SEATWORK NO. 8 DISPOSITION OF GOODS IN CUSTOMS CUSTODY

1. The following goods may be disposed of under customs laws, except:

• (a) Abandoned goods with final decree of abandonment

• (b) Prohibited goods

• (c) Forfeited goods

• (d) All of the above

2. Within how many days can goods be sold by public auction under customs laws?

• (a) Within 30 calendar days after a 10-day notice

• (b) Within 5 calendar days after a 2-day notice, in case of perishable goods

• (c) All of the above

• (d) None of the above

3. The Port of Batangas has recently forfeited 10 x 40 containers of cement and ceramic tiles, which the Port seeks to sell by public auction. The Deputy Commissioner for Revenue Collection and Monitoring Group (RCMG) recommended that the sale of the cement and ceramic tiles would be more beneficial if the same will be sold at the Port of Manila. If you are the District Collector of Batangas, what would be your course of action?

• (a) Agree to the recommendation of the Deputy Commissioner for RCMG

• (b) Notify the District Collector of POM on the change of venue

• (c) All of the above

• (d) None of the above

4. Petra is an owner of a Toyota Fortuner which she bought two (2) years ago from Canada, where she used to be a renal nurse. For failing to secure a prior authority from the Bureau of Import Services (BIS) for the car, the same was forfeited by the District Collector. At the designated auction, Petra participated. However, Jericho, one of the bidders, questioned her participation. Is Petra allowed to participate in the public auction?

• (a) Yes, Petra is allowed, for she is qualified under the law.

• (b) Yes, Petra is allowed, for she is not a customs officer.

• (c) No, Petra is not allowed, for she is the owner of the imported goods.

• (d) No, Petra is not allowed, for she is not a registered importer.

5. Let us assume that Jericho won in the bidding. When he examined the car, he discovered that it lacked two wheels in front which fact was also stated in the Bill of Lading and shipping documents. He refused to pay the balance of his bid unless Customs puts the wheel in front. Is Jericho correct?

• (a) Yes, Jericho is correct. He bought the car in complete state.

• (b) Yes, Jericho is correct. He can refuse to pay the balance if he decides so.

• (c) All of the above

• (d) None of the above

6. Let us assume that instead of refusing to pay, Jericho suggested to pay the bid less the cost of the wheel in front. Can Jericho pay that under existing rules?

• (a) No, Jericho could not do that, either he pays or not.

• (b) No, Jericho could not do that, because that would be violation of his bid application.

• (c) No, Jericho could not do that, because the same is still subject to approval by the District Collector.

• (d) None of the above

7. Bidder A submitted a sealed bid of P100,000. Bidder B submitted a sealed bid of P89,000. Bidder C submitted a sealed bid of P88,000. Is there clustering?

• (a) As far as Bidder A and Bidder B is concerned, there is no clustering.

• (b) As far as Bidder B and Bidder C is concerned, there is clustering.

• (c) As far as Bidder A and Bidder B is concerned, there is clustering.

• (d) As far as Bidder B and Bidder C is concerned, there is no clustering.

8. In donating processed meat products regulated by FDA, which of the following conditions should be met?

• (a) The item should be donated with the concurrence of the FDA

• (b) The item should be donated with DSWD

• (c) A and B

• (d) Neither A nor B

9. An importation of ready to wear (RTW) articles valued at P29,000 is due for auction. Which mode of disposition can be used by Customs?

• (a) Donation

• (b) Garage Sale

• (c) All of the above

• (d) None of the above

10. The Condemnation Plan is prepared by the:

• (a) Auction & Cargo Disposal Division

• (b) Condemnation Committee

• (c) A and B

• (d) A or B