CMO 16-2011

Question 1

Specific objectives of CMO 16-2011

Answer 1

1. Prevent unqualified shipments from availing of the preferential rate provided for in the above-cited executive orders.
2. facilitate the evaluation process for Preferential Tariff application by providing clear guidelines and evaluation procedures.

Question 2

FTA

Answer 2

Free Trade Agreement

Question 3

ATIGA

Answer 3

ASEAN Trade In Goods Agreement

Question 4

ACFTA

Answer 4

ASEAN China Free Trade Agreement

Question 5

AKFTA

Answer 5

ASEAN Korea Free Trade Agreement

Question 6

AJCEP

Answer 6

ASEAN Japan Comprehensive Economic Partnership Agreement

Question 7

AANZFTA

Answer 7

ASEAN Australia New Zealand Free Trade Agreement

Question 8

AIFTA

Answer 8

ASEAN India Free Trade Agreement

Question 9

PJEPA

Answer 9

Philippines Japan Economic Partnership Agreement

Question 10

a list containing products that are included for extension of Tariff Preferences under a Free Trade Agreement

Answer 10

Inclusion List

Question 11

a list containing products that are excluded for extension of Tariff Preferences under a Free Trade Agreement

Answer 11

Exclusion List

Question 12

Certificate of Origin

Answer 12

CO

Question 13

A special unit that was created in the Formal Entry Division in the Principal Port of Entry in every collection District.

Answer 13

Preferential Rate Unit - FED

Question 14

The Preferential Rate Unit - FED was created in the ______________ in the Principal Port of Entry in every collection District.

Answer 14

Formal Entry Division

Question 15

Function of PRU-FED

Answer 15

to evaluate according to the guidelines in this CMO for FTA member countries seeking tariff preferences when exporting products to the Philippines under a specific Free Trade Agreement.

Question 16

The PRU-FED shall be composed of customs personnel who are at least ____________ in rank

Answer 16

COO II

Question 17

The head as well as the members of the PRU-FED shall be designated by the _______________

Answer 17

District Collector of Customs

Question 18

Who is the CHAIRMAN of the FTA Oversight Committee?

Answer 18

Director, IAS

Question 19

Who is the VICE- CHAIRMAN of the FTA Oversight Committee?

Answer 19

Deputy Collector for Assessment, POM

Question 20

Who are the MEMBERS of the FTA Oversight Committee?

Answer 20

1. Deputy Collector for Assessment, MICP
2. Deputy Collector for Assessment, NAIA
3. Chief of the Export Coordination Division (Head Secretariat)

Question 21

Functions of FTA Oversight Committee

Answer 21

1. see that the necessary mechanics for the effective implementation of the FTA Preferential tariff scheme are put in place.
2. Formulate plans & policies & submit the necessary recommendations to the Commissioner of Customs.
3. Coordinate with private sector in the selective/random verification of the existence if business of certain supplies
4. computerized the implementation of the FTA Preferential Tariff Scheme

Question 22

Who shall act as the Secretariat of the FTA Oversight Committee?

Answer 22

1. Export Coordination Division
2. Port Operations Service
3. Assessment & Operation Group

Question 23

Functions of the Secretariat of the FTA Oversight Committee

Answer 23

1. provide administrative support and technical assistance to the committee
2. the head of the secretariat shall be the Chief of the export Coordination Division

Question 24

For shipments availing Of the preferential rate under a particular FTA, box 36 of the import entry must be marked accordingly and the specific Certificate or Origin Form must be a __________ supporting document.

Answer 24

mandatory

Question 25

As a risk management protocol, all import entries availing of Preferential tariff under an FTA shall be routed to either ________lane or ____-____lane depending on the parameters in the selectivity module

Answer 25

Yellowlane and Redlane

Question 26

T/F Upon receipt of the Certificates of origin, the PRU-FED Officer shall match the signature of the issuing official with specimen\signature submitted. The official seal/stamp on the C.O. shall also be matched with the sample submitted

Answer 26

Both statement is true

Question 27

T/F Any discrepancy found in the signatures and seal\stamp of the C.O. including the format, shall be subjected to verification with the importing country.

Answer 27

False Any discrepancy found in the signatures and seal\stamp of the C.O. including the format, shall be subjected to verification with the ISSUING country.

Question 28

Procedure in verifying the Certificate of Origin with the issuing country.

Answer 28

1. PRU-FED officer prepare official written request on customs letterhead addressed to the FTA OVERSIGHT COMMITTEE, specifying the reason/s for the request. 2. written request shall signed by the PRU-FED officer noted by Deputy Collector for Assessment and shall be accompanied by the original copy and triplicate of the CO 3. Deputy Collector for Assessment shall cause the transmittal of the request to FTA Oversight Committee, Port Area, South Harbor, Manila, which in turn shall make the official verification with the issuing authority

Question 29

Procedure for Tentative. Grant or Preferential status pending result of verification of the C.O

Answer 29

1. If there is a prima facie evidence/ probable cause that the C.O. is spurious/ the information therein is false or the shipment itself is attendant with violations, shipment may be granted provisional release. 2. PRU-FED officer assigned shall determine the difference of the duties and taxes due on the article/s based on the regular rate of duty and the FTA Preferential rate. 3. PRU-FED officer subject to approval of the Deputy Collector for Assessment shall require importer to post a guarantee in the form of either a managers or cashiers check which is equal to the difference in 4.5.2 before release of the shipment 4. Cash Division shall hold the check in abeyance until an order to deposit or return the MC, Cash Bond, from the Deputy Collector for Assessment is received.

Question 30

Procedure/Criteria in evaluating whether or not to grant Preferential rate:

Answer 30

1. article/s indicated in CO must correspond to article/s imported. Discovery of minor discrepancies/ obvious clerical/ typographical errors' in the statement made in the CO and in the other, documents supporting the entry shall not render the application for preferential tariff invalid where it is clear and apparent that the CO of the article refers to the article's imported. 2. Imported article's must be included in the Philippine Inclusion List cited in specific executive order and circularized under particular CMC. 3. Imported article/s must be included in the Product and Tariff Reduction Schedule or the applying FTA member country. If article/s is in the Product and tariff Reduction Schedule of the applicant member country and the rate of duty is 20% and below, tariff rate preference shall be allowed the rate or duty is more than 20%, the application for tariff rate preference shall not be allowed

Question 31

The Chief, FED shall submit a monthly report in _________ copies of all transactions under the FTA Preferential Scheme (thru the Port Deputy Collector for Assessment) to the Chairman, FTA Oversight Committee. with the following date: Tariff Heading. Description of Article}s, Country or Exportation, Origin Criteria and FOB Value. One copy of which shall bc furnish the Chief. Export Coordination Division, Port Operations Service, Assessment & Operations Coordination Group who will then prepare a consolidated report for transmittal to the Director. Bureau of International trade Relations (BITR), Department of Trade & Industry.

Answer 31

two

Question 32

Procedure for handling protested cases

Answer 32

1. all cases wherein importer is not amenable to a decision, PRU-FED officer shall elevate the matter to the Deputy Collector for Assessment. 2. Deputy Collector for Assessment upon receipt of the protest shall endeavor to resolve immediately. If importer is not satisfied with the decision, he/she shall make a protest in writing indicating therein the reason/s for the protest. 3. Upon receipt the protest, case shall be heard by Deputy Collector in the presence of the importer or his/her duly authorized representative and PRU-FED officer assigned who shall be guided by the terms, of the Free Trade Agreement. In cases of protest over classification or a particular item. the Deputy Collector may seek the assistance Of the Tariff Commission. 4. decision of the Deputy Collector shall be summary in nature. The case may be elevated to the District Collector under a regular protest case.

Question 33

T/F All disputes concerning the FTA Preferential Tariff Scheme such as those in and 4.4 & 4.5 shall be resolved by the Deputy Collector for Assessment within 60 days from date of approval of tentative release, subject to the approval of the District Collector. The assistance or the Tariff Commission may be sought for the ruling on tariff classification issues.

Answer 33

True

Question 34

Settlement on Disputes shall be resolve within ____________.

Answer 34

60 days from the date of approval of tentative release.