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CDP > POST CLEARANCE AUDIT (CAO-1-2019) > Flashcards

POST CLEARANCE AUDIT (CAO-1-2019) Flashcards

1
Q

Shall refer to persons authorized to bring imported goods into Free Zones, such as the sez and free ports.

A

Locators

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2
Q

Shall refer to the use of insufficient or wrong desrciption of goods or the use of erroneous tariff heading.

A

Misclassification

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3
Q

Shall refer to false, untruthful, erroneous or inaccurate declaration as to quantity, quality, description, weight, or measurement of goods.

A

Misdeclaration

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4
Q

Shall refer to failure to exercise reasonable care and competence, through act or acts of ommission or commission, in ensuring tha a statement made is correct resulting in a deficiency in taxes and duties paid.

A

Negligence

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5
Q

Shall refer to an office created under Executive Order No. 160 s. 2003, as amended by EO No. 46 s. 2017, mandated to conduct audit of importers, locators, and all parties engaged in customes clearance and processing.

A

Post Clearance Audit Group

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6
Q

When the Bureau may conduct audit examination, inspection, verification, and investigation or records pertaining to goods declaration.

A

Within 3 years from the date of FINAL payment of duties and taxes or Customs Clearance.

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7
Q

Period of limitation of assessment.

A

In the absence of fraud, it shall be conclusive upon all parties 3 years from the date of final payment of duties and taxes or upon completion of post clearance audit.

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8
Q

Who are the entities required to keep records.

A

Importer, Broker, and Locators

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9
Q

Composition of PCAG.

A

PCAG is headed by Assistant Commissioner
Units:
PCAG Trade and Information Risk Analysis Office(TIRAO)
PCAG Compliance Assessment Office (CAO)
-Each shall be headed by Director

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10
Q

Entity authorized to determine the number of personnel requirements of PCAG and issue necessary order to reassign the required organic personnel of BOC to the group.

A

The Commissioner with the approval of the Secretary of Finance

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11
Q

Shall refer to a program based on international best customs practice, authorizing the Commissioner of Customs to accept, as a potential mitigating factor, prior disclosure by Importer of errors and ommissions in goods declaration resulting in deficiency in duties and taxes on past importations.

A

Prior Disclosure Program

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12
Q

Shall refer to a plea for the re-evaluation of the audit findings on the basis of existing records without need of additional evidence.

A

Reconsideration of Audit Findings

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13
Q

Shall refer to a plea for the re-evaluation of the audit findings on the basis of newly discovered or additional evidence intended to be presented in the reinvestigation.

A

Reinvestigation of Audit Findings

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14
Q

PCAG-TIRAO stands for?

A

Trade Information and Risk Analysis Office

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15
Q

PCAG-CAO stands for?

A

Compliance Assessment Office

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16
Q

One of the functions of PCAG-TIRAO is to review available trade data to determine compliance marker of industry and set benchmark for the purpose of developing an audit program.

Of whose approval they will need?

A

Commissioner’s approval

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17
Q

PCAG-TIRAO in coordination with Management Information System and Technology Group shall develop a computer-aided risk based management system, the parameters of which are to be based on objective and quantifiable data for use in the profiling and identification of potential priority audit candidate based on the approved audit program.

Of whose approval they will need?

A

Subject to the approval of the SOF upon recommendation of Commissioner

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18
Q

Preparation of audit work plan, scope and approach for the audit candidates is one of the functions of which entity?

A

PCAG-CAO

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19
Q

PCAG-CAO shall prepare and submit the required reports on audit findings and recommendations to whom?

A

Commissioner of Customs for approval

20
Q

Whose approval that PCAG needs for the prepared set of post clearance audit procedures?

A

Commissioner’s

21
Q

Who shall issue an Audit Notification Letter?

A

Commissioner

22
Q

What is the timeframe for validity of ANL.

A

It shall be valid for 30 CALENDAR DAYS from the date of issuance, subject to revalidation by the Assistant Commissioner for another 30 DAYS prior to its expiry

23
Q

ANL and Demand Letter must be sent through these following means.

A
  1. Personal service at principal place of business
  2. Registered mail
  3. Through e-mail
24
Q

When the audit team shall commence the audit proper?

A

Not later than 60 calendar days from the service of the ANL

25
Q

The audit shall be completed within what period?

A

120 calendar days per year of audit period from the date the Importer receives the ANL

26
Q

When the audit is considered completed?

A

When the audit team has been submitted the FAR with Demand Letter or PCAG-CRF, endorsed by the Assistant Commisioner and subsequently approved by the Commissioner

27
Q

What shall the audit team do when unable to submit FAR within the required period?

A

A status report must be submitted to the Commissioner through the Assistant Commisisoner not later than 5 CALENDAR days prior to expiration of the said period giving the reasons for the non-completion of the audit and the proposed period to complete the audit not exceeding 30 CALENDAR days

28
Q

Within what period shall the PCAG send the Demand Letter to the Importer?

A

Within 5 CALENDAR days from the receipt of the Demand Letter signed by the Commissioner with a demand to pay not later than 15 CALENDAR days from receipt

29
Q

If the Importer adversely affected by the deficiency assessment issued by the PCAG and approved by the Commissioner may file a request for reconsideration or reinvestigation to whom and what period?

A

The Importer may file a request for reconsideration or reinvestigation to the Commissioner within 15 DAYS from the receipt of the Demand Letter

For request for reinvestigation, the supporting documents must be submitted within 30 DAYS from the date of filing, otherwise, the request shall be denied. The Bureau through the PCAG shall have 60 CALENDAR days from submission of complete documents to resolve the request

30
Q

Within what period should the Bureau furnish the DOF and BIR a copy of Final Audit Results?

A

Within 30 calendar days from the issuance thereof including the amount paid by the Importer.

In addition the Bureau shall provide quarterly status report to the DOF of all ANL’s issued and audits conducted

31
Q

Who may avail PDP?

A

Any Importer without waiting for the issuance of an ANL and Importer who has received an ANL

32
Q

May the Importer who has received an ANL still avail of the PDP?

A

Yes, within a period of 90 CALENDAR days from the receipt of ANL

The Importer may amend the PDP application and pay additional deficiency duties, taxes and penalties within an additonal non-extendible period of 30 CALENDAR days from the filing of the PDP application form

33
Q

What is the effect of PDP to applicant who has not yet received an ANL?

A

Payment of deficiency in duties and taxes due plus legal interest

34
Q

What is the effect of PDP to applicant who has received an ANL?

A

Payment of deficiency in duties and taxes due plus penalty of 10% of the basic deficiency and legal interest

35
Q

What is the consequence of failure to comply with the necessary documentation in PDP application?

A

Non-acceptance or disapproval of the application

36
Q

What is the timeframe for completion of verification and approval or denial of the PDP application?

A

90 CALENDAR days from the submission if complete PDP documents

37
Q

Any request for a waiver of penalties, interest, fine, or surcharge made by the importer shall be subject to the final approval of whom?

A

Secretary of Finance

38
Q

What is the remedy of the Importer when his request for reconsideration or reinvestigation is denied by Commissioner?

A

Importer may appeal such denial to the CTA within 30 days from the receipt of adverse ruling or decision of the Commissioner

39
Q

What are the penalties for failure to keep and maintain records?

A

SSHCW

40
Q

What are the penalties for those who deny the authorized customs officer full and free access to the records?

A

SPRSHC

41
Q

What are the 2 degrees of culpabilities as penalty for Importer found to have deficiencies in duties and taxes paid for imported goods?

A

Negligence and Fraud

42
Q

What is the penalty for Negligence?

A

Fine equivalent to 125% of the revenue loss, provided, under Section 108, chapter 2, title 1 of the CMTA, Penalty of 25% of the revenue loss shall be imposed on an inadvertent error amounting to SIMPLE NEGLIGENCE

43
Q

What is the penalty for FRAUD?

A

Penalty of 6 times of the revenue loss and/or imprisonment of not less than 2 years but not more than 8 years

44
Q

What are the records to be kept by Bureu?

A
  1. Articles of incorporation
  2. Company structure
  3. Key importation
  4. Importation privileges enjoyed
  5. Records of violations and penalties
  6. Risk categories
  7. Audit results
  8. Other information and documents from various offices of the Bureau
    (ACKIRRAO)
45
Q

What are the records that Importer must give the auditors access to?

A

a. Document flow
b. Financial flow
c. Goods inventory
d. Other business processes that is necessary and relevant for audit

CDP (2 decks)

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