MIDTERMS REVIEW CUSLAW Flashcards by Adrienne Marie Catapang

What is the law that is known as the Customs Modernization and Tariff Act?
a. Republic Act No. 9280
b. Presidential Decree No. 1937
c. Presidential Decree No. 857
d. Republic Act No. 10863

d. Republic Act No. 10863

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RA No. 10863 was enacted to modernize customs administration to adapt to international standards and best practices in trade facilitation. Under Section 101 of CMTA, it is the duty of the State to do the following. Which one is the exception?

a. Adopt clear and transparent customs rules, regulations, policies and procedures, consistent with international standards and customs best practices

b. Establish a regime of transparency of and accessibility to customs information, customs laws, rules, regulations, administrative policies, procedures and practices, in order to ensure informed and diligent compliance with customs practices and procedures by customs brokers

c. Consult, coordinate and cooperate with other government agencies and the private sector in implementing and developing customs policy

d. Employ modern practices in customs administration and utilize information and communications technology in the implementation of customs functions

CUSTOMS BROKERS MUST BE STAKEHOLDERS

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Monterey Philippines, Inc. imported 250 live cows from Australia. The shipment arrived at the Port of Batangas but upon examination by Customs, only 247 live cows survived the voyage. Three cows died. Due to this, Monterey insisted that they will only pay the duties and taxes due on the 247 cows. Which of the following terms can Monterey use as a relief because it refers to the reduction or diminution, in whole or in part, of duties and taxes where payment has not been made?

a. discount
b. abatement
c. refund
d. rebate

B. Abatement

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As distinguished from a clerk or employee, which of the following terms refers to a person whose duty, not being clerical or manual in nature, involves the exercise of discretion in performing the function of the Bureau of Customs?

a. customs examiner
b. customs officer
c. customs appraiser
d. Commissioner of Customs

B. Customs Officer

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If a customs examiner tells you that he is in the process of determining the amount of duties and taxes and other charges due on your imported goods, what is he doing?
a. appraisal
b. assessment
c. valuation
d. liquidation

B. Assessment

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Which of the following terms refers to the remedy by which a person who is aggrieved or adversely affected by any action, decision, order, or omission of the Bureau of Customs, seeks redress before the said Bureau, the Secretary of Finance, or competent court, as the case may be?

a. protest
b. motion for reconsideration
c. appeal
d. petition

c. Appeal
KEYWORD : REMEDY OF PERSON AGGREIVED

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First Balfour, Inc. is a manufacturer-exporter of a variety of electric fuses 30r located in an ecozone in Batangas province. Due to the nature of its business, it imports the parts needed to manufacture the electric fuses and bring them at the factory inside the zone. Which of the following terms refers to the act of First Balfour, Inc. bringing imported goods directly or through transit into a free zone?

a. admission
b. importation
c. entry
d. transshipment

A. admission
KEYWORD : TRANSIT TO FREEZONE

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First Balfour, Inc. exports the manufactured electric fuses to clients in other foreign countries to be used in the production of other electronic appliances there. Which of the following terms refers to the customs procedure applicable to the aforementioned manufactured electric fuses which, being in free circulation, leave the Philippine territory and are intended to remain permanently outside it?

a. exportation
b. constructive exportation
c. absolute exportation
d. actual or outright exportation

d. actual or outright exportation

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Southern J Power Electric, Inc. is a company engaged in electrical engineering. In February last year, the owner bought online parts needed for electrical repairs. The products bought came from Singapore via Cathay Pacific. Which of the following terms is the transport document for airfreight used by Cathay Pacific that specifies the holder or consignee of the bill who has the right to claim delivery of the goods when they arrive at the port of destination?

a. negotiable instrument
b. master airway bill
c. airway bill
d. house airway bill

c. Airway Bill

CATHAY PACIFIC - AIRPLAINE YAN

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Southern J Power Electric, Corp. imported copper coils, parts and accessories to be used to repair a power plant in Dumaguete. The shipment arrived in a 1x20’ container via SS Thompson. Which of the following terms is the transport document issued by SS Thompson for water-borne freight? The holder or consignee of the bill has the right to claim delivery of the goods at the port of destination.
a. bill of lading
b. negotiable instrument
c. master bill of lading
d. house bill of lading

c. Bill of Lading

may container na sinabi so by water

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Which of the following terms is a contract of carriage that includes carrier conditions, such as limits of liability and claims procedures? It also contains transport instructions to shipping lines and carriers, a description of the goods, and applicable transportation charges.

a. master bill of lading
b. house bill of lading
c. bill of lading
d. negotiable instrument

c. bill of lading

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What do you call a person who is actually transporting goods or in charge of or responsible for the operation of the means of transport such as airlines, shipping lines, freight forwarders, cargo consolidators, non-vessel operating common carriers and other international transport operators?
a. transporter
b. carrier
c. hauler
d. Shipper

b. carrier

KEYWORD : who transport goods

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Which of the following terms refers to the completion of customs and other government formalities necessary to allow goods to enter for consumption, warehousing, transit or trans-shipment, or to be exported or placed under another customs procedure?
a. customs release
b. authorization
c. clearance
d. endorsement

c. clearance

KEYWORD : COMPLETION OF CUSTOMS FORMALITIES

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Which of the following terms refers to any customs administrative unit that is competent and authorized to perform all or any of the functions enumerated under customs and tariff laws?
a. customhouse
b. Bureau of Customs
c. customs office
d. Office of the Commissioner of Customs

c. customs office

KEYWORD : CUSTOMS ADMINISTRATIVE UNIT

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The Philippines is an archipelago consisting of 7,107 islands and islets. Which of the following terms refers to areas in the Philippines where customs and tariff laws may be enforced?
a. customs territory
b. territorial jurisdiction
c. Philippine territory
d. Philippine archipelago

a. customs territory

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Mr. John Balderama has a college degree in Customs Administration. Last November, he passed the Customs Broker Licensure Examination. Which of the following terms refers to Mr. Balderama who is a bona fide holder of a valid Certificate of Registration/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”?
a. customs broker
b. declarant
c. attorney-in-fact
d. agent

a. Customs Broker
KEYWORD: HOLDER OF PIC AND COR

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Which of the following terms is a customs procedure known under the Revised Kyoto Convention as temporary admission in which certain goods can be brought into a customs territory conditionally relieved, totally or partially, from payment of import duties and taxes; such goods must be imported for a specific purpose and must be intended for re-exportation within a specified period and without having undergone any substantial change except due to normal depreciation?

a. tentative release
b. release under protest
c. conditional importation
d. tentative liquidation

c. conditional importation
KEYWORD: conditionally relieved, totally or partially, from payment of import duties and taxes

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Which of the following terms refers to the power of the President upon recommendation of the National Economic and Development Authority: (1) to increase, reduce or remove existing protective tariff rates of import duty, but in no case shall be higher than one hundred percent ad valorem; (2) to establish import quota or to ban importation of any commodity as may be necessary; and (3) to impose additional duty on all import not exceeding ten percent ad valorem whenever necessary?
a. executive power
b. flexible clause
c. emergency power
d. penalty clause

b. flexible clause
KEYWORD: power of the PRESIDENT upon recommendation of NEDA

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Which of the following terms refers to the act, documentation, and process of bringing goods out of Philippine territory?
a. export
b. foreign transshipment
c. export declaration
d. outright exportation

a. export or exportation
keyword: bringing out goods

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Which of the following terms refers to the act, documentation and process of bringing imported goods into the customs territory, including goods coming from free zones?
a. importation
b. outright importation
c. customs declaration
d. entry

d. entry
KEYWORD: Customs territory to freezones

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Magmamanok Cooperative, Inc. is regularly exporting buko (young coconuts) to Singapore since 2015. Which of the following terms refers to buko, which is a subject of exportation?
a. goods
b. articles
c. products
d. commodities

a. goods

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Which of the following is a statement made in the manner prescribed by the Bureau and other appropriate agencies, by which the persons concerned indicates the procedure to be observed for taking or causing to be taken out any exported goods and the particulars of which the customs administration shall require?
a. export
b. foreign transshipment
c. export declaration
d. actual exportation

c. export declaration
Keyword: STATEMENT MADE, taken out (export)

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Lambda Enterprises, Inc. is a corporation whose name appears on documentation attesting to the export of the product to the Philippines. Regardless of the manufacturer’s name in the invoice, who is Lambda Enterprises, Inc.?
a. customs officer
b. exporter
c. foreign exporter
d. Shipper

c. foreign exporter
keyword: whose name appears in document

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Which of the following terms refers to special economic zones registered with the Philippine Economic Zone Authority under Republic Act No. 7916, as amended, duly chartered or legislated special economic zones and freeports such as Clark Freeport 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, and such other freeports as established or may be created by law?
a. freeport zone
b. economic zone
c. free zone
d. special economic zone

c. free zone

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Which of the following is a statement made in the manner prescribed by the Bureau and other appropriate agencies, by which the persons concerned indicate the procedure to be observed in the application for the entry or admission of require? a. SAD b. goods declaration c. customs entry d. IE-IRD

b. goods declaration keyword: STATEMENT MADE, ENTRY OR ADMISSION

Which of the following terms refers to the act of bringing in of goods from a foreign territory into Philippine territory, for admission as defined in CMTA? a. importation b. outright importation c. smuggling d. constructive importation

a. importation keyword : bringing in

WXM Global Logistics is a local company that acts as a cargo intermediary and facilitates transport of goods on behalf of its client without assuming the role of a carrier. The company can also perform other forwarding services, such as booking cargo space, negotiating freight rates, preparing documents, advancing freight payments, providing packing/crating, trucking and warehousing, engaging as an agent/representative of a foreign non-vessel operating as a common carrier/cargo consolidator named in a master bill of lading as consignee of a consolidated shipment, and other related undertakings. What is WXM Global Logistics? a. domestic freight forwarder b. non-vessel operating common carrier c. freight forwarder d. consolidating agent

c. freight forwarder keyword: intermediary

PHL is a company responsible for the assembly and consolidation of shipments into single lot, and assuming, in most cases, the full responsibility for the international transport of such shipment from point of receipt to the point of destination. What is PHL? a. domestic freight forwarder b. international freight forwarder c. cargo consolidator d. non-vessel operating common carrier

b. international freight forwarder keyword: consolidation , single lot

Which of the following terms refers to the power and rights of the Bureau of Customs in exercising supervision and police authority over all seas within the jurisdiction of the Philippine territory and over all coasts, ports, airports, harbors, bays, rivers and inland waters whether navigable or not from the sea? a. territorial jurisdiction b. customs territory c. jurisdictional control d. administrative jurisdiction

c. jurisdictional control keyword: supervision over all seas

Which of the following terms refers to the registration of a goods declaration with the Bureau? a. lodgement b. entry lodgement c. customs declaration d. either a or c

a. lodgement keyword: registration of goods dec

Which of the following terms refers to goods liable to perish while stored or which cannot be kept without great disproportionate expense, which may be proceeded to, advertised and sold at auction upon notice if deemed reasonable? a. special goods b. valuable goods c. consumables d. perishable goods

d. perishable goods keyword: liable to perish

Fairtrack Cargo, Inc. is a company that does not own or operate a vessel but provides a point-to-point service which may include several modes of transport and/or undertakes group age of less container load (LCL) shipments and issues the corresponding transport document. What is Fairtrack Cargo, Inc.? a. cargo consolidator b. freight forwarder c. Non-Vessel Operating Common Carrier d. International freight forwarder

c. Non-Vessel Operating Common Carrier keyword: does not own vessel

Which of the following terms refers to an act of importing goods into the country without complete customs prescribed importation documents, or without being cleared by customs or other regulatory government agencies, for the purpose of evading payment of prescribed taxes, duties and other government charges? a. smuggling b. outright smuggling c. technical smuggling d. economic sabotage

b. outright smuggling keyword: without complete docs

Port of Puerto Princesa is a domestic port open to both domestic and international trade. What is Port of Puerto Princesa? a. port of entry b. subport of entry c. principal port of entry

a. port of entry keyword: open to domestic and international

Mr. Sky Bright, a Chinoy resident of Cebu imported the latest model of drone from Germany. After using it for a month, the drone cannot be flown anymore no matter how hard Mr. Bright try, If Mr. Bright returned the drone to the supplier in Germany, what did Mr. Bright do? a. exportation b. constructive exportation c. re-exportation d. actual exportation

c. re-exportation

Which of the following terms refers to the return, in whole, of duties and taxes paid on goods? a. rebate b. refund c. drawback d. reimbursement

b. refund

Port of Cebu is the chief port of entry of the Customs District wherein it is situated and is the permanent station of the District Collector of such port. What is Port of Cebu? a. international port b. customs district c. subport of entry d. principal port of entry

d. principal port of entry

Aside from customs duties, imported goods also pay other taxes, fees and charges. Which of the following terms refers to all taxes, fees and charges imposed under the Customs Modernization and Tariff Act and the National Internal Revenue Code, as amended, and collected by the Bureau of Customs? a. taxes b. internal revenue taxes c. value-added tax d. excise tax

a. taxes

Which of the following ports are under the administrative jurisdiction of the District Collector of the principal port of entry of the customs district? a. Subports of entry b. Domestic port c. International port d. Principal port of entry

a. subports of entry keyword : under supervision of DC

Which of the following terms is also called port of unloading and refers to a place where a vessel, ship, aircraft or train unloads its shipments, from where they will be dispatched to their respective consignees? a. port of destination b. port of discharge c. either a or b d. both a and b

b. port of discharge

Which of the following terms refers to any form of guaranty, such as a surety bond, cash bond, standby letter of credit or irrevocable letter of credit, which ensures the satisfaction of an obligation to the Bureau? a. warranty b. security c. collateral d. precaution

b. security keyword: guarantee

19. The Bureau of Customs permitted the goods undergoing clearance to be placed at the disposal of the party concerned. What do you call the action of the Bureau? a. release of goods b. customs clearance c. customs release d. delivery of goods

a. release of goods keyword: permitted to be placed at disposal

Which of the following terms refers to the fraudulent act of importing any goods into the Philippines, or the act of assisting in receiving, concealing, buying, selling, disposing or transporting such goods, with full knowledge that the same has been fraudulently imported, or the fraudulent exportation of goods? Goods referred to under this definition shall be known as smuggled goods. a. technical smuggling b. outright smuggling c. smuggling d. economic sabotage

c. smuggling keyword: concealing, fraudulent act

Which of the following terms is the customs procedure under which goods are 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? a. constructive exportation b. constructive importation c. transshipment d. transit

c. transshipment keyword: import to export

Which of the following terms refers to any person who temporarily enters the territory of a country in which he or she does not normally resides (non-resident), or who leaves that territory, and any person who leaves the territory of a country in which he or she normally resides (departing resident) or who returns to that territory (returning resident)? a. tourists b. staycationer c. travelers d. immigrants

c. travelers

Busuanga Inc. imports substandard Christmas lights using fake Import Commodity Clearance Certificate. Which of the following terms refers to the act of importing goods into the country by means of falsified declaration of the goods to its nature, kind, and quality, for the purpose of reducing or avoiding payment of prescribed taxes, duties and other charges? a. smuggling b. economic sabotage c. technical smuggling d. outright smuggling

c. technical smuggling keyword: nature, kind, quality

Tamilmil Corp. is an importer of dog food. The assessment of his shipment that arrived last month is being disputed by the customs examiner and pending review. What do you call the remedy which may be undertaken by Tamilmil Corp. where the company may put up a cash bond equivalent to the duties and taxes due on goods so that it can obtain the release of said goods? a. release under protest b. tentative release c. tentative liquidation d. conditional importation

b. tentative release keyword: put up a cash bond

DLX Bags Phils. Inc. is a locator of the Freeport Area of Bataan (FAB). Its shipments consisting of raw materials for various types of bags regularly arrive at the Port of Bataan. Which of the following terms is the customs procedure under which the said shipment of DLX Bags are transported under customs control from the Port of Bataan to FAB? a. transshipment b. constructive exportation c. constructive importation d. transit

d. transit keyword: customs office to freezone

Intent to unload, being a state of mind, can be proven by any of the facts and circumstances relative to the arrival of the goods in the Philippines. Which one is the exception? a. The carrying aircraft has arrived within the Philippine territory or jurisdiction b. Cargo manifest identifying the goods c. Air waybills or bills of lading d. Certificate of Origin

d. cert of origin

If imported into the Philippines, including those goods previously exported from the Philippines, when shall all goods be subject to duty? a. upon importation b. except as otherwise provided for in the CMTA c. except as provided for in the rules and regulations of the Board of Investment d. at all times

b. except as otherwise provided for in the CMTA

Ms. Luwah Matata is an importer of Korean beauty products that she sells online. Her importation usually consists of skin moisturizing creams, concealers, lipsticks, blush-ons, hair colors, toothpaste, perfumes and deodorants. When does her importation deemed terminated? a. when the duties, taxes and other charges due upon the goods have been paid or secured to be paid at the port of entry unless the goods are free from duties, taxes and other charges and legal permit for withdrawal has been granted b. In case the goods are deemed free of duties, taxes and other charges, the goods have legally left the jurisdiction of the Bureau of Customs c. either a or b d. both a and b

c. either a or b

Unpaid duties, taxes and other charges, shall incur legal interest per annum computed under Section 429 of CMTA, when payment becomes due and demandable. When is the reckoning period of computation of interest under this section? a. from the date of last payment b. after the date of last payment c. from the date of final assessment d. after the date of final assessment

c. from the date of final assessment

Minola Refining Corp. is a locator of Cocochem Agro-industrial Park in Bauan, Batangas. In case Minola withdraws some of its refined oil for sale to local market, what shall be the duty rate applicable on the goods originally admitted, whether withdrawn in its original or advanced form? a. duty rate at the date of importation or upon withdrawal from the warehouse for consumption b. duty rate at the time the goods were originally admitted c. duty rate at the date of auction d. duty rate at the time of withdrawal from free zone

a. duty rate at the date of importation or upon withdrawal from the warehouse for consumption

Ms. Luwah Matata is an importer of Korean beauty products that she sells online. She failed to pay the Bureau of Customs an amount of Php250,000 for duties and taxes assessed on her importation that arrived at NAIA last December 15, 2020. Unpaid duties, taxes and other charges, shall incur legal interest per annum computed under Section 429 of CMTA, when payment Ms. Matata's shipment becomes due and demandable. How much is such interest to be imposed on a. ten percent b. twenty percent c. twenty-five percent d. fifty percent

b. twenty percent

Ms. Matata paid the duties, taxes and other charges due on her importation, who shall issue the necessary receipt or document as proof of such payment? a. Agent bank b. Bureau of Customs c. Department of Finance d. Office of the Collector of Customs

b. Bureau of Customs

Imported goods shall be subject to the import duty rates under the applicable tariff heading. What is the effective rate of duty? a. at the date of importation or upon withdrawal from the warehouse for consumption b. at the time the goods were originally admitted c. at the date of auction d. at the time of withdrawal from free zone

a. at the date of importation or upon withdrawal from the warehouse for consumption

Perpetual Manufacturing Inc. imported leather from Thailand but were later on forfeited in favor of the government. In case the forfeited leather were sold at customs public auction, what shall be the duty rate applicable for purposes of implementing the CMTA? a. duty rate at the date of importation or upon withdrawal from the warehouse for consumption b. duty rate at the time the goods were originally admitted c. duty rate at the date of auction d. duty rate at the time of withdrawal from free zone

c. duty rate at the date of auction

Omicron Delta brings into the Philippines Covid pills from India. Which of the following terms refers to Omicron Delta as a consignee or a person who has the right to dispose of the Covid pills? a. owner of the goods b. declarant c. importer d. consignor

b. declarant

Ms. Luarca Cevak is a person who deals directly with the Bureau, for and on behalf of another person, relating to the movement of goods. Under CMTA, who is Ms. Cevak? a. A customs broker b. A third party c. A attorney-in-fact d. An agent

b. A third party

Mr. Bienvenido Tampisaw is a person who deals directly with the Bureau, for and on behalf of another person, relating to the importation of goods, Under CMTA, who is Mr. Tampisaw?' a. A customs broker b. A third party c. A attorney-in-fact d. An agent

b. A third party

Mr. Avenido Kilatis is a person who deals directly with the Bureau, for and on behalf of another person, relating to the exportation of goods. Under CMTA, who is Mr. Kilatis? a. A customs broker b. A third party c. A attorney-in-fact d. An agent

b. A third party

Ms. Luwah Matata is a person who deals directly with the Bureau, for and on is Ms. Matata? behalf of another person, relating to the storage of goods. a. A customs broker b. A third party c. A attorney in fact d. Agent

b. third party

CMTA intends to improve automation of customs processes to be at part with other countries customs services. The security of data and communication in the Bureau of Customs shall be in a manner that is consistent with applicable local and internationally accepted standards on. a. information and communication technology b. communication protocol c. confidentiality of information d. information security

D. information security

When does importation begin? a. when the carrying vessel or aircraft enters the Philippine territory b. when the carrying vessel or aircraft has the intention to discharge in the Philippines c. either a or b d. both a and b

d. both a and b

The Bureau of Customs shall not impose substantial penalties for errors when - a. such errors are inadvertent b. there was no fraudulent intent c. there was no gross negligence in the commission thereof d. all of the choices

d. all of the choices

Omicron Delta is a declarant as defined by CMTA. Under the law, what shall the declarant be responsible for? a. accuracy of the goods declaration b. payment of all duties, taxes and other charges due on the imported goods c. either a or b d. both a and b

d. both a and b

19. Which of the following terms is revealed by overt acts, and it is presumed from the commission of an unlawful act? However, mistake of fact negates the presumption of malicious intent, provided that the act committed is also accompanied with the absolute absence of negligence. a. negligence b. gross negligence c. fraudulent intent d. fraud

c. fraudulent intent

Which of the following terms refers to negligence characterized by the want of even slight care, acting or omitting to act in a situation where there is a duty to act, not inadvertently but willfully and intentionally, with a conscious. indifference to consequences in so far as other persons may be affected? It is fail to take on their own property. a. negligence b. fraudulent intent c. gross negligence d. fraud

c. gross negligence

Under the law, who shall be responsible for the accuracy of the goods declaration and for the payment of all duties, taxes, and other charges due on the imported goods? a. Mr. Hugo Cabayog, an attorney-in-fact b. Mr. Bosnia Yu, a consignee c. Ms. Alva Mayupao, a licensed customs broker d. Ms. Segundina Silva, a declarant

d. Ms. Segundina Silva, a declarant

What shall the Bureau of Customs include as part of its systems and processes to ensure business continuity by maintaining its uptime goal for its electronic services? a. disaster preparedness and recovery plan b. modern server c. updated software d. back-up plan on systems downtime

a. disaster preparedness and recovery plan

Under the law, who shall be responsible for the accuracy of the goods declaration but shall not be responsible for the payment of duties, taxes, and other charges due on the imported goods? a. Mr. Hugo Cabayog, an attorney-in-fact b. Mr. Bosnia Yu, a consignee c. Ms. Alva Mayupao, a licensed customs broker d. Ms. Segundina Silva, a declarant

c. Ms. Alva Mayupao, a licensed customs broker