UNIVERSITY OF CEBU

LAPU-LAPU & MANDAUE CAMPUS

Name: JONGCO, TERESA Date: 02/19/23

Schedule: MWF 1:30-2:30 PM

TM 121C: Exercise 3

1. What are key governing principles of the Revised Kyoto Convention? Explain
each.
Ans:

• Transparency and predictability of Customs actions

It is usually recognized that an important component of trade facilitation is the
transparency and predictability of rules and procedures at borders.
• Standardization and simplification of the goods declaration and supporting documents
To ensure compliance with regulatory guidelines, goods that enter or leave a customs
territory should be declared to customs for further processing.
• Simplified procedures for authorized persons
They make it easier for products to move around, promote adherence to trade rules, and
enable for a more effective use of customs resources.
• Maximum use of information technology
The opportunities for executing customs processes for the import, export, and transit of
products are essentially covered by these systems.
• Minimum necessary Customs control to ensure compliance with regulations
To ensure that laws are observed, only least customs control is needed.
• Use of risk management and audit – based controls
If the controls are sufficient to lower the amount of risk, it could be evaluated.
• Coordinated interventions with other border agencies
Of government authorities have responsibility over the determination of the
admissibility of goods into and out of the country and have set of good specific
requirements.
• Partnership with the trade
The agreement specifies the conditions of the transaction or trading process, including
tariffs, who is responsible, how the items or information will be sent and received, and
any associated costs

2. Explain the RKC benefits enjoyed by developing countries.

Ans:
Simplification of procedures for the cross-border transport of goods
•removes administrative barriers,
•encouraging small and
•medium-sized enterprises to participate in international trade and attracting foreign
investment.
 ∆ This leads to more economic development.

3. How does RKC impact Customs Control and Trade Facilitation?

Ans:
The principles of the revised Kyoto Convention not only promote trade facilitation, but also
ensure that the statutory functions of customs are not compromised. The cross-border
movement of goods is an important part of international trade transactions, and the presence
of customs is an important legal indicator of the movement of these goods.
The way customs clears these goods quickly and efficiently reflects the quality of service that
governments provide to the public.
The revised Kyoto Convention contains a comprehensive set of common principles for easy,
efficient and predictable customs clearance procedures with effective customs management.
As such, it meets the essential needs of modern customs administration and the requirements
of international trade, balancing customs control and revenue collection functions with trade
facilitation functions.

4. What are the benefits enjoyed by the Philippine Government (in particular) with
RKC accession?
Ans:
Accession to the RKC will give the Philippine government:

•Protection against the passage or issuance of national legislation that are against the
principles and provisions of the RKS
•Solid legislative foundation for reforming and strengthening customs and related
institutions
•Benchmark for assessing the status of Philippine trade efficiency and competitiveness
•Availability of shepherds and technical teams of experts to guide the reform process
•RKC management committee providing foreign companies and countries with
recourse for expressing grievances when the customs service does not comply with
RKC
•Most effective way of declaring globally that trade and investments are facilitated in
the Philippines and that the regulatory environment compares with the best in the world
•Economic growth stimulus through the modernization of Customs which attracts trade
and investments
•Assurance of modern and efficient Customs service to the economy, allowing it to
participate better in the international trade environment
5. What are the benefits enjoyed by the Philippine Economy with RKC accession,
particularly in effect to the implementation of the standards and recommended
practices of the convention?
Ans:
The implementation of the standards and recommended practices of the
Convention lead to the following benefits to the economy:
 •Lower cost of imported goods
•Lower cost of production
•Increased economic competitiveness of national goods in the world market
•Attraction for international trade and investment
•Lower cost to consumers
•Increased national revenue

6. What are the benefits enjoyed by the Customs (in particular) with RKC
accession?
Ans:
For Customs, the benefits are:

•More efficient use of customs resource

•Faster, predictable and efficient customs clearance
•Enhanced customs control
•Increased trade facilitation

7. What are the benefits enjoyed by the Trading Community (in particular) with RKC
accession?
Ans:
For the trading community:

•Transparent and predictable procedures mean reduced opportunities for extortion

facilitation/grease payments
•Greater facilities for complaint traders
•Lower business costs in terms of time and the cost of clearing imports with customs
•Clear information concerning rights and obligations

7. What are the 10 chapters of the General Annex of RKC?

Ans:
The ten chapters of the General Annex are as follows:

1. General Provisions
2. Definitions
3. Clearance of Goods
4. Duties and Taxes
5. Security
6. Customs Control and Risk Management
7. Use of Information Technology
8. Relationship between Customs and Third Parties
9. Customs Information, Decision and Rulings
10. Appeals in Customs matters
8. What are the 10 specific annexes of RKC?
Ans:
1. Arrival of Goods in Customs Territory
2. Importation
3. Exportation
4. Customs Warehouse and Free Zones
5. Transit
6. Processing
7. Temporary Admission
8. Offenses
9. Special Procedures
10. Origin

9. What impact did RKC contribute to our present Tariff and Customs Law, the
CMTA (RA 10863)?
Ans:
The Revised Kyoto Convention is widely regarded as the blueprint for modern and
efficient Customs procedures in the 21st century. When its implemented, it provide
international commerce with predictability and efficiency required by modern trade.
The RKC enables contracting parties to achieve a modern customs administration,
while providing improved trade facilitation and enhanced Customs control. It provides
a simpler, harmonized and more flexible approach to Customs operations.