TL

Question 1

when does the EO 189 implement?

Answer 1

18 July 1994

Question 2

when does the EO 264 implement?

Answer 2

15 January 1995

Question 3

when does the EO 303 implement?

Answer 3

12 April 1996

Question 4

when does the EO 313 implement?

Answer 4

15 January 1996

Question 5

when does the EO 486 implement?

Answer 5

22 January 1998

Question 6

when does the EO 241 implement?

Answer 6

21 October 2001

Question 7

According to the Comprehensive Tariff Review (2011–2016), what are the highest tariff rates that sensitive agricultural products (such as rice, sugar, and livestock) are subject to?

A. 35% and 50%
B. A flat rate of 75% ad val. for all agricultural goods.
C. Tariff rates are generally uniform at a maximum of 30%.
D. 65% and 50%

Answer 7

D. 65% and 50%

Question 8

Which Executive Order (EO) was implemented on July 22, 2005, to reduce the Most-Favored-Nation (MFN) rates on the paper and aerosol industries?
A. EO 22 (14 January 2011)
B. EO 885 (10 June 2010)
C. EO 450 (22 July 2005)
D. EO 375 (22 October 2004)

Answer 8

C. EO 450 (22 July 2005)

Question 9

Section 1609 (Promotion of Foreign Trade)** provides the legal basis for which action by the Philippines in its trade relations?
A. Temporarily modifying the rates of import duty on fresh, chilled, or frozen meat of swine.
B. Preparing the final draft Executive Order for signing by the President.
C. Enter into trade agreements with foreign governments (e.g., FTAs and Economic Partnerships).
D. Granting tariff preference to qualified enterprises on the import of vehicles and goods.

Answer 9

C. Enter into trade agreements with foreign governments (e.g., FTAs and Economic Partnerships).

Question 10

The Jewelry Industry Development Act (RA 8502) grants qualified enterprises a major privilege. What is the core incentive provided by this act?
A. Entitlement to zero duty on imported raw materials, capital equipment, and spare parts.
B. A tariff reduction of 5% on all imported finished jewelry products.
C. A 10-year income tax holiday for qualified exporters of jewelry.
D. Exemption from all Value Added Tax (VAT) on domestic sales of jewelry.

Answer 10

A.
Entitlement to zero duty on imported raw materials, capital equipment, and spare parts

Question 11

Which of the following tariff rates was NOT part of the more flexible tariff structure implemented during the TRP-IV (1995–2004) phase?
A. 15%
B. 7%
C. 3%
D. 35%

Answer 11

D. 35%

Question 11

What is the full name of the trade agreement represented by the acronym PH-EFTA FTA?
A. Philippine-European Financial Transaction Free Trade Area
B. Philippine Economic Partnership Agreement
C. Philippine-Hong Kong Free Trade Agreement
D. Philippine European Free Trade Association Free Trade Agreement

Answer 11

D.
Philippine European Free Trade Association Free Trade Agreement

Question 11

TRUE or FALSE: The Comprehensive Tariff Program (CTP) is an initiative that calls for a periodic tariff review to be conducted annually to provide transparency and predictability.
False

True

Answer 11

False
Right answer
The CTP is a periodic tariff review conducted every five (5) years, not annually, as stated in the document.

Question 12

Which of the recently issued Executive Orders was responsible for temporarily modifying the rates of import duty on crude, petroleum oil, and refined petroleum products?
A. EO 135 (18 May 2021)
B. EO113 (6 May 2020)
C. EO 134 (6 May 2021)
D. EO 102 (6 May 2020)

Answer 12

B.
EO 113 (6 May 2020)

Question 13

Which specific condition must be met for the President, upon the recommendation of the NEDA, to INCREASE or REDUCE existing rates of import duty during a Congressional recess?
A. The President must consult with the Tariff Commission prior to issuing the Executive Order.
B. The increased or reduced rate must not exceed the maximum prescribed by the law.
C. The increase/reduction must not exceed 10% ad valorem.
D. The change must be certified as urgent by the Secretary of Finance.

Answer 13

B. The increased or reduced rate must not exceed the maximum prescribed by the law.

Question 14

In the process for tariff/nomenclature modification under Section 1609, what specific action is required immediately before the Cabinet-level TRM Committees deliberate on the proposals?
A. Submit findings and recommendations to the NEDA for deliberation by the Tariff Commission (TC) and Technical Related Matters (TRM) Committees.

B. Submit a final draft Executive Order (EO) to the President for signing.
C. The Tariff Commission and other relevant agencies prepare the implementing Executive Order for final approval of the NEDA Board.
D. Conduct investigations (e.g., public hearings) and studies.

Answer 14

A. Submit findings and recommendations to the NEDA for deliberation by the Tariff Commission (TC) and Technical Related Matters (TRM) Committees.

Question 15

The TRP-II (1991–1995) program achieved which crucial milestone regarding the reduction of protective duties?
A. It lowered the maximum rate of duty to 30% and the minimum rate to 0% for all sectors.
B. It reduced overall level and dispersion across industries, with 95% of total tariff lines levied at 3%, 5%, 10%, 20% and 30%.

C. It simplified the tariff band to narrow from 100%-10% to 10%-50%.
D. It reinstated zero tariffs on agricultural inputs following the expiration of the Agriculture and Fisheries Modernization Act of 1997.

Answer 15

B.
It reduced overall level and dispersion across industries, with 95% of total tariff lines levied at 3%, 5%, 10%, 20% and 30%.

Question 16

What is the primary objective of the Comprehensive Tariff Review (2016–2020)?
A.
To increase the tariff rates on textile and garment products to protect local manufacturers.
B.
To remove all remaining quantitative restrictions on sensitive agricultural products.
C.
To establish a uniform tariff rate of 5% for all non-sensitive products.
D.
To promote industry competitiveness, address the issue on tariff distortion, and implement international tariff commitments.

Answer 16

D.
To promote industry competitiveness, address the issue on tariff distortion, and implement international tariff commitments.

Question 17

Which of the following is a key provision of the BIOfUEL ACT (RA 9367), as mentioned in the document?
A.
It reduced tariffs on car parts and equipment.
B.
Fuel ethanol 1% DOE certificate.
C.
It provides for a specific tariff reduction on imported raw materials used in biofuel production.
D.
The law mandates the phased implementation of biofuel blends in all gasoline and diesel fuel sold in the Philippines.

Answer 17

C.
It provides for a specific tariff reduction on imported raw materials used in biofuel production.

Question 18

Which trade agreement on the list includes the terms General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) as one of the cases falling under Section 1609?
A.
ASEAN Free Trade Area (AFTA)
B.
Philippine European Free Trade Association Free Trade Agreement (PH-EFTA FTA)
C.
Philippine-Japan Economic Partnership Agreement (P-JPEPA)
D.
World Trade Organization (WTO)

Answer 18

D.
World Trade Organization (WTO)

Question 19

The TRP-III (1994–1997) further liberalized the trade environment by reducing the level and spread of tariff rates towards a more uniform level. Which of the following best describes its method?
A.
Implemented a unified set of tariff rates for most non-sensitive products across all sectors.
B.
Implemented EO 486 (10 July 1998) to impose four tariff levels: 3%, 10%, 20%, and 30%.
C.
Continued the process of moving away from government-supported import substitution to promotion of exports.
D.
Phased implementation of AFTA-CEPT rates across all product groups.

Answer 19

A.
Implemented a unified set of tariff rates for most non-sensitive products across all sectors.

Question 20

Based on the table of Average Nominal Tariff by Sector, which economic sector experienced the largest percentage reduction in its average tariff rate between 1981 (43.76%) and 2005 (3.84%)?
A.
Manufacturing (Mfg)
B.
Mining
C.
Agriculture
D. Overall

Answer 20

D. Overall

Question 21

Which EO, issued on 03June 2010, reduced the MFN rates on imported educational, scientific, historical and cultural books?
A.
EO 885
B.
EO 22
C.
EO 375
D.
EO 450

Answer 21

A.
EO 885

Question 22

Which of the following items was NOT explicitly listed as one of the Philippine winners benefitting from the 3%-30% tariff structure implemented in 1994 and fully phased in by 2004?
A.
Fertilizers
B.
Pharmaceuticals
C.
Textiles and garments
D.
Ceramics

Answer 22

B.
Pharmaceuticals

Question 23

The formula for the **Effective Protection Rate (EPR)** is a measure of the total effect of the entire tariff structure. Why is a reduction in EPR crucial for achieving the goals of the Tariff Reform Program? A. A reduced EPR means lower import duties on finished goods, which increases foreign competition. B. EPR reduction is necessary to strictly comply with all ASEAN Free Trade Area (AFTA) commitments. C. EPR measures the protection provided to the local processing of a product, and high EPR can lead to resource misallocation and inefficiency. D. A high EPR signals low tariff collections, which reduces government revenue.

Answer 23

C. EPR measures the protection provided to the local processing of a product, and high EPR can lead to resource misallocation and inefficiency.

Question 24

Which specific action is explicitly mandated under **Section 1608 Flexible Clause** for which the President is **NOT** required to wait for Congress to be in session? A. To reduce the tariff duty on **ALL** imports to not exceeding 10% ad val. B. To establish import quota or to ban imports of any commodity. C. To impose additional tariff line under the AHTN (2716.00.00) for electrical energy. Not quite This is listed as an example of a mandate but is not the specific action exempted from the 'in session' rule. D. To increase or reduce existing rates of import duty.

Answer 24

A. To reduce the tariff duty on **ALL** imports to not exceeding 10% ad val.

Question 25

Which Philippine Trade Agreement is listed as a **European** partnership? A. ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEPA) B. ASEAN-AUSTRALIA-NEW ZEALAND Free Trade Area (AANZFTA) C. Regional Comprehensive Economic Partnership (RCEP) D. Philippine European Free Trade Association Free Trade Agreement (PH-EFTA FTA)

Answer 25

D. Philippine European Free Trade Association Free Trade Agreement (PH-EFTA FTA)

Question 26

The initial objective of **TRP-I (1981–1985)** was supported by which specific action regarding protective duties? A. Removing or lowering protective duties that had outlived their usefulness. B. Setting a 0% duty on all inputs and a 50% duty on all finished goods. C. Abolishing the tariff band entirely and moving to a uniform 5% tariff rate. D. Imposing new protective duties on all imported raw materials to boost local sourcing.

Answer 26

A. Removing or lowering protective duties that had outlived their usefulness.

Question 27

Which of the following is **NOT** listed as a specific mandate or objective under **Section 1609 (Promotion of Foreign Trade)**? A. Expand the foreign markets for her products. B. Improve the purchasing power of the peso. C. Improve the country's balance of payments through tariff management. D. Establish better relations with other countries.

Answer 27

C. Improve the country's balance of payments through tariff management.

Question 28

Which trade agreement listed has an associated EO (EO 11) for implementing international commitments? A. ASEAN Free Trade Area (AFTA) B. Philippine European Free Trade Association Free Trade Agreement (PH-EFTA FTA) C. ASEAN-India Free Trade Area (AIFTA) D. Regional Comprehensive Economic Partnership (RCEP)

Answer 28

B. Philippine European Free Trade Association Free Trade Agreement (PH-EFTA FTA)