CAO 1-2022

Question 1

shall refer to goods which are neither raw materials nor supplies which enhance the finished products to be exported.

Answer 1

Accessories

Question 2

shall refer to a responsible official of the CBW named and designated by the operator as the person, other than himself, answerable and liable to the Bureau for all the operational aspects of the warehouse.

Answer 2

Accountable Officer

Question 3

shall refer to a natural or juridical person authorized by the Bureau to be a client/end-user of Industry-specific CBW (ICBW).

Answer 3

Accredited Client/End-User

Question 4

shall refer to client-exporters accredited by the Bureau to receive finished goods manufactured by MCBWs to be used in their registered export activities.

Answer 4

Accredited Client-Exporter

Question 5

shall refer to an Industry-Specific Customs Bonded Warehouses (ICBW) where supplies, spare parts, in-flight duty-free items and such other goods necessary for the reasonable requirements of the aircraft, its crew and passengers are stored.

Answer 5

Airlines Customs Bonded Warehouse and Airlines Catering Customs Bonded Warehouse

Question 6

Alert Order - shall refer to a written Order issued by the Commissioner, District Collector, or other customs officers authorized in writing by the Commissioner after the Lodgement of Goods Declaration and before their actual release from customs custody, on the basis of derogatory information regarding possible non-compliance with the CMTA and other laws, rules and regulations enforced by the Bureau.

Answer 6

Alert Order

Question 7

shall refer to the authority given by the Bureau allowing persons, natural or juridical, to establish and operate a CBW.

Answer 7

Authority to Operate

Question 8

shall refer to the document issued by the District Collector allowing transfer or sale of imported raw materials, semi-finished products, or finished products to another CBW, Client-Exporter, Client/End-User, or Freeport Zone locator for subsequent export. Transfers to sub-contractors or members of CCBW shall be covered by Authority to Transfer only.

Answer 8

Authority to Transfer or Sell (ATS)

Question 8

shall refer to the automated system to be adopted by the CBW operator as a tool to determine and monitor the stock inventory of imported raw materials from the time of its entry into the CBW up to liquidation of the covering warehousing entry.

Answer 8

Automated Inventory Management System (AIMS)

Question 9

shall refer to the automated system to be utilized by the Bureau as a tool in the effective monitoring and cancellation of bonds for the liquidation of raw materials/entries.

Answer 9

Automated Bonds Management System (ABMS)

Question 10

shall refer to the Bureau of Customs.

Answer 10

Bureau

Question 11

shall refer to the document signed by the Commissioner of Customs and issued by the Bureau to persons, natural or juridical, duly authorized to operate a CBW, to be an accredited member, accredited subcontractor or accredited client/end-user stating its name, authority (license) number, exact office and warehouse address, date of grant and expiry of authority and type of the approved warehouse, renewable every three (3) years, after proper re-evaluation and favorable recommendation by the CBWC.

Answer 11

Certificate of Authority to Operate

Question 12

shall refer to the document certifying that the finished products to be exported is from a particular warehousing entry, and also to determine whether or not a particular entry is partially or fully consumed.

Answer 12

Certificate of Identification (CI)

Question 13

shall refer to the document issued by the Bureau to an entity registered as importer and recognized to electronically lodge goods declaration in the Bureau’s existing registration system.

Answer 13

Certificate of Importer Accreditation

Question 14

shall refer to the document issued by the Bureau certifying the conduct of inspection over the cargo for export and its actual loading on the exporting carrier.

Answer 14

Certificate of Inspection and Loading (CIL)

Question 15

shall refer to a natural or juridical person engaged in the manufacture or export of products utilizing goods, raw materials, accessories and packing materials sourced from a CBW and members subject to the condition that finished products shall be exported within the period prescribed by existing laws and regulations.

Answer 15

Client-Exporter

Question 16

shall refer to the system of registration provided for Bureau stakeholders adopted under Customs Memorandum Order (CMO) No. 39-2008.

Answer 16

Client Profile Registration System (CPRS)

Question 17

shall refer to a procedure to be adopted by the Bureau in assessing the degree of compliance of a warehouse operator with relevant CBW rules and regulations and in taking any action on the CBW’s Authority to Operate or any extension thereof. The CRS shall be developed by the Bureau subject to review by the Department of Finance (DOF) and consultation with concerned stakeholders. CRS may be applied to accredited members of CCBWs and accredited subcontractors.

Answer 17

Compliance Rate System (CRS)

Question 18

shall refer to a warehouse authorized/licensed by the Bureau to import, receive, and store, without payment of duties and taxes and under bond, goods, raw materials, accessories and packing materials either for manufacture into finished products for export or storage for the account of accredited exporter/client.

Answer 18

Customs Bonded Warehouse (CBW)

Question 19

shall refer to the committee created to act on applications for the establishment and operation of CBW, renewal of Authority to Operate CBWs, application as member of a CCBW, application as subcontractor of a CBW and other related matters pertaining to the operation of a CBW.

Answer 19

Customs Bonded Warehouse Committee (CBWC)

Question 20

shall refer to a natural or juridical person who has a duly approved Authority to Operate a CBW Issued by the Bureau. For CCBWS, CBW operator shall refer to the mother warehouse.

Answer 20

Customs Bonded Warehouse Operator

Question 21

shall include customs offices, facilities, warehouses, ports, airports, wharves, infrastructure and other premises over which the Bureau shall have exclusive control, direction, and management for customs purposes.

Answer 21

Customs Premises

Question 22

shall refer to a violation of customs law committed when an Imported material entered through the warehousing scheme and destined for transit to a particular CBW, Free Zone locator/enterprise, or from the CBW to the port or airport for exportation, is brought to some place other than its intended destination.

Answer 22

Diversion

Question 23

shall refer to the act, documentation, and process of bringing Imported goods into the customs territory, including goods coming from the Free Zones

Answer 23

Entry

Question 24

shall refer to an area of a CCBW and ICBW with sufficient space for examination and storage of goods.

Answer 24

Examination and Storage Area

Question 25

shall refer to the act, documentation, and process of bringing goods out of Philippine Territory

Answer 25

Exportation

Question 26

shall refer to a separate warehouse authorized by the Bureau to form part of an already existing CBW to optimize capacity and efficiency in its operations

Answer 26

Extension Warehouse

Question 27

shall refer 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; the Freeport Area of Bataan under Republic Act No. 9728; and such other freeports as established or may be created by law.

Answer 27

Free Zone

Question 28

shall refer to the formula of conversion issued by the Industrial Technology Development Institute (ITDI) to the CBW operator and members, determining the raw material usage and wastages of a particular finished product for export and subsequent liquidation.

Answer 28

Formula of Manufacture (FOM)

Question 29

shall refer to the government agency attached to the Department of Trade and Industry mandated to assist the Bureau In granting authority to an operator or to be a member or subcontractor of a warehouse involved in the manufacture of garments or textile for export.

Answer 29

Garments and Textile Industry Development Office (GTIDO)

Question 30

shall refer to articles, wares, merchandise and any other items which are subject of Importation or exportation

Answer 30

Goods

Question 31

shall refer 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.

Answer 31

Goods Declaration

Question 32

shall refer to the act of bringing in of goods from a foreign territory into Philippine territory, whether for consumption, warehousing, or admission

Answer 32

Importation

Question 33

shall refer to the process of accounting the usage of bonded raw materials, including wastages, in the manufacture of finished products for export as against the importation by CBWs of raw materials using the FOM.

Answer 33

Liquidation of Raw Materials

Question 34

shall refer to the registration of a goods declaration with the Bureau

Answer 34

Lodgement

Question 35

shall refer to an entity accredited to operate under an existing CCBW established for the manufacture of products using imported duty and tax-free raw materials or components subject to the condition that finished products shall be exported within the period prescribed by existing laws and regulations.

Answer 35

Member

Question 36

may either be accredited by the Bureau alone or jointly with the GTIDO in case of entities engaged in the manufacture of garments.

Answer 36

Members

Question 37

shall refer to an Industry-Specific CBW authorized by the Board of Investments (BOI) in proper cases, to serve as the supply depot for the storage, deposit, safe-keeping of spare parts components, semi-finished products and raw materials including the packing, covering, putting-up, marking, labelling, cutting or altering to customer's satisfaction, mounting and/or packaging into kits or marketable lots thereof to fill up transactions and sales made by its officers of parent companies and to serving as a storage of goods purchase locally by the home office of the multinational for export abroad under the supervision of the Bureau.

Answer 37

Multinational Regional Bonded Warehouse

Question 38

shall refer to a customs single administrative document accomplished by the importer, or his duly licensed broker, under oath and submitted to the Bureau for purposes of declaring and identifying among others the nature of the article/s being Imported, its value, volume, weight, and any relevant description thereof, whether entered through consumption or through warehousing which will assist the Bureau in assessing the taxes and duties due on the imported article.

Answer 38

Multi-Purpose Declaration

Question 39

shall refer to goods liable to perish¹¹ such as agricultural products, flavorings, chemicals with maximum shelf life of six (6) months or other similar items.

Answer 39

Perishable Goods

Question 40

shall refer to a system to secure and monitor premises, storage and production areas of CBWs including the safety of personnel.

Answer 40

Physical Security Feature

Question 41

shall refer to an automated system to be adopted and utilized by the Bureau in determining the volume and value of the raw materials exported and subject for liquidation, including the duties and taxes due on the allowable residues/wastages/by-products and other portion of the imported article/s, entered through warehousing, no longer usable for the manufacture of the goods to be exported.

Answer 41

Raw Material Liquidation System (RMLS)

Question 42

shall refer 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

Answer 42

Security

Question 43

shall refer to imported raw materials or goods that have undergone processing which shall be used in the further manufacture of finished products for export. They are also termed as "intermediate products."

Answer 43

Semi-finished products

Question 44

shall refer to a person or company accredited by the Bureau, and GTIDO in case of garments, to undertake or perform, for a definite period, certain manufacturing operations or activities incidental to the manufacture of bonded raw materials into finished products in behalf of a CBW and members in cases where the latter's facilities are insufficient to address its immediate requirements or due to lack of material time to meet export commitments.

Answer 44

Sub-contractor

Question 45

shall refer to imported consumable and disposable Indirect materials that are needed in the maintenance, operation and production of the MCBW. Such materials are not included in FOM of the finished products and are not duty/tax-free unless authorized by the BOI or exempted by the DOF.

Answer 45

Supplies

Question 46

shall refer to a customs document that accompanies the transfer or transit underguard of bonded imported goods to a Free Zone locator/enterprise or to another CBW and serves as proof of delivery or receipt of the goods at its intended destination duly acknowledged on its face by the Collector of Customs or his duly authorized representative. It is also commonly referred to as a "boatnote"

Answer 46

Transfer Note

Question 47

shall refer to the customs procedure under which goods are transported under customs control from one customs office to another or to a Free Zone locator/enterprise

Answer 47

Transit

Question 48

shall refer to the act of fraudulent concealment, removal, or repacking merchandise in any CBW; or fraudulent alteration, defacement, or obliteration of any markings or numbers placed upon packages deposited in such warehouse, or aiding or abetting any such acts

Answer 48

Unauthorized Repacking

Question 49

shall refer to the withdrawal of any material/goods stored in a CBW without the duly processed withdrawal or requisition slip, or the substitution of materials or finished products with local materials or goods. Unauthorized withdrawal shall also include the act of directly transferring the imported materials to an Accredited Member or Subcontractor without passing through the physical facility of the CBW, or the transfer of such materials to a non-accredited member or subcontractor.

Answer 49

Unauthorized Withdrawal

Question 50

shall refer to a bank of information and reference values which shall be utilized by the Bureau in assessing the taxes and duties due on the allowable residue/wastage/by-products or other portion of the imported article/s which can no longer be used for the manufacture of the goods to be exported

Answer 50

Wastage Valuation Data Base (WVDB)