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CUSTOMS LAW SET 1

Total questions: 150

Worksheet time: 1hrs 19mins

Name
Class
Date
1.

Under RA 10863 (CMTA), which of the following persons may exercise customs police authority to effect searches, seizures, and arrests?

a)

Any employee of a private terminal operator

b)

District Collectors and customs inspectors when authorized

c)

Any barangay official without written authorization

d)

Foreign port authorities operating in the Philippines

2.

A Deputization Order issued by the Commissioner of Customs may be used to:

a)

Permanently transfer customs powers to another agency

b)

Authorize AFP or other NLEA members to assist customs outside customs premises

c)

Permit deputized officers to issue advance rulings on tariff classification

d)

Replace the need for a Mission Order

3.

Which of the following is required before a dwelling house may be searched by customs officers?

a)

A Letter of Authority issued by the Commissioner

b)

A Mission Order signed by the District Collector

c)

A search warrant issued by a judge showing probable cause

d)

An affidavit from the barangay captain

4.

A Mission Order is valid for a maximum of:

a)

7 days

b)

30 days

c)

6 months

d)

1 year

5.

Which of the following best describes Controlled Delivery?

a)

Immediate destruction of contraband at point of entry

b)

Allowing suspected consignments to transit under supervision to identify persons involved

c)

Deportation of suspects without prosecution

d)

The practice of returning seized goods to the exporter

6.

Under the CMTA, who may apply for a judicial search warrant?

a)

Any customs clerk assigned to the district office

b)

Only customs officers authorized in writing by the Commissioner

c)

The barangay captain where the dwelling is located

d)

Any deputized AFP personnel

7.

When customs officers are exercising police authority outside a customs premise using a Deputization Order, which of the following is NOT allowed?

a)

Assistance from PNP when requested

b)

Exercise of power of visit and inspection of customs offices

c)

Turning over seized goods to the Bureau

d)

Acting only within the area and tasks specified in the Mission Order

8.

Which document identifies the customs officers authorized to demand evidence of payment of duties and taxes on goods openly offered for sale or kept in storage?

a)

Mission Order

b)

Letter of Authority

c)

Deputization Order

d)

Search Warrant

9.

A customs officer executing a lawful search of a vessel may:

a)

Be held automatically liable for any damage caused during the search

b)

Search any container, package or person on board upon reasonable cause

c)

Only search documents but not physical goods

d)

Never detain persons found on board

10.

Which of the following is a ground for revocation of a Mission Order?

a)

The Mission Order was issued by the Commissioner

b)

The Mission Order became legally or physically impossible to achieve

c)

The Mission Order covered more than one district

d)

The Mission Order involved foreign nationals

11.

Under Section 301, customs control over goods should include which of the following practices?

a)

Forgoing risk management and relying solely on visual inspection

b)

Employing audit-based controls and automation to the fullest extent possible

c)

Delegating all risk decisions to private brokers

d)

Applying customs control only at principal ports

12.

Which of the following best defines “constructive customs custody”?

a)

Physical seizure of goods and immediate disposal

b)

A written agreement between customs and the owner that goods shall not be removed pending resolution

c)

Passing goods to a private warehouse without documentation

d)

The immediate return of goods to consignee upon payment of fees

13.

Under CMTA, when is importation deemed to begin?

a)

When the importer signs a contract with the supplier

b)

When the carrying vessel or aircraft enters Philippine territory with intention to unload

c)

When goods are accepted by customs for storage outside the port

d)

When duties are assessed by mail

14.

A Declarant may be:

a)

Only the consignee physically present at customs

b)

The importer, exporter, a licensed customs broker, or a person authorized to act as agent

c)

Any person who merely handles the cargo for a fee but has no right to dispose of the goods

d)

The barangay chairperson

15.

The Bureau may publish rulings but must exclude which of the following from published rulings?

a)

The grounds and legal basis of the ruling

b)

The name of the requesting party when confidential

c)

Description of the goods involved in the ruling

d)

The unique ruling number and title

16.

Which of the following is prohibited for customs employees under Section 1511?

a)

Owning a small retail store unrelated to importation

b)

Acting as attorney, agent, or consignee for the owner of any vessel or of cargo loaded thereto

c)

Receiving lawful salary from the Bureau

d)

Attending mandatory trainings

17.

The power to administer oaths and take testimony in customs matters is vested in:

a)

Only judges of the Court of Tax Appeals

b)

The Commissioner, District Collectors and certain authorized customs officers

c)

Any customs clerk who maintained the records

d)

Barangay secretaries during customs inspections

18.

In the context of customs, “technical smuggling” refers to:

a)

Importing goods without any documents whatsoever

b)

Importing goods using fraudulent or erroneous declaration of nature, quality or quantity to evade duties

c)

Smuggling conducted using high-tech devices only

d)

Exporting locally manufactured goods without a permit

19.

What is the correct surcharge for failure to pay assessed duties within fifteen (15) days from date of final assessment?

a)

5% of assessed amount

b)

10% of the total assessed amount, increased to 25% if delinquency is more than one year

c)

50% flat rate irrespective of time

d)

No surcharge provided in the CMTA

20.

When public interest requires, who may declare any public wharf or landing place under the jurisdiction of the Bureau?

a)

The Commissioner alone

b)

The Secretary of Finance without recommendation

c)

The President, upon recommendation of the Secretary of Finance

d)

The District Collector upon consultation with the barangay

21.

Which of these is NOT a valid purpose of Controlled Delivery according to CMTA guidelines?

a)

Identify persons involved in smuggling-related offenses

b)

Facilitate prosecution of offenders

c)

Immediately return goods to consignee to avoid delay

d)

Gather evidence by allowing the consignment to continue under supervision

22.

Which of the following statements about entry and deemed termination is correct?

a)

Importation is deemed terminated only after the goods are sold in the domestic market

b)

Importation is deemed terminated when duties and taxes are paid or secured, or when goods legally leave the Bureau’s jurisdiction if free of duties

c)

Importation is deemed terminated once a goods declaration is drafted, regardless of lodging

d)

Deemed termination only applies to exports

23.

Which of the following MOST ACCURATELY states the duration limit of a Deputization Order?

a)

No limit — it’s permanent once issued

b)

Not to exceed 30 days regardless of purpose

c)

Not to exceed 1 year from issuance unless earlier revoked

d)

Valid only for the day of issuance

24.

Under CAO 03-2019, if customs officers must force entry onto a premises because the owner is missing, this action must be done in the presence of:

a)

Any random community member available

b)

The Barangay Chairman (or authorized representative) and the police unit having jurisdiction

c)

The Commissioner of Customs by telephone consent

d)

The port authority head only

25.

The Commissioner of Customs may delegate powers to any customs officer equivalent to division chief or higher EXCEPT for which of the following?

a)

Promulgation of rules and regulations

b)

Issuance of receipts for payments

c)

Assignment of clerical tasks

d)

Routine supervision of ports

26.

Under Section 303, the Bureau shall have exclusive control over:

a)

Private homes used as residences only, even if they store goods for sale

b)

Customs offices, warehouses, ports, airports and other premises for customs purposes

c)

All barangay halls automatically by virtue of port proximity

d)

Foreign consulate properties

27.

Which of the following goods would be considered prohibited importation under Section 118?

a)

Ordinary household furniture without permits

b)

Written or printed matter advocating rebellion or treason against the Philippines

c)

Commercial samples intended for promotion that comply with rules

d)

Goods properly declared and accompanied by permits

28.

A Mission Order must always be accompanied by:

a)

A personal letter from the District Collector to the barangay captain

b)

A corresponding EXEPLAN when requested by an agency other than the Bureau, based on verified intelligence

c)

A copy of the search warrant regardless of mission type

d)

A publication in national newspaper before execution

29.

Which of the following is TRUE about customs security under Section 1507?

a)

The Bureau may require security exceeding the imposable duties as a caution

b)

The required amount of security shall be the lowest possible and not exceed imposable duties, taxes and other charges

c)

Security must always be in cash only

d)

Once given, security cannot be discharged even after obligation is satisfied

30.

Which of the following actions is within the non-liability protection for customs officers when conducting searches of vessels or aircraft?

a)

They are never liable for damages even if grossly negligent

b)

They are not liable for damage unless there is gross negligence or abuse of authority in the exercise thereof

c)

They are automatically liable to the owner for any loss during search

d)

Liability is assessed by the barangay chairman

31.

Which of the following BEST describes the role of the District Collector?

a)

Solely a ceremonial post with no operational duties

b)

Ensure entry, prevent prohibited imports, examine and value goods, assess and collect duties, and perform other duties assigned by the Commissioner

c)

Only responsible for enforcing quarantine rules of the Bureau of Quarantine

d)

Acts only as counsel to importers

32.

Under the CMTA, “out-right smuggling” is best defined as:

a)

Importing goods with intentional misclassification only

b)

Importing goods into the country without complete customs documents or without being cleared by customs for the purpose of evading duties

c)

Only exporting goods illegally but not importing

d)

Legitimate importation followed by failure to pay fees

33.

What is required of deputized officers before being deputized to assist the Bureau?

a)

Complete removal of all armaments for the operation

b)

At least one day orientation seminar by the Bureau on relevant provisions of the CMTA

c)

A signed waiver of liability by the Commissioner

d)

Enrollment in customs administration degree programs

34.

Under Section 1501, how long does the issuing authority have to act on an application for a ruling (unless otherwise provided)?

a)

7 days from receipt

b)

30 days from receipt of the application and supporting documents

c)

6 months from filing

d)

There is no timeline specified

35.

Which of the following is TRUE regarding publication of rulings (Section 1502)?

a)

The Bureau must publish rulings but must exclude confidential information and the name of requesting party if indicated confidential

b)

Rulings shall never be published under any circumstances

c)

The Bureau must include full personal and financial details of the requesting party in publications

d)

Publication is optional and only upon request of the Commissioner

36.

When goods are seized by deputized officers, the proper procedure is:

a)

Deputized officers may dispose of the goods immediately

b)

All goods seized shall be physically turned over to the Bureau unless otherwise provided by law

c)

Deputized officers may keep goods as reward for their agency

d)

Goods should be left at the seizure location without turnover

37.

Under Section 1512, what percentage reward may be given to informers instrumental in the collection of additional revenues from discovery of violations?

a)

5% of the actual proceeds

b)

20% of the actual proceeds from sale of smuggled/confiscated goods or additional revenues collected

c)

50% flat of the assessed duty

d)

No reward is allowed under CMTA

38.

Which of the following statements is CORRECT about the right of appeal under Section 114?

a)

Affected parties have 15 days from receipt of the decision to file an appeal in writing specifying grounds

b)

No appeal is allowed under the CMTA for customs decisions

c)

Appeals can be filed verbally with the District Collector with no timeframe

d)

Appeals must be filed within 1 year from the date of the alleged decision

39.

Under Section 206, the Philippines shall be divided into customs districts as necessary. The limits of such districts may be changed by:

a)

The District Collector alone

b)

The Commissioner with the approval of the Secretary of Finance

c)

A majority vote of the barangay captains in the affected area

d)

The President without consultation

40.

Which of the following is a duty of customs officers when implementing a search warrant on a dwelling house?

a)

Execute the warrant only at night regardless of affidavit content

b)

Service of the warrant shall be made in daytime unless affidavit permits night service and court direction exists

c)

Never provide a return of service to the court

d)

Leave occupants unnotified during execution

41.

Under Section 1508, customs personnel may be assigned and paid for overtime work and other services at rates:

a)

Fixed arbitrarily by the District Collector without approval

b)

Fixed by the Commissioner and approved by the Secretary of Finance

c)

Determined by the private warehouse operator

d)

Calculated based on the value of seized goods

42.

Which of the following is considered a regulated importation?

a)

Ordinary consumer electronics with no special law

b)

Goods that may be imported only after securing clearances, licenses or permits before importation (e.g., certain chemicals, agricultural products)

c)

Goods that can always be imported freely without documentation

d)

Any luxury item regardless of regulatory requirements

43.

Under Section 222, customs officers may stop and search which of the following upon reasonable cause?

a)

Only vessels but not vehicles

b)

Any vehicle, carrier, person or animal suspected of holding or conveying dutiable or prohibited goods

c)

Only foreign diplomats’ vehicles without restriction

d)

Only containers with CBP seals

44.

What is the Bureau’s policy regarding information of general application (Section 1511 / 111)?

a)

Keep all rulings and administrative policies secret from the public

b)

Ensure that laws, decisions, rulings and other information of general application are accessible to the public, except confidential details

c)

Only provide information upon a formal court order

d)

Charge exorbitant fees for basic import procedures

45.

Which of the following is NOT within the functions of the Bureau under Section 202?

a)

Assessment and collection of customs revenues

b)

Facilitation and security of international trade through informed compliance

c)

Issuing driver’s licenses for port truckers

d)

Prevention and suppression of smuggling and customs fraud

46.

Under Section 1700, the Congressional Oversight Committee may require the Bureau to submit:

a)

Personal bank accounts of all customs officers

b)

Industry audits, collection performance data, and status reports on administrative, civil and criminal actions initiated against persons

c)

Confidential informant identities in all cases immediately upon request

d)

Monthly home inventories of District Collectors

47.

Which of the following statements about free zones and customs authority is CORRECT?

a)

Customs has no access to free zones under any circumstances

b)

Free zones are included among places where customs may exercise police authority, subject to coordination with zone authorities

c)

Free zones require no coordination with other agencies for customs operations

d)

Goods in free zones are automatically exempt from all customs control forever

48.

Under Section 105, the rate of import duty applicable to imported goods is determined at:

a)

The time the supplier signs the sales contract overseas

b)

The date of importation or the date of withdrawal from warehouse for consumption (depending on the case)

c)

The date the goods were manufactured abroad

d)

The date when the goods are sold at auction years later only

49.

Which of the following best reflects the policy objectives declared in Section 101?

a)

To minimize government revenue in favor of traders

b)

To protect and enhance government revenue, facilitate trade, prevent customs fraud, and modernize customs administration

c)

To allow exemptions for all local producers from customs duties

d)

To nationalize all import and export businesses

50.

Under Section 219, customs officers may enter, pass through and search which places?

a)

Any building used primarily as a dwelling house without warrant

b)

Any land, enclosure, warehouse, store, building or structure not principally used as a dwelling house (subject to rules)

c)

Only open public spaces but not enclosed warehouses

d)

Only ports officially designated as principal ports

51.

Situation: NBC Corporation imported glass wares from Indonesia. The carrying vessel arrived on January 1, 2022. The last cargo discharge was on January 16, 2022. The corresponding goods declaration was lodged on January 22, 2022. Customs sent NBC Corporation the final assessment notice on January 27, 2022. For failure to pay the assessed duties and taxes despite due notice, Customs declared the shipment to be impliedly abandoned on February 13, 2022. Apply the provisions of the CMTA only. Was there implied abandonment?

a)

Yes, because the goods declaration was not lodged within the prescribed period.

b)

Yes, because NBC Corporation failed to pay the duties and taxes within the prescribed period.

c)

Yes, because the final assessment notice was sent within the period required by law.

d)

Yes, because Customs declared it so.

52.

Situation: NBC Corporation imported glass wares from Indonesia. The carrying vessel arrived on January 1, 2022. The last cargo discharge was on January 16, 2022. The corresponding goods declaration was lodged on January 22, 2022. Customs sent NBC Corporation the final assessment notice on January 27, 2022. For failure to pay the assessed duties and taxes despite due notice, Customs declared the shipment to be impliedly abandoned on February 13, 2022. Apply the provisions of the CMTA only. When did the implied abandonment take place?

a)

February 12, 2022

b)

February 13, 2022

c)

January 24, 2022

d)

January 27, 2022

53.

Situation: NBC Corporation imported glass wares from Indonesia. The carrying vessel arrived on January 1, 2022. The last cargo discharge was on January 16, 2022. The corresponding goods declaration was lodged on January 22, 2022. Customs sent NBC Corporation the final assessment notice on January 27, 2022. For failure to pay the assessed duties and taxes despite due notice, Customs declared the shipment to be impliedly abandoned on February 13, 2022. Apply the provisions of the CMTA only. If Customs has not yet disposed of the goods and NBC Corporation decides to reclaim the goods, until when can it do so?

a)

March 15, 2022

b)

March 3, 2022

c)

February 27, 2022

d)

February 15, 2022

54.

Situation: NBC Corporation imported glass wares from Indonesia. The carrying vessel arrived on January 1, 2022. The last cargo discharge was on January 16, 2022. The corresponding goods declaration was lodged on January 22, 2022. Customs sent NBC Corporation the final assessment notice on January 27, 2022. For failure to pay the assessed duties and taxes despite due notice, Customs declared the shipment to be impliedly abandoned on February 13, 2022. Apply the provisions of the CMTA only. If Customs has already sold the goods in auction, may NBC Corporation be entitled to the proceeds of the sale?

a)

Yes, if the goods were sold.

b)

Yes, since it did not lose possession of the goods.

c)

Yes, but subject to the provision of Section 1143, CMTA.

d)

No, because NBC lost ownership upon the abandonment of the goods.

55.

HV Corporation is a CBW engaged in the manufacture of canned sardines. On August 15, 2022, the Bureau of Customs questioned the overstaying of HV's importation of fresh mackerels. Records showed one importation of fresh mackerels arrived and was released on April 30, 2022 or 17 days from the date of discharge of the last package of the carrying vessel. Absent any subsequent withdrawal of finished products or written request for extension of period, the Bureau declared the April 30, 2022 importation as being abandoned. Is this correct?

a)

Yes, because there is failure to withdraw the goods within the prescribed period.

b)

Yes, because the goods were released after the 15-day period.

c)

No, because there was no notice given to ABC Corporation.

d)

No, because the situation is not among those governed by Section 1129 of CMTA.

56.

Which of the following statements about customs abandonment is correct?

a)

It is the importer that declares the express abandonment of goods and the role of the District Collector thereto is merely confirmatory.

b)

It is the District Collector that formally declares the express abandonment of the goods for the importer merely signifies his intention relative thereto.

c)

The government always becomes the owner of abandoned goods.

d)

Once the goods are abandoned, the Bureau of Customs may no longer make the owner thereof liable.

57.

Which of the following is true in implied abandonments?

a)

The period to lodge the goods declaration is different from the period to file the same.

b)

Implied abandonment occurs by operation of law. It means that once the owner or consignee fails to lodge the goods declaration within the prescribed period the goods are already deemed abandoned.

c)

Implied abandonment occurs when the owner or consignee of prohibited goods fails to secure the necessary import permits within 15 days from date of final assessment.

d)

Service of notice to owner or consignee is a condition precedent.

58.

The period within which to lodge goods declaration to prevent declaration of abandonment of goods is:

a)

Within 15 days from discharge of the last package from the vessel or aircraft

b)

Within 30 days from arrival of the vessel or aircraft

c)

Within 15 days from the notice of discharge of the last package from the vessel or aircraft

d)

Within 30 days from discharge of the last package from the vessel or aircraft

59.

May impliedly abandoned imported goods be reclaimed?

a)

Yes. The owner or importer of an article impliedly abandoned may, within 30 days after the period to lodge goods declaration has elapsed, reclaim such article provided all legal requirements including payment of corresponding duties and taxes are complied with.

b)

Yes. The owner or importer of an article impliedly abandoned may, at any time after it is disposed of, file an application for redemption indicating therein the payment of corresponding duties and taxes including the necessary penalty.

c)

No. Loss of property rights over the imported goods is a necessary consequence of abandonment. The importer thereof cannot reclaim what he abandoned.

d)

No. The importer, however, may participate in the public sale in order to recover his article

60.

The act of providing the owner, importer, consignee or interested party with a copy of the notice or paper concerned within the specific period provided for by law is called:

a)

Service of notice

b)

Notification

c)

Process service

d)

Personal service

61.

Blank-type conversion: ______ shall be made by depositing the copy in the post office in a sealed envelope, plainly addressed to the owner, importer, consignee, or interested party at his/her known address with postage fully prepaid, and with instructions to the postmaster to return the mail to the sender after ______ if undelivered.

a)

Electronic mail / 10 days

b)

Service by registered mail / 10 days

c)

Personal service / 5 days

d)

Mail / 15 days

62.

In determining whether the goods are abandoned, in case of non-regular importers, the due notice requirement under Section 1129 of the CMTA is provided by the Bureau of Customs through—

a)

Publication and posting of notice

b)

Electronic notice or personal service

c)

Registered mail or personal service

d)

Publication and licensed courier

63.

In customs abandonments, when is service of notice complete?

a)

Personal service is complete upon actual delivery to the address of the customs broker.

b)

Service by registered mail is complete upon actual receipt by the consignee or after 15 days from the date he/she received the first notice of the postmaster, whichever date is earlier.

c)

Electronic service is complete upon successful sending of a notice via internet to the designated e-mail address of the owner, importer, consignee, or interested party.

d)

None of the above

64.

In customs abandonment, how must non-regular importers be notified?

a)

Registered mail or personal service

b)

Personal service only

c)

Registered or electronic mail and personal service

d)

Any of the above

65.

Which of the following is not true in service of notice of abandonment?

a)

Electronic notice shall be made through the use of information and communication technologies.

b)

Personal service may be made by delivering personally a copy of the notice to the consignee.

c)

Personal service may be made by leaving a copy of the notice in the consignee's office with his/her clerk or with a person having charge thereof.

d)

None of the above

66.

In customs abandonments, proof of personal service shall consist of—

a)

written admission of the owner, importer, consignee, or interested party served

b)

the official return of the server

c)

the affidavit of the party serving, containing a full statement of the date, place and manner of service

d)

all of the above

67.

When may Customs apply the remedies of distraint and levy?

a)

In case there is failure of importer to pay duties and taxes.

b)

Whenever the Bureau imposes fines and surcharges.

c)

When the collectible duties, taxes and other charges were the result of the post clearance audit.

d)

All of the above.

68.

When the post clearance audit of ABC Corporation was concluded customs discovered deficiencies in payment of duties and taxes for the following importations of the auditee-importer, viz: Entry No. Amount of Deficiency (in Peso) C-2342-22 9,084.00 C-3245-22 10,111.00 C-67543-22 50,000.00 C-9807-22 7,342.00 C-3498-22 5,009.00 Which of the following may be performed by the Bureau pertinent to the above?

a)

Do not distrain or levy the properties of ABC Corporation with respect to Entry Nos. C-2342-22, C-9807-22 and C-5009-22 because these are not more than P10,000.00.

b)

Distrain or levy the properties of ABC Corporation upon the discovery of the deficiencies.

c)

Formally ask/demand ABC Corporation to pay its deficiencies.

d)

Any of the above.

69.

Which of the following properties is not distrainable?

a)

Stocks in a corporation

b)

Dividends

c)

Power barges fixed permanently along the riverbanks

d)

Interest income from bank deposits

70.

In distraint of personal properties, how are bank accounts garnished?

a)

By serving a warrant of garnishment upon the importer and upon the president, manager, treasurer, or other responsible officer of the bank.

b)

By service in person of the warrant of garnishment upon the importer and upon the president, manager, treasurer, or other responsible officer of the bank.

c)

By issuing a warrant of garnishment, publishing it and mailing to the importer and bank branch manager.

d)

By sending a notice of garnishment to the Bangko Sentral ng Pilipinas and the bank where the importer has an account.

71.

Distraint of personal properties are ordered by-

a)

Secretary of Finance

b)

Commissioner of Customs

c)

Assistant Commissioner for PCAG

d)

District Collector

72.

Constructive distraint of personal property is effected-

a)

By requiring the importer to surrender the title or registration of personal properties

b)

By requiring the importer or any person in possession or control of such property to sign a receipt covering the property

c)

By asking the property owner to receive the notice of distraint

d)

By requiring the occupant of the property to receive the order of distraint

73.

Bank accounts shall be garnished by serving a upon the importer and upon the president, manager, treasurer, or other responsible officer of the bank.

a)

Warrant of distraint

b)

warrant of garnishment

c)

notice

d)

warning

74.

The Commissioner or the duly authorized representative shall prepare a duly authenticated certificate showing the name of the importer and the amounts of the duty and tax and penalty due. The certificate shall operate with the force of throughout the Philippines.

a)

Judicial order

b)

Extrajudicial execution

c)

legal execution

d)

legal order

75.

In case the warrant of levy on real property is not issued before or simultaneously with the warrant of distraint on personal property, and the personal property of the importer is not sufficient to satisfy the duty and tax due, the Commissioner or a duly authorized representative shall, within ______, proceed with the levy on the real property of the importer.

a)

30 days after execution of the distraint

b)

15 days after execution of the distraint

c)

10 days after execution of the levy

d)

15 days after execution of the levy

76.

The constructive distraint of personal properties comes with it the requirement for the importer or any person in possession or control of such properties to do the following, except:

a)

to sign a receipt covering the property

b)

to obligate to preserve the distrained property on the state and condition at the time of the government's seizure of the same

c)

not to dispose of the same in any manner whatsoever, without the express authority of the Commissioner.

d)

To annotate on the registry of the property that fact of customs distraint

77.

Which of the following is NOT true in customs distraints?

a)

It is a remedy by which the Bureau may forcibly take the personal properties of a delinquent importer after post clearance audit.

b)

Constructive distraint of property is deemed completed when, upon failure of the importer to sign the receipt, the customs officer prepares a list of properties of the importer and in the presence of 2 witnesses he leaves a copy of the list in the premises where the distrained property is located.

c)

Distrained properties will seized by Customs and subsequently forfeited in favor of the government.

d)

None of the above.

78.

Who has the authority to lift the warrant of distraint and warrant of levy, respectively, under Section 1134 of the CMTA?

a)

Collector, in both instances

b)

Commissioner, in both instances

c)

Collector and Commissioner, respectively

d)

Commissioner and Collector, respectively

79.

In distraint of personal property pursuant to Section 1134 of the CMTA, the officer serving the warrant of distraint shall-

a)

leave an account of the property distrained with their owner, or the person from whom the personal property was taken, or at the dwelling house or place of business of such person and with someone of suitable age and discretion

b)

make or cause to be made an account of the personal property distrained

c)

make a statement of the sum demanded and indicate the time and place of sale

d)

all of the above

80.

Which of the following statements is true, in relation to distraint of personal property under Section 1134 of the CMTA?

a)

A report on the distraint shall, within ten (10) days from the issuance of the warrant, be submitted by the Commissioner to the Secretary of Finance.

b)

Stocks are distrained by serving warrant of distraint upon the importer and upon the Philippine Stock Exchange.

c)

Bank accounts are garnished by serving warrant of distraint upon the importer and upon the responsible officer of the bank.

d)

none of the above

81.

Which among the following expenses/obligations shall be satisfied first from the proceeds of an auction sale of forfeited and abandoned goods?

a)

government storage charges

b)

expenses for advertisement of auctioned goods

c)

demurrage charges

d)

expenses for sale of auctioned goods

82.

The Forfeiture Fund, as provided for by Section 1151 of the CMTA, shall be managed by -

a)

Bureau of Customs

b)

Department of Finance

c)

President

d)

Department of Budget and Management

83.

Who among the following is no longer covered by the disqualification to participate in auction sale under Section 1142 of the CMTA?

a)

the parents of a customs officer

b)

customs officer

c)

a relative of a customs employee (not an officer), within the fourth degree of consanguinity

d)

none of the above

84.

In case the warrant of levy on real property is not issued before or simultaneously with the warrant of distraint on personal property, and the personal property of the importer is not sufficient to satisfy the duty and tax due, the Commissioner or a duly authorized representative shall, within ______ after execution of the distraint, proceed with the levy on the real property of the importer.

a)

30 days

b)

15 days

c)

48 hours

d)

24 hours

85.

In effecting distraint, the distrainable property may not be in the possession of the delinquent importer. Who among the following may be in legal and actual possession thereof for purposes of customs?

a)

The employee of the importer.

b)

The spouse of the importer.

c)

The innocent purchaser for value of the property

d)

The debtor

86.

In customs distraints, who among the following persons is of suitable age and discretion?

a)

A 30-year old imbecile daughter of the importer

b)

The security guard of the company-importer

c)

The spinster owner of the company

d)

None of the above

87.

What kind of jurisdiction does the Bureau exercise in distrain and levy?

a)

Territorial jurisdiction

b)

Jurisdiction over the transaction

c)

Jurisdiction over the person of the importer

d)

Jurisdictional control

88.

May the Bureau of Customs simultaneously distrain, levy, file a civil as well as criminal case against the delinquent importer?

a)

No, the application of those remedies must be in the alternative.

b)

No, it would result to "killing the hen that lays the golden egg".

c)

Yes, the law allows their simultaneous application.

d)

Yes, the purpose is to teach the importer a lesson

89.

In which of the following situations will the properties of the importers not be subjected to constructive distraint?

a)

A delinquent importer retiring from any business subject to duty and tax.

b)

A businessman intending to leave the Philippines for 3 months.

c)

An importer, who, after receiving the notice to pay duties and taxes intends to remove his property from the Philippines

d)

None of the above

90.

SITUATION: Based on a derogatory report that goods in violation of Republic Act 8293 (Intellectual Property Code) are kept inside the warehouse of ABC Corporation in Baclaran, Pasay City, the Commissioner of Customs ordered its inspection. Which of the following, if any, did the Commissioner of Customs issue to cause the inspection of ABC Corporation's warehouse?

a)

Search Warrant

b)

Warrant of Seizure and Detention (WSD)

c)

Letter of Authority (LOA)

d)

Mission Order authorizing the implementation of the LOA

91.

SITUATION: Based on a derogatory report that goods in violation of Republic Act 8293 (Intellectual Property Code) are kept inside the warehouse of ABC Corporation in Baclaran, Pasay City, the Commissioner of Customs ordered its inspection. If, upon demand, ABC Corporation was able to present evidence of payment of duties and taxes within 15 days for all the goods inspected, may customs release such goods?

a)

Yes, provided no WSD has been issued.

b)

Yes, provided ABC Corporation secures a clearance from the Office of the Commissioner.

c)

No, if the goods were proven to be infringing.

d)

No, unless the Commissioner allows the settlement by payment of fine.

92.

SITUATION: Based on a derogatory report that goods in violation of Republic Act 8293 (Intellectual Property Code) are kept inside the warehouse of ABC Corporation in Baclaran, Pasay City, the Commissioner of Customs ordered its inspection. If the goods were proved to be in violation of Republic Act 8293, which of the following should the customs officer do in the implementation of the authority?

a)

Conduct an inventory of the foreign goods.

b)

Prepare and sign an Inventory Report and have it signed by the owner, occupant or person in possession of the goods.

c)

Recommend the issuance of a WSD.

d)

Confiscate the goods.

93.

Which of the following is not true about customs seizures?

a)

There is such a thing as outright forfeiture where subject goods automatically become government property.

b)

It is the process of holding the property for the satisfaction of any administrative fine or for the enforcement of any forfeiture under the Customs and Tariff laws.

c)

Those cases where goods are ordered seized by customs authorities and made subject to the penalty of forfeiture or fine for violation of the Customs Law.

d)

The issue involved is the legality of the importation.

94.

The power of seizure of the Bureau of Customs shall be exercised when an article is

a)

subject to forfeiture

b)

used for illegal acts

c)

liable for any fine imposed under the tariff and customs laws, rules and regulations

d)

all of these

95.

The kind of jurisdiction of customs over seizure cases.

a)

Original and concurrent

b)

Exclusive original

c)

Original and appellate

d)

All of the above

96.

Which of the following is not correct in effecting forfeitures?

a)

Seizures may be effected when and while the goods are in the custody or within the jurisdiction of customs officers.

b)

Seizures may be effected when and while the goods are in the possession or custody of or subject to the control of the importer.

c)

Seizures may not be effected when the goods are in the possession of persons who shall receive the same without knowledge that the goods were imported contrary to law.

d)

None

97.

The party aggrieved by a ruling of the Commissioner of Customs in matters of protest or seizure cases may appeal to the:

a)

Court of Appeals

b)

Court of Tax Appeals

c)

Supreme Court

d)

Secretary of Finance

98.

Which of the following vessels may not be subject to seizure?

a)

Those used in the transporting smuggled goods in commercial quantities.

b)

Those used in the transportation of persons only.

c)

Vessels engaged in coastwise trade which shall have on board goods of foreign growth in excess of the amount necessary for sea stores.

d)

Vessels into which shall be transferred cargo unloaded contrary to law prior to the arrival of the importing vessel or aircraft at the port of destination

99.

Unless an appeal is made within the period prescribed by laws and regulations, the action or ruling of the Commissioner shall be:

a)

final and executory

b)

not final and appealable

c)

final and appealable

d)

final inappealable

100.

If no owner of the seized property appears after the lapse of the reglementary period, the seized property will be:

a)

declared forfeited in favor of the government

b)

sold at public auction

c)

donated to the DSWD

d)

a and b only

101.

Even with the posting of the cash bond, the seized property shall not be released if:

a)

proceeding for the seizure of the article has commenced

b)

there is prima facie evidence of fraud in the importation

c)

the seized article is prohibited by law

d)

all of these

102.

It refers to the situation where, falling short of physical seizure or possession, the Customs Officers and the owner of the goods enter into a written agreement after the inventory to the effect that the goods, subject of a Letter of Authority, shall not be removed or disposed of pending disposition or resolution on the issue of whether proper payment of duties and taxes has been made.

a)

Seizure

b)

Partial seizure

c)

Constructive customs custody

d)

Settlement by payment of fine

103.

In general, the posting of the cash bond shall not relieve the owner of the seized property from criminal liability except if:

a)

there was no violation of the law committed in the importation of the article

b)

the Law Division of the Bureau of Customs, after hearing failed to prove fraud in the importation

c)

the Court of Tax Appeals finds the owner not guilty

d)

all of these

104.

Notification to an unknown owner of the seized articles shall be effected as follows:

a)

by posting in the customhouse

b)

by publication in a Bureau of Customs' newsletter

c)

by registered mail

d)

any of these

105.

The settlement of the seizure case while it is still pending is subject to the limitations that:

a)

there is no fraud in the importation

b)

importation is not prohibited by law

c)

The release of the articles is not contrary to law

d)

all of these

106.

Which of the following statements is not true?

a)

Boxes, cases, envelopes and other containers of whatever character used as receptacles to conceal articles which are themselves subject to forfeiture shall be forfeited even if such were merely leased by the importer.

b)

As a general rule, a horse-drawn vehicle carrying contraband subjects such vehicles to forfeiture including the horse.

c)

Only articles of pure smuggling will be forfeited whether the act constituting the same be attempted, frustrated or consummated. Those of technical smuggling are not covered as a general rule.

d)

None

107.

The forfeiture of the vehicle, vessel, or aircraft shall not be effected if it is established that the owner thereof or the agent in charge has no knowledge of or participation in the unlawful act.

a)

True, except that a prima facie presumption shall exist against the vehicle, vessel, or aircraft under any of the following circumstances if the conveyance has been used for smuggling before

b)

Correct, if the owner is in the business for which the conveyance is generally used

c)

True, if the owner is financially in a position to own such conveyance.

d)

False, because the conveyance should only be seized first.

108.

In forfeiture cases, the District Collector shall issue within fifteen (15) days, or five (5) days in case of perishable goods, from issuance of the warrant.

a)

An order for hearing

b)

A decision

c)

The WSD

d)

Order of release

109.

The District Collector shall issue an order of release or a warrant of seizure within days, or perishable days in case of goods, upon the recommendation of the alerting officer or any other customs officer.

a)

10, 5

b)

15, 5

c)

5, 2

d)

10, 3

110.

May perishable goods be sold in auction during the pendency of the seizure proceedings?

a)

yes, upon order of the Commissioner

b)

yes, upon motion of the importer

c)

no, it is against the law

d)

no, the evidence of smuggling, should it be determined, shall be disposed of

111.

If, within fifteen days after service of warrant, no owner or agent can be found or appears before the District Collector, the seized goods shall be-

a)

forfeited ipso facto in favor of the government

b)

sold immediately in auction except in cases of prohibited or restricted goods

c)

immediately condemned or rendered commercially valueless in case of prohibited goods

d)

donated to DSWD or other charitable non-governmental organizations

112.

Who has the burden of proof in forfeiture proceedings?

a)

Claimant

b)

Importer

c)

Government prosecutor assigned by the Legal Service of the Bureau of Customs

d)

District Collector

113.

Which of the following is not correct in customs settlements?

a)

During the pendency of the seizure case, the District Collector may allow settlement by payment of fine.

b)

The District Collector may allow settlement by redemption of forfeited goods.

c)

The Commissioner may allow settlement by redemption of forfeited goods.

d)

None

114.

The proceeds of the auction of seized perishable goods shall be held in until the final resolution of the proceedings.

a)

Escrow

b)

Abeyance

c)

Separate customs account

d)

Forfeiture fund

115.

For the purpose of serving the warrant, the importer, consignee, or person holding the bill of lading or airway bill shall be deemed the "owner" of the goods. For the same purpose, "authorized representative" shall include any agent of the owner and if the owner or the agent is unknown, any person having possession of the goods at the time of the seizure.

a)

Both statements are true.

b)

Both statements are false.

c)

Only the first statement is true.

d)

Only the first statement is false.

116.

It refers to an abbreviated administrative proceeding wherein only position papers are required to be submitted in lieu of the conduct of a formal hearing.

a)

Pre-trial proceeding

b)

Preliminary Investigation

c)

Summary proceeding

d)

None

117.

In seizure cases, who shall cause the preparation of a list and particular description, classification, and valuation of the goods seized and valuation of identical or similar goods?

a)

Customs officer concerned

b)

Collector of Customs

c)

Commissioner of Customs

d)

All of the above

118.

In seizure cases, which of the following shall be deemed the claimant?

a)

Consignee who negotiated the bill of lading to a buyer.

b)

The salvor who is yet to lodge the goods declaration.

c)

The insurer of the cargo it abandoned at sea.

d)

None

119.

Which of the following is true in automatic review?

a)

It applies to any case where the Collector renders a decision adverse to the government.

b)

It does not apply to original cases where the Commissioner of Customs renders a decision adverse to the government.

c)

The purpose of automatic review is to ensure that Customs collects the correct amount of duties, taxes and other charges.

d)

Only cases which the Commissioner of Customs disposed of using his/her appellate jurisdiction shall be covered by automatic review.

120.

In appeals in forfeitures, what does "the District Collector shall immediately transmit all the records of the proceedings to the Commissioner" mean?

a)

It means that the District Collector loses jurisdiction over the goods subject of the appeal.

b)

It means that the owner of the goods may no longer ventilate his concerns with the Collector.

c)

It pertains to the CMTA requirement that the Collector shall notify the Commissioner of his decisions in new or unsettled questions.

d)

Any of these.

121.

Which of the following is not among the information contained in a WSD?

a)

Customs District

b)

Alleged violation of CMTA or other related laws

c)

Description and quantity of the property sought to be seized

d)

Name and address of the exporter/shipper

122.

In seizure proceedings, who determines whether or not probable cause exists?

a)

Chief, Law Division

b)

Hearing Officer

c)

District Collector

d)

Commissioner

123.

Who shall the District Collector direct to serve the WSD?

a)

Customs Inspector

b)

Chief, Law Division

c)

Enforcement and Security Service

d)

Customs Examiner

124.

In forfeiture proceedings, pleadings filed beyond the reglamentary period shall be considered as mere

a)

Requests

b)

Scrap of sheet

c)

Trash

d)

Scrap of paper

125.

When may a WSD be quashed?

a)

In case of goods seized pursuant to the power of the Commissioner to inspect and visit and the claimant was able to submit proof as required.

b)

The District Collector who issued the WSD has no territorial jurisdiction over the seized goods.

c)

When the concerned government agency, in cases of regulated goods, has issued the necessary clearance or license.

d)

Any of these.

126.

Within how many days must the District Collector resolve a Motion to Quash?

a)

15 working days

b)

15 calendar days

c)

30 working days

d)

30 calendar days

127.

Within how many days must the importer appeal the adverse decision of the District Collector to the Commissioner?

a)

15 working days

b)

15 calendar days

c)

30 working days

d)

30 calendar days

128.

A document evidencing an aggrieved party's intention to seek redress to a decision which shall indicate the parties to the appeal, specify the judgment or final order on the merits or part thereof appealed from.

a)

Notice of Appeal

b)

Memorandum of Appeal

c)

Appeal

d)

Protest

129.

These are orders of the District Collector or Commissioner involving incidental matters that do not dispose of the case completely but leave something to be decided upon.

a)

Ancillary orders

b)

Summary Orders

c)

Interlocutory orders

d)

Delaying orders

130.

No law granting any tax exemptions shall passed without the concurrence of _____ of all the members of the Congress.

a)

Three-fourths

b)

At least one-half

c)

Majority

d)

one-tenths

131.

Which of the following is not an agency under the DOF tasked to generate revenue for the government?

a)

BOC, because it is a bureau, not an agency

b)

BIR, because it was recently transferred to the office of the President

c)

Bureau of Local Government Finance, because it is under the Department of Interior and Local Government

d)

Enforcement, Intelligence and Investigation Bureau because it ceased to function as a government

132.

The Bureau of Customs is under the Department of Finance. Which office of the DOF directly oversees the administration of the BOC?

a)

Revenue Operations Group

b)

Revenue Collection Group

c)

Revenue Monitoring Group

d)

Revenue Generation Group

133.

The inherent powers of the State co-exist with it. This means that the State is invested with these powers the moment it comes into being.

a)

Both statements are true

b)

Both statements are false

c)

Only the first statement is true

d)

Only the first statement is false

134.

It is any law that provides for the assessment and collection of taxes for the support of the government and other public purposes.

a)

Tax Revenue

b)

Tax Statue

c)

Taxation

d)

Law

135.

Taxes are indispensable to state existence. Without taxation, the state cannot raise revenue to pay for the governmental services and deliver basic services to the people.

a)

Taxation Doctrine

b)

Principle of Tax Perpetuity

c)

Lifeblood Doctrine

d)

State Dependence on Money Principle

136.

Taxation is the rule and exemption is the exception. Tax exemptions must be strictly construed against the taxpayer and liberally in favor of the government.

a)

Both statements are true

b)

Both statements are false

c)

Only the first statement is true

d)

Only the first statement is false

137.

A District Collector with a rank of Collector V has a salary grade of ___.

a)

24

b)

25

c)

26

d)

23

138.

The salary grade of Customs Operations Officer V.

a)

18

b)

19

c)

20

d)

21

139.

If a criminal complaint for smuggling will be lodged against the Deputy Commissioner of Customs, the same shall be filed with ___.

a)

Regional Trial Court

b)

Sandiganbayan

c)

DOF

d)

DOJ

140.

There is no Assistant Commissioner of Customs.

a)

True, because only deputy commissioners may be appointed

b)

True, because assistant and deputy are one and the same

c)

False, because the PCAG shall be headed by an assistant commissioner

d)

False. The deputy commissioner may referred to as assistant commissioners

141.

A graduate of BSCA not a customs broker but with at least three years of supervisory experience may be appointed by the Deputy Commissioner of Customs.

a)

True, provided he possesses Career Service Executive Eligibility.

b)

True provided he may not be appointed Commissioner of Customs in case of permanent or temporary vacancy in the latter’s office.

c)

False, being a customs broker is the minimum eligibility requirement.

d)

False, any Deputy Commissioner of Customs must have at least a master’s degree in customs administration.

142.

Tariff and Customs laws and the CMTA are one and the same.

a)

True

b)

False

c)

Depends upon the situation

d)

Cannot be determined.

143.

Which of the following is correct?

a)

The salary grade of the District Collector depends on his rank.

b)

The salary grade of a Collector III is 24.

c)

The District Collector of Customs cannot issue a CMO because only the Commissioner of Customs is authorized to issue the same.

d)

A collector is not required to submit a Statement of Assets, Liabilities and Networth (SALN)

144.

Which of the following is NOT correct?

a)

The Commissioner of Customs need not be confirmed by the Commission of Appointments.

b)

The Commissioner of Customs may suspend a District Collector of Customs.

c)

A customs rank and file employee shall not own a Porsche Sports Car.

d)

The III-gotten Wealth Law applies to the officials and employees of the Bureau of Customs.

145.

Situation 1. Mr. Henry Roque was appointed Commissioner of Customs. On February 1, 2021, while he was in Greenhills Shopping Center, he was caught buying Php 2,000.00 worth of pirated DVDs. Due to embarrassment, he filed an indefinite leave of absence. May he be replaced? If yes, by whom?

a)

Yes, he may be replaced by any of the Deputy Commissioners of Customs in an acting capacity only upon the order of the SOF.

b)

Yes, he may be replaced by a permanent appointment by the SOF.

c)

Yes, the President of the Philippines may appoint one of the Deputy Commissioners to act as Commissioner upon recommendation of the Mr. Henry Roque

d)

No, the BOC has to wait for his return because the absence is merely temporary.

146.

Situation 1. Mr. Henry Roque was appointed Commissioner of Customs. On February 1, 2021, while he was in Greenhills Shopping Center, he was caught buying Php 2,000.00 worth of pirated DVDs. Due to embarrassment, he filed an indefinite leave of absence. If Commissioner Roque would be sued for administrative charges, where should the suit be filed?

a)

The Office of the President since it was the President could act on his case.

b)

RTC of Manila, because the BOC is within the territorial jurisdiction.

c)

Sandiganbayan, because his salary grade is within its jurisdiction.

d)

Supreme Court, because it is the highest court in the Philippines

147.

Situation 1. Mr. Henry Roque was appointed Commissioner of Customs. On February 1, 2021, while he was in Greenhills Shopping Center, he was caught buying Php 2,000.00 worth of pirated DVDs. Due to embarrassment, he filed an indefinite leave of absence. While the administrative case against Commissioner Roque is pending, may he be removed by the President of the Philippines because the latter wants to appoint in his stead Ms. Mocca Yuson?

a)

No, it would violate Commissioner Roque's right to due process.

b)

No, there was no permanent vacancy yet in the office of the Commissioner.

c)

Yes, the President may do so because his appointees serve pleasure, and at his displeasure, he may remove them anytime.

d)

Yes, because Mocca Yuson is qualified and the President is pleased with her.

148.

A criminal case for violation of RA 8293 (Intellectual Property Code of the Philippines) was filed against Commissioner Roque for patronizing pirated DVDs. In his defense, he invoked the doctrine of "State Immunity from Suit" saying that a case against him is a case against the Bureau of Customs. Is he correct?

a)

Yes, because a case against him necessarily implicates the Bureau of Customs to which he is the Chief.

b)

Yes, because the Bureau of Customs and its Commissioner are both entitled to immunity from suit.

c)

No, because both the Bureau of Customs and its officials are not immune from any suit.

d)

No, because the case is against Mr. Roque in his personal capacity.

149.

If Bronson, a customs broker, facilitated the release of the shipment from the BOC knowing fully well of its contents, may he be considered a smuggler also?

a)

No, because as a customs broker, his profession involves customs clearance of goods belonging to his client. He is merely practicing his profession.

b)

No, because he will not benefit in the smuggling being a mere customs broker.

c)

Yes, because he facilitated the release thereof with full knowledge of its illegality.

d)

Yes, because as a rule, customs brokers must be impleaded as co-principals/smugglers.

150.

For purposes of collecting duties and taxes, the Bureau of Customs may levy on real property of the importer, which levy -

a)

is reported by the levying officer to the Secretary of Finance, within thirty (30) days from receipt of the warrant

b)

is resorted to only after the distraint on the importer's personal property is insufficient to satisfy the duties and taxes due

c)

requires that a written notice be mailed to or served upon the register of deeds concerned, and upon the importer

d)

all of the above