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Evaluation Examination on
CUSTOMS LAWS, RULES, REGULATIONS, ETHICS AND CUSTOMS BROKER PRACTICES
July 23, 2023

Instructions. Read the questions carefully. Select the letter corresponding to your
answer.

1. Customs officials and employees shall cooperate with authorities

in the enforcement of the port quarantine regulations.
a. Quarantine
b. Airport
c. Investigation
d. Government

2. Ms. Lalisa Jisoo is a respondent in case filed by the BOC for unlawful
importation. While the case is pending before the sala of Judge Bubbles
Gami, RTC Branch 23 Manila, the lawyer of Ms. Jisoo offered as evidence the
BOC official receipt evidencing the payment of the duties and taxes for the
dismissal of the case. The judge shall rule that the payment of duty and tax:
a. Constitute a valid defense if the defendant does not plea guilty.
b . Not constitute a valid defense even if the defendant pleads guilty.
c. Constitute a valid defense.
d. Not constitute a valid defense.

3. Which of the following statement/s is/are TRUE?

a. Vessels or aircraft subject to seizure maybe seized in the high seas or
international air spaces.
b. Vessels or aircraft subject to seizure can be seized within territorial waters
and air-space.
c. Both A & B.
d. None of these.

4. shall include letter-post and parcels, as described in international

practices and agreements.
a. Stamp or letter.
b. Label or letter.
c. Postal item or delivery.
d. Postal item or mail.

5. The mere carrying or holding on board of contraband or smuggled goods

in commercial quantities shall subject such vessel, vehicle, aircraft or any
other craft to:
a. Fine
b. Confiscation
c. Penalties
d. Forfeiture

6. Under the CMTA, when upon trial for violation of unlawful importation, the
defendant is shown to have possession of the imported article, his possession
shall:
a. Be deemed sufficient evidence to authorize conviction unless the
defendant explains his possession to the satisfaction of the court.
b. Be deemed sufficient evidence to authorize conviction.
c. Not to be deemed sufficient to authorize conviction.
d. Not to be deemed sufficient evidence to authorize conviction even if the
defendant did not explain his possession to the satisfaction of the court.
7. An importer may issue a/an for the release of goods stored in a
bonded warehouse to another person.
a. Identification card
b. Approval letter
c. Documents
d. Written authorization

8. One of the trucks owned by Remus Services was apprehended with cargoes
confirmed to be of foreign origin but were ascertained to have not paid duty
and tax. The truck shall be subject to forfeiture under the CMTA if:
a. It is found out that the truck is engaged as common carrier.
b. It ascertained that agent in charge has no knowledge of the unlawful
act.
c. It is ordered by a court if competent authority.
d. It is determined that the truck is either chartered or leased.

9. Administrative complaints against importers and brokers for failure to keep

certain records and documents for Post-Clearance Audit as required under
the CMTA shall be filed by the:
a. Chief, Legal Service
b. Chief, CIIS
c. Commissioner of Customs
d. Post Entry Audit Office

10. Only goods that are liable to duties and taxes shall be subject to customs
control.
a. This statement is neither true nor false.
b. This statement is TRUE.
c. This statement is FALSE.
d. This statement is unclear.

11. Any party aggrieved by the decision of the Commissioner of Customs or of

the Secretary of Finance may appeal to the:
a. Court of Tax Appeals
b. Supreme Court
c. Court of Appeals
d. President of the Philippines

12. The FTI Customshouse was ordered closed to pave the way for the
construction of the Bonifacio Global Port. The BOC officials and employees
assigned thereat were given their termination papers by the Commissioner.
Do you think it is proper?
a. Yes, since FTI customshouse is ordered close, thus all its personnel are
deemed terminated.
b. Yes, since there is no more revenue generation efforts at the said port.
c. No, since the BOC employees are protected by security of tenure and
should be reassigned to other ports.
d. No, since there are still other offices at the DOF where these employees
may be assigned.

13. MV Guerilla, a foreign trade vessel was being pursued by joint operatives of
the BOC and Philippine Coast Guard for alleged illegal discharge of highly
dutiable items in a small island in Ilocos Norte. As the ferry boats near the
vessel, both have experienced engine trouble which forced them to
temporarily stop their operations. When the reinforcement arrived the
operatives pursued the vessel which they eventually caught near the border
of Malaysia. The captain of MV Guerilla refused to have his vessel arrested
saying that there is no valid hot pursuit.
a. Yes, since the arrest was made within the jurisdictional waters of the
Philippines.
b. Yes, since the pursuit was immediate and continuous.
c. No, since there was no proper coordination with the Philippine Navy.
d. No, since there was an interval in the pursuit.
14. When the material false statement or act in connection with the transaction
was committed or omitted knowingly, voluntarily and intentionally, as
established by clear and convincing evidence, it shall be determined to
be:
a. Fraudulent
b. Simple mistake
c. Negligence
d. Gross negligence

15. As a Customs Broker, in protest cases, a decision of the Commissioner of

Customs that is averse to the government is subject to automatic review by
the:
a. Tariff Commission
b. Court of Tax Appeals
c. Secretary of Finance
d. Secretary of Justice

16. Any customs officer who releases goods to the consignee or lawful holder of
the bill of lading or shall not be liable for any defect or irregularity
in its negotiation unless the customs officer has notice of the defect or
irregularity.
a. Airfare bill
b. Airline bill
c. Airway bill
d. Air transport bill

17. Assume that you were the customs broker of Juan Trading, a rice importer
who was charged before the Department of Justice (DOJ) for unlawful
importation for bringing ten (10) containers of rice without NFA permit. Is it
proper?
a. Yes, being a mere broker is not instrumental in the smuggling activity.
b. Yes, because as the broker I have acted in good faith.
c. No, because as a Customs Broker, I am just an agent of the importer, thus
I am not equally liable.
d. No, because the act of smuggling is not confined to the importer.

Basis: Section 102 of the CMTA, Definition of smuggling

18. Customs officials and employees shall cooperate with the quarantine
authorities in the enforcement of the port quarantine regulations
promulgated by the and shall give effect to the same in so far as
connected with matters of shipping and navigation.
a. Bureau of Customs
b. Department of Finance
c. Quality Control
d. Bureau of Quarantine

19. Mrs. Tere Co, a returning Filipino citizen who arrived at the NAIA was found in
her possession dutiable goods consisting of branded wrist watches which she
failed to indicate in her passenger (baggage) declaration from which she
submitted before customs authorities. She admitted to this mistake and paid
the duty and tax, plus the required surcharge. As a customs broker, what do
you think is the other action that the Bureau of Customs may initiate or file
against Mrs. Co, despite payment of customs duty and tax?
a. Damage suits
b. Fine/ charges
c. Criminal action
d. Civil suits
20. The current practice in the Bureau of Customs to secure affirmative action is
done thru:
a. Indorsement
b. Disposition Form
c. Completed Staff Work
d. Position Paper

21. Which of the following statement/s is/are TRUE?

a. Vessels or aircraft subject to seizure maybe seized in the high seas or
international air spaces.
b. Vessels or aircraft subject to seizure can be seized within territorial waters
and air-space.
c. Both A & B.
d. Either A or B.

22. Goods subject to any shall be released only after the payment.
a. Surcharge
b. Damage
c. Additional payment
d. Additional load

23. The presence of Julio Valiente, a Customs Wharfinger in a private port in Sasa,
Davao is being questioned by the owner. He reasoned out that since the place
is privately owned and operated then customs has no business assigning a
personnel to supervise its imported cargoes landed at the port. What is the
best interpretation of this situation?
a. The owner is correct since the facility is privately owned thus BOC has no
jurisdiction over the premises.
b. The owner is correct since the law requires the presence of BOC officials
for premises under customs jurisdiction.
c. The owner is wrong since the presence of the BOC Wharfinger is essential
to its operations.
d. The owner is wrong since the facility is considered under BOC
jurisdiction whether privately or publicly operated.

Basis Section 202 of the CMTA

24. When the district officer is duly notified through a lawful order of a competent
court of a lien for freight, lighterage or general average upon any imported
goods, the District Officer shall the release of the goods unless the
claim has been paid or secured.
a. Withhold
b. Withdraw
c. Give
d. Control

25. Under the CMTA, what is the maximum period of time allotted to the issuing
authority to release ruling on an application?
a. Fourteen (14) days from receipt of the application and supporting
documents.
b. Twenty-one (21) days from receipt of the application and supporting
documents.
c. Forty-five (45) days from receipt of the application and supporting
documents.
d. Thirty (30) days from receipt of the application and supporting
documents.

26. As a customs broker, the exchange rate that shall apply for purposes of
Customs collection shall be:
a. the average exchange rate during that period.
b. the exchange rate officially disseminated to the public by the Bangko
Sentral ng Pilipinas each Monday.
c. the exchange rate officially disseminated to the public by the Bangko
Sentral ng Pilipinas each Wednesday.
 d. the exchange rate officially disseminated to the public by the Bangko
Sentral ng Pilipinas each Friday.

27. When the public interest requires, who can declare public wharf in any port
entry to be under the jurisdiction of the Bureau?
a. Head of the customs office
b. Custom officials
c. President
d. None of these

28. Any customs officer who releases goods to the consignee or lawful holder
of the bill of lading or airway bill shall for any defect or irregularity
in its negotiation unless the customs officer has notice of the defect or
irregularity.
a. Not be liable
b. Be responsible
c. Not be responsible
d. Be liable

29. The operatives of the Enforcement and Security Service (ESS) received an
instruction from the Chief, Environmental Management Bureau (EMB) of the
Department of Environment and Natural Resources (DENR) to secure that
imported plywood are covered with permits issued by the agency. Capt.
Ramon Palicpic refused to obey the order since the permit is issued by the
DENR and should be enforced by its DENR personnel. Do you think he is
correct?
a. Yes, because only the Commissioner of Customs can order the ESS.
b. Yes, because the ESS is not under the DENR.
c. Yes, because plywood is a regulated importation.
d. No, because the order from the DENR requires the implementation of the
BOC.

Basis Section 202 of the CMTA

30. Within the period allowed by existing rules and regulations, the
may accept an offer of redemption, a case involving a
shipment already declared forfeited.
a. Chief, Law Division
b. Chief, Legal Service
c. Chief, Collection Division
d. District Collector

31. The Tariff Commission has requested for copies of import entries as liquidated
by the Liquidation and Billing Division (LBD). The request was denied by the
said office since a copy of the SAD is already furnished to the Tariff
Commission, thus there is no need for such copy. Is the LBD correct?
a. Yes, since the entries are already liquidated by the LBD.
b. No, since it is the right of the public to secure such copy.
c. Yes, since the Tariff Commission has already its own copy based on the
distribution of the SAD.
d. No, since the law allows the Tariff Commission a copy of such liquidated
entries.

32. The CMTA provides that a ruling or decision of the Commissioner that favors
the taxpayer shall become effective
a. Seven (7) days after public notice.
b. Thirty (30) days after public notice.
c. Immediately.
d. None of the above.
33. The Bureau shall exercise jurisdiction over all seas within Philippine territory, and
shall cover:
a. Includes harbors, bays, rivers.
b. Inland Waters.
c. All coasts, ports and airports.
d. All of the above.

34. Respondents of administrative cases arising from the failure of importers and
brokers to keep records and documents required under RA 9135 may appeal
the decision within 30 days from its promulgation to .
a. Court of Tax Appeals
b. Commissioner of Customs
c. Court of Appeal
d. Secretary of Finance

35. Mr. Francis Sta. Maria, Collector of the Port of Cebu has issued local port order
prescribing a dress code for all personeros at the port. Without waiting for the
approval of the Commissioner of Customs, he caused the
immediate implementation of such directive. The Chamber of Customs
Brokers, Inc (CCBI) Cebu Chapter led by its president, Jerry Martinez
questioned the order of the Collector. Do you think that there is a basis to
question the order of the Collector?
a. Yes, because the order needs the approval of the Commissioner.
b. Yes, because only the Commissioner can make such order.
c. No, because such order is against the law.
d. No, because the Collector can make such order.

36. 16th and 18th streets of the Port Area, Manila have been recommended by
the Commissioner of Customs to be placed under its jurisdiction since it is very
strategic for installation of x ray facility. The PPA has control over the area. The
Commissioner requested the PPA to turn over the premises under customs
jurisdiction. The PPA Board has declined the request of the BOC Commissioner
saying that the said streets are under the administrative control of its private
operator, Asian Terminals, Inc. and they cannot simply surrender the control
to BOC. If you were the Commissioner of Customs, what will be your course of
action?
a. Ask the Department of Finance to issue an order placing the streets under
BOC control
b. Ask the PPA for appraisal of the market value
c. Ask the Regional Trial Court to cite in contempt the PPA
d. Ask the Office of the President to issue a proclamation declaring the said
streets under customs supervision

37. Due to the on-going Congressional hearing, Gen. Isidro Lapeña,

Commissioner of the Bureau of Customs could NOT efficiently discharge his
functions. In his behalf, he designated his Chief of Staff, Gladys Rosales to
take over the task of an Officer in Charge (OIC) to oversee the affairs of the
Bureau of Customs. Do you think that the action of the Commissioner in
accordance with the law?
a. Yes, because the Commissioner, subject to Civil Service rules and
regulations may designate from his own work force a person of his trust
and confidence to perform specific task under his guidance.
b. No, because only the President can make such appointment.
c. No, because the Commissioner of Customs does not have such power.
d. Yes, because the Commissioner as the head of the agency is given the
power under EO No. 39- Powers of the Commissioner of Customs.

Basis Section 200 of the CMTA, Justification: Only the Secretary of Finance is
empowered under the law to make such designation.
38. Auditors from the PCAG of the Bureau of Customs were denied entry by the
security guards of Philip Morris Inc. despite an order from the Commissioner to
conduct an audit of its importation. In this case, the BOC may invoke the aid
of the:
a. Proper regional trial court within whose jurisdiction the company is located.
b. Bureau of Internal Revenue to conduct a tax audit on the company
records.
c. Securities and Exchange Commission of the Department of Trade and
Industry to cancel the business registration of the company.
d. Office of the Mayor where the business is located to revoke the business
license of the company.

39. Assessment shall be deemed final fifteen (15) days after receipt of the notice
of assessment by the .
a. Importer
b. Exporter
c. Retailer
d. Wholesaler

40. In the absence of fraud and when the goods have been finally assessed and
released, the assessment shall be conclusive upon all parties
from the date of final payment of duties, or upon completion of the post
clearance audit.
a. 30 days
b. 3 years
c. 1 year
d. 10 months

41. A District Collector, acting on reports that 100 kilos of shabu are hidden in a
shipment of rice from Vietnam, caused the issuance of an Alert/Hold Order.
Upon 100% examination, the shabu was determined. The shipment may
now be considered under as:
a. Abandoned Goods
b. Alerted Shipment
c. Seized Property
d. Forfeited Shipment

42. The boarding team of the Piers and Inspection Division boarded MV Montano,
a coastwise trade vessel from Zamboanga. The boarding officer has
instructed his two customs guards to remain on board to supervise the
discharging of cargoes from Basilan. The captain of the vessel protested the
action of the BOC Boarding Inspector saying that the BOC has no business
over local cargoes. Do you think he is correct?
a. Yes, because the Boarding Officer is simply discharging his functions.
b. No, because the control and supervision of coastwise trade is now a
function of the Marina.
c. No, because coastwise trade remains to be a function of the BOC.
d. Yes, because the function of the BOC is confined to vessels engaged in
foreign trade.

Basis Section 202 of the CMTA

43. The Bureau may establish and implement a voluntary program on advance
customs clearance and control on .
a. Cargo vessel b. Shipments
c. Containers
d. Containerized cargoes
44. In case of disagreement, the district officer may release the goods after
payment of the due on the quantity or weight landed as actually
determined.
a. Cargo vessel
b. Shipment
c. Freight and Lighterage
d. Goods

45. Smuggled goods, after liability to seizure or forfeiture shall have been
established by proper administrative or judicial proceedings , shall be
disposed of provided goods are prohibited under the CMTA upon order to
the concerned customs official in writing, be burned or destroyed, in such
manner as the case may require as to render them absolutely worthless, in
the presence of a representative each from the Commission on Audit,
Department of Justice, Bureau of Customs, and if possible, any representative
of the private sector.
a. Upon order of the President
b. Upon order of the Secretary of Finance
c. Upon order of the Collector
d. Upon order of the Commissioner

46. In the “Assessment of Duty on Less Than Entered Value”, the assessment
shall be allowed only when the importer's contention is sustained by the final
decision, and shall appear that such action of the importer was taken in good
faith after due diligence and inquiry.
a. Lower
b. Greater
c. Lesser
d. Smaller

47. Due to Typhoon Yolanda, the District Collector of the Port of Tacloban,
together with his two deputy were stranded in Cebu. The District Collector
then issued a local port directive instructing his staff, Gus Abelgazo to be the
acting District Collector. Mr. Karlo David, the Deputy Collector for
Administration refused to honor the order since being the only available
deputy collector, he reasoned out that the authority should be given to him.
The Collector reasoned out that he is authorized to make the
designation from his own work force. Do you think the Collector has basis for
his action?
a. Yes, because there is an urgency in making such designation.
b. Yes, because it is allowed under the law.
c. Yes, because the Collector is authorized to make such designation.
d. No, because the successor should be the next in rank.

48. No collector or other official of customs shall be in any way personally liable
for or on account of any official ruling or decision as to which the person
claiming to be aggrieved has the right to obtain either an administrative or
judicial review, and except for of goods a Collector shall not, in
the absence of , be liable to any person for a loss occasioned either
by his own official act or the acts of his subordinates.

a. misdelivery ; ignorance
b. misdelivery ; gross abuse of authority
c. non delivery ; oppression
d. non delivery; wanton disregard of facts

49. Negligence is punishable by a fine equivalent to:

a. Any mitigating, aggravating or extraordinary factors.
b. Not less than one (1) but not more than two and one-half (2 ½) times the
revenue loss.
c. Not less than two and one-half (2 ½) but not more than four (4) times
the revenue loss.
d. Not less than one hundred twenty-five times the revenue loss.
50. Ms. Jen Uy, Collector 5 Port of Manila was reassigned, after approval by the
Secretary of Finance to Port of Batangas as Deputy Collector for Assessment.
She protested his action since she claimed that her family is in Manila and her
plantilla position is the Port of Manila. Is there a basis in her protest?
a. Yes, because the reassignment did not have the consent of the
President
b. Yes, because she was initially assigned at the Port of Manila and the
reassignment to Batangas is deemed a demotion.
c. No, because there was no effect in her tenure neither was she demoted.
d. No, because the reassignment is just temporary in nature.