CAO-01-2019

Question 1

Shall refer to any person who is a bona fide holder of a valid Certificate of Registration or Professional Identification Card issued by the Professional Regulatory Board and Professional regulation Commission pursuant to Republic Act No. 9280, as amended, otherwise known as the “Customs Brokers Act of 2004”

Answer 1

Customs Broker

Question 2

shall refer 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

Answer 2

Customs Clearance

Question 3

shall refer to the procedure of making the final payment of duties and taxes and other charges at the port of entry and the legal permit for withdrawal has been granted

Answer 3

Customs Clearance for Consumption Entries

Question 4

shall refer to the procedure of filing of goods declaration and the duties and taxes has been secured to be paid at the point of entry and the legal permit for withdrawal has been granted

Answer 4

Customs Clearance for Warehousing Entries

Question 5

shall refer to the customs procedure under which goods, in its original form, are given permit to be transported under customs control from one customs office to another, or to a free zone

Answer 5

Customs Clearance for Transit Entries

Question 6

shall refer to the customs procedure under which goods are given permit to be 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

Answer 6

Customs Clearance for Transshipment Entries

Question 7

shall refer to the commission or omission of any act resulting in material false statements such as, but not limited to, the submission of false or altered documents in connection with any importation knowingly, voluntarily and intentionally done to reduce the taxes and duties paid or to avoid compliance with government regulations related to the entry of Regulated, Prohibited or Restricted goods into Philippine customs territory through Misdeclaration, Misclassification or Undervaluation

Answer 7

Fraud

Question 8

shall refer to special economic zones registered with the Philippine Economic Zone Authority (PEZA) under Republic Act No. 7916, as amended, duly chartered or legislated special economic zones and freeports such as Clark Freeport Zone; Poro Point Freeport Zone; John Hay Special Economic Zone and Subic Bay Freeport Zone under Republic Act No. 7227, as amended by Republic Act No. 9400; the Aurora Special Economic Zone under Republic Act No. 9490, as amended; the Cagayan Special Economic Zone and Freeport under Republic Act No. 7922; the Zamboanga City Special Economic Zone under Republic Act No. 7903; the Freeport Area of Bataan under Republic Act No. 9728; and such other freeports as established or may be created by law

Answer 8

Free Zones

Question 9

refer to person who imports goods into the Philippines or withdraws admitted goods from the Free Zones into the customs territory for consumption or warehousing; files a claim for refund or drawback, or transports or stores such goods carried or held under security; or

a person who knowingly causes the importation or transportation or storage of imported goods referred to above, or the filing of refund or drawback claim.

Answer 9

importer

Question 10

person ordering imported goods from a local importer or supplier in a domestic transaction

Answer 10

importer

Question 11

importer is the person who a. the person placing the order controls the material terms and conditions of the importation

true or false

Answer 11

true

Question 12

shall refer to a mechanical, electronic or clerical error committed unintentionally by the Importer and occurred notwithstanding the maintenance of internal controls necessary to avoid such errors.

Answer 12

Inadvertent error

Question 13

Inadvertent Error as used in this CAO (CAO 01-2019) amounts to simple Negligence.

true or false

Answer 13

true

Question 14

shall refer to persons authorized to bring imported goods into Free Zones, such as the special economic zones and free ports

Answer 14

locators

Question 15

shall refer to the use of insufficient or wrong description of the goods or the use of erroneous tariff headings resulting in deficiency between the duty and tax that should have been paid and the duty and tax actually paid and/or to avoid compliance with government regulations related to the entry of Regulated, Prohibited or Restricted goods into Philippine Customs territory

Answer 15

misclassification

Question 16

shall refer to a false, untruthful, erroneous or inaccurate declaration as to quantity, quality, description, weight or measurement of the goods resulting in deficiency between the duty and tax that should have been paid and the duty and tax actually paid and/or to avoid compliance with government regulations related to the entry of Regulated, Prohibited or Restricted goods into Philippine customs territory

Answer 16

misdeclaration

Question 17

shall refer to failure to exercise reasonable care and competence, through act or acts of omission or commission, in ensuring that a statement made is correct resulting in a deficiency in taxes and duties paid

Answer 17

negligence

Question 18

shall refer to the headquarters that holds the senior executive of a firm and is usually the center from where other locations are controlled. It likewise refers to the place where a corporation’s officers direct, control and coordinate the corporation’s activities and where the books and records are kept

Answer 18

principal place of business

Question 19

shall refer to a program based on international best customs practice, authorizing the Commissioner of Customs to accept, as a potential mitigating factor, prior disclosure by Importers of errors and omissions in goods declaration resulting in deficiency in duties and taxes on past importations. It may also include disclosures on royalties and other proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.

Answer 19

Prior Disclosure program

Question 20

shall refer to an office created under Executive Order No. 160 s. 2003, as amended by Executive Order No. 46, s. 2017, mandated to conduct audit of importers, locators, and all parties engaged in customs clearance and processing

Answer 20

Post Clearance Audit Group (PCAG)

Question 21

shall refer to a plea for the re-evaluation of the audit findings on the basis of existing records without need of additional evidence. It may involve both a question of fact or of law or both

Answer 21

Reconsideration of Audit Findings

Question 22

shall refer to a plea for the reevaluation of the audit findings on the basis of newly discovered or additional evidence intended to be presented in the reinvestigation. It may also involve a question of fact or of law or both

Answer 22

Reinvestigation of Audit Findings

Question 23

shall refer to situation when the declared value fails to disclose in full the price actually paid or payable or any dutiable adjustment to the price actually paid or payable, or when an incorrect valuation method is used or the valuation rules are not properly observed, resulting in a discrepancy in duty and tax to be paid between what is legally determined as the correct value against the declared value

Answer 23

undervaluation

Question 24

Within three (3) years from the date of final payment of duties and taxes or Customs Clearance, as the case may be, the Bureau may conduct an audit examination, inspection, verification, and investigation of records pertaining to any goods declaration, which shall include statements, declarations, documents and electronically generated or machine readable data, for the purpose of ascertaining the correctness of the goods declaration and determining the liability of the Importer for duties, taxes and other charges, including any fine or penalty

true or false

Answer 24

true

Question 25

In the absence of fraud and when the goods have been finally assessed and released, the assessment shall be conclusive upon all parties five (5) years from the date of final payment of duties and taxes, or upon completion of the post clearance audit true or false

Answer 25

false three (3) years from the date of final payment

Question 26

All Importers, including those mentioned in the definition of Importers insofar as the application of post clearance audit and Section 1005, Title X of the CMTA are concerned, are required to maintain and keep all records of their importations, books of accounts, business and computer systems and all customs commercial data including payment records true or false

Answer 26

true

Question 27

All Customs Brokers and other parties engaged in Customs Clearance and processing are required to keep manual and/or electronic copies of the records covering transactions that they handle. Should electronic copies of records be maintained, the recordkeeping must be compliant with the applicable laws, rules and regulations on electronic data. true or false

Answer 27

true

Question 28

Locators are not required to keep records of all transactions and activities relating to the admission and withdrawal of goods from the Free Zones into the customs territory true or false

Answer 28

false Locators are required to keep records of all transactions and activities relating to the admission and withdrawal of goods from the Free Zones into the customs territory

Question 29

The records shall be kept To confirm the truthfulness and accuracy of the goods declaration and the transaction value of the imported goods true or false

Answer 29

true

Question 30

The records shall be kept To check the adequacy and integrity of the manual or electronic system or systems by which the required records are filed, maintained and stored, whether specific transaction based or account-based true or false

Answer 30

true

Question 31

The records shall be kept to determine the level of compliance of Importers, Customs Brokers, Locators, and other parties required to keep records herein with laws and regulations which are enforced by the Bureau whether or not such regulations were issued by the Bureau true or false

Answer 31

true

Question 32

The records shall be kept to serve as basis for the imposition of sanctions for non-compliance on recordkeeping and non-compliance of regulatory obligations of the importer and other entities required to keep records, subject to applicable laws, rules and regulations. true or false

Answer 32

true

Question 33

All parties engaged in Customs Clearance and processing as well as locators or persons authorized to bring imported goods into Free Zones are required to keep records related to such Customs Clearance and processing at their Principal Place of Business for a period of three (3) years from the date of filing of the goods declaration true or false

Answer 33

true

Question 34

what documents or records are required to be kept for the purpose of post clearance audit?

Answer 34

1. Documentation on the entity organization and structure 2. Documentation on orders and purchases 3. Documentation on shipping, importation, exportation and transport 4. Documentation on manufacturing, stock and resale 5. Financial documents such as financial statements and other accounting information 6. Charts and codes of accounts, general and subsidiary ledgers, general journal, accounting instruction manuals, and systems and program documentation that describes the accounting system used by the Importer 7. Whenever applicable, information or records as described in Sections 4.5.1. to 4.5.6. of this Order that are electronically recorded or stored

Question 35

Head of the PCAG who shall exercise direct supervision and control in the management of PCAG-TIRAO and PCAG-CAO

Answer 35

Assistant Commissioner

Question 36

Operating units of PCAG

Answer 36

a. Trade Information and Risk Analysis Office (PCAG-TIRAO); and b. Compliance Assessment Office (PCAG-CAO).

Question 37

PCAG-TIRAO and PCAG-CAO shall each be headed by a _______________.

Answer 37

Director

Question 38

The Commissioner, with the approval of the BOC, is hereby authorized to determine the number of personnel requirements of PCAG and issue the necessary order to reassign the required organic personnel of BOC to the Group true or false

Answer 38

false The Commissioner, with the approval of the Secretary of Finance, is hereby authorized to determine the number of personnel requirements of PCAG and issue the necessary order to reassign the required organic personnel of BOC to the Group

Question 39

Subject to the principles of economy, efficiency and effectiveness, the Commissioner is likewise authorized to further recommend necessary changes to the personnel and staffing pattern of the PCAG and, with the approval of the Secretary of Finance, submit the same for evaluation of the Department of Budget and Management (DBM). true or false

Answer 39

true Subject to the principles of economy, efficiency and effectiveness, the Commissioner is likewise authorized to further recommend necessary changes to the personnel and staffing pattern of the PCAG and, with the approval of the Secretary of Finance, submit the same for evaluation of the Department of Budget and Management (DBM).

Question 40

mandated to conduct, within three (3) years from the date of final payment of duties and taxes or customs clearance, an audit examination, inspection, verification, and investigation of records pertaining to any goods declaration, which shall include statements, declarations, documents and electronically generated or machine readable data, for the purpose of ascertaining the correctness of the goods declaration and determining the liability of the importer for duties, taxes and other charges, including any fine or penalty.

Answer 40

PCAG

Question 41

Review available trade data to determine compliance markers of industry (or other means of data groupings) and set benchmarks for the purpose of developing an audit program for the Commissioner's approval. It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 41

PCAG-TIRAO

Question 42

In coordination with the Management Information System and Technology Group (MISTG), develop a computer-aided risk based management system, the parameters of which are to be based on objective and quantifiable data, subject to the approval of the Secretary of Finance upon recommendation of the Commissioner, for use in the profiling and identification of potential priority audit candidates based on the approved audit program. It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 42

PCAG-TIRAO

Question 43

Review available trade data to determine compliance markers of industry (or other means of data groupings) and set benchmarks for the purpose of developing an audit program for the Commissioner's approval. It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 43

PCAG-TIRAO

Question 44

Recommend for approval of the Commissioner of Customs the potential priority audit candidates. It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 44

PCAG-TIRAO

Question 45

Develop policies, guidelines, manuals and standard operating procedures relating to the audit process It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 45

PCAG-TIRAO

Question 46

Perform such other functions as may be necessary or incidental in carrying into effect the provisions of this Order, and as may be provided by law It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 46

PCAG-TIRAO

Question 47

Prepare the audit work plan, scope and approach for the approved priority audit candidates It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 47

PCAG-CAO

Question 48

Conduct the audit examination, inspection, verification or investigation of records subject to applicable laws, approved policies, guidelines, manuals and standard operating procedures; c. Prepare and submit the required reports on audit findings and recommendations to the Commissioner of Customs for approval; d. Establish and maintain a customs compliance program It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 48

PCAG-CAO

Question 49

Perform such other functions as may be necessary or incidental in carrying into effect the provisions of this Order, and as may be provided by law It is a function of PCAG-TIRAO or PCAG-CAO?

Answer 49

PCAG-CAO

Question 50

The Bureau shall develop a computer-aided risk based management system, the parameters of which are to be based on objective and quantifiable data to be approved by the Secretary of Finance upon recommendation of the Commissioner of Customs true or false

Answer 50

true

Question 51

Post clearance audit of Importers shall be undertaken when firms are selected based on any but not limited to the following criteria

Answer 51

a. Relative magnitude of customs revenue to be generated from the firm; b. The rates of duties of the firm's imports; c. The compliance track records of the firm; d. An assessment of the risk to revenue of the firm's import activities, e. The compliance level of a trade sector; and f. Non-renewal of an Importer's customs accreditation.

Question 52

Customs Brokers and Importer's duly authorized agents may be audited to validate information provided by their Importer clients and fill information gaps revealed during the audit true or false

Answer 52

true

Question 53

The Commissioner may authorize the conduct of compliance audit of importers, locators, specific group of importers or other parties engaged in the customs clearance process as he may deem necessary true or false

Answer 53

true

Question 54

The Management Information System and Technology Group (MISTG) in coordination with the PCAG - TIRAO shall develop the computer-aided risk-based management system to facilitate the risk assessment and conduct of audit. The PCAG shall gather data or information from other offices and organizations to set the risk parameters for audit. true or false

Answer 54

true

Question 55

The PCAG shall prepare a set of post clearance audit procedures, for approval by the Commissioner, to strictly govern the audit to achieve the highest level of objectivity, fairness, efficiency, and transparency true or false

Answer 55

true

Question 56

PCAG - TIRAO shall perform risk profiling analysis activities on the Importers. This includes data gathering and evaluation of import and export operations.

Answer 56

a. Profiling/lnformation Analysis

Question 57

The Commissioner shall issue an Audit Notification Letter (ANL) to the company identified for audit. The ANL shall contain the name or names of the authorized customs personnel from PCAG - CAO to perform post clearance audit. It shall be valid for thirty (30) calendar days from the date of issuance, subject to revalidation by the Assistant Commissioner for another thirty (30) days prior to its expiry, and must be served to the Importer through any of the following modes of service: (1) by personal service at the principal place of business; (2) by registered mail; or (3) through electronic notice sent to the registered official electronic mail address during its validity. Failure to serve ANL within the period without proper justification shall make the Customs personnel in charge administratively liable

Answer 57

Audit Notification

Question 58

ANL shall be valid for _______________subject to revalidation by Assistant Commissioner for another 30 days prior to its expiry.

Answer 58

(30) calendar days from the date of issuance

Question 59

audit team shall prepare to fit the circumstances of the audited company and meet the specific audit objectives in the most expeditious and transparent manner

Answer 59

audit plan

Question 60

The audit team shall commence the audit proper not later than sixty (60) calendar days from the service of the ANL. In case the Importer manifests his intention to avail of the PDP, the conduct of the audit proper shall be deferred subject to the provisions of Section 6.1.2 of this Order

Answer 60

Conduct of Audit Proper

Question 61

The audit team shall commence the audit proper not later than thirty (30) calendar days from the service of the ANL true or false

Answer 61

true sixty (60) calendar days

Question 62

The audit proper shall take place when the audit team actually conducts examination, inspection, verification and investigation of accounting and financial records and goods declaration and other records being kept and maintained by the Importer. The audit team may require the presentation of the original of the certified true copies of documents submitted for verification of its authenticity true or false

Answer 62

true

Question 63

A copy of any document certified by or on behalf of the Importer is admissible in evidence in all courts as if it were the original copy true or false

Answer 63

true

Question 64

The audit shall be completed within one hundred twenty (120) calendar days per year of audit period from the date the Importer receives the ANL. true or false

Answer 64

true

Question 65

The audit is considered completed when the Final Audit Report (FAR) with Demand Letter, or Post Clearance Audit Group - Clean Report of Findings (PCAG-CRF) has been submitted by the audit team, endorsed by the Assistant Commissioner and subsequently approved by the Commissioner. true or false

Answer 65

true

Question 66

The issuance of the PCAG-CRF shall be deemed as proof that the importer or entity subject of audit has been found to have ______________in duties, taxes and other charges and that the importer is compliant with its obligation to keep records as required by law

Answer 66

no deficiency

Question 67

If the audit team would be unable to submit the FAR within the required period, a status report must be submitted to the Commissioner through the Assistant Commissioner not later than___________ calendar days prior to expiration of the said period giving the reasons for the non-completion of the audit and the proposed period to complete the audit not exceeding thirty (30) calendar days.

Answer 67

five (5)

Question 68

Service of Demand Letter for Payment of Deficiency. Within five (5) calendar days from receipt of the Demand Letter signed by the Commissioner true or false

Answer 68

true

Question 69

The Importer adversely affected by the deficiency assessment issued by the PCAG and approved by the Commissioner may file a request for reconsideration or reinvestigation to the Commissioner within ____________ days from receipt of the Demand Letter.

Answer 69

fifteen (15)

Question 70

For requests for reinvestigation, the Importer shall submit all relevant supporting documents in support thereof within thirty (30) days from the date of filing, otherwise, the request shall be denied. The Bureau, through the PCAG, shall have sixty (60) calendar days from submission of complete documents to resolve the request. true or false

Answer 70

true

Question 71

Upon payment of the amount demanded, the Bureau shall immediately issue without a need for request from the Importer, a letter acknowledging receipt of the payment made by the Importer and with a statement that the audit is completed. true or false

Answer 71

true

Question 72

The Bureau shall furnish the ______and the ________ a copy of the final audit results within thirty (30) calendar days from the issuance thereof including the amount paid by the Importer. In addition, the Bureau shall provide a quarterly status report to the DOF of all ANL's issued and audits conducted.

Answer 72

DOF and the BIR

Question 73

The Importer shall give to the Bureau personnel authorized to conduct the audit full and free access to the premises where the records are kept, or provide full and free access to a cloud based data-room, or a private sewer, or other devices, to conduct the audit. This may include access to records showing the Importer's:

Answer 73

a. Document flow; b. Financial flow; c. Goods inventory; and d. Other business processes necessary

Question 74

Customs Brokers and the Importer's duly authorized agents acting on behalf of the Importer at any stage of the Customs Clearance process are likewise required to give authorized Bureau personnel under PCAG full and free access to records covering transactions for purposes of validation and to fill information gaps revealed during the audit of their Importer clients true or false

Answer 74

true

Question 75

The customs officer shall present written evidence of his authority. The person in charge of the premises must provide the officer with all reasonable facilities and assistance for the effective exercise of the officer's authority under this section. true or false

Answer 75

true

Question 76

Where a document in a foreign language is presented to a customs officer in relation to the carrying out of any duty or the exercise of any power of the Bureau of Customs, said document must be accompanied with a translation in____________, certified correct under oath by a translator accredited by the Department of Foreign Affairs or by the relevant foreign embassy, or consular office

Answer 76

English

Question 77

For the effective implementation of the post clearance audit Commissioner is hereby authorized to:

Answer 77

1. Obtain on a regular basis from any person, any information directly or indirectly involved in the importation or exportation 2. Summon the person liable for duties and taxes to appear before the Commissioner or the duly authorized representative at a time and place specified in the summons and to produce such books, papers, records, or other data, and to give testimony 3. Take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry 4. Obtain information from banks or other financial institutions

Question 78

Any Importer who has received an ANL may still avail of the Prior Disclosure Program by submitting the duly accomplished application form prescribed by the Bureau for prior disclosure stating the errors in goods declaration and tendering payment of the deficiency duties, taxes and penalties within a period of ninety (90) calendar days from the receipt of the ANL true or false

Answer 78

true

Question 79

The Importer may amend the PDP application and pay additional deficiency duties, taxes and penalties within an additional non-extendible period of thirty (30) calendar days from the filing of the PDP application form, should there be any adjustments to the original application or new issues discovered that need to be disclosed true or false

Answer 79

true

Question 80

what situations are not qualified for the PDP

Answer 80

1.Goods declarations which are the subject of pending cases with any other Customs office 2. Goods declaration which are covered by cases already filed and pending in courts 3. Goods declarations involving Fraud as defined under Section 10.3.2. of this Order

Question 81

Effects of PDP. Instead of the penalties provided in Section 10.3.1, the following penalties shall be imposed on approved applications for PDP

Answer 81

1. applicant who has not yet received an ANL, payment of the deficiency in duties and taxes due plus legal interest 2. applicant who has received an ANL and availed of the program pursuant to Section 6.1.2, payment of the deficiency in duties and taxes due plus a penalty of ten percent (10%) of the basic deficiency and legal interest 3. applicant who has made disclosures on royalties and other proceeds of any subsequent resale, disposal, or use of the imported goods that accrues directly or indirectly to the seller, or on any subsequent adjustment to the price paid or payable, payment of the deficiency in duties and taxes due without penalty and interest, provided that the applicant files for PDP within thirty (30) calendar days from the date of payment or accrual of subsequent proceeds to the seller, directly or indirectly, or from the date the adjustment to the price paid or payable is made. Upon failure to pay within thirty (30) calendar days

Question 82

The verification and approval or denial of the PDP application shall be completed within the period of ninety (90) calendar days from the submission of the complete PDP documents true or false

Answer 82

true

Question 83

In relation to the specific goods declaration subject of the prior disclosure application, when there are findings of Fraud or when there are other material inaccuracies, mistakes or errors in the goods declaration or outright violations committed that are not the subject of the disclosure but has an adverse impact on government revenues, PCAG shall recommend to the Commissioner the conduct of a formal and full audit. true or false

Answer 83

true

Question 84

An interest of_____________per annum, counted from the date of final assessment as provided under Section 429 of the CMTA shall be imposed on: 1. Prior Disclosure Program availment; 2. Deficiency duties, taxes and other charges; and 3. Fine or penalty, if any.

Answer 84

twenty percent (20%)

Question 85

When the request for reconsideration or reinvestigation is denied by the Commissioner as provided in Section 5.5.1.f., in whole or in part, the Importer may appeal such denial to the __________________ within thirty (30) days from receipt of the adverse ruling or decision of the Commissioner.

Answer 85

Court of Tax Appeals (CTA)

Question 86

The remedies of the Bureau for the collection of import duties, taxes, fees, or charges resulting from the conduct of a post clearance audit shall be obtained by:

Answer 86

1. Distraint of goods, chattels or effects and other personal property 2. Distraint of goods, chattels or effects and other personal property 3. Civil or criminal action

Question 87

Under what circumstances are distraint and levy not permitted according to the Bureau, and what is the threshold amount specified in the provision?

Answer 87

When the amount of duties and taxes, excluding interest and penalties, involved is not more than Ten Thousand Pesos (10,000)

Question 88

failure to keep records may result to?

Answer 88

1. Suspension or cancellation of accreditation as Importer or Broker with the Bureau 2. Surcharge of twenty percent (20%) on the dutiable value of the goods which is the subject of the importation for which no records were kept and maintained 3. Hold delivery or release of subsequent imported articles to answer for the fine and any revised assessment 4. . Criminal prosecution punishable with imprisonment of not less than three (3) years and one (1) day but not more than six (6) years, and/or a fine of One Million Pesos 5. Waiver of the right to contest the results of the audit based on records kept by the Bureau

Question 89

failure or refusal to give full access and free access may result to the imposition of:

Answer 89

1. Suspension or cancellation of accreditation as an Importer or Broker with the Bureau 2. Punishment for contempt, for contumacy or for refusal to provide access, from the proper court having criminal jurisdiction over the matter 3. Re-assessment of the importations subject of audit, 4. Surcharge of twenty percent (20%) on the dutiable value of the goods which is the subject of the importation for which no records were kept and maintained 5. Hold delivery or release of subsequent imported articles to answer for the fine and any revised assessment 6. Criminal prosecution punishable with imprisonment of not less than three (3) years and one (1) day but not more than six (6) years, and/or a fine of One Million Pesos

Question 90

Any person who, after being subjected to post clearance audit and examination, is found to have incurred deficiencies in duties and taxes paid for imported goods, shall be penalized according to two (2) degrees of culpability, subject to any mitigating, aggravating or extraordinary factors that are clearly established by available evidence true or false

Answer 90

true

Question 91

When a deficiency results from an offender's failure, through an act or acts of omission or commission, to exercise reasonable care and competence in ensuring that a statement made is correct, the offender shall be charged for committing Negligence, and, if found guilty shall be penalized with a fine equivalent to _______________________of the revenue loss

Answer 91

one hundred twenty-five percent (125%)

Question 92

penalty of ____________________ of the revenue loss shall be imposed on an Inadvertent Error amounting to simple Negligence.

Answer 92

twenty-five percent (25%)

Question 93

When the material false statement or act in connection with the transaction was committed or omitted knowingly, voluntarily and intentionally, as established by clear and convincing evidence, the offender who is charged for committing Fraud and is found guilty thereof, shall be penalized with a fine equivalent to six (6) times of the revenue loss and/or imprisonment of not less than two (2) years but not more than eight (8) years true or false

Answer 93

true