates the shipment, resulting in a higher
tax. Company D believes this to be incorrect. Which of the following
statements is accurate regarding Company D's rights?
• a. Company D cannot appeal the ruling.
• b. Company D can protest only after 30 days of payment.
• c. Company D can present a written protest to the Commissioner of Customs at the time
of payment or within 15 days thereafter.
• d. Company D must wait for the Commissioner's ruling before submitting any form of
protest.

82. Lara, a representative of a registered Customs Broker, accidentally made

an error in the documentation. Who among the following can be held
responsible for the error?
• a. Only the Customs Broker's representative, as she is the one who directly committed
the error.
• b. Both the Customs Broker and the representative, since the broker must supervise
their representative closely.
• c. The Commissioner of Customs, as they are ultimately responsible for overseeing the
entire process.
• d. The consignee or importer, as the goods belong to them.

83. If a Value Added Service Provider (VASP) wishes to share confidential

business information, which of the following actions must be taken before the
information is disclosed?
• a. Obtain consent from the VASP's client.
• b. Secure permission from the Bureau's automated system.
• c. Get written consent from the Bureau.
• d. Obtain clearance from the Philippine Competition Commission.

84. The Bureau of Customs receives information suggesting a shipment from

Company F might contain counterfeit luxury handbags, violating intellectual
property rights. An authorized customs officer issues an alert order. What
action follows the issuance of this alert order?
• a. The goods are immediately seized.
• b. The shipment undergoes a physical inspection within 96 hours.
• c. The processing of the goods declaration is suspended, and a physical or nonintrusive
inspection occurs within 48 hours.
• d. Company F is immediately fined for the alleged counterfeit goods.

85. A vehicle owned by Person H is found transporting smuggled goods. It is

the first instance of such an incident with this vehicle, and Person H is in the
business of transportation. Assuming Person H claims no knowledge or
participation in the smuggling, which of the following is true?
• a. The vehicle is immediately forfeited without any chances of appeal.
• b. There's a prima facie presumption against the vehicle due to its prior smuggling
history.
• c. Person H must immediately provide evidence proving their innocence.
• d. The vehicle is not subject to forfeiture unless specific circumstances override this
protection.

86. An international corporation decided to facilitate its payment for a bulk

purchase of raw materials through a banking instrument, ensuring the
supplier only gets paid once the specific conditions of delivery are met. This
method allows the buyer to have control of the goods before releasing the
payment. What financial instrument is the corporation using in this scenario?
• a. A guaranty, which ensures that the supplier will be compensated in case of any
discrepancies in the delivery.
• b. A line of credit, providing the corporation with a limit to which they can make
purchases.
• c. A letter of credit, allowing the supplier to get paid once the conditions set in the credit
are met.
• d. An application agreement, ensuring the alignment of all parties on the conditions of
the transaction.

87. A company imports a batch of goods into the Philippines. The company
and the seller of the goods are related, as the seller directly controls 10% of
the voting stocks of the importing company. However, the transaction value of
the imported goods closely approximates the customs value of identical goods
determined under another provision of the CMTA. Given this scenario, which
of the following statements is most accurate?
• a. The transaction value cannot be used for customs valuation because the buyer and
seller are related.
• b. The transaction value can be used for customs valuation if it closely approximates the
transaction value of identical goods as determined under the provisions of Section 704
of the CMTA.
• c. The transaction value can be used for customs valuation, but adjustments must be
made to account for the relationship between the buyer and seller.
• d. The relationship between the buyer and seller automatically disqualifies any
transaction value from being considered for customs valuation.

88. Which of the following best describes a significant difference between

Manufacturing and Nonmanufacturing Customs Bonded Warehouses?
• a. Nonmanufacturing CBWs focus on customs clearance, transportation, and logistics
support, whereas Manufacturing CBWs do not.
• b. Manufacturing CBWs are used for storage, handling, and management of goods, while
Nonmanufacturing CBWs emphasize manufacturing processes.
• c. Manufacturing CBWs are where goods made with imported materials are
manufactured for export, while Nonmanufacturing CBWs primarily handle storage and
management of goods.
• d. Nonmanufacturing CBWs can be classified into Industry-Specific, Miscellaneous, and
Customs Common Bonded Warehouses.

89. An importer is trying to determine the transaction value for a shipment of

goods. Which of the following items should NOT be added to the price actually
paid or payable for the imported goods when determining the transaction
value?
• a. Commissions and brokerage fees excluding buying commissions.
• b. The cost of transporting the imported goods from the seller's warehouse to the port
of exportation.
• c. Cost of packing, both labor, and materials associated with packing.
• d. The value of certain goods and services supplied directly by the buyer at a reduced
cost.

90. A luxury car importer intentionally declares the imported cars as lower-
value vehicles to reduce the payable customs duties. Upon detection, which of
the following actions can the Bureau of Customs take against this importer?
• a. Impose a minor penalty since it's the company's first-time offense.
• b. Initiate forfeiture proceedings to seize the undervalued cars.
• c. Revoke the importer's business license without any further proceedings.
• d. Issue an advisory notice to educate the importer about customs requirements.

91. An importer is valuating goods using the Transaction Value System from
Section 701. Given the teachings of the author mentioned in the provided
content, which of the following statements is FALSE regarding Customs Value?
• a. The Customs Value is solely determined by the Transaction Value without any
additional adjustments.
• b. The term "Dutiable Value" can be used interchangeably with "Customs Value" in its
technical sense.
• c. Equating FOB/FCA/FAS directly with Customs Value without considering the
required adjustments is legally inaccurate.
• d. The Customs Value represents the value that is multiplied by the applicable duty rate
to determine the Customs Duty.

92. Ms. Abella, a sole proprietor, applied for her first-time importer
accreditation with the Bureau. Which of the following documents is NOT
required from her during the application process?
• a. Cooperative Resolution.
• b. Lease contract or proof of lawful occupancy.
• c. A detailed personal profile of herself.
• d. Written Authority as Signatory including an affidavit.

93. An AEO member is currently benefiting from Level 1 certification. What

would they NOT benefit from at this level?
• a. Exemption from renewal of accreditation (e.g., Importer accreditation).
• b. Dedicated processing lane for AEO shipments without documentary or physical
inspection.
• c. Dedicated help desk for AEO applicants.
• d. For AEO members with satisfactory trade document management, the Bureau may
allow self-assessment of duty/tax liability and customs requirement compliance.

94. A customs processing entity is under post-clearance audit. The Bureau of

Customs wants to examine the entity's records pertaining to customs
clearance activities. For how long is the customs processing entity required to
keep records at their principal place of business from the date of filing the
goods declaration?
• a. One year
• b. Two years
• c. Three years
• d. Five years

95. The Bureau of Customs intends to ensure the collection of import duties
and taxes from an importer who owes nine thousand pesos. Which of the
following actions is NOT permissible for the Bureau based on the owed
amount?
• a. Pursuing a civil action against the importer.
• b. Using the remedy of levy on the importer's property.
• c. Using the remedy of distraint on the importer's personal property.
• d. Advancing the amounts needed to cover the costs of collection.

96. An importer was required to post a security in the form of a Standby Letter
of Credit for certain goods. Following a dispute over the duties and taxes, a
final decision is made in favor of the government. Which of the following steps
will be taken with regard to the Standby Letter of Credit?
• a. The bank will wait for a demand letter from the importer before settling the amount.
• b. The issuing bank will automatically settle the Standby Letter of Credit upon
notification of the final decision.
• c. The Bureau of Customs will issue a check in favor of the importer.
• d. The District Collector will personally notify the bank for the settlement.

97. Which of the following statements is CORRECT regarding the importation

of containers, holders, and other similar receptacles, including kraft paper
bags for locally manufactured cement for export and corrugated boxes for
fresh fruits for export?
• a. The importer must provide security equal to 50% of the ascertained duties, taxes, and
other charges on the items.
• b. The security must be provided within twelve (12) months from the date of acceptance
of the goods declaration.
• c. The containers, holders, or receptacles must be readily identifiable and reusable for
the shipment or transportation of goods.
• d. Reusable receptacles do not require any form of security from the importer.

98. A major corporation regularly imports large quantities of goods into the
Philippines. In order to ensure compliance with the CMTA and to use its
resources effectively, the Bureau of Customs would MOST likely utilize:
• a. A continuous day-to-day inspection of every single shipment from the corporation.
• b. Risk management systems and audit-based controls to periodically assess the
corporation's compliance.
• c. The power of mutual administrative assistance agreements to ask other countries to
inspect shipments before they arrive in the Philippines.
• d. Sole reliance on automated systems to determine the legality of the corporation's
imports without any human intervention.

99. The commissioner of customs intends to increase enforcement actions in a

new customs-controlled zone that includes an airport, seaport, and multiple
warehouses. A customs broker wishes to advise their clients on what areas are
subject to unhampered access by customs officers. Which of the following is
accurate?
• a. Customs officers have unhampered access to ports, airports, and customs-controlled
zones, but warehouses can deny entry without a specific warrant.
• b. Customs officers only have access to the seaport and airport, but not the customs-
controlled zone.
• c. Customs officers have unhampered access to all premises, including ports, airports,
customs-controlled zones, and warehouses, within their administrative jurisdiction.
• d. The commissioner must issue a separate decree to grant customs officers
unhampered access to the new customs-controlled zone.

100. An importer is trying to determine the customs value of imported goods. If

the conditions of Section 701 are met, which of the following statements is
true regarding the valuation process as described in Section 700?
• a. Section 701 is the primary method for valuation, but if its conditions aren't met, the
importer can directly request the application of Section 704.
• b. If Section 701's conditions aren't met; the importer can choose any of the succeeding
sections to determine the customs value.
• c. Section 704 can only be applied after all the other sections (from 701 to 703) have
been sequentially considered and deemed inapplicable.
• d. Section 701 is always applied first, and if its conditions are not met, the valuation is
done sequentially starting from 702 unless an exception for Section 704 is requested by
the importer.

Situation No. 1
UCAS Wines & Spirits imported 400 boxes of Hennessy V.S. Cognac (Brandy) in
70cl bottles. This Cognac is rated at 40% alcoholic strength and has an NRP of
₱10,320.00 per box. Determine the following if each box contains 12 bottles.

1. How much is the total excise tax?

a. ₱53,760.00

b. ₱549,120.00

c. ₱495,360.00

d. None of these

Situation No. 2
A shipment of 200 boxes of Isopropyl Rubbing Alcohol arrived at the Port of Davao.
Said shipment was assessed with a VAT amounting to ₱21,863.79. Each box
contains 50 bottles at 250 ml/bottle and 80 Proof alcoholic strength. The rate of duty
is 1%.

2. The amount of dutiable value if the total G.W. is 1,890 kgs.

a. ₱147,429.11

b. ₱174,399.10

c. ₱147,400.00
d. ₱175,340.00

Situation No. 3
Shipment of several drums of newly formulated asphalt was shipped as samples
by Asphalts & Concretes USA to Tigasin Construction Co. and arrived at the Port of
Davao. The importer furnished the following information:

 Arrastre charge and excise tax: ₱6,380.41

 Unit price of asphalt: US$1.25/kg
 Freight charge: 3% of cost

3. Customs duty if the exchange rate is ₱43.00/US$1.00 and the rate of

duty is 3%.

a. ₱16,123.63

b. ₱14,537.17

c. ₱18,473.69

d. None of these

Situation No. 4
Hayahay Trading imported from Los Angeles, California, U.S.A. 4 rolls of Guy Wire.
The covering invoice reveals the following information:

 Ex-works: US$5,500.00 per roll

 Packing expenses: US$200.00
 Ocean freight: US$450.00

The covering insurance certificate from Manila Insurance Corp. shows an insurance
premium of ₱12,300.00.

Exchange rate: ₱40.00 = US$1.00

4. Total Invoice Value

a. US$22,907.50
b. US$22,600.00

c. US$22,000.00

d. US$23,250.00

Situation No. 5
Chiup Palm Beach Resort imported 12 units of Jet Ski from Finland.

Additional Information:

 Gross Weight: 4,300 kgs

 Port of Destination: Port of Cebu
 Rate of Duty: 10%

A customs broker computed the VAT at ₱787,828.10.

5. The amount of Ad Valorem Tax

a. ₱1,313,046.84

b. ₱1,191,064.69

c. ₱1,008,000.00

d. ₱1,191,053.25

Situation No. 6
(Continuation of Situation No. 2)

6. The amount of Specific Tax, if any.

a. ₱27,180.00

b. ₱27,000.00

c. ₱28,180.00

d. None of the above

Situation No. 7
The BOC assessed an Excise Tax amounting to ₱70,933.30 for the importation
of Silver Bracelets & Eyeglasses.

Additional Information:

 FOB Value:
o Silver Bracelets: US$100.00/set
o Eyeglasses: US$50.00/box
 Total Eyeglasses: 200 boxes
 Ocean Freight: US$280.00
 Insurance Premium: 4% of FOB
 Freight for Silver Bracelets: US$124.44
 Exchange Rate: ₱42.00/US$1.00

7. How many sets of Silver Bracelets were imported?

a. 100 sets

b. 90 sets

c. 80 sets

d. None of the above

Situation No. 8
UCAS Motors imported:

 10 units Chevrolet Spark 2014 1.0L 5-Speed M/T

 8 units Chevrolet Cruze 1.8L M/T 2013

Net ISP:

 Chevrolet Spark – ₱436,350.00

 Chevrolet Cruze – ₱617,500.00

8. How much is the AVT for five Chevrolet Spark?

a. ₱87,270.00
b. ₱43,635.00

c. ₱103,650.00

d. None of these

Situation No. 9
Darena Designs imported from Vietnam:

 200 cartons Dolls

 250 cartons Scissors
 180 cartons Photo Albums

Values:

 Dolls – US$4,500.00
 Scissors – US$6,300.00
 Photo Albums – US$7,000.00

Freight: US$300.00

Insurance: US$142.00

Exchange Rate: ₱43.00/US$1.00

9. How much is the dutiable value of the Scissors in Peso?

a. ₱277,626.92

b. ₱264,173.08

c. ₱280,883.74

d. ₱262,900.93

Situation No. 10
10. If the computed customs duty amounts to ₱8,530.00 based on a 1% ad
valorem duty rate, how much is the Customs Value?
Additional Information:

 Freight: US$185.00
 Exchange Rate: ₱43.00/US$1.00
 Commodity: Fluocculating Pump

a. US$18,856.48

b. US$19,837.21

c. US$19,652.21

d. None of these

Situation No. 11
An importer X solicited your expertise in international trade and transportation. X is in
need of Cumin Powder for its Taco Food Cart Franchises in Manila. He found Grover
Inc. as a supplier from Maharashtra, India, and is scheduled to purchase 2 MT of
Cumin.

They agreed that the goods will be shipped through the Port of Neva Sheva. However,
X, having limited knowledge of the shipment of goods and the Incoterms 2010, is
reluctant to give the supplier the authority to designate the shipping line. Moreover, X is
worried about the risk that the Cumin may be damaged during the voyage from Neva
Sheva to Manila.

Under their agreement, the seller is bound to load the goods on board the vessel at the
named port of shipment and is likewise responsible for securing all export formalities.

11. As a customs broker, what is the best recommendation?

a. Suggest that the shipment will be done under FOB term and insured in India since
insurance premium abroad is cheaper than in the Philippines.

b. Suggest that the shipment will be done under FOB term and insured locally with an
insurance company in Manila.

c. Suggest that the shipment will be done under CIF term so that X will not worry against
any risk of damage to his goods while in transit.

d. Suggest that the shipment will be done under DDP term so that X will just have to wait
for his goods to be delivered to his warehouse in Manila.
Situation No. 12
Tobacco Corp. was assessed with a total Excise Tax of ₱42,240,000.00 for its
importation of 2,000 cartons of YYY Cigars.

Each carton has a Specific Tax of ₱1,040.00.

12. Determine the Total Ad Valorem Tax.

a. ₱41,160,000.00

b. ₱40,160,000.00

c. ₱1,000,000.00

d. None of these

Situation No. 13
UCAS Manufacturing Corp., a duly registered Customs Bonded Warehouse, imported
several containers of textile fabrics valued at US$15,000.00.

During manufacturing, the firm legally withdrew its imported materials on five (5)
occasions.

13. How much is the applicable brokerage fee?

a. ₱5,300.00

b. ₱4,700.00

c. ₱7,500.00

d. ₱4,000.00

Situation No. 14
Hayahay Trading imported from Los Angeles, California, U.S.A. 4 Rolls of Guy Wire.
Invoice Details:

 Ex-works – US$5,500.00 per roll

 Packing – US$200.00
 Ocean Freight – US$450.00
 Insurance Premium – ₱12,300.00

Exchange Rate:

₱40.00 = US$1.00

14. Determine the Dutiable Value in Pesos per Roll.

a. ₱229,075.00

b. ₱230,940.00

c. ₱229,575.00

d. ₱232,500.00

Situation No. 15
(Continuation of Situation No. 1)

15. How many bottles were imported?

a. 400 bottles

b. 4,800 bottles

c. 2,688 bottles

d. None of these

Situation No. 16
(Continuation of Situation No. 5)

16. Determine the Brokerage Fee.

a. ₱13,256.54

b. ₱12,494.15

c. ₱12,712.00

d. ₱12,494.08

Situation No. 17
(Continuation of Situation No. 9)

17. How much is the dutiable value of the Photo Albums in Peso?

a. ₱312,093.14

b. ₱292,112.05

c. ₱293,525.73

d. ₱308,474.26

Situation No. 18
(Continuation of Situation No. 3)

18. Determine the Brokerage Fee.

a. ₱5,721.82

b. ₱5,655.72

c. ₱5,819.74

d. None of these

Situation No. 19
(Continuation of Situation No. 2)
19. Determine the Brokerage Fee.

a. ₱5,300.00

b. ₱4,700.00

c. ₱4,000.00

d. ₱3,600.00

Situation No. 20
(Continuation of Situation No. 8)

20. Determine the NRP per Cigar.

a. ₱527.00

b. ₱502.00

c. ₱105.40

d. None of these

Situation No. 21
MFG Manufacturing used 3,000 yards of textile in the manufacture of various shirts.
The shirts were eventually exported to USA Corp. in Utah.

The importer had previously paid ₱384,000.00 as duties, taxes, and charges for the
importation of 4,500 yards of textiles.

21. Determine the amount of duties and taxes that the importer can
potentially refund from the government if the importer avails of the
incentive under Section 106 of the TCCP, as amended.

a. ₱384,000.00

b. ₱256,000.00

c. ₱380,160.00
d. ₱253,440.00

Situation No. 22
22. Determine the amount of Customs Duty.

(Continuation of Situation No. 5)

a. ₱656,523.42

b. ₱595,532.35

c. ₱504,000.00

d. ₱595,526.63

Situation No. 23
23. How much is the AVT for three Chevrolet Cruze?

(Continuation of Situation No. 7)

a. ₱124,000.00

b. ₱37,050.00

c. ₱46,500.00

d. None of these

Situation No. 24
24. Determine the Landed Cost.

(Continuation of Situation No. 2)

a. ₱127,180.00
b. ₱155,018.25

c. ₱182,198.25

d. None of the above

Situation No. 25
25. Determine the Total Proof Liter.

(Continuation of Situation No. 1)

a. 3,360 PL

b. 4,800 PL

c. 2,688 PL

d. None of these

Situation No. 26
26. Determine the amount of Customs Duty.

(Continuation of Situation No. 2)

a. ₱1,474.29

b. ₱1,753.40

c. ₱1,743.40

d. ₱1,474.00

Situation No. 27
27. How much is the dutiable value of the Dolls in Peso?
(Continuation of Situation No. 9)

a. ₱200,631.12

b. ₱198,304.82

c. ₱188,695.11

d. ₱187,786.32