CAO 10-2020 (TERMS

Question 1

shall refer to a written order issued by the Commissioner, District Collector, or other customs officers authorized in writing by the Commissioner after the Lodgement of goods declaration and before their actual release from customs custody, on the basis of derogatory information stated in this CAO regarding possible non-compliance with the CMTA and other laws, rules and regulations enforced by Customs

Answer 1

Alert Order

Question 2

shall refer to the business of transferring either merchandise or passengers between two seaports in the Philippines

Answer 2

Coastwise Trade

Question 3

shall refer to the quantity for a given kind or class of articles which are in excess of what is compatible with and commensurate to the person’s normal requirements for personal use

Answer 3

Commercial Quantity

Question 4

shall refer to persons, corporations, firms, or association engaged in the business of carrying or transporting passengers or goods or both, by land, water or air, for compensation, offering their services to the public

Answer 4

Common Carrier

Question 5

shall refer to the situation where, falling short of physical seizure or possession, the Customs Officers and the owner of the goods enter into a written agreement after the inventory to the effect that the goods, subject of a Letter of Authority (LOA), shall not be removed or disposed of pending disposition or resolution on the issue of whether proper payment of duties and taxes has been made

Answer 5

Constructive Customs Custody

Question 6

shall refer to the disposition of the main forfeiture case by the District Collector or Commissioner based on merits

Answer 6

Decision

Question 7

shall refer to the disposition of the main forfeiture case based on merits, which resolves that there is no violation of the law that will warrant the Forfeiture of the seized articles, and consequently allows the release of the articles subject of a Warrant of Seizure and Detention (WSD) without payment of additional duties and taxes, interests, penalties and/or surcharges

Answer 7

Decisions Adverse to the Government

Question 8

shall refer to officers or members of the Armed Forces of the Philippines (AFP) or other selected national law enforcement agencies covered by a written order signed by the Commissioner of Customs authorizing them to assist in the exercise of customs police authority, particularly the power to search, seize, and arrest in specified areas outside of customs premises.

Answer 8

Deputized Officer

Question 9

shall refer to an international commercial term covered by the Incoterms rules developed by International Chamber of Commerce (ICC) which means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place

Answer 9

Free Carrier (FCA)

Question 10

shall refer to international commercial term covered by the Incoterms rules developed by International Chamber of Commerce (ICC) which means that the seller delivers the goods on board the vessel nominated by the buyer at the named point of shipment, or procures the goods already delivered

Answer 10

Free on Board (FOB)

Question 11

shall refer to the acquisition of ownership by the government for an established violation of CMTA as a result of the forfeiture proceedings

Answer 11

Forfeiture

Question 12

shall refer to acts knowingly, voluntarily and intentionally committed or omitted which prejudice the interest of the government, e.g. submitting fake or spurious document, making material untruthful statement(s) or committing any other analogous act(s) or omission(s).

Answer 12

Fraud

Question 13

shall refer to articles, wares, merchandise and any other items which are subject of importation or exportation

Answer 13

Goods

Question 14

shall refer to a receipt issued by a customs officer acknowledging that the baggage is temporarily held in custody by the Bureau for undeclared dutiable goods and/or declared dutiable goods pending payment of duties and taxes, verification of documents, or compliance with customs laws, rules and regulations

Answer 14

Held Baggage Receipt (HBR)

Question 15

shall refer to the orders of the District Collector or Commissioner involving incidental matters that does not dispose of the case completely but leaves something to be decided upon

Answer 15

Interlocutory Order

Question 16

shall refer to the sum of the customs value including the total cost of the product, transportation cost and insurance plus applicable customs duty and other taxable charges such as but not limited to brokerage fee, bank charge, other charges, processing fee, arrastre charges and wharfage dues, if applicable

Answer 16

Landed Cost

Question 17

shall refer to the use of insufficient or wrong description of the goods or the use of erroneous tariff heading/s and sub-heading/s 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 17

Misclassification

Question 18

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 18

Misdeclaration

Question 19

when there is a difference in the number of the Goods as declared in the Goods Declaration and the quantity as found after physical examination of the Goods.

Answer 19

Misdeclaration as to the Quantity of Goods

Question 20

when there is a difference in the characteristics of the Goods as declared in the Goods Declaration and the quality as found after physical examination of the Goods (e.g. declared as USED but found out as BRAND NEW or declared as Off-Quality, Remnants Fabrics but found as Whole, First Class, Best Quality Fabrics, among others).

Answer 20

Misdeclaration as to the Quality of Goods

Question 21

when there is a difference in the descriptive nature and identity of the Goods as declared in the Goods Declaration and the description as found after physical examination of the Goods (e.g. product code, item code, make, model, series, displacement, version, among others).

Answer 21

Misdeclaration as to Description of Goods

Question 22

when there is a discrepancy in the actual weight as declared in the Goods Declaration and the weight as found after physical examination and weighing of the Goods.

Answer 22

Misdeclaration as to the Weight of Goods

Question 23

when there is a difference in the size, length, width, height or volume of the Goods as declared in the Goods Declaration and the measurement as found after physical examination of the Goods

Answer 23

Misdeclaration as to the Measurement of Goods

Question 24

shall refer to a document evidencing an aggrieved party’s intention to seek redress to a Decision which shall indicate the parties to the appeal, specify the judgment or final order on the merits or part thereof appealed from, and state the material dates showing the timeliness of the appeal.

Answer 24

Notice of Appeal

Question 25

shall refer to goods liable to perish or goods that depreciate greatly in value while stored or which cannot be kept without great disproportionate expense

Answer 25

Perishable Goods

Question 26

shall refer to a recall of a WSD when the ground for the issuance of thereof is found to be non-existent or ceased to exist.

Answer 26

Quashal

Question 27

shall refer to the actual or constructive taking or bringing into custody the goods, things or chattels by virtue of a WSD issued by the Collector of Customs for violation of the CMTA.

Answer 27

Seizure

Question 28

shall refer to an abbreviated administrative proceeding wherein only position papers are required to be submitted in lieu of the conduct of a formal hearing.

Answer 28

Summary Proceedings

Question 29

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 29

Undervaluation

Question 30

shall refer to an order in writing, issued in the name of the Republic of the Philippines, signed by the District Collector of Customs directed to the Enforcement and Security Service (ESS) or any Deputized Officer of a national law enforcement agency, commanding him to seize any properties subject to Forfeiture pursuant to Section 1113,
Chapter 4, Title XI of the CMTA.15

Answer 30

Warrant of Seizure and Detention (WSD)