TITLE 4: CHAPTER 1: GOODS DECLARATION

Question 1

Sec. 400

Answer 1

Goods to be Imported through Customs Office

Question 2

True or False
All goods imported into the Philippines shall be entered through a customs office at a port of entry, or may be admitted to or removed from a free zone as defined in this Act, as the case may be.

Answer 2

True

Based on Sec. 400

Note:
It was lifted from Sec. 1201 of the TCCP, with modifications on the term “goods” instead of articles and administration and removal of imported goods in free zone.
The importance of this Provision is that it recognizes free zones as ports of entry, in accordance with the RKC.

Question 3

Sec. 401

Answer 3

Importations Subject to Goods Declaration

Question 4

True or False
All imported goods shall be subject to the lodgment of a goods declaration.

Answer 4

True

Based on Sec. 401
Unless otherwise provided for in this Act, all imported goods shall be subject to the lodgment of a goods declaration. A goods declaration may be for consumption, for customs bonded warehousing, for admission, for conditional importation, or for customs transit.

Note:
It was lifted from Sec. 1302 of the TCCP, with modifications. Instead of import entry, it is now called “goods declaration”

Question 5

Sec. 402

Answer 5

Goods Declaration for Consumption

Question 6

True or False
As a general rule, All goods declaration for consumption shall be cleared through a formal entry process.

Answer 6

True

Based on Sec. 402
All goods declaration for consumption shall be cleared through a formal entry process except for the following goods which shall be cleared through an informal entry process
(a) Goods of Commercial nature with FOB or FCA value of less than P50,000.00. Every 3 years after the effectivity of this Act, the Secretary of Finance shall adjust this amount as provided herein to its present value, using the Consumer Price Index (CPI) as published by the PSA; and
(b) Personal and household effects or goods, not in commercial quantity, imported in a passenger’s baggage or mail.

Question 7

All goods declaration for consumption shall be cleared through a formal entry process except on some case goods shall be cleared through an informal entry process. What is the exception condition/s?

Answer 7

(a) Goods of Commercial nature with FOB or FCA value of less than P50,000.00. Every 3 years after the effectivity of this Act, the Secretary of Finance shall adjust this amount as provided herein to its present value, using the Consumer Price Index (CPI) as published by the PSA; and
(b) Personal and household effects or goods, not in commercial quantity, imported in a passenger’s baggage or mail.

Based on Sec. 402

Question 8

What is the value of goods of commercial nature that shall be cleared through informal entry process and who may adjust the value without prejudice to the periodic adjustment period?

Answer 8

P 50,000.00
Commissioner

Based on Sec. 402 (subparagraph 4)
(a) Goods of Commercial nature with FOB or FCA value of less than P50,000.00. Every 3 years after the effectivity of this Act, the Secretary of Finance shall adjust this amount as provided herein to its present value, using the Consumer Price Index (CPI) as published by the PSA;

The Commissioner may adjust the value of the goods of commercial nature that shall be cleared through an informal entry process without prejudice to the periodic adjustment period in subparagraph (a) of this Section.

Question 9

All importations entered through a formal entry process shall be covered by a __________ or any verifiable commercial document evidencing payment or in cases where there is no sale for export, by any commercial document indicating the commercial value of the goods.

Answer 9

Letter of Credit.

Based on Sec. 402 (last paragraph)
All importations entered through a formal entry process shall be covered by a letter of credit or any verifiable commercial document evidencing payment or in cases where there is no sale for export, by any commercial document indicating the commercial value of the goods.