Cao 2 2020

Question 1

What is the purpose of Customs Administrative Order (CAO) No. 02-2020?

Answer 1

To prescribe policies, guidelines, and procedures on dispute settlement and protest in the Bureau of Customs.

Question 2

Which Republic Act does CAO No. 02-2020 relate to?

Answer 2

Republic Act No. 10863, known as the Customs Modernization and Tariff Act (CMTA).

Question 3

What rights does CAO No. 02-2020 cover?

Answer 3

The right to administrative remedies of an aggrieved importer or exporter pertaining to dispute settlement or protest.

Question 4

What is the main objective of CAO No. 02-2020?

Answer 4

To provide an air and expeditious resolution of dispute settlement and classification, and other customs issues.

Question 5

What does ‘Advance Ruling’ refer to?

Answer 5

An official written and binding ruling issued by the Bureau on customs valuation or rules of origin prior to importation or exportation.

Question 6

Define ‘Assessment’ in the context of customs.

Answer 6

The process of determining the amount of duties, taxes, and other charges due on imported goods and goods for export.

Question 7

What is meant by ‘Completed Assessment’?

Answer 7

The stage of the assessment process wherein the principal appraiser has reviewed findings and made a determination on duties and taxes.

Question 8

Who is referred to as the ‘Commissioner’ in this CAO?

Answer 8

The Commissioner of Customs.

Question 9

What constitutes a ‘Protestable Case’?

Answer 9

Any ruling or decision by the District Collector that is adverse to the importer, consignee, or exporter.

Question 10

What is a ‘Tentative Assessment’?

Answer 10

Initially assessed duties and taxes that are disputed by the importer or consignee.

Question 11

What is a ‘Tariff Classification Issue’?

Answer 11

Issues arising when the Customs Officer questions the correctness of the declared tariff classification.

Question 12

What is a ‘Valuation Issue’?

Answer 12

Issues that arise when the Customs Officer challenges the customs value declared in the goods declaration.

Question 13

What are the general provisions of dispute settlement according to CAO No. 02-2020?

Answer 13

Includes tariff classification, customs valuation, rules of origin, and other customs issues.

Question 14

True or False: Dispute settlements can occur if there is a pending application for Advance Ruling.

Answer 14

False.

Question 15

What actions may the Bureau and the Tariff Commission take prior to releasing goods under Tentative Assessment?

Answer 15

Taking samples, laboratory analysis, and obtaining expert advice.

Question 16

What must be established for all dispute settlement or protest cases?

Answer 16

An ICT-based docketing system.

Question 17

What happens if misdeclaration or undervaluation is found to be intentional?

Answer 17

A surcharge of 500% of the duty and tax due may be imposed, and goods may be subject to seizure.

Question 18

What is the role of the Technical Committee mentioned in CAO No. 02-2020?

Answer 18

To assist and recommend in resolving dispute settlement issues.

Question 19

Fill in the blank: A _______ is a written order on a disputed tariff classification issued by the Tariff Commission.

Answer 19

Tariff Classification Dispute Ruling

Question 20

What must the District Collector do if a tariff classification issue involves difficult questions?

Answer 20

Inform the importer and forward relevant documents to the Tariff Commission for ruling.

Question 21

What should an importer do if they disagree with the ruling of the District Collector?

Answer 21

File a protest against the ruling.

Question 22

How long does the Commissioner have to render a ruling on a protest?

Answer 22

Thirty (30) days from receipt of the protest.

Question 23

What can an importer do if the ruling of the Commissioner is unfavorable?

Answer 23

Submit the matter to the Tariff Commission or appeal to the Court of Tax Appeals.

Question 24

What is a ‘Security’ in the context of customs?

Answer 24

Any form of guaranty ensuring satisfaction of an obligation to the Bureau.

Question 25

What types of customs issues can be released under Tentative Assessment?

Answer 25

* Difficult tariff classification questions * Difficult customs valuation questions * Difficult rules of origin issues * Mixed issues involving the above

Question 26

What happens to a dispute if fraud is discovered during the process?

Answer 26

The proceedings are terminated, and a Warrant of Seizure and Detention is issued.

Question 27

What is the significance of international standards in CAO No. 02-2020?

Answer 27

They guide the Bureau in utilizing ICT to enhance customs control and operations.

Question 28

What must the District Collector require if the nature of the goods permits?

Answer 28

Taking of samples subject to verification of the Customs Officer concerned ## Footnote Samples are to be returned to the importer upon termination of the dispute settlement.

Question 29

What can the importer request under Tentative Assessment?

Answer 29

Release of the goods upon payment of duties and taxes and posting of sufficient Security ## Footnote This covers the disputed amount of duties, taxes, and other charges as determined by the examiner and appraiser.

Question 30

How long does the District Collector have to resolve the Valuation Issue?

Answer 30

Fifteen (15) days from submission of the position papers.

Question 31

What must the District Collector do if he adopts the findings of the Customs Officer?

Answer 31

Notify the aggrieved importer within forty-eight (48) hours in writing stating his reasons. ## Footnote This includes a directive to pay the duties and taxes in full based on the valuation made by the Customs Officer.

Question 32

What happens if the ruling is adverse to the importer?

Answer 32

The importer shall be liable to pay the additional duties and taxes adjudged. ## Footnote If goods are released under Tentative Assessment, any posted security will answer for the deficiency.

Question 33

What can an aggrieved importer do if adversely affected by a ruling?

Answer 33

Appeal by way of protest against such ruling in accordance with this CAO.

Question 34

What steps must be followed for dispute settlement arising from Rules of Origin?

Answer 34

1. Verification of the Certificate of Origin (CO) by the Customs Officer 2. Request for verification from the District Collector 3. Forwarding of CO to AOCG for verification 4. Release of goods under Tentative Assessment upon payment 5. Receipt of verification results from the issuing country 6. Application of the corresponding preferential rate or forfeiture of security.

Question 35

What happens if the issuing country confirms the authenticity of the CO?

Answer 35

The corresponding preferential rate shall be applied and the assessment is deemed completed and final.

Question 36

What occurs if the issuing country finds the CO was not authentic?

Answer 36

The District Collector shall forfeit the Security posted or require the importer to pay applicable duties and taxes.

Question 37

What is the procedure if a Customs Officer challenges the goods declaration?

Answer 37

The importer may elevate the matter to various authorities: principal appraiser, Chief of Formal Entry Division, Deputy Collector for Assessment, and finally to the District Collector.

Question 38

What must the District Collector do if issues raised affect the Assessment of duties?

Answer 38

Require submission of position papers within five (5) days from the notice and resolve the issues within fifteen (15) days from submission.

Question 39

What is the time frame for the Commissioner to render a ruling after a protest is filed?

Answer 39

Thirty (30) days from receipt of the protest.

Question 40

What is the consequence if the Commissioner fails to act on a protest?

Answer 40

The ruling of the Collector shall be deemed affirmed.

Question 41

What can an importer do if aggrieved by the ruling of the Commissioner?

Answer 41

File a Motion for Reconsideration within fifteen (15) calendar days.

Question 42

What is the finality of the decision made by the Commissioner?

Answer 42

The ruling shall be final and executory unless an appeal is made to the CTA.

Question 43

What is the time frame for an importer to appeal to the CTA after receiving a decision from the Commissioner?

Answer 43

Thirty (30) days from receipt of the adverse decision.

Question 44

What provisions apply to protest cases filed prior to the effectivity of this Order?

Answer 44

They shall be resolved in accordance with the applicable provisions of the Tariff and Customs Code of the Philippines.

Question 45

What information must be treated as confidential by authorities?

Answer 45

Information that is commercially confidential or provided on a confidential basis for tariff classification, valuation, or customs issues.

Question 46

How often will this CAO be reviewed?

Answer 46

Every three (3) years.

Question 47

What happens if any part of this CAO is declared unconstitutional?

Answer 47

The other parts not declared shall remain in full force and effect.

Question 48

When does this CAO take effect?

Answer 48

Thirty (30) days after its complete publication at the Official Gazette or a newspaper of national circulation.