CDP1

What does Undervaluation refer to according to the CAO 1-2019?

• Declaring a value for imported goods that is lower than the actual price paid or payable.

• Overstating the value of imported goods to avoid paying taxes and duties.

• Using an incorrect valuation method that results in a discrepancy in duty and tax payment.

• Failing to declare the value of imported goods on the customs declaration form

What type of ledger provides detailed information on accounts payable and accounts receivable?

• General ledger.

• Cash receipts and disbursements books.

• Subsidiary ledgers of accounts payable and accounts receivable.

• Sales book.

What is the role of the Post Clearance Audit Group (PCAG)?

• To conduct audits of importers, locators, and all parties engaged in customs clearance and processing.

• To process customs clearance for imported goods after they have been cleared by customs officials.

• To assist importers in filing goods declarations with customs authorities.

• To monitor the transportation of goods within the Philippines to ensure compliance with customs regulations.

What are importers required to maintain and keep records of?

• Only records related to their books of accounts.

• Only records of their importations.

• Records of importations, books of accounts, business and computer systems, and all customs commercial data including payment records.

• Records of their business transactions unrelated to customs.

An agent of the Importer, as described in CAO 1-2019 is:

• Any individual involved in the transportation of goods.

• Someone who occasionally helps with import-related paperwork.

• A person who knowingly causes the importation or transportation or storage of imported goods.

• An employee of the importer who represents them in dealings with customs authorities.

To whom does PCAG-CAO submit the required reports on audit findings and recommendations for approval?

• Assistant Commissioner

• Secretary of Finance

• Commissioner of Customs

• Department of Budget and Management (DBM)

What is the consequence of not keeping records for the required period at the designated place?

• No consequence, as record-keeping requirements are not enforced

• The importer may be eligible for a refund of duties and taxes paid.

• The importer may face penalties and fines for non-compliance.

• Customs authorities will waive the requirement to keep records

Why is it important to check the adequacy and integrity of manual or electronic record- keeping systems?

• To ensure importers can avoid customs inspections.

• To verify the authenticity of customs clearance documents.

• To confirm the efficiency of customs clearance processes.

• To ensure the accuracy and reliability of record-keeping systems.

Who is required to maintain and keep records of importations, books of accounts, business and computer systems, and all customs commercial data including payment records?

• Only importers mentioned in the definition of Importers.

• Only customs brokers and other parties engaged in Customs Clearance and processing.

• Only locators operating within Free Zones.

• All importers, customs brokers, and other parties engaged in Customs Clearance and processing.

What types of tax returns are required to be kept for the purpose of post-clearance audit?

• Only income tax returns.

• Only value-added tax returns.

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  Income tax, withholding tax, value-added tax, excise taxes, documentary stamp tax, and capital gains tax returns.

• Only excise tax returns.