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WorksheetsCM 428 SEMI-FINALS QUIZ 3
Total questions: 20
Worksheet time: 20mins
A Philippine-registered fishing vessel unloads its catch in a foreign port for sale, then later brings a new batch of aquatic products to the Philippines. The owner claims duty and tax exemption under Section 800 for all aquatic products brought in. Based on the conditions for aquatic products, how should customs treat the shipment?
Deny the exemption for all aquatic products because any prior foreign landing disqualifies future shipments
Grant exemption only if the current batch did not pass through or land in any foreign port, regardless of previous voyages
Grant exemption for all aquatic products because the vessel is of Philippine registry
None of the choices
A customs officer is checking documents for a shipment claiming exemption under Section 800. The file includes BL, invoice, packing list, and permits. However, there is no Tax Exemption Indorsement (TEI) from the DOF–Revenue Office. Which is the most appropriate action?
Require the importer to secure TEI first
Allow release under exemption since commercial documents are already complete
Allow release under exemption provided the importer posts 100% security in lieu of TEI
None of the choices
A foreign salvage company imports special equipment for use in salvaging a sunken aircraft in Philippine waters. The equipment is not available locally, and 100% security equivalent to duties and taxes is posted. Due to delays, the salvage ends 8 months after acceptance of the goods declaration. How should customs handle the security?
Forfeit the security because the exemption is strictly for 6 months only with no extension
Allow extension of the re-exportation period by another 6 months, keeping the security valid
Convert the shipment to consumption entry and apply the posted security to duties and taxes
None of the choices
A vessel of Philippine registry was damaged by severe weather abroad and had to undergo emergency repairs in a foreign port. The owner now re-enters the vessel in the Philippines and claims conditional exemption under Section 800(C). On what value should duties and taxes, if any, be based?
On the total value of the repaired vessel including all parts and labor
Only on the cost of repairs, excluding the value of goods used in repairs
On the original acquisition cost of the vessel minus depreciation
None of the choices
A company brings industrial machinery into the Philippines for reconditioning, intending to re-export the same machine after repairs. The goods are correctly declared under the pertinent subsection for goods brought in for repair and re-exported. If, after reconditioning, the company decides to sell the machine locally, what is the correct treatment?
Treat as regular importation subject to full duties and taxes based on its condition after repair
Allow continued exemption since it was originally admitted for repair and re-export
Require only payment of documentary stamp tax because duties were already secured
None of the choices
A returning resident stayed abroad for 11 years, did not previously avail of any returning resident privilege in the past 10 years, and is bringing in personal and household effects purchased abroad. The FOB value totals ₱360,000. How much value may be exempt from duties and taxes under Section 800(F)?
Up to ₱350,000, with the excess subject to duties and taxes
Up to ₱250,000 only, regardless of stay beyond 10 years
Entire ₱360,000 because any stay of 10 years or more is fully exempt
None of the choices
A returning resident stayed abroad for 6 years and has not used the privilege in the last 5 years. She brings in personal and household effects purchased abroad worth ₱260,000 FOB. Under Section 800(F), what is the proper treatment?
Exempt up to ₱250,000; the excess ₱10,000 is subject to duties and taxes
Exempt up to ₱150,000; the excess is dutiable because stay is less than 10 years
Exempt up to ₱350,000 because she exceeded 5 years abroad
None of the choices
An Overseas Filipino Worker (OFW), duly certified by DOLE/POEA, returns home and brings one unit each of a television, washing machine, and refrigerator as home appliances. The total FOB value is ₱140,000, arriving within 60 days from the OFW’s arrival. This is the OFW’s second availment within the same calendar year. How should customs treat the importation?
Deny the exemption because OFWs may avail only once per calendar year
Grant full exemption since the total value is within ₱150,000 and not in commercial quantity
Grant partial exemption and treat the rest as subject to duties and taxes
None of the choices
A resident of the Philippines sends balikbayan boxes (BBB) three times in one calendar year. Each shipment contains only personal and household effects not in commercial quantity, and the total FOB value for all three shipments is ₱140,000. What is the correct application of the BBB exemption?
Fully exempt since total annual FOB value does not exceed ₱150,000 and the limit is 3 availments per year
Fully exempt for only the first shipment; the second and third must be fully dutiable
Exempt only up to ₱50,000 per shipment as long as there are not more than three shipments
None of the choices
A tourist arrives with professional camera equipment and musical instruments intended for personal use during a three-month stay in the Philippines. The traveler signs a written commitment to re-export them within three months from acceptance of the goods declaration. After 3 months, the traveler requests an extension. Under Section 800(H)(1), what is the correct course of action?
Grant an extension for another 3 months upon approval and continued security
Immediately assess duties and taxes, as no extension is allowed
Allow an indefinite extension as long as the security remains posted
None of the choices
A foreign consultant hired by the Philippine government brings in a personal vehicle and household effects for the duration of a 2-year contract. The items accompany the arrival and are for personal use. After the contract ends, the consultant sells the vehicle locally instead of re-exporting it or paying duties and taxes within 3 months. What is the correct implication under Section 800(H)(2)?
The sale triggers liability for duties and taxes plus possible penalties
The exemption continues because the vehicle was imported in connection with a government contract
The exemption becomes permanent after the consultant’s 2-year stay
None of the choices
A foreign national comes to permanently settle in the Philippines. He brings personal instruments, domestic animals, and industrial machinery used in manufacturing. Under Section 800(I), which items may not be treated as conditionally tax and duty-exempt under this subsection?
The industrial machinery, because vehicles, aircraft, machineries, and similar goods for manufacture are excluded
The domestic animals, because only household items are covered
The personal instruments, because the privilege is for apparel only
None of the choices
A foreign film producer brings high-value filming equipment into the Philippines for recording motion picture films. The producer posts the required security and executes an affidavit that the goods are not for sale, barter, or hire. After filming, the producer asks to keep the equipment in the Philippines for use in a commercial studio. Under Section 800(K), what is the correct action?
Deny continued exemption and require payment of duties and taxes or re-exportation
Allow permanent retention without duties because the equipment was first used for filming
Allow conversion to tax-exempt donation without any further requirement
None of the choices
A cultural institution imports technical and scientific films for educational purposes. It charges admission fees to recover only maintenance costs, not to earn profit. Under Section 800(J), which condition is most critical to retain the exemption?
The films must not be exhibited for profit
The institution must be privately owned
The films must be stored for at least 3 months before use
None of the choices
A foreign embassy imports office furniture and communication equipment for official use. Under Section 800(L), exemption may be granted if which condition is satisfied?
The foreign country grants reciprocal privileges to Philippine agencies
The goods arrive only by air freight and not by sea
The embassy agrees to sell all items to Philippine government after use
None of the choices
A non-profit relief organization, duly registered and not operated for profit, imports food packs and medical supplies for free distribution to typhoon victims. To claim duty and tax exemption under Section 800(M), which additional requirement must be met?
Certification from DSWD, DepEd, or DOH
Certification only from the Bureau of Customs because it handles importation
C. Certification from the local government unit where the goods will be distributed
None of the choices
A manufacturer exports cement using kraft paper bags and later imports the same reusable bags for re-use. Under Section 800(N), which of the following is true about the conditions for exempt containers?
Containers must be readily identifiable, reusable for transportation, and covered by 100% security for 6 months from acceptance of GD
Containers must be non-reusable and disposable, and covered by 100% security for 6 months from acceptance of GD
Security is required only if the importer chooses not to re-export
None of the choices
A vessel operating on an international route buys saloon stores (duty-free items for sale on board) abroad and arrives in the Philippines. Some surplus saloon stores remain unused when the vessel departs again. Under Section 800(O), how is the surplus treated?
Surplus saloon stores arriving from foreign ports are dutiable
Surplus saloon stores are always exempt since they are for ship use
Surplus is exempt only if consumed before departure
None of the choices
A family imports a coffin containing human remains and used personal effects of the deceased, with a total FCA value of ₱160,000. Based on Section 800(Q) and (R), how should customs treat the importation?
Coffin and remains may be exempt, but other effects are only exempt within the threshold value
Both coffin and all effects are fully exempt regardless of value
Only the coffin is exempt; all other items are fully dutiable
None of the choices
A company imports jewelry and perfumes labeled as “samples” with a commercial catalog, claiming exemption as commercial samples under Section 800(R)(2). The FCA value is ₱90,000. Which is correct based on the rules for commercial samples?
Jewelry and precious stones are excluded and exemption is only up to ₱50,000 FCA
All samples are exempt regardless of value, as long as they are labeled “sample”
Exemption applies fully to all items up to ₱100,000 FCA
None of the choices
