Tariff Law Diagnostic Quiz

If the dutiable value cannot be ascertained using Method Four or Method Five, it will be determined using Method Six. For a shipment of 80 boxes of chocolates from Switzerland, which of the following prices should be used under Method Six?

• The selling price of the same chocolates for export to Italy

• The selling price of the same chocolates sold in the market of Zurich, Switzerland

• The selling price of the same chocolates produced in Manila

• The selling price of the same chocolates from Brussels, Belgium

Method Six allows for reasonable flexibility in applying Methods One to Five. Which of the following is an example of this reasonable flexibility under Method Six?

• Identical goods exported at or around the same time as the goods being valued

• Similar goods produced in a country other than the export country of the goods being valued

• Similar goods produced in the same export country as the goods being valued

• Sales of identical or similar imported goods sold in the Philippines in the same condition as imported, but no later than 90 days after importation

Which of the following is false about engineering, development, artwork, design work, and plans/sketches when undertaken in the Phils. and is provided by the buyer to the producer/seller of the goods?

• Under Method 1, it is a permissible deduction

• Under Method 2, it distorts identicality

• Under Method 3, it concedes similarity

• Under Method 5, it is a mandatory addition

Not a reason to proceed to Method 2.

• No sale for export to the Philippines

• Restrictions affect the value of the goods

• Considerations or conditions render the value of goods inexact

• Buyer and seller have relationship being partners of the business

What does the expression “at or about the same time” mean under the purview of Method 2?

• Selling of the identical goods 45 days before or after the date importation of the buyer.

• Exportation of the identical goods 45 days before or after the date of invoice by the seller.

• Exportation of the identical goods 45 days before or after the date of bill of lading or airway bill of lading of the goods being valued.

• Exportation of the identical goods 45 days before or after the date of entry of vessel or aircraft in the Philippines

What does the expression “at or about the same time” mean under the purview of Method 4?

• 45 days prior to and 45 days following the date of exportation

• 45 days prior to and 45 days following the date of importation

• 90 days prior to and 90 days following the date of importation

• 90 days prior to and 90 days following the date of exportation

The dutiable value of a shipment of leather jackets from Italy cannot be established under Method One. Customs had on file a previous shipment of the same jackets from Italy but produced by a different manufacturer and different colors. If you were the assigned appraiser, which valuation method would you use to determine the transaction value?

• Transaction value using Method Two

• Transaction value using Method Three

• The Deductive value under Method Four

• The Computed value under Method Five

Contrasting Transaction Value and Deductive Value, which of the following is false?

• The relationship under transaction value is between the exporter or seller abroad and the importer or buyer in the Philippines. The relationship under deductive value is between the importer and the domestic buyer in the Philippines.

• Sales to related parties under transaction value may be accepted if the invoice price was not influenced. Sales made to related parties under deductive value are not accepted if price was influenced.

• Under transaction value, the buyer’s assist not included in the invoice is added to the price actually paid or payable (PAPP). Under deductive value, the local purchaser’s assist to the producer of goods is not acceptable.

• Under transaction value, the consideration is the price for export to the Philippines, or the price actually paid or payable (PAPP). Under deductive value, the consideration is the unit price at which the goods are sold in the Philippines in the greatest aggregate quantity.

Contrasting Transaction Value and Deductive Value, which of the following is false?

• The relationship under transaction value is between the exporter or seller abroad and the importer or buyer in the Philippines. The relationship under deductive value is between the importer and the domestic buyer in the Philippines.

• Sales to related parties under transaction value may be accepted if the invoice price was not influenced. Sales made to related parties under deductive value are not accepted.

• Under transaction value, the buyer’s assist not included in the invoice is added to the price actually paid or payable (PAPP). Under deductive value, the importer’s assist to the producer of goods is not acceptable.

• Under transaction value, the consideration is the price for export to the Philippines, or the price actually paid or payable (PAPP). Under deductive value, the consideration is the unit price at which the goods are sold in the Philippines in the greatest aggregate quantity.

Contrasting Transaction Value and Deductive Value, which of the following is false?

• The relationship under transaction value is between the exporter or seller abroad and the importer or buyer in the Philippines. The relationship under deductive value is between the importer and the domestic buyer in the Philippines.

• Sales to related parties under transaction value may be accepted if the invoice price was not influenced. Sales made to related parties under deductive value are not accepted.

• Under transaction value, the buyer’s assist not included in the invoice is added to the price actually paid or payable (PAPP). Under deductive value, the local purchaser’s assist to the producer of goods is not acceptable.

• Under transaction value, the consideration is the price for export to the Philippines, or the price actually paid or payable (PAPP). Under deductive value, the consideration is the lowest unit price at which the goods are sold in the Philippines in the greatest aggregate quantity.