CAO 1-2019

Question 1

bona fide holder of valid cert of registration or professional identification card issued by the PRC

Answer 1

Customs Broker

Question 2

completion of customs and other government formalities

Answer 2

Customs Clearance

Question 3

procedure of making final payment of duties and taxes at port of entry

Answer 3

Customs Clearance for Consumption Entries

Question 4

shall refer to the procedure of filing of goods declaration and the duties has been secured to be paid for withdrawal

Answer 4

Customs Clearance for Warehousing Entries

Question 4

customs procedure under which goods, in its original form are given permit to be transported under customs control from one customs office to another

Answer 4

Customs Clearance for Transit Entries

Question 5

customs procedure under which goods, in its original form are given permit to be transferred from the import means to export

Answer 5

Customs Clearance for Transshipment Entries

Question 6

act resulting in material false statements, voluntarily or intentionally done

Answer 6

Fraud

Question 7

special economic zones registered with the PEZA

Answer 7

free zones

Question 8

mechanical or clerical error

Answer 8

Inadvertent error

Question 9

authorized to bring imported goods into freezones

Answer 9

locators

Question 10

use of insufficient or wrong description of goods or the use of erroneous tariff headings

Answer 10

Misclassification

Question 11

use of insufficient or wrong description of goods

Answer 11

Misdeclaration

Question 12

Failure to exercise reasonable care and competence

Answer 12

Negligence

Question 13

Place where records and documents where kept, headquarters that holds the senior executive of the firm

Answer 13

Principal Place of Business

Question 14

program based on international best customs practice, authorizing the Commissioner of Customs to accept as a potential mitigating factor

Answer 14

Prior disclosure program

Question 15

office created under EO 160 s 2003 mandated to conduct audit of importer locators and all parties engaged in customs clearance

Answer 15

Post Clearance Audit Group

Question 16

plea for re-evaluation of audit findings on the basis of existing records

Answer 16

Reconsideration of Audit Findings

Question 17

plea for re-evaluation of audit findings on the basis of new records

Answer 17

Re investigation of Audit Findings

Question 18

situation when the declared value fails to be disclosed in full price actually paid or payable

Answer 18

Undervaluation

Question 19

When magkakaroon ng audit

Answer 19

Within 3 years from the date of final payment of duties and taxes or Customs Clearance

Question 20

Period of Limitation

Answer 20

In the absence of fraud and when goods have been finally assessed andd released, asssessment shall be conclusive upon all parties 3 years from the date of final payment of duties and taxes or upon completion of PCA

Question 21

who are needed to keep records

Answer 21

• importer
• customs broker and other parties
• locators

Question 22

Purpose of keeping records

Answer 22

to confirm truthfulness and accuracy

to check integrity

to determine level of compliance

basis for sanctions

Question 23

Period and Place to keep records

Answer 23

3 years from the date of final payment of duties and taxes or customs clearance

kept at the principal place of business

Question 24

All parties engaged in customs clearance and processing are

Answer 24

required to keep records for a period of 3 years from the date of filling of the goods declaration

Question 25

Composition of PCAG

Answer 25

PCAG - Headed by Assistant Commissioner

Two operating units of PCAG
- PCAG TIRAO
- PCAG CAO
headed by a director

Question 26

may authority ba si commissioner to reorganize the PCAG

Answer 26

Yes, the commissioner with the approval of Sec. of Finance is authorized to determine the number of personnel

Question 27

if may changes sa personnel or staffing pattern

Answer 27

with the approval of the Sec. of finance, submit the same for evaluation of the Department of Budget and Management

Question 28

required to keep reccords for a period of 3 years from the date of filling of the goods declaration

Answer 28

yung mga parties na involve sa customs clearance and other process

Question 29

Function of PCAG

Answer 29

mandated to conduct within 3 years from the date of payment of final duties and taxes or customs declaration an examination, inspection, verification and investigation

Question 30

PCAG TIRAO functions

Answer 30

-review trade data
-develop computer aided risk system
- recommend potential candidates for audit
- develop policies

Question 31

Function of PCAG CAO

Answer 31

prepare audit work plan
condut audit examination
prepare and submit report
maintain customs clearance program

Question 32

Step 1 - ________shall prepare a set of post clearance audit procedures for approval by the Commissioner

Answer 32

PCAG

Question 33

shall perform risk profiling analysis activities on importers

Answer 33

PCAG TIRAO

Question 34

Audit Notification Letter

Answer 34

The commissioner shall issue the ANL to the company identified for audit

Anl include the names of authorized customs personnel from PCAG CAO to perform the audit

ANL - valid for 30 calendar days from the date of issuance subject to revalidation by the Assistant Commissioner for another 30 calendar days prior its expiry

May be served through
personal service
registered email
electronic mail

Failure to serve ANL within the period without proper justification shall make the personnel administratvely liable

Question 34

shall prepare audit plan to fit the circumstances and meet specific audit objectives

Answer 34

Audit Team

Question 34

Conduct of Audit Proper

Answer 34

commenced audit proper not later than 60 calendar days from the service of ANL

incase importer manifest to avail PDP the conduct of audit shall be deferred or postponed

Question 34

Audit proper shall take place when audit team

Answer 34

actually conducts the examination, inspection , verifivcation and inxestigation.

audit team may require certified true copies of docs,

Question 35

Audit shall be completed within

Answer 35

within 120 calendar days per year of aufit period from the date the importer receives the ANL

Question 36

Audit is considered complete when

Answer 36

Finala Audit Report with demand letter or PCAG Clean Report Findings has been submitted endorsed by Assistant Commissioner approved by Comimissioner

Question 37

PCAG - Clean Report Findings

Answer 37

proof that the importer or entity subject to audit has been found to have no deficeincy in duties and taxes and other charges.

Question 38

If audit team is unable to submit FAR within the required period, a status report must be submitted to assistant commissioner not later than 5 calaendar days prior to the expiration of said period and giving reasons for the non completion, proposed

Answer 38

period to complete the audit not exceeding 30 calendar days

Question 39

Importer adversely affected by the assessment issued by PCAG

Answer 39

may file a request for reconsideration or reinvestigation within 15 days from receipt of Demand letter