Lesson 6: CAO 10-2020

Question 1

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 1

Common Carrier

Question 2

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 2

Constructive Customs Custody

Question 3

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 3

Decisions Adverse to the Government

Question 4

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 4

Deputized Officer

Question 5

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

Answer 5

Forfeiture

Question 6

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 6

Fraud

Question 7

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 7

Held Baggage Receipt (HBR)

Question 8

Interlocutory Order — 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 8

Interlocutory Order

Question 9

Misclassification — shall refer to the

Answer 9

1. use of insufficient or wrong description of the goods or
2. 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.

Question 10

shall refer to a false, untruthful, erroneous or inaccurate declaration as to quantity, quality, description, weight or measurement of the goods

Answer 10

Misdeclaration

Question 11

There is ______________of Goods 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 11

Misdeclaration as to the Quantity

Question 12

There is Misdeclaration as to ___________ 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

Answer 12

Description of Goods

Question 13

There is Misdeclaration as to the ________________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 13

Weight of Goods

Question 14

There is Misdeclaration as to the _________________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 14

Measurement of Goods

Question 15

Undervaluation — shall refer to situation when the

Answer 15

1. 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
2. when an incorrect valuation method is used; or the valuation rules are not properly observed;

Question 16

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 16

Notice of Appeal

Question 17

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 17

Quashal

Question 18

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 18

Seizure

Question 19

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 19

Summary Proceedings

Question 20

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.

Answer 20

Warrant of Seizure and Detention (WSD)