TOPIC 19 – METHODS OF VALUATION PART 1 (QUIZ)

Which among the following is FALSE?

• The methods of valuation should be followed in randomly order of application

• Method 4 and Method 5 may be reversed at the request of importer

• There are six methods of customs valuation used in determining the transaction value

• The primary method in determining the dutiable value of imported goods shall be the Method One

It refers to the total payment made or to be made by the buyer to or for the benefit of the seller of imported goods.

• Invoice price

• Price actually paid or payable

• Transaction value

• Dutiable value

Which among the following is NOT a type of discount?

• Trade discount

• Quantity discount

• Quality discount

• Cash discount

Which among the following is a restriction allowed under Method 1?

• The seller requires the buyer to secure an import permit for medicines before he sells it in the Philippines

• The seller requires the buyer to sell the imported bicycle parts on the Visayas region only

• The seller requires the buyer not to sell the 2023 brand new automobiles until the next 2023 year

• The seller requires the buyer not to sell the imported T-shirts until the time is right for the seller to say so

   

Method One shall be used if the following conditions are fulfilled EXCEPT:

• The buyer and seller are not related, or where they are related, such relationship has influenced the price of goods

• There must be no restrictions as to disposition or use of the goods by the buyer

• The sale or price must not be subject to some conditions or considerations for which a value cannot be determined with respect to the goods being valued

• No part of the proceeds of any subsequent resale, disposal, or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an adjustment can be made

Which among the following is NOT an instance where the buyer and seller are related?

• The seller and buyer are related by affinity to 3rd civil degree

• The seller directly holds 4% of the outstanding voting stock or shares with the buyer

• The seller and buyer are legally recognized as partners in a certain business

• The seller is an employer while the buyer is an employee

   

Which among the following is an instance where the buyer and seller are related but such relationship did not influence the price?

• The seller’s price to related buyer is $100.00 while price to an unrelated buyer is $80.00

• The seller’s price of $100.00 was compared to prices of other sellers of the same industry ranging from $90 to $120.00

• The seller’s price of $100.00 to related buyer is undervalued by 30% than its original amount which would be offered to an unrelated buyer

• The seller’s price of $100.00 was adequate to ensure recovery of all costs plus profit which is a representative of the firm’s overall profit realized over a representative period of time

A buyer paid an amount of $8,000.00 to the seller for his importation of computer accessories. The seller would have charged the buyer of $10,000.00 but the buyer settles the seller’s debt owed to him during a previous transaction amounting to $2,000.00. How much is the price actually paid or payable?

• $8,000.00

• $20,000.00

• $12,000.00

• $10,000.00

A shipment of 3 units of washing machine were sent by a manufacturer in China to the Philippines per instruction by the seller in Japan. The manufacturer’s price amounted to $3,000.00. Earlier, the seller enters into trade agreement with the buyer to sell the said washing machines worth $5,000.00 and thus, prompted the seller to order from a manufacturer in China. How much is the price actually paid or payable?

• $5,000.00

• $3,000.00

• $8,000.00

• $2,000.00

A shipment of aircraft engine was the subject of sales agreement between the buyer and seller. The invoice price amounted to $18,000.00 less 3% cash discount granted by the seller for payment by the buyer at the earliest date. If the buyer was a wholesaler and was granted a trade discount of 10% as a wholesaler, how much is the price actually paid or payable?

• $15,714.00

• $15,660.00

• $17,460.00

• $16,200.00