TAXATION

FAR EASTERN UNIVERSITY – MANILA

TARIFF AND CUSTOMS CODE (1201)

A. Chief Officials of the Bureau of Customs

One chief and four assistants chiefs
The Bureau of Customs shall have one chief and fours assistant chiefs, to be known respectively as the
Commissioner of Customs.
Five Deputy Commissioners
The Bureau of Customs shall have five Deputy Commissioners of Customs, each one to head:
(a) Customs Revenue Collection Monitoring Group;
(b) Customs Assessment and Operations Coordinating Group;
(c) Intelligence and Enforcement Group;
(d) Internal Administration Group; and
(e) Management System Technology Group

B. Functions of the Bureau of Customs

Functions of the Bureau of Customs
The general duties, powers and jurisdictions of the Bureau of Customs shall include:
a. The assessment and collections of the lawful revenues from imported articles and all other dues, fees,
charges, fines and penalties accruing under the Tariff and Customs laws;
b. The prevention and suppression of smuggling and other frauds upon the customs;
c. The supervisions and control over the entrance and clearance of vessels and aircraft engaged in foreign
commerce;
d. The enforcement of the tariff and customs laws and all other laws, rules and regulations relating to the
tariff and customs administrations;
e. The supervision and control over the handling foreign mails arriving in the Philippines, for the purpose
of the collections of the lawful duty on the dutiable articles, thus imported and the prevention of
smuggling through the medium of such mails
f. Supervise and control all import and export cargoes, landed or stored in piers , airports, terminal
facilities, including container yards and freight stations, for the protection of government revenue
g. Exercise exclusive original jurisdictions over seizure and forfeiture cases under the tariff and customs
laws.

C. Functions of the Tariff Commision

Chief Officials of the Tariff Commission
The officials of the Tariff Commission shall be the Chairman and two (2) Member Commissioners to be
appointed by the President of the Philippines
Functions of the Tariff Commision
The Commission shall investigate:
(a) The administration of, and the fiscal and industrial effects of, the tariff and customs laws of this country
now in force or which may hereafter be enacted;
(b) The relation between the rates of duty on raw materials and the finished or partly finished products;
(c) The effects of ad valorem and specific duties and of compound specific and ad valorem duties;
(d) All questions relative to the arrangement of the schedules and classification of articles in the several
sections of the tariff law;
(e) The tariff relations between the Philippines and foreign countries, commercial treaties, preferential
provisions, economic alliances, the effect of export bounties and preferential transportation rates;
(f) The volume of importation compared with domestic production and consumption;
(g) Conditions, causes and effects relating to competition of foreign industries with those of the Philippines,
including dumping and cost of production;
(h) In general, to investigate the operations of customs and tariff laws, including their relation to the
national revenues, their effect upon the industries and labor of the country, and to submit reports of its
investigation as hereinafter provided; and
(i) The nature and composition of, and the classification and heading number of customs revenue and
other related purposes which shall be furnished to NEDA, Board of Investments, and Central Bank of the
Philippines, and Secretary of Finance.

D. Nature of Tariff and Customs Duties

Tariff and customs duties
Tariff refers to the duties payable on goods imported or exported. It includes customs duties, toll or tribute
payable upon merchandise to the general government.

Customs duties refer to the name iven to taxes on the importation and exportation of commodities, the tariff or
tax assessed upon merchandise imported from, or exported to, a foreign country. It may also refer to taxes
imposed on goods exported from or imported into a country.

Customs and tariffs are synonymous with one another because they both refer to taxes imposed on imported
and exported wares, articles and merchandise.

2. Donor’s tax Page 1 of 12

 E. Basis of Assessment of Duties
Method One- Transaction Value The dutiable value of an imported article subject to an ad valorem rate of duty
Method Two- Transaction Value Where the dutiable value cannot be determinedunder method one, the dutiable
of Identical Goods
Method three- Transaction
Value of Similar Goods
Method Four- Deductive Value
Method Five- Computed Value
Method Six- Fallback Value
Types of Tariffs and Duties
(1) Regular duties - which can be specific duties, ad valorem duties, or a combination of both.
(2) Special duties – which are intended to protect local industries against unfair competition from foreign goods:
12. Tariff and Customs Code
shall be the transaction value, which shall be the price actually paid or payable
for the goods when sold for export to the Philippines.
value shall be the transcation value of identical goods sold for export to the
Philippines and exported at or about same time as the goods being valued.
“Identical Goods” shall mean goods which are the same in all respects, including
physical characteristics, quality and reputation.
Minor differences in appearances shall not preclude goods otherwise conforming
to the definition from being regarded as identical.
Where the dutiable value cannot be determined under the preceding method
(Method two), the dutiable value shall be the transaction value of similar goods
for export to the Philippines and exported at or about same time the goods being
valued.
“Similar goods” shall mean goods which, although not alike in all aspects, have
like characteristics and like component materials which enable them to perform
the same functions and to be commercially interchangeable.
The quality of the goods, their reputation and the existence of a trademark shall
be among the factors to be considered in determining whether goods are similar
The dutiable value of the imported goods under this method shall be the
deductive value which shall be based on the unit price at which the imported
goods or identical or similar imported goods are sold in the Philippines, in the
same condition as when imported, in the greatest aggregate quantity, at or about
the time of importation of the goods being valued, to persons not related to the
person from whom they buy such goods, subject to certain dedctions.
The deductible value under this method shall be the computed value which shall
be the sum of:
(1) The cost or value of materials and fabrication or other processing
employed in producing the imported goods;
(2) The amount for profit and general expenses equal to that usually
reflected in the sale of goods of the same class or kind as the goods
being valued which are made by producers in the country of exportation
for export to the Philippines;
(3) The freight, insurance fees and other transaction expenses for
importation of goods;
(4) Any assist, if its value is not included under paragraph (1) hereof; and
(5) The cost of containers and packing, if their values are not included under
paragraph (1) hereof.
If the dutiable value cannot be determined under the preceding methods
described above, it shall be determined by using other reasonable means and on
the basis of data available in the Philippines.
If the importer so request, the importer shall be informed in writing of the
dutiable value determined under Method Six and the method used to determine
such value.
No dutiable value shall be determined under Method Six on the basis of:
(1) The selling price in the Philippines of goods produced in the Philippines;
(2) A system that provides for the acceptance for customs purposes of the
higher of two alternatives;
(3) The price of goods in the domestic market of the country of exportation;
(4) The cost of production, other than computed values, that have been
determined for identical or similar goods in accordance with Method Five;
(5) The price of goods for export to a country other than Philippines;
(6) Minimum customs values; or
(7) Arbitrary or fictitious values.
Page 2 of 12
 a. Dumping duty – duty imposed on goods which are “dumped: by foreign producers and which
threatens domestic industries in the Philippines. Dumping occurs when foreign producers sell their
products to a Philippine importer at prices lower than in their own domestic market, or at prices below
their cost of production (R.A. No. 8752).
b. Countervailing duty– duty levied on imports which have been found to be subsidized in the country
of origin or exportation (R.A. No. 8751).
c. Marking duty – duty imposed on any good or its container which, at the time of importation, is not
marked with the country of origin of such good. This duty shall be equal to 5% of the dutiable value of
such goods (Sec. 710, R.A. No. 10863)
d. Duty to counter discrimination by foreign countries– Section 714 of R.A. No/ 10863 provides the
President with the legal basis to declare new and additional duties to counter discriminatory practices
of foreign countries other than dumping, subsidies, and import surges, which discriminate against
Philippine-made goods in the domestic markets of such foreign countries.
e. Safeguard duty– duty primarily imposed to protect domestic industries and producer from increased
imports which cause or threaten to cause serious injury to such domestic industries and producers
(R.A. No. 8800).

Kinds of Regular 1. Advalorem Duty - Duty based on the value of the imported article.
Customs Duties 2. Specific Duty -Duty based on the dutiable weight of goods number or measurement.
3. Mixed or Compound Customs Duty – They are imposed both ad valorem and specific
customs duties, e.g., 10% ad valorem plus P100 per piece.
4. Alternating Duty – alternates between ad valorem and specific
Kinds of Special 1. Anti-Dumping
Custom Duties 2. Countervailing
3. Marking
4. Discriminatory
5. Safeguard Duties
Comparison of Special Duties
1. Anti- It is a special duty imposed on the importation of a product, commodity or article of
dumping duty commerce into the Philippines at less than its normal value when destined for domestic
consumption in the exporting country which is the difference between the export price and
the normal value*** of such product, commodity or article. (see Section 301(s)(1), TCC)
***
Normal value for purposes of imposing the anti-dumping duty is the comparable price at
the date of sale of like product, commodity or article in the ordinary course of trade when
destined for consumption in the country of export (see Section 301(s)(3), TCC, as
amended by RA 8752)
Nature Imposed on imported goods where it appears that a specific kind or class of foreign article
is being imported into or sold or is likely to be sold in the Philippines at a price less than its
fair value.
Purpose To protect local industries from undue competition
Amount/Rate Difference between the export price and the normal price

Anti-dumping duty = Export price – Normal Price

Imposing Non-agricultural products: Secretary of Trade and Industry
Authority
Agricultural products: Secretary of Agriculture
Judicial Review Any interested party who is adversely affected by a final ruling imposing an anti-dumping
duty may file with the CTA a petition for review within thirty (30) days from his receipt of
notice of the assailed decision. But such appeals shall not stop or suspend the imposition
of the duty
What are the The requisites are the following:
requisites for a. Where the product, commodity or article of commerce
the imposition 1. Is exported into the Philippines
of anti-dumping 2. At a price less than its normal value
duty? 3. When destine for domestic consumption

b. And such exportation

i. Is causing or
ii. Is threatening to cause material injury to a domestic industry
iii. Materially retards the establishment of a domestic industry producing like product
(see Section 301(a), TCC, as amended by RA 8752)

Note:
(1) The imposing authority for the anti-dumping duty is the DTI Secretary in the case of
non-agricultural product, commodity, or article or the DA Secretary in the case of
agricultural product, commodity or article.

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 (2) Even when all the requirements for the imposition have been fulfilled, the decision on
whether or not to impose a definitive anti-dumping duty remains the prerogative of the Tariff
Commission
(3) In the determination of whether to impose the antidumping duty, the Tariff
Commission may consider among others, the effect of imposing an anti-dumping duty on
the welfare of the consumers and/or the general public, and other related local industries
(4) The amount of anti-dumping duty that may be imposed is the difference between the
export price and the normal value of such product, commodity, or article.
Amount The amount imposed shall be equal to the margin of dumping on such product, commodity
generally or article and on like product, commodity or article thereafter imported to the Philippines
imposed as an under similar circumstances, in addition to ordinary duties, taxes and charges imposed by
anti-dumping law on the imported product, commodity or article. (Sec. 3 [a], R.A. 8752)
duty

2. Counter- It is a special duty imposed on the importation of a product, commodity or article of

vailing duty commerce into the Philippines when the same is granted directly or indirectly by the
government in the country of origin or exportation any kind or form of specific subsidy
upon the production, manufacture or exportation of such product, commodity or article,
and the importation of such subsidized product, commodity or article has caused or
threatens to cause material injury to a domestic industry or has materially retarded the
growth or prevents the establishment of a domestic industry as determined by the Tariff
Commission. (see Section 302, TCC, as amended by RA 8751)
Nature Duty equal to the ascertained or estimated amount of the subsidy or bounty or subvention
granted by the foreign country on the production, manufacture, or exportation into the
Philippines of any article likely to injure an industry in the Philippines or retard or
considerably retard the establishment of such industry.

Note: The Philippine Government may avail of this remedy to protect its local industry
against unfair competition. For example, where goods to be imported to the Philippines
are given subsidy by the foreign origin, importer may impose a lower price, threatening to
cause material injury to the domestic products, Hence countervailing duty may be
imposed.
Purpose To protect local industries from undue competition
Amount/Rate Amount of subsidy
Imposing Non-agricultural products: Secretary of Trade and Industry
Authority
Agricultural products: Secretary of Agriculture
Judicial Review Any interest party who is adversely affected by a final ruling imposing a countervailing
duty may file with the CTA a petition for review within thirty (30) days from his receipt of
notice of the assailed decision. But such appeal shall not stop or suspend the imposition of
the duty

3. Marking Duty A marking duty are the additional customs duties imposed on foreign articles (or its
containers if the article itself cannot be marked) not marked in any official language in the
Philippines in a conspicuous place as legibly, indelibly and permanently in such manner as
to indicate to an ultimate purchaser in the Philippines the name of the country of origin.
(See Section 303, TCC)
Nature Duty imposed on an ad valorem basis imposed for improperly marked articles
Purpose To prevent possible deception
Amount/Rate 5% ad valorem of the goods
Imposing Commissioner of Customs
Authority
Judicial Review None
What are the 1. The article is incapable of being marked
exceptions to 2. The article cannot be marked prior to importation to the Philippines without injury
marking of 3. The article cannot be marked prior to importation to the Philippines except at an
articles? expense economically prohibitive of its importation
4. The marking of the container of such article will reasonably indicate the origin of such
article
5. The article is of a crude substance
6. Such article is for the use of the importer and not intended for sale in its imported or
other form
7. Such article is to be processed in the Philippines by the importer or for his own account
and not for the purpose of concealing the origin of such article
8. The ultimate purchaser by the Character of the article necessarily know the country of
origin of such article
9. Such article was produced more than 20 years prior to its importation into the
Philippines
10. Such article cannot be marked after importation except at an expense economically
12. Tariff and Customs Code Page 4 of 12
 prohibitive and the failure to mark the article before importation was not due to any
purpose of the importer, producer, seller or shipper to avoid compliance.

4. It is an additional customs duty imposed upon articles wholly or in part, the growth or
Discriminatory / product of, or imported in a vessel of any foreign country whenever the President shall
Retaliatory Duty find as a fact that such country:
a. Directly or indirectly upon any Philippine product unreasonable charge, exaction,
regulation or limitation which is not equally enforced upon like articles of other foreign
countries
b. Discriminates in fact against the commerce of the Philippines as to place the Philippines
at a disadvantage compared with the commerce of any foreign country (See Section 304,
TCC)

Nature Duty imposed on imported goods whenever it is found as a fact that the country of origin
discriminates against the commerce of the Philippines in such a manner as to place the
commerce of the Philippines at a disadvantage compared with the commerce of any foreign
country.

Note: For example, a foreign country imposed very high and unreasonable duties on
Philippine articles entering its jurisdiction, while not imposing the same high rates on other
countries goods.
Purpose To protect the national interest
Amount/Rate Not exceeding 100% ad valorem
Imposing President of the Philippines
Authority
Judicial Review None

5. Safeguard Safeguard measures are emergency measures including tariffs to protect domestic
Duty industries and producers from increased imports which inflict or could inflict serious injury
on them.

Nature a. General – imposed upon goods or products imported in increased quantities

b. Special – volume of imports exceed a base trigger level or price falls below a trigger
price level
Purpose To protect domestic industries and producers from increased imports
Amount/Rate a. General – tariff increase, either ad valorem or specific or both, to be paid through a
cash bond set a level sufficient to redress or prevent injury to the domestic industry
b. Special –
1. Volume test
2. Price test
Imposing a. General – Secretary of Trade and Industry and Secretary of Agriculture
Authority b. Special – Secretary of Agriculture
Judicial Review Any interested party who is adversely affected by the ruling of the Secretary in connection
with the imposition of a safeguard measure may file with the CTA a petition for review of
such ruling within thirty (30) days from receipt thereof But the filing of such petition for
review shall not in any way stop, suspend or otherwise toll the imposition or collection of
the appropriate tariff duties or the adoption of other appropriate safeguard measures, as
the case may be.
,

Duty Drawback

Refund of customs duties paid on the following goods after compliance with all the condition and documentary
requirements provided by law:
(1) On fuel used for the propulsion of vessels1;
(2) On petroleum oils, oils obtained from bituminous minerals, and crude oil, eventually used for generation of
electric power and for the manufacture of city gas2;
(3) On goods made from imported materials and which are exported within one (1) year after the importation3.

1
A refund or tax credit not exceeding 99% of the duty imposed shall be allowed on all fuel imported into the Philippines used
for propulsion of vessels engaged in trade with foreign countries, or in the coastwise trade (Sec. 900(A), R.A. No. 10863).

2
A refund tax credit not exceeding fifty percent (50%) of the duty imposed shall be allowed on petroleum oils, oils obtained
from bituminous materials, and crude oil imported by non-electric utilities, sold directly or indirectly, in the same form
or after processing, to electric utilities for the generation of electric power and for the manufacture of city gas (Sec. 900(B),
R.A. No. 10863).

12. Tariff and Customs Code Page 5 of 12

 Note: Prescription of drawback claim. A claim and application for a drawback shall prescribe if it is not filed
within one (1) year from the date of importation in (1) and (2) above, or within one (1) year from the date of
exportation in the case of (3) above (Sec. 902, R.A. No. 10863).

F. Documents required for Importation of goods

Import entry and internal
revenue declaration
Import Entry and Internal Revenue Declaration:
1. Supplemental Declaration in value (SDV);
2. Bill of Lading (BL) orr Airway Bill (AWB);
3. Commercial Invoice;
4. Packing List
5. Processing Report Form
6. Certificate of Origin (if applicable)
7. Insurance Certificate/Policy (if applicable)
8. Duty/Tax exemption (if applicable)
9. Other Imports Permits (if applicable)

DOCUMENTS REQUIRED FOR IMPORTATION OF GOODS

Import documents required for shipments tot the Philippines include:

(1) Commercial invoice/Pro forma invoice;
(2) Bill of lading (for sea freight) or air waybill (for air freight)
(3) Certificate of origin (if requested);
(4) Packing list;
(5) Applicable special certificates/import clearance/permit depending on the nature of goods being shipped and/or
requested by the importer/bank/letter of credit clasuse, e.g., Food and Drug Administration (“FDA”) license;
and
(6) Commercial invoice of Returned Philippine Goods and/or Supplemental Declaration on Valuation

Note: For a Letter of Credit (“L/C”) transaction, a duly accomplished L/C, including a Pro-forma Invoice and
Import Entry Declaration for Advance Customs Import Duty (“ACID”) is required. A Pro-forma Invoice is
required for a non-L/C transaction (e.g., Draft Documents against Acceptance (“D/D”), Documents against
Payment (“D/P”), Open Account (“OA”) or self-funded documentation.

3
Upon exportation of goods manufactured or produced in the Philippines, a refund or tax credit not exceeding 100% of the duties
paid shall be allowed on the improved materials used including the packing, covering, putting uo, marking or labeling
thereof (Sec. 900©, R.A. No. 10863).

12. Tariff and Customs Code Page 6 of 12

Source: Bureau of Import Services of the DTI.

12. Tariff and Customs Code Page 7 of 12

 G. Documents required for export of goods
Documents required for export The following documents are required to be submitted to the BOC:
of goods 1. Export Declaration (ED)
2. Commerical Invoice;
3. Bill of Lading;
4. Packing List;
5. Certificate f Identification;
6. Certificate of Inspection and Loading;
7. Certificate of Origin;
8. Transfer Note;
9. Other Export Permits (if applicable)
DOCUMENTS REQUIRED FOR EXPORT OF GOODS

1. Export Declaration

all goods exported from the

philippines, whether subject to export
duty or not, shall be declared
through a competent customs office
through an export declaration, duly
signed electronically or otherwise by
the party making the declaration.

The description of the goods in the

export declaration must contain
sufficient and specific information for
statistical purposes as well as for the
proper valuation and classification of
the goods (Sec. 500, R.A. No.
10863).

2. Export Clearance

Some products are regulated or

prohibited to be exported. Regulated
products will be allowed only if
cleared by the government agency
regulating the specific product. The
exporter must consult with the
Department of Trade and Industry to
find out if an export clearance is
needed for its particular product.
3. Commercial Invoice
4. Packing List Also required when the exporter requests for a Certificate of
5. Bill of Lading Origin
6. Certificate of Origin

Pursuant to the applicable rules of origin, the BOC or any other designated government agency may
determine the origin of goods for export and, if appropriate, issue the corresponding certificates of origin.
However, the exporter may adopt a self-certifivation system, provided, that it is duly accredited by the BOC or
any other authorized government agency (Sec. 503, R.A. No. 10863).
7. Insurance policy if applicable
8. Post loading Certificates (optional)

Ex. Certificates of shipment; Proofs of payment

(Multiple Choice Questions)

1. Republic Act 10863 is otherwise known as

A. Customs Modernization and Tariff Act
B. Customs Modernization and Tariff Act
C. Tariff Modernization and Customs Act
D. Customs Modernization and Tariff Commission Act

12. Tariff and Customs Code Page 8 of 12

 2. Which of the following is not a function of the Tariff Commission?
A. Governmental function
B. Quasi-judicial function
C. Judicial function
D. Advisory function

3. The Tariff Commission shall not

A. Conduct public consultations and public hearings pursuant to its functions;
B. Provide the president and congress with independent analysis, information and technical support on matters
related to tariff and nontariff measures affecting Philippine industries and exports for policy guidance;
C. Collect customs duties on importation of goods;
D. Issue advance rulings on tariff classification of imported goods and render rulings on disputes over tariff
classification of goods pursuant to Section 1100 of this Act, except in cases involving goods on which the
Commission has provided advance ruling on tariff classification.

4. The agency which is charged with assessing and collecting customs revenues, curbing illicit trade and all forms
of customs fraud, and facilitating trade through an efficient and effective customs management system.
A. Bureau of Internal Revenue
B. Bureau of Customs
C. Tariff Commission
D. Department of Finance

5. The Bureau of Customs is an agency under the

A. Department of Foreign Affairs
B. Department of Tourism
C. Department of Finance
D. Office of the President

6. The task of controlling border so as to prevent entry of smuggled goods in the Philippines is a function of the
A. Department of Transportation
B. Philippine Coastguard
C. Department of National Defense
D. Bureau of Customs

7. All of the following, except one, are functions of the Bureau of Customs
A. Administer the Philippine tariff schedules and tariff nomenclatures;
B. Facilitation and security of international trade and commerce through an informed compliance program;
C. Supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce;
D. Prevention and suppression of smuggling and other customs frauds.

8. Which of the following is a function of the Bureau of Customs?

A. Study the impact of tariff policies and programs on national competitiveness and consumer welfare in line with
the economic objectives of the government;
B. Analyze the nature and composition, and the classifications of goods according to tariff commodity
classification and heading number for customs and other related purposes;
C. Supervision and control on all import and export cargoes, landed or stored in piers, airports, terminal
facilities, including container yards and freight stations for the protection of government revenue and
prevention of entry of contraband;
D. Review the trade agreements for negotiation and trade agreements entered into by the Philippines and make
recommendations, if necessary, on the consistency of the terms of the agreements with the national policy
objectives.

9. This refers to the price actually paid or payable for the goods when sold for export to the Philippines
A. Taxable value
B. Dutiable value
C. Assessed value
D. Landed cost

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 10. Customs duty is classified as a/an
A. Local tax
B. Ad valorem tax
C. Specific tax
D. Poll tax

11. In determining the customs duties, an imported article shall be assessed based on dutiable value which shall be
computed by sequentially applying the following valuation methods. Which of the following methods is given
the highest priority?
A. Transaction Value of Identical Goods
B. Transaction Value
C. Transaction Value of Similar Goods
D. Deductive Value

12. Transaction value is dutiable value plus the following except

A. Commissions and brokerage fees
B. Value-added tax
C. Cost of insurance
D. Freight cost

13. Goods which are the same in all respects, including physical characteristics, quality and reputation. Minor
differences in appearances shall not preclude goods otherwise conforming to the definition from being regarded as
–
A. Identical goods
B. Similar goods
C. Opposite goods
D. Different goods

14. Goods which, although not alike in all respects, have like characteristics and like component materials which
enable them to perform the same functions and to be commercially interchangeable. The quality of the goods,
its reputation and the existence of a trademark shall be among the factors to be considered in determining
whether goods are –
A. Identical goods
B. Similar goods
C. Opposite goods
D. Different goods

15. Where the dutiable value cannot be determined under Deductive Value Method, the dutiable value shall be the
–
A. Fallback value
B. Deductive value
C. Computed value
D. Transaction value

16. What are different classification of imported goods, except?

a. Contraband
b. Duty Free
c. Conditionally Free goods
d. Dutiable goods
e. Smuggled goods.

17. Which of the following is a regular duty?

a. Marking Duty.
b. Discriminatory Duty
c. Alternative Duty.
d. Countervailing Duty.

18. Which of the following is a special duty?

a. Ad Valorem

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b. Specific
c. Compounding Duty
d. Dumping Duty.

19. The present system of customs valuation is the transaction value of the imported article. There are, however,
certain instances where the transaction value of the imported article could not be determined. Under this situation,
the BOC is allowed to use alternative methods of valuation. Which among the following methods is not recognized as
one of the alternative methods?
a. Normal Value
b. Deductive Value
c. Computed Value
d. Fallback Value

20. Which are regular tariff and duties impose by the Bureau of Customs?
a. Dumping duty
b. Countervailing duty
c. Marking duty
d. Ad valorem

21. What are special tariff and duties impose by the Bureau of Customs?
a. Compound duty
b. Alternative duty
c. Specific duty
d. Discriminatory duty

22. Which among the following is a special customs duty?

a. Ad valorem duty
b. Anti-dumping duty
c. Specific customs duty
d. Mixed customs duty

23. This is a customs duty that is computed on the basis of the transaction value of the imported article.
a. Anti-dumping duty
b. Specific customs duty
c. Ad valorem customs duty
d. Countervailing duty

24. Consider the following statements:

I. The purpose of regular customs duties is to raise revenues to meet the needs of government.
II. The imposition of customs duties also assist in economic development.
III. Customs duties are sometimes imposed to protect local consumers.
IV. Compound custom duties are computed only on the basis of units of measure such as weight, measurement,
quantity, etc.
After considering the above statements, choose the correct answer from the following:
a. All the above statements are correct.
b. Only statements I, II, and III are correct.
c. Only statements I, III, and IV are correct.
d. Only statements I, II, and IV are correct.

25. Albert, a shrewd businessman, went to Europe for a pleasure trip. While in Madrid, Spain, he found out that a 50
oz. bottle of orange marmalade sells for the equivalent of P20 in the supermarkets. However, when he went to
Barcelona, he found out that a local producer of 50 oz. bottle of orange marmalade is willing to sell the same for
export at the price of P180 per dozen. Sensing a very good profit opportunity, because in the Philippines the
wholesale price charged by Philippine manufacturers of a similar bottle of orange marmalade is P25, he decided to
import 10,000 dozen of the item into the Philippines.

Under the above circumstances, what possible special customs duty may be imposed upon arrival of the 10,000 dozen
bottles of orange marmalade in the Philippines?
a. Marking duty
b. Anti-dumping duty
c. Countervailing duty
d. Discriminatory duty

26. Which among the following statements would be descriptive of a discriminatory duty?
a. It may be imposed by the Secretary of Finance upon recommendation of the Secretary of Foreign Affairs who
would know of the discriminatory practices from the various ambassadors posted in foreign countries.
b. The discriminatory duty is imposed in order to protect Philippine consumers from the influx of cheap imported
goods from other countries.

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c. In the instance where the country of origin of the products subject to discriminatory duties persists in its
discriminatory practices against Philippine products, the President of the Philippines may ban imports for such
countries.
d. Discriminatory duties are imposed whenever any product is granted any form of specific subsidy by the country of
origin without granting the same subsidy to products of other countries.

27. As a result of construction boom where the demand for steel billets soared to very high levels, a shortage
resulted.

Mighty company imported steel billets from Russia which are not manufactured in the Philippines. The selling price in
Russia of the steel billets is US$100 per ton, but were sold to Prieto Company at only US$50 per ton FOB Russian
Port. The Russian government grants a reward of US$5 per ton of steel billet which is exported. What customs duties
are due on the importation of the steel billets?
a. Only anti-dumping duties
b. Only regular custom duties
c. Regular custom duties and anti-dumping duties
d. Regular custom duties and countervailing duties

Items 28 through 30 are based on the following information:

Mara Clara won the light flyweight title of the Women’s International Boxing Association that was held in one city in
China. She went back to the Philippines with an article she bought in that country. When it passed the Bureau of
Customs, the customs personnel made the following valuations:
Cost $400.00
Insurance 16.00
Postage 30.31
Tariff rate 15%
Documentary stamp tax P15.00
Exchange rate: US $1.00 = P45.143

28. The customs duty is

a. $ 20,147.77 b. $446.41 c. P3,022.17 d. P2,782.19

29. The value-added tax payable on importation

a. P2,417.73 b. P5,819.00 c. P3,022.17 d. P2,789.19

30. The total tax payable before the belt is released from the Bureau of Customs is-
a. P5,804.00 b. P5,819.36 c. P3,022.17 d. P2,782.19

31. A device or scheme resorted to enable merchandise affected by taxes to be exported and later sold in foreign
countries under the same terms as if it is not taxed at all is called?
a. Import Entry
b. Manifest
c. Drawings
d. Draw back

12. Tariff and Customs Code Page 12 of 12