CMTA Definition Of Terms Quiz By Jim Sena

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CMTA Definition Of Terms Quiz By Jim Sena - Quiz


Questions and Answers
  • 1. 

    Refers to any person who deals directly with the Bureau, for and on behalfof another person, relating to the importation, exportation,movement or storage of goods. 

    Explanation
    The term "third party" refers to a person who interacts with the Bureau on behalf of someone else in matters related to the importation, exportation, movement, or storage of goods. This individual acts as an intermediary between the Bureau and the person they represent, facilitating communication and handling the necessary procedures.

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  • 2. 

    Refers to the person actually transporting goods or in charge of or responsible for the operation of the means of transport such as airlines, shipping lines, freight forwarders, cargo consolidators, non-vessel operating common carriers and other international transport operators

    Explanation
    The term "carrier" refers to the person or entity who is responsible for the transportation of goods or the operation of the means of transport. This can include various types of transport operators such as airlines, shipping lines, freight forwarders, cargo consolidators, and non-vessel operating common carriers. The carrier is the party that physically moves the goods from one location to another and is accountable for their safe and timely delivery.

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  • 3. 

    Refers to the act of bringing imported goods directly or through transit into a free zone.

    Explanation
    The answer "admission, admission" refers to the act of bringing imported goods directly or through transit into a free zone. This means that goods that are imported can be admitted or brought into a free zone either directly or through transit. The term "admission" is used twice to emphasize this process of bringing goods into a free zone.

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  • 4. 

     Refers to the importer, exporter,  customs broker, forwarder, freight forwarder, transport provider, and any other entity  duly accredited by the Bureau based on the World Customs Organization (WCO)  Framework of Standards to Secure and Facilitate Global Trade, the Revised Kyoto  Convention (RKC), the WCO Supply Chain Management Guidelines and the various  national best practices to promote trade facilitation and to provide a seamlessmovement of goods across borders through secure international trade supply chains with the use of risk management and modern technology.

    Explanation
    The term "Authorized Economic Operator" refers to entities such as importers, exporters, customs brokers, forwarders, and transport providers that have been accredited by the Bureau based on international standards and guidelines set by the World Customs Organization (WCO). These entities are recognized for their compliance with customs regulations and their ability to secure and facilitate global trade. They play a crucial role in promoting trade facilitation and ensuring the smooth movement of goods across borders through the use of risk management and modern technology.

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  • 5. 

     Refers to the customs procedure applicable to  goods which, being in free circulation, leave the Philippine territory and are intended to  remain permanently outside it.

    Explanation
    The correct answer is Actual Exportation, Outright Exportation. Actual Exportation refers to the customs procedure applied to goods that are in free circulation and are leaving the Philippines permanently. Outright Exportation also refers to the same process of exporting goods out of the Philippine territory with the intention of them remaining permanently outside the country. Both terms describe the procedure for exporting goods from the Philippines.

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  • 6. 

    Refers to a transport document issued by shipping lines, carriers and international freight forwarders or non-vessel operating common carrier for water-borne freight.  The holder or consignee of the bill has the right to claim delivery of the goods at the port of destination.  It is a contract of carriage that includes carrier conditions, such as limits of liability and claims procedures.  In addition, it contains transport instructions to shipping lines and carriers, a description of the goods, and applicable transportation charges

    Explanation
    A bill of lading is a transport document issued by shipping lines, carriers, and international freight forwarders for water-borne freight. It is held by the consignee or holder of the bill and grants them the right to claim delivery of the goods at the destination port. The bill of lading serves as a contract of carriage, outlining the carrier's conditions, liability limits, and claims procedures. It also includes transport instructions, a description of the goods, and applicable transportation charges.

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  • 7. 

    Refers to the customs procedure known under the Revised Kyoto Convention (RKC) as temporary admission in which certain goods can be brought into a customs territory conditionally relieved, totally or partially, from payment of import duties and taxes; such goods must be imported for a specificpurpose and must be intended for re-exportation within a specified period and without having undergone any substantial change except due to normal depreciation. 

    Explanation
    Conditional importation refers to the customs procedure known under the Revised Kyoto Convention (RKC) as temporary admission. It allows certain goods to be brought into a customs territory with the condition that they are relieved, either partially or totally, from payment of import duties and taxes. These goods must be imported for a specific purpose and must be intended for re-exportation within a specified period. Additionally, these goods should not undergo any substantial change except for normal depreciation.

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  • 8. 

    Refers to the reduction or diminution, in whole or in part, of duties  and taxes where payment has not been made.

    Explanation
    Abatement refers to the reduction or diminution of duties and taxes where payment has not been made. This means that if someone has not paid their duties or taxes in full, they may be eligible for an abatement, which would reduce the amount owed. This could be due to various reasons such as financial hardship or a mistake in the calculation of the taxes. An abatement helps to alleviate the burden on the individual or business by reducing the amount they are required to pay.

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  • 9. 

    As distinguished from a clerk or employee, refers to a person whose duty, not being clerical or manual in nature, involves the exercise of discretion in performing the function of the Bureau.  It may also refer to an employee authorized to perform a specific function of the Bureau

    Explanation
    A customs officer is a person who is responsible for carrying out duties that require the exercise of discretion in performing the functions of a bureau. This role is distinct from that of a clerk or employee who performs clerical or manual tasks. A customs officer may also be an employee who is authorized to perform a specific function of the bureau.

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  • 10. 

    Refers to areas in the Philippines where customs and tariff laws may be enforced.

    Explanation
    Customs Territory refers to areas in the Philippines where customs and tariff laws may be enforced. This means that within these areas, customs officials have the authority to regulate and control the movement of goods, collect customs duties and taxes, and enforce import and export regulations. The concept of Customs Territory is important for maintaining the integrity of a country's customs system and ensuring compliance with trade laws and regulations.

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  • 11. 

    Refers to the power of the President upon recommendation of the NEDA (1) to increase, reduce or remove existing protective tariff rates of import duty, but in no case shall be higher than 100% ad valorem; (2) to establish import quota or to ban importation of any commodity as may be necessary; and (3) to impose additional duty on all import not exceeding 10% ad valorem whenever necessary.

    Explanation
    The given correct answer, "Flexible Clause," refers to the power of the President to make changes to protective tariff rates, establish import quotas or bans, and impose additional duties on imports. This clause allows the President, upon recommendation from the NEDA, to adapt and adjust import policies as necessary for the country's economic needs. The clause provides flexibility in addressing trade issues and protecting domestic industries.

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  • 12. 

    Refers to special economic zones registered with the Philippine Economic Zone Authority (PEZA) under Republic Act No. 7916, as amended, duly chartered or legislated special economic zones and freeports such as Clark Freeport Zone, Poro Point Freeport Zone, John Hay Special Economic Zone and  Subic Bay Freeport Zone under Republic Act No. 7227 as amended by Republic Act No. 9400, the Aurora Special Economic Zone under Republic Act No. 9490, as amended, the Cagayan Special Economic Zone and Freeport under Republic Act No. 7922, the Zamboanga City Special Economic Zone under Republic Act No. 7903, and Freeport Area of Bataan under Republic Act  No. 9728 and such other freeports as established or may be created by law.

    Explanation
    The correct answer refers to a Free Zone. A Free Zone is a designated area within a country where goods can be imported, stored, processed, and re-exported without being subject to customs duties or other trade barriers. In the context of the given information, the special economic zones and freeports mentioned are considered Free Zones, where businesses can enjoy various incentives and benefits to promote investment and economic growth.

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  • 13. 

    Refers to the act of bringing in of goods from a foreign territory into Philippine territory, whether for consumption, warehousing, or admission as defined in this Act.

    Explanation
    The given definition describes the act of bringing goods from a foreign territory into the Philippines, whether for consumption, warehousing, or admission. This act is referred to as importation.

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  • 14. 

    Refers to a local entity that acts as a cargo intermediary and facilitates transport of goods on behalf of its client without assuming the role of a carrier, which can also perform other forwarding services, such as booking cargo space, negotiating freight rates, preparing documents, advancing freight payments, providing packing/crating, trucking and warehousing, engaging as an agent/representative of a foreign non-vessel operating as a common carrier/cargo consolidator named in a master bill of lading as consignee of a consolidated shipment, and other related undertakings.

    Explanation
    A freight forwarder is a local entity that acts as an intermediary in the transportation of goods. They facilitate the transport of goods on behalf of their clients without assuming the role of a carrier. In addition to this, freight forwarders can also provide other services such as booking cargo space, negotiating freight rates, preparing documents, advancing freight payments, providing packing/crating, trucking and warehousing. They may also act as an agent/representative of a foreign non-vessel operating as a common carrier/cargo consolidator named in a master bill of lading as consignee of a consolidated shipment. Overall, a freight forwarder performs various tasks and services related to the transportation of goods.

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  • 15. 

    Refers to the registration of a goods declaration with the Bureau.

    Explanation
    The term "lodgement" refers to the act of submitting or registering a goods declaration with the Bureau. It implies the formal process of providing all the necessary information and documents related to the goods being declared. This could include details such as the nature of the goods, their origin, value, and any applicable taxes or duties. The term "lodgement" suggests a systematic and official procedure for recording and processing the goods declaration.

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  • 16. 

    Refers to an entity, which  may or may not own or operate a vessel that provides apoint-to-point service which  may include several modes of transport and/or undertakesgroup age of less container  load (LCL) shipments and issues the correspondingtransport document.

    Explanation
    A Non-Vessel Operating Common Carrier (NVOCC) refers to a company that may or may not own or operate a vessel but provides point-to-point services that may involve multiple modes of transport. They also handle groupage of less container load (LCL) shipments and issue the necessary transport documents. In other words, NVOCCs act as intermediaries between shippers and ocean carriers, consolidating smaller shipments into larger containers for more efficient transportation. They play a crucial role in the logistics industry by offering cost-effective solutions for smaller shipments and simplifying the shipping process for customers.

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  • 17. 

    Refers to goods liable to perish or goods that depreciate greatly in value while stored or which cannot be kept without great disproportionate expense, which may be proceeded to, advertised and sold at auction upon notice if deemed reasonable.

    Explanation
    The correct answer is "Perishable Good, perishable goods." This is because the passage describes goods that are liable to perish or depreciate greatly in value while stored, or cannot be kept without great expense. These goods can be proceeded to, advertised, and sold at auction upon reasonable notice. Therefore, the term "Perishable Good" or "perishable goods" accurately describes the type of goods being referred to in the passage.

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  • 18. 

    Refers to a place where a  vessel, ship, aircraft or train unloads its shipments,from where they will be dispatched  to their respective consignees.

    Explanation
    The correct answer is "Port of Discharge, port of unloading." This refers to the location where a vessel, ship, aircraft, or train unloads its shipments. From this point, the shipments will be dispatched to their respective consignees.

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  • 19. 

    Refers to the fraudulent act of importing any goods into the Philippines, or the act of assisting in receiving, concealing, buying, selling, disposing or transporting such goods, with full knowledge that the same has been fraudulently imported, or the fraudulent exportation of goods. Goods referred to under this definition shall be known as smuggled goods.

    Explanation
    Smuggling refers to the illegal act of bringing goods into a country or assisting in the handling and transportation of such goods, knowing that they have been fraudulently imported. It can also involve the fraudulent exportation of goods. Smuggled goods are those that have been illegally imported or exported.

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  • 20. 

    Refers to a case where the assessment is disputed and pending review, an importer may put up a cash bond equivalent to the duties and taxes due on goods before the importer can obtain the release of said goods.

    Explanation
    When an assessment is disputed and pending review, an importer may opt to provide a cash bond that is equal to the amount of duties and taxes owed on the goods. This allows the importer to obtain the release of the goods while the dispute is being resolved. This process is known as tentative release.

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  • 21. 

    Refers to the customs procedure under which goods, in its original form, are transported under customs control from one customs office to another, or to a free zone.

    Explanation
    The given answer "Transit" is correct because it accurately describes the customs procedure in which goods are transported under customs control from one customs office to another or to a free zone. This procedure allows for the movement of goods without the need for immediate payment of customs duties or taxes, and ensures that the goods remain under customs supervision throughout the entire transportation process.

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  • 22. 

    Refers to a transport document for airfreight used by airlines  and international freight forwarders which specify the holder or consignee of the bill who has the right to claim delivery of the goods when they arrive at the port of destination.  It  is a contract of carriage that includes carrier conditions, such as limits of liability and  claims procedures. In addition, it contains transport instructions to airlines and carriers,  a description of the goods, and applicable transportation charges.

    Explanation
    An airway bill is a transport document used in airfreight that specifies the holder or consignee of the bill who has the right to claim delivery of the goods at the port of destination. It serves as a contract of carriage and includes carrier conditions, limits of liability, and claims procedures. The airway bill also contains transport instructions, a description of the goods, and applicable transportation charges.

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  • 23. 

    Refers to the completion of customs and other government formalities necessary to allow goods to enter for consumption, warehousing, transit or transshipment, or to be exported or placed under another customs procedure.

    Explanation
    Clearance refers to the process of completing customs and other government formalities that are required to allow goods to enter a country for consumption, warehousing, transit, transshipment, export, or placement under another customs procedure. This process ensures that all necessary documentation, inspections, and payments are made in order to comply with the regulations and requirements of the country's customs authorities.

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  • 24. 

    Refers to any person who is a bona fide holder of a valid Certificate of Registration/Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation Commission pursuant to Republic Act No. 9280, as amended, otherwise known as the “Customs Brokers Act of 2004

    Explanation
    A customs broker refers to any person who is a bona fide holder of a valid Certificate of Registration/Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation Commission pursuant to Republic Act No. 9280, as amended, otherwise known as the "Customs Brokers Act of 2004". In other words, a customs broker is an individual who is authorized and licensed to facilitate the import and export of goods by ensuring compliance with customs regulations and procedures.

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  • 25. 

    Refers to a statement made in the manner prescribed by the Bureau and other appropriate agencies, by which the persons concerned indicates the procedure to be observed for taking out or causing to be taken out any exported goods and the particulars of which the customs administration shall require.

    Explanation
    The correct answer is Export Declaration. An export declaration refers to a statement made in accordance with the regulations set by the Bureau and other relevant agencies. This statement is made by individuals involved in the export process, and it indicates the procedure that needs to be followed for exporting goods. It also includes the specific details and information that the customs administration will require for the export.

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  • 26. 

    Refers to a statement made in the manner prescribed by the Bureau and other appropriate agencies, by which the persons concerned indicate the procedure to be observed in the application for the entry or admission of imported goods and the particulars of which the customs administration shall require

    Explanation
    The given correct answer for this question is "Goods declaration". A goods declaration refers to a statement made in accordance with the regulations set by the Bureau and other relevant agencies. This statement is provided by individuals involved in the importation process, and it outlines the necessary procedures for the entry or admission of imported goods. The customs administration requires specific details and information as part of the goods declaration.

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  • 27. 

    Refers to the power and rights of the Bureau of Customs in exercising supervision and police authority over all seas within the jurisdiction of the Philippine territory and over all coasts, ports, airports, harbors, bays, rivers and inland waters whether navigable or not from the sea.

    Explanation
    The given correct answer, "Jurisdictional Control," accurately reflects the power and rights of the Bureau of Customs in exercising supervision and police authority over various areas within the Philippine territory. This includes seas, coasts, ports, airports, harbors, bays, rivers, and inland waters. The Bureau of Customs has the jurisdictional control to enforce regulations and monitor activities in these areas, whether they are navigable or not from the sea.

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  • 28. 

    Refers to one whose name appears on documentation attesting to the exportof the product to the Philippines regardless of the manufacturer’s name in the invoice.

    Explanation
    The term "Foreign Exporter" refers to a person or entity whose name is listed on the documentation that confirms the export of a product to the Philippines. This is applicable irrespective of the manufacturer's name mentioned in the invoice. In other words, the Foreign Exporter is the party responsible for exporting the product to the Philippines, regardless of who actually manufactured it.

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  • 29. 

     Refers to persons responsible for the  assembly and consolidation of shipments intosingle lot, and assuming, in most cases, the full responsibility for the internationaltransport of such shipment from point of  receipt to the point of destination.

    Explanation
    An international freight forwarder is a person or company that is responsible for the organization and coordination of shipments. They handle the assembly and consolidation of shipments into a single lot and take full responsibility for the transportation of the shipment from the point of receipt to the point of destination. They are experts in logistics and ensure that the shipment is delivered efficiently and safely.

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  • 30. 

    Refers to an act of importing goods into the country without complete customs prescribed importation documents, or without being cleared by customs or other regulatory government agencies, for the purpose of evading payment of prescribed taxes, duties and other government charges.

    Explanation
    The given answer, "Outright Smuggling," is correct because it accurately describes the act of importing goods into a country without the necessary customs documents or clearance from regulatory agencies. This is done to avoid paying taxes, duties, and other government charges. Outright smuggling refers to the complete evasion of importation regulations and is considered illegal.

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  • 31. 

    Refers to the remedy by which a person who is aggrieved or adversely affected by any action, decision, order, or omission of the Bureau, seeks redress before the Bureau, the Secretary of Finance, or competent court, as the case may be.

    Explanation
    The given correct answer is "Appeal". This refers to the process by which a person who has been harmed or negatively affected by the actions or decisions of the Bureau seeks a remedy or resolution. The person can file an appeal before the Bureau, the Secretary of Finance, or a competent court, depending on the situation. This allows the person to present their case and request a review or reversal of the original decision or action.

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  • 32. 

    Refers to any customs administrative unit that is competent and authorized to perform all or any of the functions enumerated under customs and tariff laws

    Explanation
    A Customs Office is a customs administrative unit that is authorized to perform various functions under customs and tariff laws. This includes tasks such as collecting customs duties, enforcing customs regulations, inspecting goods at the border, and facilitating international trade. The Customs Office is responsible for ensuring compliance with customs laws and regulations, as well as protecting national security and economic interests. It acts as the primary point of contact for importers, exporters, and other stakeholders involved in international trade.

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  • 33. 

    Refers to a domestic port open to both domestic and international trade, including principal ports of entry and sub-ports of entry.

    Explanation
    A port of entry refers to a domestic port that is open to both domestic and international trade. It serves as a gateway for goods and people entering a country. These ports are usually major transportation hubs and are equipped with customs and immigration facilities to regulate the flow of goods and ensure compliance with import/export regulations. They play a crucial role in facilitating trade and ensuring the security of a country's borders.

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  • 34. 

    The chief port of entry of the Customs District wherein it is situated and is the permanent station of the District Collector of such port.

    Explanation
    The correct answer is "A principal port of entry." This refers to the chief port of entry in a Customs District where it is located and is also the permanent station of the District Collector. In other words, it is the main port of entry for goods and the administrative center for customs operations in that specific district.

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  • 35. 

    The administrative jurisdiction of the District Collector of the principal port of entry of the Customs District. 

    Explanation
    The administrative jurisdiction of the District Collector includes the principal port of entry of the Customs District as well as its subports of entry. This means that the District Collector has authority over not only the main port but also the smaller ports within the same Customs District. These subports of entry are likely to be smaller in size or have less traffic compared to the principal port, but they still fall under the jurisdiction of the District Collector.

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  • 36. 

     Refers to any form of guaranty, such as a surety bond, cash bond, standby letter of credit or irrevocable letter of credit, which ensures the satisfaction of an obligation to the Bureau.

    Explanation
    The term "security" refers to any form of guarantee, such as a surety bond, cash bond, standby letter of credit, or irrevocable letter of credit. These guarantees are put in place to ensure the satisfaction of an obligation to the Bureau. In other words, security is a means of providing assurance or protection against potential risks or losses.

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  • 37. 

    Refers to the customs procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one Customs office, which is the office of both importation and exportation.

    Explanation
    Transshipment refers to the process of transferring goods from one means of transport to another within the same customs office. This means that the goods are moved from the importing means of transport to the exporting means of transport while under customs control. This procedure allows for the smooth movement of goods between different modes of transportation and ensures that they comply with customs regulations. Transshipment is commonly used in international trade when goods need to be transferred between different countries or regions.

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  • 38. 

    Refers to any person who temporarily enters the territory of a country in which he or she does not normally resides (non-resident), or who leaves that territory,  and any person who leaves the territory of a country in which he or she normally resides (departing resident) or who returns to that territory (returning resident)

    Explanation
    The given definition refers to individuals who temporarily enter or leave a country where they do not normally reside (non-residents) or individuals who leave or return to a country where they normally reside (departing and returning residents). These individuals are commonly referred to as travelers.

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  • 39. 

    Refer to all taxes, fees and charges imposed under this Act and the National Internal Revenue Code (NIRC), as amended, and collected by the Bureau. 

    Explanation
    The given statement refers to all taxes, fees, and charges imposed under the Act and the National Internal Revenue Code (NIRC) and collected by the Bureau. It implies that the answer to the question is "Taxes" because it is mentioned in the context of the statement.

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  • 40. 

    Refers to the act of importing goods into the country by means of fraudulent, falsified or erroneous declaration of the goods to its nature, kind, quality, quantity or weight, for the purpose of reducing or avoiding payment of prescribed taxes, duties and other charges.

    Explanation
    Technical smuggling refers to the act of importing goods into the country by fraudulent, falsified, or erroneous declaration of the goods to its nature, kind, quality, quantity, or weight, for the purpose of reducing or avoiding payment of prescribed taxes, duties, and other charges.

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  • 41. 

    Refers to the return, in whole or in part, of duties and taxes paid on  goods.

    Explanation
    Refund refers to the return of duties and taxes that were previously paid on goods. It means that the person who paid these duties and taxes is entitled to receive the money back, either in whole or in part. This could happen for various reasons, such as the goods being returned or the duties and taxes being overpaid. In any case, a refund ensures that the person is not financially burdened by paying for something they did not ultimately receive or benefit from.

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  • 42. 

    Refers to the process of determining the amount of duties and taxes and other charges due on imported and exported goods.

    Explanation
    Assessment refers to the process of determining the amount of duties, taxes, and other charges that are due on imported and exported goods. This involves evaluating the value and classification of the goods to determine the applicable rates and charges. The assessment process is crucial for customs authorities to ensure that the correct amount of duties and taxes are collected and that trade regulations and policies are enforced. It helps in promoting fair trade practices and protecting domestic industries.

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  • 43. 

     Refers to the act, documentation and process of bringing imported goods into the customs territory, including goods coming from free zones.

    Explanation
    In the context of importing goods, "entry" refers to the act, documentation, and process of bringing imported goods into the customs territory. This includes goods that are coming from free zones. The entry process involves submitting the necessary paperwork and declarations to customs authorities, paying any applicable duties or taxes, and complying with any regulations or requirements set by the customs department. It is a crucial step in the importation process as it allows the goods to legally enter and be released into the customs territory.

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  • 44. 

     Refers to the act, documentation, and process of bringing goods out of  Philippine territory.

    Explanation
    Exportation refers to the act, documentation, and process of bringing goods out of Philippine territory. It involves the movement of goods from one country to another for the purpose of trade. Exportation is an essential part of international trade, as it allows countries to sell their goods and services to other markets, generating revenue and promoting economic growth. It requires proper documentation and compliance with customs regulations to ensure smooth and legal movement of goods across borders.

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  • 45. 

     Refers to the action by the Bureau to permit goods undergoing clearance to be placed at the disposal of the party concerned.

    Explanation
    The correct answer is "Release of Goods". This refers to the action taken by the Bureau to allow goods that are undergoing clearance to be placed at the disposal of the party concerned. The term "release of goods" is used to describe the process of allowing the goods to be released from customs control and made available to the party who is responsible for them.

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  • Mar 22, 2023
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