CMO 27- 2004

Question 1

shall be issued for products that do not qualify or not eligible under the GSP or the ASEAN-CEPT scheme, or any other schemes with preferential treatment

Answer 1

CO for General Merchandise (white CO)

Question 2

criterial to qualify GSP treatment

Answer 2

1. product is included in GSP product list of the importing preference-giving country
2. Philippine must be eligible for GSP treatment with respect to product in question
3. origin rules of the importing preference-giving country applicable to the product must be complied with

Question 3

criteria to qualify for ASEAN-CEPT treatment

Answer 3

1. Product included in the positive list of the importing member state
2. origin rule of ratio 60% imported & 40 % local have been complied with

Question 4

criteria to qualify for ACFTA treatment

Answer 4

1. product fall within products eligible for concessions in the country of destination
2. comply with goods with consigned directly form any ACFTA member; transport involves passing 1 or more intermediate non-ACFTA member is accepted provided that any any intermediate arises only for geographic reasons or transportation requirements.
3. comply with the origin rule; 60% parts originating from non-ACFTA member & aggregate ACFTA content not less than 40%

Question 5

Criteria to qualify for CO for General Merchandise (White CO)

Answer 5

export goods shall be categorized in any of the ff:
1. Articles wholly grown, produced or manufactured in the PH
2. Foreign materials content of articles is ascertainable and shall be indicated
3. if exact foreign material content is not ascertainable, its estimated value in relation to the ex-factory price should be indicated.

Question 6

who shall evaluate on whether or not the export product will qualify for the issuance of CO under any of the mention schemes in CMO-27-2004?

Answer 6

Bureau’s Export Coordination Division, OCOM/ Export Division of the Port/ Sub-port concerned

Question 7

Which of the following schemes allows exporters to request a Certificate of Origin (CO) with or without preferential tariff treatment, subject to qualification and adherence to Customs regulations?

A) GATT
B) NAFTA
C) GSP/ASEAN CEPTA/ACFTA
D) TPP

Answer 7

C) GSP/ASEAN CEPTA/ACFTA

Question 8

Under what circumstance would a Certificate of Origin (CO) not be issued for products passing through the Philippines soil?

A) If the products are intended for export to ASEAN countries
B) If the products are temporarily stored in the Philippines before final export
C) If the products passed through the Philippines solely for transit purposes
D) If the products are subject to preferential tariff treatment

Answer 8

C) If the products passed through the Philippines solely for transit purposes

Question 9

True or False:
A Certificate of Origin (CO) can be issued for products that have passed through the Philippines soil solely for transit purposes.

Answer 9

False.

Explanation: Under no circumstances can a CO be issued for products that have passed through the Philippines soil merely for transit purposes. This means that even if the products are not intended for consumption or trade within the Philippines and are just passing through the country, a CO cannot be issued for them.

Question 10

What are the requirements for a product to qualify for (GSP) treatment?

A) The product must be manufactured in a developing country.
B) The product must meet the specific regulations of the exporting country.
C) The product must be included in the GSP product list of the importing preference-giving country.
D) The product must be subject to preferential tariff treatment upon import.

Answer 10

C) The product must be included in the GSP product list of the importing preference-giving country.

Question 11

What conditions must be met for a product to qualify for ASEAN-CERT treatment?

A) The product must be manufactured entirely within an ASEAN member State.
B) The product must be included in the positive list of the exporting ASEAN member State.
C) The product must meet specific quality standards set by the ASEAN Secretariat.
D) The product must be included in the positive list of the importing ASEAN member State, and the origin rule for processed goods must comply with the ratio of 60% imported and 40% local.

Answer 11

D) The product must be included in the positive list of the importing ASEAN member State, and the origin rule for processed goods must comply with the ratio of 60% imported and 40% local.

Question 12

What are the requirements for goods to qualify for ASEAN-China Free Trade Area (ACFTA) treatment?

A) The goods must be manufactured solely within the territory of an ACFTA Member State.
B) The goods must be consigned directly from an ACFTA Member State to the importing Member State, with allowances for intermediate transit through non-ACFTA Member States for geographic or transportation reasons.
C) The goods must comply with specific quality standards set by the ACFTA Secretariat.
D) The goods must fall within a description of products eligible for concessions in the country of destination, and the origin rule for processed goods must comply with the ratio of 60% parts originating from non-ACFTA Member States, with an aggregate ACFTA content of not less than 40%.

Answer 12

D) The goods must fall within a description of products eligible for concessions in the country of destination, and the origin rule for processed goods must comply with the ratio of 60% parts originating from non-ACFTA Member States, with an aggregate ACFTA content of not less than 40%.

Question 13

What are the categorizations required for goods to qualify for a Certificate of Origin (CO) for General Merchandise (white CO)?

A) The goods must be exclusively manufactured within the Philippines.
B) The goods must have a clearly identifiable foreign material content, which must be disclosed.
C) If the exact foreign material content cannot be determined, an estimated value relative to the ex-factory price must be provided.
D) The goods must be subject to preferential tariff treatment upon importation.

Answer 13

C) If the exact foreign material content cannot be determined, an estimated value relative to the ex-factory price must be provided.

Question 14

True or False:
The Bureau’s Export Coordination Division, OCOM/Export Division of the Port/Subport concerned is responsible for determining whether an export product qualifies for the issuance of a Certificate of Origin (CO) under any of the specified schemes.

Answer 14

True

Question 15

Who should exporters or would-be exporters officially address their written request for the evaluation of export products to, at least five (5) working days prior to exportation, for potential inspection?

A) Chief of Export Control Division, Department of Commerce
B) Chief of Customs Enforcement Division, Bureau of Customs
C) Chief of Coordination Division, Office of the Commissioner, Bureau of Customs, Port of Manila
D) Chief of Export Division, Port of Destination

Answer 15

C) Chief of Coordination Division, Office of the Commissioner, Bureau of Customs, Port of Manila

Question 16

Exporter or would-be exporters are advised to officially request an evaluation of their export products at least how many working days prior to exportation?

A) 3 working days
B) 5 working days
C) 7 working days
D) 10 working days

Answer 16

B) 5 working days

Question 17

True or False:
The Export Coordination Division (ECO) / Export Division (ED) will issue Form A/ Form D upon request or application of the exporter, regardless of whether the origin of the product can be easily ascertained by its nature.

Answer 17

False.

Explanation:
The statement is false because the issuance of Form A/ Form D is contingent upon whether the origin of the product can be easily ascertained by its own nature. If the origin is easily ascertainable (e.g., handwoven abaca placemat), the Form A/ Form D will be issued upon request. However, if the origin cannot be easily determined, the product will be subject to pre-exportation verification, and the exporter will be provided with a checklist for guidance.

Question 18

What measures may the Export Coordination Division (ECD) / Export Division (ED) undertake to verify the origin of products in accordance with the respective GSP/ASEAN CEPT/ACFTA Schemes?

A) Conducting market research on the product’s origin
B) Interviewing potential buyers of the product
C) Plant visits and examination of office books of account and records
D) Issuing warnings to exporters who fail to comply with regulations

Answer 18

C) Plant visits and examination of office books of account and records

Question 19

Which of the following statements is true regarding the supporting evidence used for pre-exportation verification?

A) The evidence is static and remains applicable for all future shipments.
B) The evidence is periodically reviewed to ensure consistency with prevailing economic conditions.
C) The evidence is solely based on the importer’s declaration.
D) The evidence is exempt from periodic review.

Answer 19

B) The evidence is periodically reviewed to ensure consistency with prevailing economic conditions.

Question 20

True or False:
The supporting evidence used for pre-exportation verification, including the cost breakdown, is subject to periodic review, and it may always be applied as the basis for issuing Form A/ Form D/ Form E for subsequent shipments at different future times.

Answer 20

False.

Explanation: The statement is false. While the supporting evidence may be used as the basis for issuing Form A/ Form D/ Form E for a particular shipment at a specific time, it may not always be applicable or binding for subsequent shipments at different future times. The evidence is subject to periodic review consistent with prevailing economic conditions.

Question 21

READ

Answer 21

The supporting evidence/papers used for the pre-exportation, verification, especially the cost breakdown, shall be subject to periodic review consistent with the prevailing economic conditions. While said evidence may be used as basis for the issuance of Form A/ Form D/ Form E for particular shipment on a particular time, the same shall not always be construed as also applicable and binding for another subsequent shipment at a different future time.

Question 22

True or False:
In general, the Office which processed the Export declarations issues the corresponding CO

Answer 22

True

Question 23

When are Form A, Form D, or Form E issued by the Export Coordination Division (ECD) / Export Division (ED)?

A) At the time of product manufacturing
B) Prior to the exportation process
C) Immediately upon request by the exporter
D) At the time of exportation or as soon thereafter if the product is found eligible for preferential treatment

Answer 23

D) At the time of exportation or as soon thereafter if the product is found eligible for preferential treatment

Question 24

What requirement must be met to support the declaration of the exporter or his authorized signatory on Form A/ Form D/ Form E?

A) A notarized affidavit from the exporter’s legal representative
B) Proof of payment for customs duties
C) Competent and valid documents
D) Endorsement from the Bureau of Customs

Answer 24

C) Competent and valid documents

Question 25

The declaration of the exporter or his authorized signatory on Form A/ Form D/ From E shall be supported by ___________________________

Answer 25

competent and valid documents.

Question 26

Within what timeframe should the original processed ICL be forwarded by the CCCD/AOD to the Export Office concerned after the loading of export goods has been completed?

A) Three (3) working days
B) Five (5) working days
C) Seven (7) working days
D) Ten (10) working days

Answer 26

B) Five (5) working days

Question 27

Required Documents in the issuance of CO (with or without Preferential treatment):

Answer 27

a. Clear Exporter’s copy of the Export Declaration (ED)
b. Clear copy of the Commodity Clearance/ Permit to Export issued by the Government Agency
c. Inspector’s Certificate of Loading (ICL)
d. Commercial Invoice
e. Original Duplicate Non-Negotiable copy of Master BL/AWB
f. Additional requirements
f1. CO Form A
f2. CO From D

Question 28

According to the Revised CEPT Rules of Origin, under what circumstances may the Philippines, as an importing Member State, request a retroactive check?

A) Only when explicitly requested by the exporting country
B) Only when the product is subject to preferential tariff treatment
C) At random or when there is reasonable doubt about the document’s authenticity or the accuracy of information regarding the true origin of the products or certain parts thereof
D) Only for products with a high commercial value

Answer 28

C) At random or when there is reasonable doubt about the document’s authenticity or the accuracy of information regarding the true origin of the products or certain parts thereof

Question 29

True or False:
The request for a retroactive check, according to the Revised CEPT Rules of Origin, must be accompanied by the Certificate of Origin (CO) and specify reasons for doubt or additional information, unless the check is requested randomly.

Answer 29

True.

Explanation: The statement is true. A request for a retroactive check must be accompanied by the Certificate of Origin (CO) and provide reasons or additional information suggesting inaccuracies, unless the check is conducted randomly.

Question 30

True or False:
The Import Office concerned may suspend the provisions on preferential treatment while awaiting the result of verification, but it cannot release the products to the importer until the verification process is completed.

Answer 30

False.

Explanation:
The statement is false because it states that the Import Office concerned may release the products to the importer subject to administrative measures deemed necessary, provided there is no suspicion of fraud.

Question 31

True or False
Import Office concerned may suspend the provisions on preferential treatment while awaiting the result of verification. However, it may release the products to the importer subject to any administrative measures deemed necessary, provided that they are not held to be subject to import prohibition or restriction and there is no suspicion of fraud.

Answer 31

True

Question 32

According to the provided information, how long should the retroactive check process, including the determination of whether the subject product is originating or not, be completed?

A) Within three months
B) Within six months
C) Within nine months
D) Within twelve months

Answer 32

B) Within six months

Question 33

True or False
The retroactive check process, including the actual process and the determination of whether the subject product is originating or not, should be completed within six months. While awaiting the results of the retroactive check, Rule 1b shall be applied

Answer 33

True

Question 34

what may the Import office concerned do, under exceptional cases if not satisfied with the outcome of the retroactive checks

Answer 34

request for verification visits to the exporting member state

Question 35

Prior to conduct of verification visits, the import office concerned shall:

Answer 35

a. deliver written notification
b. written notification shall be as comprehensive as possible
c. obtain written consent of the exporter/ producer whose premises are to be visited

Question 36

What action may the notifying import Office take if written consent from the exporter/producer is not obtained within 30 days of receipt of notification pursuant to paragraph 2 (a)(i)?

A) Grant preferential treatment to the product
B) Deny preferential treatment to the product
C) Request an extension for obtaining written consent
D) Refer the matter to a higher authority for resolution

Answer 36

B) Deny preferential treatment to the product

Question 37

When does the determination of whether a product qualifies as an originating product take effect?

A) Upon submission of the request for determination by the exporter or producer
B) Upon completion of the verification process by the relevant issuing Authority
C) Upon receipt of written notification by both the exporter or producer and the relevant issuing Authority
D) Upon the product’s arrival at the destination country

Answer 37

C) Upon receipt of written notification by both the exporter or producer and the relevant issuing Authority

Question 38

True or False
The determination of whether the product qualifies as an originating product shall take effect upon receipt of the written notification by both exporter or producer , and the relevant issuing Authority. Any suspended preferential treatment shall be reinstated upon the effectivity of the determination.

Answer 38

True

Question 39

The verification process, including the actual visit and determination of whether the subject product is originating or not, shall be carried out and its results communicated to the issuing Authorities within a maximum of _____________. While awaiting the results of the verification visit, Rule under Paragraph C.1.b on the suspension of preferential treatment shall be applied.

Answer 39

6 months