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Tariff Law Reviewer

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

This GIR is used as guiding principle when classifying finished articles that are imported unassembled for purposes of easy packing and transport.

a)

Rule 2(a)

b)

Rule 2(b)

c)

Rule 3(a)

d)

Rule 5(b)

2.

Which one among the following GIRs is different from the rest in terms of determining the applicable TCCP-AHTN code?

a)

Rule 1 Sec.103

b)

Rule 2(a)

c)

Rule 3(c)

d)

Rule 6

3.

A buyer in Hongkong, China nominated a freight forwarder in Manila to facilitate delivery of the goods from seller’s warehouse in Dasmariñas, Cavite to the NAIA and pay airfreight charges. Since the goods are highly valuable, the buyer instructed the forwarder to procure insurance to cover airfreight transport risks.

a)

CIF, Manila

b)

CIP, Hongkong

c)

EXW, Dasmariñas

d)

EXW, Hongkong

4.

MERALCO was awarded a contract to construct a 500-megawatt power plant in Balanga, Bataan. Due to immense volume of structural and electrical wares to be imported from Houston, TX, USA, the seller was required to cover the ocean freight, import port charges, duties/taxes customs clearing and hauling of goods from the port of Mariveles to its job site not unloaded from the delivery trucks.

a)

DAT, Mariveles

b)

CIF, Mariveles

c)

DAP, Balanga

d)

DDP, Balanga

5.

Seller in Davao sold bananas in 10 wooden crates to a buyer in Quebec, Canada. Quoted price included, among others, expenses for the issuance of phytosanitary certificate, export clearing charges, inland freight and expenses for handling and loading of the crates on board the vessel. The buyer will pay the ocean freight charges upon arrival of the cargo in Canada.

a)

CFR, Quebec

b)

FCA, Davao

c)

FOB, Davao

d)

FOB, Quebec

6.

What was the WCO formerly known as?

a)

General Agreement on Tariff and Trade

b)

League of Nations

c)

Customs Cooperation Council

d)

GATT

7.

Under Article 31 of the ASEAN Charter, the chairmanship of the ASEAN is to be determined by this process.

a)

By majority votes among the leaders of the Member States.

b)

Rotated annually, based on alphabetical order of the English names of the Member States

c)

Through the delegation of the current chairman.

d)

To be appointed by the ASEAN Secretary General.

8.

The highest ASEAN Body that approved the AHTN is the…?

a)

ASEAN Directors-General

b)

ASEAN Economic Ministers

c)

AFTA Council

d)

ASEAN Finance Ministers.

9.

Which among the following choices contains the two import duty rates currently incorporated in the TCCP-AHTN Vol.1?

a)

MFN, ACFTA and AKFTA rates

b)

CEPT and ATIGA rates

c)

MFN and CEPT rates

d)

MFN and ATIGA rates

10.

Which one among the following GIRs is used as the guiding principle in the classification of a multi-function machine, not specifically covered by any heading but each of its functions are covered by different headings?

a)

Rule 1

b)

Rule 2

c)

Rule 3

d)

Rule 4

11.

What GIRs are used to classify refrigerated trucks with diesel engine, having a gross vehicle weight of 24 tons, imported completely disassembled, classified under TCCP-AHTN subheading 8704.23.11? Heading 87.04 covers “Motor vehicles for the transport of goods.”

a)

Rule 1

b)

Rule 2(a) and 6

c)

Rule 3(b) and 6

d)

Rule 1 and 6

12.

“Asean Plus Three”, is ASEAN plus the following countries except for one. Which is not part of APT?

a)

China

b)

India

c)

Japan

d)

Korea

13.

Under the trade in Goods Agreement of the ACFTA, the phrase “newer ASEAN Member States” refers to which one of the following country groupings?

a)

Cambodia, Laos, Malaysia and Vietnam

b)

Brunei, Cambodia, Thailand, Laos

c)

Myanmar, Thailand, Indonesia, Philippines

d)

Vietnam, Cambodia, Myanmar, Lao PDR

14.

Under the AFTA Rules of Origin, what should materials of unknown origin always treated as?

a)

Non-originating

b)

Originating

c)

De minimis

d)

Non-qualifying

15.

Seller delivered 100 boxes of electronic parts to the warehouse of British Airways located in Southampton, United Kingdom (UK). Seller took care of the export documentation and other government clearances, paid airfreight charges and produced insurance against loss or damage to the goods while in transit from UK to Mactan Airport, Cebu.

a)

CIF, Cebu

b)

CIP, Mactan

c)

CFR, Mactan

d)

FCA, Southampton

16.

What is the Certificate of Origin used under the ACFTA Agreement?

a)

Form C

b)

Form D

c)

Form AC

d)

Form E

17.

Which one among the following are set of principles used to determine the country of origin of a good for purposes of international trade?

a)

Tariff Classification Ruling

b)

Certificate of Origin

c)

General Interpretative Rules

d)

Rules of Origin

18.

What is the document used in international trade attesting that the goods being traded are wholly-obtained, produced or manufactured in a particular country?

a)

Tariff Commodity Classification Ruling

b)

Import Entry and Internal Revenue Declaration

c)

Sales Invoice

d)

Certificate of Origin

19.

Which one among the following choices is responsible for the monitoring, reviewing and supervising of all aspects relating to the implementation of the AHTN Protocol?

a)

The Tariff Commission

b)

The ASEAN Secretariat

c)

The ASEAN Finance Ministers Meeting

d)

The ASEAN Directors-General of Customs

20.

Motorcycles with reciprocating internal combustion piston engine of a cylinder capacity of 50cc imported CKD, i.e. completely disassembled, classified under TCCP-AHTN subheading 8711.10.13 Heading 87.11 provides for “Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars.”

a)

Rules 2(a) & 6

b)

Rule 2(a)

c)

Rules 4 & 6

d)

Rule 1 & 6

21.

Under Column 7 of the TCCP-AHTN, as amended, the ASEAN Member State Malaysia is assigned the abbreviation ____.

a)

MA

b)

ML

c)

MS

d)

MY

22.

Which of the following international organization succeeded the GATT?

a)

WTO

b)

WCO

c)

APEC

d)

UN

23.

Prior to ATIGA, this is the primary instrument for realizing the objective of AFTA.

a)

Visayas

b)

Mindanao

c)

Luzon

d)

Spratly Islands

24.

Which one among the following refers to a special duty imposed on the importation of an article of commerce into the Philippines at less than its normal value when destined for domestic consumption in the exporting country; it is the difference between the export price and the normal value of such product, commodity or article.

a)

Countervailing Duty

b)

Safeguard Duty

c)

Import Duty

d)

Anti-Dumping Duty

25.

Pursuant to Republic Act No. 8800 and its Implementing Rules and Regulations, to whom can an interested party file a request for special safeguard measures?

a)

Secretary of DOF

b)

Chairman of Tariff Commission

c)

Secretary of the DTI

d)

Secretary of DA

26.

With reference to FTA, what type of Certificate of Origin must be issued for products to be eligible for preferential tariff treatment for trade between the following participating countries: Philippines, Cambodia, Brunei, Vietnam, Laos, Indonesia, Singapore, Thailand, New Zealand, Myanmar, and Malaysia?

a)

Form D

b)

Form E

c)

Form AANZ

d)

Form AK

27.

Which of the following choices make up the Quad Countries that initiated the Information Technology Agreement (ITA)?

a)

Australia, Canada, Japan and US

b)

Japan, EU, USA and China

c)

EU, USA, China and Russia

d)

USA, Canada, Japan and EU

28.

This punctuation mark is indicated when an HS Subheading is further subdivided.

a)

Period

b)

Colon

c)

Semi-colon

d)

Comma

29.

Which of the following is defined by WTO as measures, such as quotas, import licensing systems, sanitary regulations, and prohibitions?

a)

Import restriction measures

b)

Non-tariff measures

c)

Qualitative measures

d)

Red tape

30.

The 1st and 2nd digits of the Harmonized Systems Code refer to the:

a)

Chapter Number

b)

None of these

c)

Heading Number

d)

Subheading Number

31.

The Harmonized Commodity Description and Coding System had been developed by which International Organization/Association?

a)

ASEAN

b)

World Trade Organization

c)

United Nations

d)

Customs Cooperation Council

32.

For legal purposes, classification of imported articles under the AHTN using Rule 1 of Section 103 of the Tariff and Customs Code of the Philippines, shall be governed by the following, except for one:

a)

The titles of Sections and Chapters

b)

The terms of Section Notes

c)

The terms of the Headings

d)

The terms of Chapter Notes

33.

The 5th and 6th digits of the Harmonized System refer to the:

a)

Subheading Number

b)

Heading Number

c)

Chapter Number

d)

None of these

34.

Which of the following choices best describes an AHTN subheading code?

a)

Terms of Subheading

b)

Six-Digit Subheading

c)

Eight-Digit Subheading

d)

Nine-digit Subheading

35.

The ASEAN is composed of how many Member States?

a)

8

b)

21

c)

12

d)

10

36.

The last four-member states that joined the ASEAN is commonly known as?

a)

The CLMP States

b)

The CLMV States

c)

The BIMP States

d)

The EAGA Countries

37.

It is an eight-digit commodity description and coding system adopted by the ASEAN to facilitate trade within the region.

a)

AHTN

b)

PSCC

c)

HS

d)

CDCS

38.

The legal texts of the Harmonized Systems are the following, except for one:

a)

HS Explanatory Notes

b)

Headings

c)

Subheadings

d)

Section Notes

39.

The Harmonized Systems is comprised of how many Sections?

a)

21

b)

96

c)

97

d)

100

40.

An act of placing imported goods in the correct category to determine the tariff rates is called _____.

a)

Tariff Provision

b)

Importation

c)

Tariff Classification

d)

Categorization on tariff rates

41.

This is a declaration by an exporter, as certified by the issuing authority in China, that an export product complies with the origin requirement under the ASEAN-China Free Trade Area.

a)

Certificate of Origin Form “D” AFTA

b)

Certificate of Origin Form “E” ACFTA

c)

Certificate of Origin Form “C”

d)

Certificate of Origin Form “A”

42.

Under Rule 3 (a) of Section 103 of the TCCP, goods that are classifiable under two or more headings shall be classified under the heading which provides for _____:

a)

the correct description

b)

the essential character

c)

the specific description

d)

the most specific description

43.

Penalty for the article that do not bear the marks of the country of origin:

a)

Marking Duty

b)

Identification

c)

Deception

d)

Marks and Numbers

44.

Importation that has been granted bounty, subsidy or subvention shall be subject to:

a)

Marking duty

b)

Countervailing duty

c)

Dumping duty

d)

Discriminatory duty

45.

Which of the following subsidies cannot be subjected to either countervailing measures or other disciplines under the WTO Agreement?

a)

Red subsidies

b)

Green subsidies

c)

Yellow subsidies

d)

Blue subsidies

46.

World Trade Organization’s headquarter is at:

a)

Geneva, Switzerland

b)

Makati, Philippines

c)

Brisbane, Australia

d)

Rotterdam, Switzerland

47.

The maximum initial period for the application of an anti-dumping duty is:

a)

Three years

b)

Four years

c)

Five years

d)

Six years

48.

The main objectives of WTO are the following, except:

a)

to help trade flow as freely as possible

b)

to protect the environment and human rights

c)

to set up an impartial means of settling disputes

d)

to achieve further trade liberalization thru negotiations

49.

The WTO operates as follows, except:

a)

Provides “rule of the road” for trade

b)

As a forum for trade negotiations

c)

As a court of setting disputes

d)

None of the above

50.

The WTO operates as follows:

a)

A set of multilaterally agreed rules governing the trade behavior of the government

b)

A forum for trade negotiations

c)

An international trade “court”

d)

All of the above

51.

When the ASEAN was established on August 8, 1967, how many members signed the Agreement?

a)

5

b)

4

c)

6

d)

10

52.

The South Asian Country joined the ASEAN as their 6th member nation is _______.

a)

Brunei Darussalam

b)

Myanmar

c)

Vietnam

d)

Cambodia

53.

Under the change in tariff classification criterion, these refer to the materials imported from a country outside the territory.

a)

Origination Materials

b)

Non-Origination Materials

c)

Locally-Produced Materials

d)

Wholly Obtained Goods

54.

Under the Roadmap for ASEAN Integration, elimination of all import duties for these two-member countries is: 60% by 2008; 80% by 2012 and 100% by 2015 with flexibility up to 2018.

a)

Cambodia and Vietnam

b)

Laos and Myanmar

c)

Cambodia and Laos

d)

Cambodia and Myanmar

55.

Which article under the CEPT-AFTA provides for Emergency Measures?

a)

Article 1

b)

Article 3

c)

Article 6

d)

Article 8

56.

It is the review of the Philippine tariff system undertaken by the government on a continuing basis.

a)

Tariff Reform Program

b)

Philippine Winners

c)

Import Liberalization Program

d)

Export Promotion Program

57.

The Information Technology Agreement was initiated by the Quad countries. Which of the following are the members of the Quad?

a)

Australia, Canada, Japan and USA

b)

USA, Canada, Japan and European Union

c)

Japan, EU, USA and Australia

d)

USA, Philippines, China, Russia

58.

The commitment on agriculture under the WTO allows the Philippines to remove the existing quantitative restrictions and replace these with tariff equivalents. This process is called the ________.

a)

Out-Quota Determination

b)

Tariffication

c)

Binding Rate

d)

In-Quota Determination

59.

An international agreement or treaty entered by the President requires concurrence by which branch of the government?

a)

Both House of Congress

b)

The Judiciary

c)

The House of Representatives

d)

The Senate

60.

It is a ceiling level above which a WTO member cannot apply tariff.

a)

Tariff Quota

b)

Tariff Binding

c)

Applied Rate

d)

Tariff Reduction

61.

In the formulation of the Competition Policy, the domestic markets should be the sole consideration. Competing in the international market is largely dependent on how open, strong and integrate the domestic market is.

a)

The first sentence is contradictory to the second sentence.

b)

Only the first sentence is correct.

c)

Neither sentence is correct.

d)

Both sentences are correct.

62.

The following Legal Text of the Harmonized System are adopted by the AHTN, except:

a)

8-digit subheading codes

b)

6-digit subheading descriptions

c)

Terms of the heading

d)

Terms of the subheading notes

63.

Which of the following does not define the ASEAN subheadings?

a)

7th and 8th digits

b)

5th and 6th digits

c)

AHTN subheadings

d)

Texts of the 8th-digit subheading

64.

Under the HS amendments, new headings are created if the world trade volume exceeds _________.

a)

USD $1 million

b)

USD $20 million

c)

USD $100 million

d)

USD $25 million

65.

The following, except for one, are not considered as legal texts to the Harmonized System.

a)

Titles of Section

b)

HS Explanatory Notes

c)

HS Electronic Index

d)

Subheading Notes

66.

This is a trade remedy measure to protect the domestic industries against unfair trade practices caused by subsidy.

a)

General Safeguard Measure

b)

Anti-Dumping Measure

c)

Subsidies and Countervailing Measure

d)

Special Safeguard Measure

67.

A government agency that imposes the provisional bond or measure is ___________.

a)

BOC

b)

Department of Agriculture

c)

DTI – BIS

d)

Tariff Commission

68.

China, Chinese Taipei, and Hongkong SAR are APEC members. What does the acronym SAR stand for?

a)

Separate Administrative Region

b)

Special Administrative Region

c)

Special Administrative Regime

d)

Separate Administrative Regime

69.

“Buy National Policy”, bribery and corruption and product classification hamper the smooth flow of merchandise goods. These forms of trade restraint are commonly known as ________.

a)

Non-tariff barriers

b)

Import restrictions

c)

Licensing requirements

d)

Tariff barriers

70.

The ASEAN Vision 2020 was adopted during the ASEAN’s ____________ Anniversary.

a)

20th

b)

30th

c)

25th

d)

50th

71.

Which of the following criterion is defined as “The classification of the final product under the HS to be produced should have a different classification from non-originating inputs”?

a)

Substantial Transformation

b)

Change in tariff subheading split

c)

Change in tariff classification

d)

Process Rule

72.

What is the meaning of the acronym CTSH under the CEPT-AFTA ROO?

a)

None of these

b)

Change of Tariff Split Heading

c)

Change of Tariff Subheading

d)

Change of Tariff Subheading Split

73.

Simple mixing, sifting, sorting, classifying, washing and painting are considered, under the ROO, as _______________.

a)

Minimal processes

b)

Wholly obtained

c)

Technical requirement rule

d)

De Minimis

74.

Using the Indirect Method, what is the value-added of a final product destined for exports if the value of imported inputs is USD 900, and the FOB and CIF values of the final products total are USD 1,500 and USD$ 1,650, respectively.

a)

54.54%

b)

135%

c)

600%

d)

60%

75.

Except for one, the following are the activities of the World Customs Organization.

a)

Settle trade disputes

b)

Settle classification disputes

c)

Harmonized Rules of Origin

d)

WTO Valuation Agreement

76.

It is a political group composed of 27 countries. It was established in 1957 by the Treaty of Rome. This group today cab be described as both supranational and an intergovernmental body. Who is this body?

a)

Body of Nations

b)

WTO

c)

G27

d)

EU

77.

This body of WTO makes decisions on the trade disputes between governments that are adjudicated by the organization.

a)

Appellate Body

b)

Dispute Settlement Body

c)

Dispute Panel

d)

European Commission

78.

Under Section 3 of RA 9239 (Optic Media Act of 2003), the terms “business of mastering, manufacture, replicating, importation or exportation of optical media” is referred to as _______________.

a)

Authorization

b)

Exclusive Rights

c)

Registration

d)

Licensing

79.

In determining the origin requirements of a product under CEPT scheme, the Philippines adopts:

a)

Substantial Transformation Rule

b)

Direct Method Rule

c)

Indirect Method Rule

d)

Cost Method Rule

80.

Which among the following under CEPT scheme of ASEAN – AFTA defines as “measures other than tariffs which effectively prohibit or restrict import or export products between member states?”

a)

In & Out-Quota Tariffs

b)

Licensing Requirements

c)

Import & Export Bans

d)

Non-tariff Barriers

81.

Penalty for the article that do not bear the marks of the country of origin:

a)

Marking Duty

b)

Identification

c)

Deception

d)

Marks and Numbers

82.

GATT-WTO is acronym for:

a)

General Alliance on Tariff & Trade - World Trade Org.

b)

General Agreement on Tariffs & Taxes - World Trade Org.

c)

General Agreement on Tariffs & Trade - World Trade Org.

d)

General Alliance on Taxes & Trade - World Trade Org

83.

The relief accorded the domestic industry suffering injury as a result of the unfair trade practice of dumping is:

a)

Anti-dumping Duty

b)

Safeguard Measures

c)

Countervailing Duty

d)

Tariff Increase

84.

Marking of an imported articles and containers is exempted from Marking Law:

a)

30 yrs old Figurines

b)

Tablets or capsules of medicines in sealed tamper free containers

c)

Apples in boxes

d)

An Asian looking walking doll

85.

Which of the following elements is applied to special safeguard measures only?

a)

Import Surge, either in absolute or relative to domestic production

b)

Product Comparability

c)

Volume of Imports

d)

Serious Injury

86.

It is the primary method for customs valuation and imported goods are to be valued in accordance with the provision of this method whenever the conditions prescribed for its use are fulfilled.

a)

Transaction Value

b)

Transaction Value of Identical Goods

c)

Transaction Value of Similar Goods

d)

Computed Value

87.

Where dutiable value cannot be determined under this method, it is to be determined by proceeding sequentially through the succeeding methods to the first such method under which the dutiable value can be determined.

a)

Transaction Value

b)

Deductive Value

c)

Computed Value

d)

Fallback Value

88.

If the dutiable value cannot be determined with the use of Method One, the following valuation methods shall be applied in _____.

a)

Nonsequential Order

b)

Sequential Order

c)

Chronological Order

d)

Numerical Order

89.

The order of application of Methods Four and Five may be reversed provided that the Commissioner of Customs agrees to such request taking into consideration that the reversal of the order will not give rise to real difficulties for the BOC in determining the dutiable value under Method Five.

a)

It may be reversed only if it is requested by the exporter.

b)

It may be reversed only if it is requested by the importer.

c)

It may be reversed by the BOC anytime.

d)

It cannot be reversed.

90.

The dutiable value of imported goods shall be the transaction value, that is, the _______________________ for the goods when sold for export to the Philippines.

a)

Market Price

b)

Domestic Price

c)

Export Price

d)

Price Actually Paid or Payable

91.

The World Customs Organization advisory opinion provides guidance by elaborating the concept of “sale” as it appears in the World Trade Organization Valuation Agreement. It states that a sale may be describe as:

a)

Free consignment

b)

Goods imported a hire or leasing contract

c)

The buyer agrees to obtain certain goods for free.

d)

Compensation occurs for the acquisition of goods.

92.

The underlying principles of World Trade Organization Valuation Agreement states that goods might be considered not to be subject to a sale if:

a)

A commercial operation which involves a buyer and a seller.

b)

Goods imported by intermediaries, who purchase the goods and who sell them after importation.

c)

Good imported on consignments.

d)

The buyer agrees to obtain certain goods.

93.

If the sale or price is subject to some conditions or considerations for which a value cannot be determined with respect to the goods being valued _______________;

a)

The transaction value shall not be acceptable for customs clearance.

b)

The transaction value shall be acceptable for customs clearance.

c)

The computed value shall not be acceptable for customs clearance.

d)

The computed value shall be acceptable for customs clearance.

94.

Under Method One, the buyer and the seller are not related, or where they are related, such relationship did not influence the price of the goods. The buyer and the seller shall be deemed to be related only if- except:

a)

They are employer and employee

b)

They are legally recognized partners in business.

c)

They are related by affinity or consanguinity up to the third civil degree.

d)

They are officers or directors of one another’s business.

95.

If the Collector of Customs has grounds for considering that the relationship influenced the price, he shall communicate the grounds to the importer and the importer shall be given a reasonable opportunity to respond. If the importer contests, the matter shall be raised and resolved through the existing dispute settlement mechanism like:

a)

VCRC

b)

WVA

c)

WCO

d)

BOC

96.

It is defined as the value, apportioned as appropriate, of certain goods and services supplied directly or indirectly by the buyer free of charge or at a reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been incorporated in the price actually paid or payable.

a)

Commissions

b)

Cost of packing whether for labor or materials

c)

Assists

d)

Royalties and Licenses Fees

97.

The transaction value shall be accepted as basis for customs valuation whenever the importer demonstrates that such value closely approximates occurring at or about the same time. The term “at or about the same time” is generally interpreted as:

a)

Importation of goods (45) days after the date if bill of lading or airway bill of lading of the goods being valued

b)

Period extending to (45) days prior to exportation and (45) days after exportation of the goods being valued with the Bill of lading or airway bill of lading date.

c)

Exportation of goods (45) days before the date if bill of lading or airway bill of lading of the goods being valued

d)

Period extending to (45) days prior to importation and (45) days after importation of the goods being valued with the Bill of lading or airway bill of lading date.

98.

In applying Method 2 & 3, if more than one transaction value of similar or identical goods are found in determining the dutiable value of the imported goods ___________.

a)

the lowest value shall be used

b)

the highest value shall be used

c)

the next method shall be used

d)

the previous method shall be used

99.

Payments in respect of patents, trademarks, and copyrights are fees related to the goods being valued that the buyer must pay as a condition of sale. These payments may be included as:

a)

Assists

b)

Proceed

c)

Royalties and License Fee

d)

Cost of Transport

100.

Where no such sale is found, then use a sale of identical/similar goods that takes place under any of the following conditions:

a)

A sale of the same commercial level but in different quantities

b)

A sale at a different commercial level but in substantially the same quantities.

c)

A sale at a different commercial level and in different quantities.

d)

All of the above.