PART 1

Question 1

What documents are included in the records subject to audit examination by the bureau

a. Only physical documents such as invoices and bills of lading.
b. Statements and declarations made verbally by the importer.
c. Documents and electronically generated or machine-readable data related to the goods declaration
d. Documents provided by the Bureau itself.

Answer 1

c. Documents and electronically generated or machine-readable data related to the goods declaration.

Question 2

Who are locators according to the CAO 1-2019?

a. Individuals who assist importers in navigating customs regulations.
b. Persons authorized to bring imported goods into special economic zones and free ports.
c. Government officials responsible for customs enforcement.
d. Importers who specialize in bringing goods into Free Zones.

Answer 2

b. Persons authorized to bring imported goods into special economic zones and free ports.

Question 3

What is one of the purpose of keeping records as specified in the regulations?

a. To reduce paperwork for importers and customs brokers.
b. To confirm the truthfulness and accuracy of the goods declaration and the transaction value of the imported goods.
c. To increase the workload of importers and customs brokers.
d. To store unnecessary data related to import transactions.

Answer 3

b. To confirm the truthfulness and accuracy of the goods declaration and the transaction value of the imported goods.

Question 4

What information should be included in the documentation on the entity organization and structure?

a. Only the names of the board of directors
b. Information on the parent company, subsidiaries, and affiliates.
c. Only the capital composition of the company.
d. Only audited financial statements.

Answer 4

b. Information on the parent company, subsidiaries,and affiliates.

Question 5

What does Undervaluation refer to according to the CAO 1-2019?

a. Declaring a value for imported goods that is lower than the actual price paid or payable.
b. Overstating the value of imported goods to avoid paying taxes and duties.
c. Using an incorrect valuation method that results in a discrepancy in duty and tax payment.
d. Failing to declare the value of imported goods on the customs declaration form.

Answer 5

a. Declaring a value for imported goods that is lower than the actual price paid or payable.

Question 6

How long are importers required to keep records at their principal place of business?

a. One year from the date of final payment of duties and taxes.
b. Five years from the date of customs clearance.
c. Three years from the date of final payment of duties and taxes or customs clearance, whichever is later.
d. Indefinitely

Answer 6

c. Three years from the date of final payment of duties and taxes or customs clearance, whichever is later.

Question 7

Who is required to maintain and keep records of importations, books of accounts, business and computer systems, and all customs commercial data including payment records?

a. Only importers mentioned in the definition of importers.
b. Only customs brokers and other parties engaged in customs clearance and processing.
c. Only locators operating within free zones.
d. All importers, customs brokers, and other parties engaged in Customs clearance and processing.

Answer 7

d. All importers, customs brokers, and other parties engaged in Customs clearance and processing.

Question 8

What is the purpose of Prior Disclosure Program?

a. To penalized importers for errors and omissions in goods declaration.
b. To encourage importers to disclose errors and omissions in goods declaration voluntarily.
c. To audit importers and ensure compliance with customs regulations.
d. To facilitate the resale of disposal of imported goods by importers.

Answer 8

b. To encourage importers to disclose errors and omissions in goods declaration voluntarily.

Question 9

According to CAO No. 01-2019, what are free zones?

a. Economic zones with reduced customs duties and taxes.
b. Areas where goods are allowed to enter without any customs formalities.
c. Special Economic zones registered with the Philippines economic zones authority (PEZA) and other legislated free ports.
d. Regions where customs regulations are not enforced.

Answer 9

c. Special Economic zones registered with the Philippines economic zones authority (PEZA) and other legislated free ports.

Question 10

What are importers required to maintain and keep records of?

a. Only records related to their books of accounts.
b. Only records of their importations.
c. Records of importations, books of accounts, business and computer systems, and all customs commercial data including payment records.
d. Records of their business transactions unrelated to customs.

Answer 10

c. Records of importations, books of accounts, business and computer systems, and all customs commercial data including payment records.

Question 11

Which of the following statements accurately describes, “Customs Clearance for Transit Entries”?

a. Goods are subjected to final payment of duties and taxes at the port of entry.
b. Goods are allowed to be transported under customs control from one customs office to another.
c. Goods are transferred from the importing means of transport to the exporting means of transport within the same customs office.
d.bGoods are given permit for withdrawal after securing duties and taxes to be paid at the point of entry.

Answer 11

b. Goods are allowed to be transported under customs control from one customs office to another.

Question 12

what is the purpose of conducting an audit examination of records by the bureau?

a. to delay customs clearance procedures
b. to ensure the accuracy of goods declarations and determine the importers liability for duties, taxes and other charges.
c. to provide assistance to importers in maintaining records.
d. to increase government revenue by imposing fines and penalties on importaters.

Answer 12

b. to ensure the accuracy of goods declarations and determine the importers liability for duties, taxes and other charges.

Question 13

what is Misdeclaration as defined in the CAO 01-2019?

a. Providing inaccurate measurement of imported goods to avoid taxes.
b. Falsely declaring the weight of goods to reduce duty payments.
c. Using insufficient description of goods to evade government regulations.
d. Making falsely declarations about the quality of imported goods to bypass customs requirements.

Answer 13

c. Using insufficient description of goods to evade government regulations.

Question 14

which of the following is included in documentation on orders and purchases?

a. Only sales agreements.
b. Only product descriptions.
c. Sales and other related agreements correspondence or communication relating to the import transation, and product description or speculations.
d. Only proforma invoices.

Answer 14

c. Sales and other related agreements correspondence or communication relating to the import transation, and product description or speculations.

Question 15

what is the purpose of determining the level of compliance importers, customs brokers, locators and other parties required to keep records?

a. To increase government revenue through fines an penalties.
b. To identify opportunities for streamlining customs procedures.
c. To assess compliance with laws and regulations enforced by the bureau.
d. To reduce the number of goods declarations filed by importers.

Answer 15

c. To assess compliance with laws and regulations enforced by the bureau.

Question 16

what are the requirements for maintaining electronic copies of records according to the regulations?

a. electronic copies of records are not permitted.
b. Electronic copies of records must be stored on physical storage devices only.
c. Electronic recordkeeping must be compliant with applicable laws, rules, and regulations on electronic data.
d. Electronic copies of records must be submitted to customs authorities upon request.

Answer 16

c. Electronic recordkeeping must be compliant with applicable laws, rules, and regulations on electronic data.

Question 17

who is considered an importer according to CAO 01-2019?

a. any person who imports goods into the Philippines for personal use.
b. the owner of a business that occasionally import goods.
c. a party who imports goods into the Philippines or withdraws admitted goods from free zones into the customs territory for consumption for warehousing, files a claim for refund or drawback, or transports or stores such goods carried or held under security.
d. any person involved in the transport of goods within the Philippines.

Answer 17

c. a party who imports goods into the Philippines or withdraws admitted goods from free zones into the customs territory for consumption for warehousing, files a claim for refund or drawback, or transports or stores such goods carried or held under security.

Question 18

when does the assessment become conclusive upon all parties?

a. one year from the date of final payment of duties and taxes.
b. three years from the date of customs clearance.
c. upon completion of the post clearance audit.
d. three years from the date of final payment of duties and taxes or upon completion of the post-clearance audit, in the absence of fraud.

Answer 18

d. three years from the date of final payment of duties and taxes or upon completion of the post-clearance audit, in the absence of fraud.

Question 19

which of the following documents related to entity organization and structure are required to be kept for the purpose of post-clearance audit?

a. only audited financial statements
b. only the company profile/history and description of operations.
c. articles of incorporations, list of incorporators, organizational structure, and Management and key personnel involved in import processing among others.
d. only permits and licenses.

Answer 19

c. articles of incorporations, list of incorporators, organizational structure, and Management and key personnel involved in import processing among others.

Question 20

what role do records serve in relation to non-compliance with recordkeeping and regulatory obligations?

a. records serve as evidence for prosecuting non-compliant entities.
b. records are used to reward importers for compliance.
c. records are irrelevant to assessing regulatory compliance.
d. records are only required for tax purposes.

Answer 20

a. records serve as evidence for prosecuting non-compliant entities

Question 21

how does CAO 01-2019 define “Fraud”

a. any error in customs documentation, regardless of intention
b. the commission of any act resulting in material false statements, knowingly and intentionally done to reduce taxes and duties paid.
c. any deviation from customs regulations, even if unintentional
d. the submission of documents with minor discrepancies in importation

Answer 21

b. the commission of any act resulting in material false statements, knowingly and intentionally done to reduce taxes and duties paid.

Question 22

According to CAO no. 01-2019, what is the definition of a customs broker?

a. any person involved in the transportation of the goods across borders.
b. a person who holds a valid certificate of registration issued by the bureau of Customs
c. any individual who assist with customs formalities and holds a valid professional identification card
d. a person who is authorized to collect customs duties and taxes on behalf of the government

Answer 22

c. any individual who assist with customs formalities and holds a valid professional identification card

Question 23

what distinguishes “Customs Clearance for Transshipment Entries’’ from other customs procedures?

a. goods are released for consumption upon completion of formalities.
b. goods are transported under customs control from one customs office to another.
c. goods are subjected to additional taxes and charges at the port of entry.
d. goods are transferred within the area of one customs office from importing to exporting means of transport.

Answer 23

d. goods are transferred within the area of one customs office from importing to exporting means of transport.

Question 24

what correspondence or communication relating to the import transaction should be kept?

a. only letters of acknowledgement.
b. only notices and advisories.
c. correspondence and communication including purchase orders, vouchers, confirmations, pro-forma invoices, acknowledgement receipts, notices, advisories and the like.
d. only emails.

Answer 24

c. correspondence and communication including purchase orders, vouchers, confirmations, pro-forma invoices, acknowledgement receipts, notices, advisories and the like.

Question 25

which document should include a list of exporters/suppliers and the nature of the relationship with the importer?

a. general contracts and agreements.
b. company profile/history and description of operations.
c. audited financial statements.
d. list of incorporators

Answer 25

c. audited financial statements.

Question 26

what type of records are customs brokers and other parties engaged in customs clearance and processing required to keep?

a. only manual copies of records.
b. only electronic copies of records
c. manual and/or electronic copies of records covering transactions they handle.
d. records of their personal financial transations.

Answer 26

c. manual and/or electronic copies of records covering transactions they handle.

Question 27

what types of tax returns are required to be kept for the purpose of post-clearance audit?

a. only income tax returns.
b. only value-added tax returns.
c. income tax, withholding tax, vale added tax, excise taxes, documentary stamp tax, and capital gains tax returns
d. only excise tax returns

Answer 27

c. income tax, withholding tax, vale added tax, excise taxes, documentary stamp tax, and capital gains tax returns