1st Discussion Flashcards
Shall refer to the act of bringing in of goods from a foreign territory into Philippine territory, whether for consumption, warehousing, or admission.
Importations
Shall refer to the act, documentation and process of bringing goods out of Philippine territory.
Exportations
When does importation begins?
when the carrying vessel/aircraft enters the Philippine Territory with the intention to unload therein.
when does importation deemed terminated?
- When the dueties, taxes and other charges have been paid or secured to be paid and the legal permit for withdrawal has been granted.
- In case of free from duties, taxes and other charges: when the goods have legally left the jurisdiction of the Bureau.
True/False
in the Import Trade Transaction, as the general rule, all kinds of merchandise imports are allowed.
True
(in the 2nd Paragraph) however, the importations of a certain commodities are regulated or prohibited for reasons of public health and safety, national security, international commitments, and development/rationalization of local industry.
what are the classification of Imports
Freely Importable Commodities
Regulated Commodities
Prohibited Commodities
Restricted Commodities
These are commodities the importation of which is neither regulated nor prohibited as defined under (2) and (3) hereunder. The importation may be effected without the prior approval of or clearance from any government agency.
Freely Importable Commodities
These are commodities, the importation of which is not allowed under existing laws.
Prohibited Commodities
These are commodities, the importation of which requires clearances/permits from appropriate government agencies including the BSP.
Regulated Commodities
party that offers a good, service, or asset in return for payment.
seller
are responsible forpurchasing goods for a company to use or sell in their own business. One who pays the money
are responsible forpurchasing goods for a company to use or sell in their own business. One who pays the money.
What are the Mode of Payment for Imports?
LC
DP
DA
OA
DR
It gives the seller assurance that he will receive the payment. It is a binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller.
Letter of Credit
True/False
LCs must be opened on or before the date of shipment and only one L/C should be opened for each import transaction.
True
True/False
L/Cs shall be negotiated in accordance with the terms and conditions set forth in the L/C and shall be governed by the Uniform Customs and Practices on Documentary Credits (UCP 600)
True
Are rules that apply to any documentary credit (“credit”).is the official publication which is issued by the International Chamber of Commerce (ICC)
UCP 600 (“Uniform Customs & Practice for Documentary Credits”
Is an arrangement under documentary collection in which an exporter instructs the presenting bank to hand over shipping and title documents to the importer only if the importer fully pays the accompanying bill of exchange or draft.
DP
In DP, No Payment from the buyer is equals to ___________.
No issuance of documents from the seller.
Is an arrangement under documentary collection in which an exporter instructs the presenting bank to hand over shipping and title documents to the importer only if the importer accepts and signs the accompanying bill of exchange or draft.
DA
In DA, No acceptance and signed bill of exchange from the buyer is equals to _______________.
No issuance of Documents from the seller.
Is an arrangement whereby the shipping documents are sent and released by the exporter directly to the buyer, without coursing the documents through the banks, upon the buyer’s promise to pay at some future date after shipment.
OA
True/False
In OA and as used herein, an import transaction to be considered under D/A or O/A must be payable at least 30 days after bill of lading (B/L) or airway bill (AWB) shipment date.
True
Is a supplier-buyer arrangement where payment is made within 29 calendar days from bill of lading/airway bill date.
DR
other Import arrangement
Self-Funded/“No Dollar” Imports
Importations on Consignment Basis.
These are imports funded by importer’s own foreign currency deposit accounts or those sent by suppliers abroad for which no payment in foreign exchange will be made whether immediate or potential.
Self-Funded/“No Dollar” Imports
These are importations by export producers of raw materials and accessories/supplies from foreign suppliers/buyers abroad for the manufacture or processing of products destined for export to said foreign suppliers/buyers. These shall also include machinery/equipment and spare parts consigned to the local manufacturer/processor for eventual re-export to the consignor: Provided, That the equipment involved shall be used only in connection with the processing of products for export.
Importations on Consignment Basis
True/False
Export Trade Transactions general Policy of the BSP to encourage commodity exports which generate foreign exchange earnings for the country.
True
Commodity exports are allowed without restriction except for certain commodities which are regulated or prohibited for reasons of national interest or by provision of law.
Classification of Exports
Freely Exportable Commodities
Regulated Commodities
Prohibited Exports
Restricted
true/false
Export advances shall refer to all payments/remittances received before shipment, including prepayments and Red Clause advances.
true
currencies that are use for payments for exports
U.S. dollar
Japanese yen
Pound sterling
Hong Kong dollar
Swiss franc
Canadian dollar
Singapore dollar
Australian dollar
Bahrain dinar
Kuwait dinar
Saudi riyal
Brunei dollar
Indonesian rupiah
Thai baht
United Arab Emirates dirham
Euro
Korean won
Chinese renminbi or yuan
Such other currencies that may be declared convertible by the BSP”
