Seatwork No. 15 POST CLEARANCE AUDIT AND PRIOR DISCLOSURE PROGRA

1. What is a person that knowingly causes the importation or transportation or storage of imported goods or the filing of refund or drawback claim?

• a. Importer’s agent

• b. Importer of record

• c. Attorney-in-fact

• d. Customs broker

2. A company failed to declare the amount of royalty in the submitted SAD but discovered the discrepancy 7 months after the release of goods. After payment of royalty has been made, can they still avail the PDP without the payment of penalties?

• a. Yes, the PDP application contributed to the non-imposition of penalty

• b. No the period for the payment of royalty by the importer disqualifies the company for PDP

• c. No, the non-payment of royalties disqualifies the PDP applicant

• d. Yes, provided that the PDP application has been filed before the receipt of the ANL.

3. PTC Corp., after having receipt of the demand letter demanding payment of deficiency in the duties and taxes, has discovered some additional documents to which the party believes may reverse the findings of PCAG. As a customs broker of the company, what is the best remedy for the importer?

• a. File an appeal to CTA

• b. Seek the intervention of the SOF within 15 days from receipt of the demand letter.

• c. File an urgent request for reinvestigation within 30 days from receipt of the demand letter.

• d. Request for reinvestigation within 15 days from receipt of the demand letter.

4. PDDT Corp., a multiregional freight forwarding company with principal office located at Pasay City has received an ANL from the PCAG. During the audit, the audit team requested for import records of a specific goods declaration filed at the Port of Davao but was rejected by the manager of  PDDT Corp arguing that the records are separately kept in branch offices. As the import and export manager of the company, do you agree with the explanation of the manager?

• A. Yes, the records must be kept in any place at the convenience of the company.

• B. Yes, there is no specific place to keep the records

• C. No, the audit team has no authority to compel the company to produce such records

• D. No, importation records must be kept in the principal place of business.

5. Prepared by the audit team that fits circumstances of the company to meet audit objectives in the most expeditious and transparent manner

• a. Audit report

• b. Computer aided risk management system

• c. Audit plan

• d. Audit notification letter

6. Cosmomedical has received an ANL duly signed by the Commissioner post clearance audit on July 5, 2024 for goods declaration for consumption with duty and tax paid on February 5, 2017. Is the ANL valid?

• a. Yes, the ANL is valid as signed by the Commissioner

• b. No, the ANL must be returned to the BOC immediately.

• c.  No, the ANL must be revalidated

• d. No, the period to conduct audit has already lapsed.

7. What is the course of action of the PCAG if it cant complete the audit within the period described due to volume of audit candidates.

• a. Request for extension upon the importer subject of the audit

• b. Request for 30 days extension within 5 days before the expiration of the original period.

• c. Request for additional personnel from the Department of Budget Management.

• d. Instruct the audit team to complete within the period because the period is non-extendable.

8. A locator of PEZA has admitted goods into a freezone for manufacture into A grade protective equipment. The locator does not sell any of its product into the Philippines. Is the locator required to keep records of importation?

• a. No, because the locator does not sell any of goods to the Philippines

• b. No, because the goods is not subject to duties and taxes

• c. Yes, because locators are required to keep records relating to the admission of goods.

• d. Yes, because the importation is covered by import permits.

9. A company was excited with the completion of the Post clearance audit conducted by PCAG because of their full cooperation, compliance to BOC rules and regulations and proper payment of duties and taxes. What document will be issued if the company is found as compliance with no track of tax deficiency?

• a. Clean Report Findings

• b. Demand Letter

• c. Audit Final Report

• d. Compliant Importer Certificate

10. Who can summon person to obtain information relating to the importer subject to a post clearance audit?

• a. District Collector

• b. SOF

• c. Commissioner

• d. Assistant Commissioner