Sec. 1000-1005

Question 1

Sec. 1000

Answer 1

Audit and Examination of Records

Question 2

When to conduct PCA?

Answer 2

Within three (3) years from the date of final payment of duties and taxes or customs clearance, as the case may be, the Bureau may conduct an audit examination, inspection, verification, and investigation of records pertaining to any goods declaration, which shall include statements, declarations, documents, and electronically generated or machine readable data, for the purpose of ascertaining the correctness of the goods declaration and determining the liability of the importer for duties, taxes and other charges, including any fine or penalty, to ensure compliance with this Act.

Question 3

Sec. 1001

Answer 3

Scope of the Audit

Question 4

When audit shall be conducted?

Answer 4

The audit of importers shall be conducted when firms are selected by a computer-aided risk management system, the parameters of which are to be based on objective and quantifiable data, subject to the approval of the Secretary of Finance upon recommendation of the Commissioner.

Question 5

The criteria for selecting firms to be audited shall include:

Answer 5

• relative magnitude of customs revenue to be generated from the firm
• the rates of duties of the firm’s imports
• the compliance track records of the firm and
• an assessment of the risk to revenue of the firm’s import activities