METHODS OF VALUATION

IN USING THE METHOD ONE (TRANSACTION VALUE), THE FOLLOWING ARE PRE-CONDITIONS THAT NEEDS TO MEET, EXCEPT

• THERE ARE NO RESTRICTION AS TO THE DISPOSITION OR CONSIDERATION OF GOODS

• THE SALE OR PRICE IS NOT SUBJECT TO SOME CONDTION OR CONSIDERATION

• THE BUYER AND THE SELLER ARE NOT RELATED

• THERE ARE SUBSEQUENT PAYMENT

WHICH OF THE FOLLOWING DOES NOT BELONG TO "NO SALE SITUATIONS" UNDER METHOD ONE?

• GIFTS

• BRANCH OFFICE TRANSFER

• LEASED GOODS

• NONE OF THE CHOICES

WHICH ONE IS THE EXEMPTION IN THE RULES UNDER NO RESTRICTION ON THE DISPOSITION OR USE OF THE GOODS IN METHOD ONE?

• REGULATORY PERMITS AND CLEARANCES REQUIRED BY THE LAW

• LIMITED TO THE GEOGRAPHIC AREA IN WHICH THE GOODS MAY BE STORED

• MUST BE SUBSTANTIALLY AFFECT THE VALUE OF THE GOODS

• ALL OF THE ABOVE ARE EXEMPTIONS

BELOW ARE EXAMPLES OF GOODS FOR SALE AND NOT SUBJECT TO ADDITIONAL CONDITIONS, EXCEPT

• THE SELLER ESTABLISHED THE PRICE OF THE IMPORTED GOODS THAT THE BUYER WILL ALSO BUY OTHER GOODS IN SPECIFIED QUANTITIES

• PACKAGE DEALS

• SPLIT SHIPMENTS

• THE PRICE IS ESTABLISHED ON THE BASIS OF A FORM OF PAYMENT RELATED TO THE IMPORTED GOODS

THE BUYER AND THE SELLER ARE DEEMED RELATED IF?

• THE SELLER IS A SECOND COUSIN OF THE BUYER

• THEY ARE EMPLOYER AND EMPLOYEE

• BOTH OF THEM DIRECTLY OR INDIRECTLY CONTROLS THE OTHER

• ONE OF THEM ARE DIRECTLY OR INDIRECTLY CONTROLLED BY A THIRD PERSON

ANY PERSON DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR HOLDS HOW MANY PERCENT OF THE OUTSTANDING VOTING STOCK OR SHARES OF BOTH THE BUYER AND SEELER FOR THEM TO TO BE DEEMED RELATED?

• 5%

• 4%

• 3%

• 2%

UNDER WHAT CIRCUMSTANCES SHALL PREVENT THE USE OF TRANSACTION VALUE UNDER METHOD ONE IN WHICH IT CANNOT BE USED TO DETERMINE THE CUSTOMS VALUE?

• THERE IS NO EVIDENCE OF AN IMPORT SALES TRANSACTION

• THE SALE INVOLVES A CONSIDERATION FOR WHICH A VALUE CANNOT BE ASCERTAINED

• THERE ARE RESTRICTS TO THE DISPOSITION OR USE OF THE IMPORTED GOODS

• THE VENDOR AND PURCHASER ARE RELATED PARTIES

DOES THE EXISTENCE OF A RELATION BETWEEN THE BUYER AND THE SELLER GIVE CUSTOMS THE RIGHT TO REJECT OURIGHT THE TRANSACTION VALUE?

• NO

• YES

• YES, AS IT MAY DEEMED TO HAVE DISTORTED THE PRICE AGREED UPON THE BUYER AND THE SELLER

• NO, AS LONG AS THEIR RELATIONSHIP DOES NOT INFLUENCE THE PRICE AGREED.

HOW IS TRANSACTION VALUE DIFFERENT FROM THE PREVIOUS "EXPORT VALUE" SYSTEM?

• TRANSACTION VALUE IS BASED ON THE ACTUAL TRANSACTION BETWEEN THE BUYER AND SELLER. WHILE THE EXPORT VALUE IS BASED ON THEORETICAL VALUATION.

• EXPORT VALUE IS BASED ON THE ACTUAL TRANSACTION BETWEEN THE BUYER AND SELLER. WHILE THE TRANSACTION VALUE IS BASED ON NOTIONAL VALUATION.

• THERE IS NO DESTINCTION BETWEEN THE TWO AS BOTH ARE TRANSACTION BETWEEN BUY AND SELLER

• TRANSACTION VALUE USES IN ANY ORDER OF PREFERENCE VALUES OF PAST OR PARALLER TRANSACTIONS WHILE EXPORT VALUE THE VALUES OF THE PAST CAN NO LONGER BE USE AS A SSUBSTITUTE VALUE

IF A SHIPMENT WHOSE VALUATION ISSUE IS NOT YET FINAL, WILL THE BUREAU OF CUSTOMS IMMEDIATELY RELEASE THE GOODS?

• NO, AS IT SHALL BE WITHHELD BY CUSTOMS UNTIL RESOLVE

• YES, UPON PAYING THE CORRECT DUTIES AND TAXES

• YES, UPON POSTING SECURITY AND THE MATTER IS RESOLVE IN A FORMAL DISPUTE SETTLEMETN

• YES, UPON THE APPROVAL OF THE DISTRICT COLLECTOR