COMPUTATION QUESTIONS

INCOTERMS
1. A seller in USA was required by the buyer in Manila to deliver 1 x 20’ van containing refrigerator units
on board the vessel at the port of Los Angeles. The invoice shows ex-works value of $35,000.00. The
seller paid loading to truck charges at $15.00, origin inland freight of $30.00, origin internal insurance of
$20.00, origin THC charges of $50.00, export documentation of $150.00 and export duties and taxes of
$300.00. The buyer will pay the freight charges $2,000.00 from Los Angeles to Manila and marine
insurance of $250.00. Determine the INCOTERM used and its corresponding amount.

a. CIP, Los Angeles- $37,815.00

b. FOB, Los Angeles- $35, 565.00
c. CIF, Los Angeles- $37,815.00
d. FCA, Los Angeles- $35,565.00

2. A buyer in Davao instructed his seller in China to deliver 100 cartons of electronic chips to the custody
of a freight forwarding company in Shenzhen City. The seller’s quotation shows ex-works value of
$18,000.00, origin inland freight and internal insurance of $25.00 and $15.00 respectively, export
clearance of $80.00 and export duties and taxes of $250.00. Also included in the seller’s quotation is
the main carriage of $1,800.00 and port-to-port insurance of $300.00. Determine the INCOTERM used
and its corresponding amount.
a. FOB, Shenzhen - $18,370.00
b. CIP, Davao - $20,470.00
c. CIF, Davao - $20,470.00
d. FCA, Shenzhen - $18,370.00

3. A buyer in Manila instructed his seller in Kuala Lumpur, Malaysia to deliver 10 units of equipment to the
former’s warehouse in Quezon City. The seller’s quotation shows ex-works value of $32,000.00, origin
inland freight and internal insurance of $40.00 and $20.00 respectively, origin LCL charges of $50.00,
export documentation of $150.00, export duties and taxes of $400.00 and main carriage of $2,000.00.
Also included in the seller’s quotation were destination LCL charges of $70.00, destination inland freight
and internal insurance of $30.00 and $15.00 respectively and destination unloading charges of $25.00
upon arrival at the warehouse. The buyer will pay import documentation of $150.00 and import duties
and taxes of $300.00. Determine the INCOTERM used and its corresponding amount.

a. DPU, Manila - $34,800.00

b. DDP, Quezon - $35,250.00
c. DPU, Quezon - $34,800.00
d. DAP, Manila - $35,250.00

4. A shipment of 500 cartons of phone parts were delivered by a seller in Korea to a logistics company in
Gunsan City, Korea. The covering invoice shows total invoice value of $24,000.00 inclusive of origin
inland freight of $40.00, origin internal insurance of $25.00, export documentation of $120.00, export
duties and taxes of $300.00 and main carriage of $1,200.00. The buyer in Manila will assumed the
payment of port-to-port insurance of $350.00. Determine the INCOTERM used and its corresponding
amount.
a. CPT, Manila - $24,000.00
b. CPT, Manila - $25,685.00
c. CIP, Manila - $25,685.00
d. FCA, Gunsan - $24,000.00

5. A buyer in Manila instructed his seller in Jakarta, Indonesia to deliver 200 cases of juice drinks to the
custody of Garuda Indonesia Airlines in Tangerang City, Indonesia. The seller’s quotation shows ex-
works value of $12,000.00, origin inland freight and internal insurance of $15.00 and $10.00
respectively, export clearance of $50.00 and export duties and taxes of $175.00. The buyer in Manila
will handle the main carriage of $1,300.00 and port-to-port insurance of $200.00. Determine the
INCOTERM used and its corresponding amount.

a. FCA, Jakarta - $12,250.00

 b. CIF, Manila - $13,750.00
c. FCA, Tangerang - $12,250.00
d. CIP, Manila - $13,750.00

6. An exporter in Davao was instructed by his importer in Korea to deliver 30 units of television to the
latter’s warehouse in Andong City. The seller’s quotation shows ex-works value of $28,000.00, origin
inland freight and internal insurance of $30.00 and $15.00 respectively, origin LCL charges of $40.00,
export documentation of $100.00, export duties and taxes of $150.00 and ocean freight charges of
$1,500.00. Also included in the seller’s quotation were destination LCL charges of $80.00, destination
inland freight and internal insurance of $20.00 and $10.00 respectively, import documentation of $70.00
and import duties and taxes of $500.00. The latter will pay the destination unloading charges of $50.00
upon arrival at the warehouse. Determine the INCOTERM used and its corresponding amount.

a. DAP, Andong - $30,515.00

b. DDP, Andong - $30,565.00
c. DPU, Andong - $30,565.00
d. DDP, Andong - $30,515.00

7. A shipment of 2 x 20’ vans containing coal were delivered by seller in China on board the vessel at the
port of Shanghai with total ex-works value of $27,000.00. The seller paid origin inland freight of $50.00,
origin internal insurance of $30.00, export documentation of $175.00 and export duties and taxes of
$500.00. The seller will also handle the payment of ocean freight charges of $3,500.00 from Shanghai
to Davao, Philippines and marine insurance of $800.00 as per agreement with the buyer. Determine the
INCOTERM used and its corresponding amount.

a. CA, Shanghai - $27,755.00

b. CIP, Davao - $32,055.00
c. FOB, Shanghai - $27,755.00
d. CIF, Davao - $32,055.00

8. An importer in Tokyo, Japan required his exporter in Philippines to make available the 750 boxes
containing dried mangoes available on his warehouse in Naga City. The covering invoice shows ex-
works value of $8,000.00 inclusive of packaging cost of $50.00. The importer hired the services of a
logistics company to pick up the goods at the warehouse and have them cleared for export. The
importer paid origin inland freight of $20.00, origin internal insurance of $10.00, export documentation
of $80.00, export documentation of $150.00, freight charges of $2,000.00 and marine insurance of
$200.00. Determine the INCOTERM used and its corresponding amount.
a. FCA, Naga - $8,050.00
b. EXW, Naga - $8,000.00
c. CIF, Tokyo - $10,460.00
d. CIP, Tokyo - $10,460.00

9. A shipment of bulk cargo were delivered by seller on a lighter at the port of Bangkok in Thailand with
total ex-works value of $23,000.00. The seller paid the loading to truck charges of $10.00, origin inland
freight of $20.00, origin internal insurance of $15.00, export documentation of $50.00 and export duties
and taxes of $100.00. The buyer in Legaspi will assume the payment of origin LCL charges of $75.00,
ocean freight charges of $2,100.00 and marine insurance of $300.00. Determine the INCOTERM used
and its corresponding amount.

a. CIF, Legaspi - $25,670.00

b. CIP, Legaspi - $25,670.00
c. FAS, Bangkok - $23,195.00
d. FAS, Bangkok - $23,270.00

10. A seller in Mandaue City was required by the buyer in Germany to deliver 1 x 40’ van containing
production machineries on board the vessel at the port of Cebu. The invoice shows ex-works value of
$28,000.00. The seller paid origin inland freight of $20.00, origin internal insurance of $10.00, origin
THC charges of $60.00, export documentation of $250.00 and export duties and taxes of $500.00. The
seller also includes pre-payment of ocean freight charges of $1,800.00 from Cebu, Philippines to
Hamburg, Germany. Determine the INCOTERM used and its corresponding amount.

a. CFR, Hamburg - $30,640.00

b. CFR, Cebu - $30,640.00
c. FOB, Hamburg - $28,840.00
d. FOB, Cebu - $28,840.00
BASIS OF DUTIABLE VALUE
1. A shipment of 2 x 40’ vans containing inflammable cargo arrived at South Harbor. The covering invoice
shows total FOB value of $45,000.00 and freight charges of $3,200.00 and marine insurance of
$1,500.00. The bill of lading shows ocean freight charges of $3,300.00. The rate of exchange was
P48.50/$1.00. How much is the dutiable freight?
a. $3,000.00
b. $3,100.00
c. $3,300.00
d. $3,200.00

2. A shipment of 2 x 40’ vans containing inflammable cargo arrived at South Harbor. The covering invoice
shows total FOB value of $45,000.00 and freight charges of $3,200.00 and marine insurance of
$1,500.00. The bill of lading shows ocean freight charges of $3,300.00. The rate of exchange was
P48.50/$1.00. How much is the dutiable insurance?
a. $1,500.00
b. $1,300.00
c. $1,400.00
d. $1,800.00

3. A shipment of 2 x 40’ vans containing inflammable cargo arrived at South Harbor. The covering invoice
shows total FOB value of $45,000.00 and freight charges of $3,200.00 and marine insurance of
$1,500.00. The bill of lading shows ocean freight charges of $3,300.00. The rate of exchange was
P48.50/$1.00. How much is the dutiable value?
a. P2,410,450.00
b. P2,429,850.00
c. P2,415,300.00
d. P2,425,000.00

4. A shipment of refrigerator parts arrived at NAIA with total CPT value of $27,000.00. The covering
invoice freight charges of $2,150.00 whereas the air waybill shows air freight charges of $2,200.00. The
rate of exchange was P52.60/$1.00. How much is the dutiable freight?
a. $2,100.00
b. $2,150.00
c. $2,020.00
d. $2,200.00

5. A shipment of refrigerator parts arrived at NAIA with total CPT value of $27,000.00. The covering
invoice freight charges of $2,150.00 whereas the air waybill shows air freight charges of $2,200.00. The
rate of exchange was P52.60/$1.00. How much is the dutiable insurance?
a. $496.00
b. $992.00
c. $497.00
d. $994.00

6. A shipment of refrigerator parts arrived at NAIA with total CPT value of $27,000.00. The covering
invoice freight charges of $2,150.00 whereas the air waybill shows air freight charges of $2,200.00. The
rate of exchange was P52.60/$1.00. How much is the dutiable value?
a. P1,472,379.20
b. P1,475,114.40
c. P1,446,289.60
d. P1,448,972.20

7. A shipment of furniture arrived at MICP with total FOB value of $32,000.00. The SAD indicated freight
charges of $2,500.00. The total gross weight was 5,000 kilograms subject to GCR rate of $0.70/kg. The
importer secured a local insurance premium of P29,820.00 but no official receipt and certification were
presented to BOC. The rate of exchange was P49.70/$1.00. How much is the dutiable freight?
a. $2,450.00
b. $3,300.00
c. $2,500.00
d. $3,500.00

8. A shipment of furniture arrived at MICP with total FOB value of $32,000.00. The SAD indicated freight
charges of $2,500.00. The total gross weight was 5,000 kilograms subject to GCR rate of $0.70/kg. The
importer secured a local insurance premium of P29,820.00 but no official receipt and certification were
presented to BOC. The rate of exchange was P49.70/$1.00. How much is the dutiable insurance?
a. $640.00
 b. $650.00
c. $620.00
d. $600.00

9. A shipment of furniture arrived at MICP with total FOB value of $32,000.00. The SAD indicated freight
charges of $2,500.00. The total gross weight was 5,000 kilograms subject to GCR rate of $0.70/kg. The
importer secured a local insurance premium of P29,820.00 but no official receipt and certification were
presented to BOC. The rate of exchange was P49.70/$1.00. How much is the dutiable value?
a. P1,778,266.00
b. P1,746,458.00
c. P1,796,158.00
d. P1,744,470.00

10. A shipment of gold bracelets arrived at MCIA with total FCA value of $85,000.00. The invoice shows
freight charges of $2,800.00 while the air waybill shows air freight charges of $2,500.00. The importer
procured a domestic insurance of P104,000.00 with official receipt and certification presented to BOC.
The rate of exchange was P41.60/$1.00. Determine the dutiable value.

a. P3,756,480.00
b. P3,744,000.00
c. P3,793,920.00
d. P3,781,440.00

11. A shipment of 50 cartons containing grapes arrived at Mactan Cebu International Airport with total CPT
value of $35,000.00. The packing list shows weight of 3 kilograms per carton and a dimension of 12” x
8” x 12” per carton. The SAD indicated freight charges of $450.00 while the IATA freight rate was $3.75
per kilogram. The rate of exchange was P52.50/$1.00. How much is the dutiable freight?
a. $413.44
b. $590.63
c. $450.00
d. $590.18

12. A shipment of 50 cartons containing grapes arrived at Mactan Cebu International Airport with total CPT
value of $35,000.00. The packing list shows weight of 3 kilograms per carton and a dimension of 12” x
8” x 12” per carton. The SAD indicated freight charges of $450.00 while the IATA freight rate was $3.75
per kilogram. The rate of exchange was P52.50/$1.00. How much is the dutiable insurance?
a. $1,382.00
b. $691.00
c. $691.73
d. $1,383.46

13. A shipment of 50 cartons containing grapes arrived at Mactan Cebu International Airport with total CPT
value of $35,000.00. The packing list shows weight of 3 kilograms per carton and a dimension of 12” x
8” x 12” per carton. The SAD indicated freight charges of $450.00 while the IATA freight rate was $3.75
per kilogram. The rate of exchange was P52.50/$1.00. How much is the dutiable value?
a. P1,873,777.50
b. P1,917,438.08
c. P1,917,414.45
d. P1,910,055.00

14. A shipment of 3 x 20’ vans containing rice arrived at Port of Davao and was consigned to National Food
Authority. The commercial invoice shows total CFR value of $28,000.00 inclusive of freight charges of
$2,500.00. The importer provided local insurance of P42,900.00 with official receipt and certification
presented to BOC. The rate of exchange at the time of filing was P42.90/$1.00. How much is the
dutiable freight?
a. $2,800.00
b. $2,500.00
c. $2,900.00
d. $2,550.00

15. A shipment of 3 x 20’ vans containing rice arrived at Port of Davao and was consigned to National Food
Authority. The commercial invoice shows total CFR value of $28,000.00 inclusive of freight charges of
$2,500.00. The importer provided local insurance of P42,900.00 with official receipt and certification
presented to BOC. The rate of exchange at the time of filing was P42.90/$1.00. How much is the
dutiable insurance?
a. $1,008.00
 b. $1,000.00
c. $1,020.00
d. $1,010.00

16. A shipment of 3 x 20’ vans containing rice arrived at Port of Davao and was consigned to National Food
Authority. The commercial invoice shows total CFR value of $28,000.00 inclusive of freight charges of
$2,500.00. The importer provided local insurance of P42,900.00 with official receipt and certification
presented to BOC. The rate of exchange at the time of filing was P42.90/$1.00. How much is the
dutiable value?
a. P1,257,828.00
b. P1,158,729.00
c. P1,256,970.00
d. P1,244,100.00

17. A shipment of 8 x 40’ reefer vans containing frozen cattle meat from Xiamen, China arrived at Port of
Cebu. The shipment shows total FOB value of $45,000.00 and freight charges of $12,000.00 without
certification secured from the shipping lines. The rate of exchange at the time of filing was
P48.45/$1.00. How much is the dutiable freight?
a. $10,000.00
b. $14,400.00
c. $14,000.00
d. $12,000.00

18. A shipment of 8 x 40’ reefer vans containing frozen cattle meat from Xiamen, China arrived at Port of
Cebu. The shipment shows total FOB value of $45,000.00 and freight charges of $12,000.00 without
certification secured from the shipping lines. The rate of exchange at the time of filing was
P48.45/$1.00. How much is the dutiable insurance?
a. $900.00
b. $1,200.00
c. $1,800.00
d. $1,500.00

19. A shipment of 8 x 40’ reefer vans containing frozen cattle meat from Xiamen, China arrived at Port of
Cebu. The shipment shows total FOB value of $45,000.00 and freight charges of $12,000.00 without
certification secured from the shipping lines. The rate of exchange at the time of filing was
P48.45/$1.00. How much is the dutiable value?
a. P2,965,140.00
b. P2,805,255.00
c. P2,921,535.00
d. P2,848,860.00

20. A shipment of 100 cartons of ball pen arrived at NAIA with total FCA value of $8,000.00. Each carton
weighs 3 kilograms and had a dimension of 30 cm x 20 cm x 25 cm. The shipment is subject to IATA
rate of $1.80 per kilogram. The exchange rate prevailing at time of filing is P44.50/$1.00. Determine the
dutiable value.
a. P394,270.00
b. P378,150.00
c. P387,150.00
d. P383,145.00

EXCISE TAX ON PETROLEUM PRODUCTS, NON-ESSENTIAL GOODS AND MINERAL PRODUCTS

1. A shipment of 200,000 kilograms of coke was imported to be used as fuel for their furnace arrived at
the Port of Manila. The covering invoice shows total FOB value of $38,700.00 and freight charges of
$3,210.00. Compute the total specific tax, exclusive of value-added tax. Use rate of exchange
P43.80/$1.00.
a. P85,275.03
b. P30,000.00
c. P33,600.00
d. P76,138.42

2. A shipment of 3 x 20’ containers consisting of kaolin clays from Japan arrived at MICP. Invoice shows
total CFR value of $28,750.00 with ocean freight charges amounted to $3,100.00. The local insurance
was P25,290.00 but no official receipt and certification presented to BOC. If the rate of exchange was
P42.15/$1.00, how much is the total ad valorem tax due, value-added tax excluded?
 a. P49,337.42
b. P55,422.19
c. P55,257.91
d. P49,484.10

3. A shipment of women’s perfume from Korea arrived at MCIA with total CPT value of $21,000.00. The
covering invoice shows freight charges of $880.00 whereas the air waybill shows air freight of $950.00.
If the rate of exchange at the time of entry lodgment is P45.75/$1.00 and the rate of duty was 7%, how
much is the total ad valorem tax, inclusive of value-added tax?
a. P220,049.16
b. P224,172.95
c. P196,472.46
d. P200,154.42

4. A shipment of 8 units of yachts from US arrived at Port of Manila. The covering invoice shows FCA
value of $45,000.00 per unit. The covering invoice shows freight charges of $5,150.00 per unit. The
rate of exchange is P43.85/$1.00 while the duty rate is 10%. Exclusive of value-added tax, how much is
the total excise tax?
a. P510,273.68
b. P4,082,189.44
c. P455,601.50
d. P3,644,812.00

5. A shipment of 500 barrels of denatured alcohol from UAE was imported by a glass manufacturer to be
used for window cleaning operations. The shipment paid a total customs duty of P123,000.00 with 10%
duty rate. How much is the total excise tax, exclusive of value-added tax?
a. P795,000.00
b. P534,240.00
c. P890,400.00
d. P477,000.00

6. A shipment of 120,000 ounces of paraffin wax was imported from Qatar. The shipment had total
dutiable value of P875,000.00 subject to 0% tariff rate. How much is the total excise tax, value-added
tax included?
a. P38,102.40
b. P34,020.00
c. P185,185.17
d. P165,343.90

7. A shipment of 2,500 tanks of bunker fuel oil from South Africa was imported by a shipping line for its
voyage operations. Each tank had a volume capacity of 8,000 centiliters. The covering invoice shows
total FOB value of $85,000.00 and freight charges of $5,100.00. How much is the total excise tax,
value-added tax excluded? Use rate of exchange P46.90/$1.00.
a. P1,344,000.00
b. P1,200,000.00
c. P2,240,000.00
d. P2,000,000.00

8. A shipment of 50 plastic drums of asphalt from Australia was imported by a construction company for
road construction projects. The shipment was assessed with total dutiable of P950,000.00. If each drum
weighs 280 pounds, how much is the total excise tax, inclusive of value-added tax?
a. P71,124.48
b. P63,504.00
c. P345,679.01
d. P308,641.98

9. A shipment of 150 plastic drums of lubricating oil from UAE with each drum having a volume capacity of
1,500 deciliters arrived at Port of Batangas. The covering invoice shows total CIF value of $40,000.00
with freight charges and insurance of $1,500.00 and $300.00 respectively. How much is the total
specific tax to be paid, inclusive of value-added tax? Use rate of exchange P51.30/$1.00.
a. P22,500,000.00
b. P25,200,000.00
c. P225,000.00
d. P252,000.00
 10. A shipment of 3,000 plastic containers of kerosene from China was imported to be used for kerosene
lamps. Each container had a volume capacity of 0.03 hl. The shipment shows total dutiable value of
P3,775,000.00 subject to 0% rate of duty. Exclusive of value-added tax, how much is the total specific
tax?
a. P50,400.00
b. P36,000.00
c. P40,320.00
d. P45,000.00

EXCISE TAX ON TOBACCO PRODUCTS, CIGARS, CIGARETTES, HEATED TOBACCO PRODUCTS AND
VAPOR PRODUCTS

1. A shipment of 800 cartons of cigarettes, packed by machine, arrived at Port of Iloilo. Each carton
contains 40 reams while each pack contains 20 sticks. Exclusive of value-added tax, determine the
total excise tax.
a. P17,600,000.00
b. P35,200,000.00 ANS: 20,160,000
c. P39,424,000.00
d. P19,712,000.00

2. A shipment of 120 cartons of cigarettes, packed by hand, arrived at Port of Davao. Each carton
contains 50 reams with each ream contains 10 packs. Each pack contains 20 sticks and net retail price
at P7.50/pack. How much is the total specific tax, inclusive of value-added tax?
a. P3,696,000.00
b. P1,800,000.00
c. P3,300,000.00 ANS: 4,233,600
d. P2,016,000.00

3. A shipment of 150 boxes of tobacco fine-cut shorts arrived at Port of Legaspi. If each box weighs 80
pounds, how much is the total excise tax, inclusive of value-added tax?
a. P74,074.07
b. P13,608.00
c. P66,137.57 AN: 16,460.24
d. P15,240.96

4. A shipment of 50 bales of chewing tobacco from Cuba arrived at Port of Cebu. If each bale weighs 920
ounces, how much is the total specific tax, exclusive of value-added tax?
a. P3,651.48
b. P2,777.73
c. P3,260.25 ANS:3,012.47
d. P3,111.06

5. A shipment of 250 boxes of cigars from Vietnam arrived at Port of Batangas. Each box contains 50
cigars with net retail price of P380.00 per cigar. Inclusive of value-added tax, determine the total ad
valorem tax.
a. P950,000.00
b. P99,400.00 ANS: 1,064,000
c. P88,750.00
d. P1,064,000.00
6. A shipment of 75 boxes of cigars from Mexico arrived at Port of Manila. Each box contains 35 cigars
with net retail price of P475.00 per cigar. Determine the total specific tax, exclusive of value-added tax.
a. P20,974.00
b. P18,637.50
c. P279,300.00 ANS:20,343.75
d. P249,375.00

7. A shipment of 5,000 cigars from South America arrived at the Port of Cebu. The net retail price shows
P520.00 per cigar. Exclusive of value-added tax, how much is the total excise tax?
a. P622,610.00
b. P622,160.00
c. P555,500.00 ANS:558,750
d. P550,500.00
 8. A shipment of 100 cartons of heated tobacco from USA and arrived at Port of Manila. Each carton
contains 40 reams while each ream contains 10 packs. Inclusive of value-added tax, how much is the
total specific tax?
a. P2,464,000.00
b. P1,344,000.00
ANS: 1,529,024
c. P2,200,000.00
d. P1,200,000.00

9. A shipment of 350 packs of vapor products with nicotine salt arrived at Port of Manila. Each pack
contains 2 pods with container size of 0.2 ml. Compute the total excise tax, net of value-added tax
a. P7,369.60
b. P32,900.00
c. P6,580.00 ANS: 38,220
d. P36,848.00

10. A shipment of 50 packs of conventional classic nicotine vapor product arrived at Port of Manila. Each
pack contains 1 bottle with container size of 7.5 ml. Compute the total excise tax, inclusive of value-
added tax.
a. P3,080.00
b. P2,750.00 ANS: 3,528
c. P21,056.00
d. P24,640.00

EXCISE TAX ON SWEETENED BEVERAGES AND ALCOHOL PRODUCTS

1. A shipment of 300 cases of brandy arrived at Port of Manila. Each case contains 12 bottles with each
bottle having 650 ml volume capacity, 45% alcohol content and net retail price of P470.00 per bottle.
How much is the excise tax, value-added tax included?
a. P444,528.00
b. P277,020.00
c. P497,871.36 ANS: 530,893.44
d. P310,262.40

2. A shipment of 800 cases of whisky from Italy arrived at Port of Cebu. Each case contains 8 bottles with
each bottle having a volume capacity of 40 cl. The degree of strength was 75 proof and gross retail
price of P740.00 per bottle inclusive of excise and value-added tax of P250.00. Determine the total ad
valorem tax, exclusive of value-added tax.
a. P1,045,440.00
b. P875,212.80
c. P517,440.00 ANS:781,440
d. P781,440.00

3. A shipment of 250 cases of rum arrived at Port of Cebu. Each case contains 12 bottles with each bottle
had a degree of strength of 60 proof and net retail price of P250.00. If the total excise tax was
P169,200.00, exclusive of value-added tax, how much is the total specific tax, inclusive of value-added
tax?
a. 99,000.00
b. P78,624.00
c. P110,880.00
d. P70,200.00
4. A shipment of 80 cases of sparkling wines arrived at Port of Cebu. Each case contains 15 bottles with
each bottle having 8 dl volume capacity, 18% alcohol content and net retail price of P350.00. Compute
for the total excise tax, exclusive of value-added tax.
a. P41,932.80
b. P53,932.80
c. P60,404.74 ANS: 60,595.20
d. P37,440.00

5. A shipment of 175 cases of champagne arrived at Port of Surigao. Each case contains 10 bottles with
each bottle having a volume capacity of 800 cc. If the degree of strength is 18% and net retail price of
P350.00 per bottle, how much is the excise tax per case, inclusive of value-added tax?
a. P88,090.24
b. P503.37
c. P563.78 ANS: 565.56
d. P78,652.00
 6. A shipment of 40 cases of still wines arrived at Port of Cebu. Each case contains 10 bottles with each
bottle having 10 cl volume capacity, 15% alcohol content and net retail price of P120.00. Compute the
total excise tax, inclusive of value-added tax.
a. P2,561.86
b. P2,516.86 ANS: 2,827.78
c. P2,247.20
d. P2,427.20

7. A shipment of 150 cases of beer arrived at Port of Cebu. Each case contains 6 bottles with each bottle
having 180 ml volume capacity, 12% alcohol content and net retail price of P35.00. Compute for the
total specific tax, net of value-added tax.
a. P6,813.00
b. P7,076.16
ANS: 6,966
c. P6,318.00
d. P7,706.16

8. A shipment of 15,000 bottles of ale each having a volume capacity of 45 deciliters arrived at the Port of
Cebu. The degree of strength by volume is 10% alcohol content while the net retail price was P30.70. If
each case contains 20 bottles, how much is the excise tax per case, exclusive of value-added tax?
a. P2,632,500.00
b. P3,931.20
ANS: 3,870
c. P3,510.00
d. P2,948,400.00

9. A shipment of 200 cases of carbonated beverages using caloric and non-caloric sweetener. Each case
contains 10 bottles with each bottle having 800 ml volume capacity. Inclusive of value-added tax, how
much is the total excise tax?
a. P19,200.00
b. P9,600.00
c. P10,752.00
d. P21,504.00

10. A shipment of 100 cases of sweetened juice drinks using high fructose corn syrup and caloric
sweetener. Each case contains 15 bottles with each bottle having 75 cl volume capacity. Exclusive of
value-added tax, how much is the total specific tax?
a. 7,560.00
P6,750.00
b. P13,500.00
c. P15,120.00

EXCISE TAX ON BRAND NEW AUTOMOBILES

1. A shipment of 8 units of brand new automobile, 2022 yr. model, 5 seater, 2,000 cc engine
displacement, valued at CIP $48,000.00/unit was consigned to a car manufacturer. The shipment had a
Gross Importer’s Selling Price of P2,750,000.00/unit, inclusive of the total excise tax and value-added
tax of P350,000.00 whereas the dealer’s suggested retail price is P3,250,000.00. How much is the ad
valorem tax per unit, inclusive of value-added tax?
a. P480,000.00
b. P582,400.00
ANS: 537,600
c. P537,500.00
d. P520,000.00

2. A shipment of 1 unit brand new car: 4 seater, 2022 yr. model and 2 liters engine displacement from
Japan was brought a Filipino businessman. Said car had a total book value of $17,500.00 and the bill of
lading shows freight charges of $1,400.00. The total miscellaneous expense paid was P16,500.00.
Based on exchange rate of P43.50/$1.00, how much is the total ad valorem tax, exclusive of value-
added tax?
a. P251,973.12
b. P125,986.56
c. P112,488.00 ANS: 224,976
d. P224,976.00

3. A shipment from Japan 10 units of passenger vans, 12 seater, 2022 yr. model, 2.5 liters engine
displacement had CFR value $32,000.00/unit was imported by a car dealer. The covering invoice
shows freight charges of $2,000.00/unit whereas the bill of lading shows freight charges of
$2,100.00/unit. Based on exchange rate P49.75/$1.00, how much is the total customs duty?
 a. P4,955,100.00
b. P3,303,400.00
c. P3,313,350.00
d. P4,970,025.00

4. A shipment of 15 units of passenger automobiles, 2022 yr. model, 12 seater, 1,800 cc engine
displacement from China was consigned to a car manufacturer. The covering shows total CIF value of
$90,000.00, inclusive of freight charges and total marine insurance of $16,500.00 and $3,550.00
respectively. The shipment had a total miscellaneous expense of P28,500.00. Based on the importer’s
sworn statement indicating net importer’s selling price of P4,210,000.00 per unit, how much is the total
ad valorem tax, exclusive of value-added tax?
a. P35,364,000.00
b. P31,575,000.00
c. P2,357,600.00
d. P2,105,000.00

5. A shipment of 1 unit brand new automobile, 2,000 cc engine displacement, 2022 yr. model, 5 seater,
with assessed dutiable value of P935,000.00 while the miscellaneous expense was P18,100.00. How
much is the total value-added tax?
a. P164,147.00
b. P164,174.40
c. P177,683.40
d. P177,638.40

6. A car manufacturer imported from Germany 3 units of 2022 yr. model automobiles, 5 seater, net
importer’s selling price of P1,950,000.00 per unit. The total dutiable value was P3,420,000.00 while the
total miscellaneous expenses was P38,010.00. If the total ad valorem tax was P1,170,000.00, compute
the total landed cost.
a. P4,484,010.00
b. P4,448,000.00
c. P1,950,000.00
d. P5,654,010.00

7. A car dealer imported 2 units of passenger vans, 2022 yr. model, 1,500 cc engine displacement with
total dutiable value of P3,150,800.00. The total ad valorem tax paid amounted to P900,000.00, net of
value-added tax. How much is the net importer’s selling price per unit?
a. P1,800,000.00
b. P2,150,000.00
c. P4,500,000.00
d. P2,250,000.00

8. A shipment of 7 units of brand new automobile, 2022 yr. model, 5 seater, 2,000 cc engine
displacement, valued at FOB $30,000.00/unit was consigned to a car manufacturer. The total landed
cost was assessed at P7,250,000.00. The net importer’s selling price was P810,000.00 per unit. How
much is the total ad valorem tax, inclusive of value-added tax?
a. P25,375,000.00
b. P635,040.00
c. P28,420,000.00
d. P567,000.00

9. A car manufacturer imported 8 units of brand new hybrid vans, 2022 yr. model, 12 seater, 1,800 cc
engine displacement combined with electric power, with total dutiable value of P10,200,000.00 and total
miscellaneous expense of P71,500.00. The dealer’s suggested retail price was P1,960,000.00 inclusive
of excise and value-added tax of P320,000.00 per unit. How much is the total ad valorem tax, inclusive
of value-added tax?
a. P2,099,200.00
b. P1,175,552.00
c. P1,049,600.00
d. P2,351,104.00

10. A shipment of 1 unit of brand new hybrid automobile, 2022 yr. model, 5 seater, 2,100 cc engine
displacement combined with electric power was consigned to a Filipino businessman, with total dutiable
value of P320,100.00 and total miscellaneous expense of P4,500.00. How much is the total ad valorem
tax, exclusive of value-added tax?
a. P16,825.20
b. P18,844.22
c. P9,422.11
d. P8,412.60
EXCISE TAX ON USED AUTOMOBILES
1. A Filipino businessman from Japan brought with him 1 unit used automobile, 2,000 cc engine
displacement, 2016 yr. model, 5 seater, with book value of $12,000.00. The bill of lading indicated
freight charges of $1,100.00 while the total miscellaneous expense was P9,500.00. If rate of exchange
was P43.50/$1.00, how much is the total customs duty?
a. P177,219.00
b. P95,787.00
c. P63,858.00
d. P118,146.00

2. A Korean Ambassador sold his automobile, 5 seater, 2,500 cc engine displacement to a Dutch
Ambassador stationed here in Manila. The automobile was imported as brand new by the Korean
Ambassador 3 years ago. If the BOC assessed the depreciated value of $18,500.00, how much is the
total ad valorem tax, inclusive of value-added tax, using rate of exchange P42.50/$1.00?
a. P71,576.75
b. P80,165.96
c. P229,018.72
d. P204,481.00

3. A Chinese diplomat stationed in Manila sold his 10 seater passenger van, he imported last 2014 from
China to a Filipino employed at their embassy. The book value amounted to $40,000.00 and freight
charges of $2,200.00 per appraisal by the BOC. Based on exchange rate of P48.70/$1.00, compute the
total customs duty.
a. P336,030.00
b. P194,800.00
c. P292,200.00
d. P224,020.00

4. A Filipino businessman from Japan brought with him 1 unit used automobile, 2,000 cc engine
displacement, 2014 yr. model, 5 seater, with assessed dutiable value of P775,100.00 while the total
miscellaneous expense was P8,300.00. Exclusive of value-added tax, how much is the total ad valorem
tax?
a. P22,942.75
b. P203,186.00
c. P227,568.32
d. P20,484.60

5. A Filipino returning diplomat brought with him 1 unit – used automobile, 2019 yr. model, 5 seater, 2,000
cc engine displacement from France. The shipment had total FOB value of $35,000.00 while the bill of
lading indicated freight charges of $2,100.00. The total miscellaneous expense was assessed at
P8,500.00 while the DOF partial exemption was $5,000.00. Using rate of exchange P47.80/$1.00, how
much is the total ad valorem tax, value-added tax included?
a. P385,799.95
b. P279,838.64 106,043.17
c. P344,464.24
d. P313,419.28

6. A Chinese Diplomat sold his 4 seater, automobile, 2021 yr. model to a customs broker working in
Manila. The customs value was $45,000.00 while the exchange rate was P44.60/$1.00. How much is
the total ad valorem tax, net of value-added tax?
a. P469,694.00
b. P526,057.28
c. P584,501.12 365,330
d. P521,876.00

7. A Filipino returning diplomat brought with him 1 unit – used automobile, 2015 yr. model, 5 seater, 2,100
cc engine displacement from France. The shipment was assessed a total ad valorem tax of
P94,050.00, net of value-added tax. The total miscellaneous expense was P8,500.00. How much is the
total value-added tax?
a. P112,860.00
b. P113,880.00
c. P125,166.00
d. P124,146.00
 8. A returning DFA official brought with him a 2013 yr. model automobile, 4 seater, 1,500 cc engine
displacement. The dutiable value was assessed at P285,000.00 whereas the total miscellaneous
expense was P6,150.00. How much is the total ad valorem tax, inclusive of value-added tax?
a. P15,597.12
b. P16,873.92
c. P15,066.00
d. P13,926.00

9. A Filipino returning resident from Singapore brought with him 1 unit used automobile, 1,400 cc engine
displacement, 2016 yr. model, 5 seater, with assessed total dutiable value of P735,500.00 and total
miscellaneous expense of P11,200.00. How much is the total value-added tax?
a. P127,690.20
b. P61,061.52
c. P116,082.00
d. P58,713.00

10. A Filipino returning resident from Singapore brought with him 1 unit – used automobile, 10 seater,
1,800 cc engine displacement. The dutiable value was assessed at P627,524.00 while the total
miscellaneous expense was P6,150.00. How much is the total value-added tax base for this shipment?
a. P108,494.92
b. P100,211.60
c. P835,096.68
d. P904,124.32

COMPONENTS OF LANDED COST

1. A shipment of 2 x 20’ vans containing aluminium coils arrived at Port of Cebu. The total customs duty
was assessed at P7,750.00. If the rate of duty was 1% and rate of exchange was P48.75/$1.00, how
much is the brokerage fee?
a. P6,018.75
b. P6,741.00
c. P4,700.00
d. P6,810.75

2. A shipment of 750 cartons containing canned goods arrived at Port of Iloilo from Korea. Each carton
contains 500 lbs. and was discharged via pierside. How much is the total arrastre charges, inclusive of
value-added tax?
a. P18,711.00
b. P20,956.32
c. P1,360.08
d. P1,524.10

3. A shipment of bulk cargo from India arrived at Port of Cebu. The shipment shows total gross weight of
180,000 ounces. If the shipment was discharged via shipside, how much is the total wharfage dues, net
of value-added tax?
a. P86.70
b. P97.10
c. P24,873.28 ANS: 86.75
d. P22,208.29

4. A shipment of 30 boxes containing mobile phones from Japan arrived at NAIA and was covered by
letter of credit with total CPT value of $28,700.00. The covering invoice shows freight charges of
$3,000.00 while the air waybill shows air freight charges of $3,100.00. Inclusive of value-added tax,
how much is the total bank charge? Use rate of exchange P41.75/$1.00.
a. P1,713.40
b. P1,529.82
c. P1,743.45
d. P1,556.65

5. A shipment of 3 x 40’ vans, STC: spare parts from China arrived at South Harbor. The customs broker
filed a warehousing entry with total dutiable value of P3,250,000.00 and later filed 4 partial withdrawal
permits to withdraw all the goods declared in the warehousing entry. Determine the total brokerage fee
to be billed to his client.
a. P15,112.50
b. P16,926.00
c. P6,720.00
 d. P6,000.00

6. A shipment of 600,000 pounds of rye in bulk from Australia arrived at Port of Tacloban. If discharging
was made via shipside, how much is the total arrastre charges, exclusive of value-added tax?
a. P2,177.28
b. P2,438.55
c. P29,937.60
d. P33,530.11

7. A shipment of 8 x 20’ vans containing electrical tools from Singapore arrived at Port of Davao. Each
van weighs 24,000 kilograms. Inclusive of value-added tax, how much is the total wharfage dues?
a. P23,654.40
b. P6,528.00
c. P21,120.00
d. P7,311.36

8. A shipment of 500 cartons of tuna with total dutiable value of P987,500.00 was being filed for
exportation to USA. If exchange rate applicable at the time of lodgement of entry was P42.95/$1.00,
how much is the total brokerage fee, value-added tax included?
a. P7,038.50
b. P3,519.25
c. P6,284.38
d. P3,142.19

9. An L/C shipment of general cargo from China arrived at Port of Manila with assessed landed cost of
P1,477,000.00. The total miscellaneous expense was P28,000.00 whereas the duty rate used was
15%. How much is the total bank charge, net of value-added tax?
a. P1,811.25
b. P1,539.56
c. P1,764.00
d. P1,575.00

10. A shipment of 50,000 sacks of cement arrived at Port of Cebu and paid total arrastre charges of
P215,600.00, inclusive of value-added tax. The total customs duty was assessed at P145,500.00
subject to 3% duty rate. How much is the total wharfage dues, value-added tax included?
a. P66,640.00
b. P33,320.00
c. P59,500.00
d. P29,750.00

11. Blue Pearl Inc. imported 500 cartons of frozen yellow fin tuna arrived at South Harbor with each carton
having a dimension of 25 cm x 30 cm x 50 cm and weighs 35 kilograms. If pierside discharging is
made, how much is the total arrastre charges, inclusive of value-added tax?
a. P12,450.00
b. P13,014.40
c. P13,944.00
d. P11,620.00

12. Sweet Fruits Inc. imported 250 pallets of watermelons arrived at Port of Manila with each pallet having
a dimension of 3’ x 1’ x 2’ and weighs 150 kilograms. If shipside discharging was made, how much is
the total arrastre charges, net of value-added tax?
a. P808.82
b. P722.16
c. P4,970.16
d. P5,566.58

13. Gray Corporation imported 10 x 40’ vans containing truck parts from Australia. The shipment arrived at
Port of Manila with total gross weight of 250,000 kilograms. Exclusive of value-added tax, determine the
total wharfage dues.
a. P8,500.00
b. P5,193.50
c. P7,790.50
d. P8,725.36

14. White Emperor Inc. imported 100 crates containing general cargo arrived at the Port of Manila. The
packing list shows total gross weight of 450,000 kilograms and a dimension of 1 m x 5 m x 1 m per
crate. If pierside discharging is made, how much is the total wharfage dues, inclusive of value-added
tax?
 a. P18,471.60
b. P17,108.00
c. P15,275.00
d. P16,492.50

15. RMS Corporation imported 6 x 40’ vans containing bleaching powder from New Zealand. The shipment
arrived at South Harbor with total gross weight of 175,000 kilograms. Inclusive of value-added tax, how
much is the total arrastre charges?
a. P51,306.00
b. P57,462.72
c. P56,436.60
d. P63,208.99

16. Zelda Enterprise imported 150 pieces of steel billets from Japan. The shipment arrived at MICP and
was discharged via pierside. The shipment shows total gross weight of 240,000 kilograms. Each steel
billet had a dimension of 3 ft. x 4 ft. x 5 ft. Exclusive of value-added tax, how much is the total arrastre
charges?
a. P44,598.75
b. P37,972.65
c. P49,950.60
d. P42,529.37

17. A construction company imported 7,500 bags of limestone from Singapore. The shipment arrived at
Port of Manila and was discharged via pierside. If each bag weighs 12,000 ounces, how much is the
total wharfage dues, value-added tax included?
a. P93,512.48
b. P104,733.97
c. P87,302.12
d. P77,948.33

18. A shipment of full-loaded 10 x 20’ vans containing dried mangoes are brought to South Harbor for
exportation to China. After completion of export formalities, the exporter decides to cancel the shipment
and bring back all containers to his premises. Compute the total arrastre charges, net of value-added
tax.
a. P30,430.00
b. P37,270.00
c. P85,510.00
d. P60,820.00

19. A shipment of 300 cartons containing bayonets from France arrived at NAIA. The shipment was
coursed thru Formal Entry Division and was assessed with total customs duty of P129,075.00 subject
to 15% duty rate. The shipment shows total gross weight of 1,500 kilograms. How much is the total
landed cost?
a. P998,056.25
b. P996,980.63
c. P998,272.25
d. P997,196.63

20. A shipment of 2 x 40’ vans containing quartz from Korea arrived at Port of Manila. The shipment was
assessed with total value-added tax of P69,630.00. The total dutiable value was assessed at
P525,000.00 subject to 3% duty rate. How much is the total landed cost?
a. P559,250.00
b. P80,250.00
c. P595,520.00
d. P540,750.00

TOTAL DUTIES, TAXES AND OTHER CHARGES

1. A shipment of 2 x 20’ vans containing steel ingots from Japan arrived at South Harbor. The shipment
had total dutiable value of P2,350,000.00 and was assessed with total miscellaneous expense of
P17,760.20. The rate of duty was 3% whereas the rate of exchange at the time of lodgement was
P48.60/$1.00. How much is the total duties, taxes and other charges?
a. P364,857.00
b. P364,371.00
c. P364,875.00
d. P364,577.00
2. A shipment of 10 cases containing xylophones from USA arrived at NAIA and was covered by letter of
credit with advance duty amounting to P34,200.00. The shipment was assessed with total dutiable
value of P685,100.00 subject to 7% duty rate. The total miscellaneous expense was assessed at
P7,792.75. Compute the total amount due to BOC.
a. P103,689.00
b. P137,889.00
c. P138,139.00
d. P103,939.00

3. A shipment of sparkling wines from China arrived at NAIA and was assessed with total dutiable value of
P46,950.00. The shipment was coursed thru Informal Entry Division. The specific tax was assessed at
P561.80, net of value-added tax. If the rate of duty was 5%, how much is the total duties, taxes and
other charges?
a. P8,449.00
b. P9,011.00
c. P8,493.00
d. P8,981.00

4. A shipment 100 metric tons of dried tunas from Indonesia arrived at Port of Davao. The shipment was
assessed with total dutiable value of P1,662,500.00 whereas the miscellaneous expense was assessed
at P22,808.13. The rate of exchange was P49.11/$1.00 while the rate of duty was 15%. How much is
the total amount payable to BOC?
a. P250,655.00
b. P482,817.00
c. P250,375.00
d. P482,537.00

5. A shipment of 4 x 40’ vans containing copper ores from India arrived at Port of Cebu. The shipment
was assessed with total dutiable value of P3,115,000.00 whereas the total miscellaneous expense was
assessed at P30,959.75. The rate of duty was 3% while the rate of exchange was P52.30/$1.00.
Determine the total duties, taxes and other charges.
a. P483,459.00
b. P485,551.00
c. P625,103.00
d. P623,011.00

6. A shipment of 150 cartons of kiwifruit from New Zealand arrived at MICP. The shipment was assessed
with total dutiable value of P369,750.00 subject to duty rate of 7% MFN rate and ATIGA rate 0%. The
total miscellaneous expense was assessed at P7,638.19. How much is the total amount payable to
BOC?
a. P75,055.00
b. P75,555.00
c. P26,663.00
d. P27,163.00

7. A shipment of 50 bags of palm nut seedlings from Singapore arrived at Port of Manila. The shipment
was assessed with total dutiable value of P228,100.00 whereas the total miscellaneous expense was
assessed at P6,583.33. The MFN rate was 15% whereas the ATIGA rate was 0% with CO Form D
certified as ‘’originating’’ presented to BOC. Compute the total amount payable to BOC.
a. P67,013.00
b. P530.00
c. P28,692.00
d. P1,280.00

8. A shipment of 20 boxes containing precious ruby from Korea arrived at NAIA. The importer is a
qualified jewelry enterprise registered with the BOI under RA 8502. The shipment had a total dutiable
value of P2,175,000.00 while the total miscellaneous expense was P9,048.75. If the rate of duty was
3% and exchange rate was P42.75/$1.00, how much is the total amount due to BOC?
a. P263,366.00
b. P823,646.00
c. P1,280.00
d. P336,446.00

9. A shipment of 1 unit of brand new automobile was brought from USA and was consigned to a Filipino
businessman in the Philippines. The shipment arrived at South Harbor and was assessed with total
dutiable value of P725,500.00 subject to 30% duty rate. The total miscellaneous expense was
assessed at P8,426.88 whereas the ad valorem tax was assessed at P95,157.69, net of value-added
tax. How much is the total amount to be paid to BOC?
 a. P439,546.00
b. P439,446.00
c. P439,696.00
d. P439,796.00

10. A shipment of radio apparatus from Japan arrived at MCIA and was assessed with total dutiable value
of P470,500.00. The total miscellaneous expense was assessed at P6,418.13. The rate of duty was 0%
whereas the rate of exchange at the time of lodgement was P44.20/$1.00. Determine the total amount
payable to BOC.
a. P58,010.00
b. P780.00
c. P58,510.00
d. P1,280.00

PRO-RATA COMPUTATION

1. Problem A: A shipment of dangerous cargo from China arrived at Port of Cebu. The covering invoice
shows the following:

FOB ROD
Item 1 - $12,000.00 7%
Item 2 - $3,000.00 3%
Item 3 - $5,000.00 1%
Total FOB - $20,000.00

The bill of lading shows total freight charges of $3,000.00. The shipment was assessed with total dutiable
value of P1,154,300.00 whereas the total miscellaneous expense was P12,000.00. How much is the freight
charges for item 1?
a. $450.00
b. $750.00
c. $1,800.00
d. $1,000.00

2. Based on the previous problem A, how much is the insurance for item 2?
a. $60.00
b. $120.00
c. $480.00
d. $200.00

3. Based on the previous problem A, how much is the dutiable value for item 3?
a. P288,575.00
b. P384,766.67
c. P173,145.00
d. P692,580.00

4. Based on the previous problem A, how much is the value-added tax for item 1?
a. P89,791.27
b. P21,616.72
c. P35,335.29
d. P47,612.00

5. Based on the previous problem A, how much is the brokerage fee for item 2?
a. P1,623.22
b. P5,266.43
c. P973.93
d. P3,895.73

6. Problem B: A shipment of general cargo from Japan arrived at South Harbor. The covering invoice
shows the following:

CFR ROD
Item 1 - $4,000.00 15%
Item 2 - $6,000.00 20%
 Item 3 - $5,000.00 5%
Total CFR - $15,000.00

The shipment shows freight charges of $480.00 for item 1. The dutiable value for item 2 was
P320,544.00. The miscellaneous expense for item 3 was P3,400.00. How much is the dutiable value for
item 1?
a. P213,696.00
b. P128,217.60
c. P85,478.40
d. P267,120.00

7. Based on the previous problem B, how much is the customs duty for item 3?
a. P32,054.40
b. P64,108.80
c. P5,342.40
d. P13,356.00

8. Based on the previous problem B, how much is the value-added tax for item 2?
a. P46,647.94
b. P29,816.45
c. P46,566.34
d. P34,065.12

9. Problem C: A shipment of general cargo and dangerous cargo arrived at MICP. The covering invoice
shows the following:

CIF ROD
Item 1 (General) - $7,490.00 10%
Item 2 (General) - $3,210.00 15%
Item 3 (Dangerous) - $4,860.00 30%
Total CIF - $15,560.00

The invoice shows total freight charges of $500.00 for item 1 and item 2 whereas the freight charges for
item 3 was $700.00. How much is the FOB value for item 1? Use rate of exchange P43.50/$1.00.
a. $7,140.00
b. $6,852.94
c. $7,107.18
d. $7,000.00

10. Based on the previous problem C, how much is the customs duty for item 3?
a. P75,094.92
b. P32,581.50
c. P63,423.00
d. P20,945.25

SURCHARGES

1. A shipment of wooden logs had total duties, taxes and other charges of P888,000.00 as declared by
the importer. However, the Liquidation and Billing Division found out the correct duties, taxes and other
charges to be P1,250,000.00. If payment was made after 18 months, how much is the surcharge?

a. P517,660.00
b. P588,250.00
c. P36,200.00
d. P90,500.00

2. A shipment was penalized for illegal withdrawal of imported goods from Customs Bonded Warehouse.
The unpaid duties, taxes and other charges amounted to P420,000.00. If the payment was made after
3 years, how much is the surcharge?

a. P1,512,000.00
b. P525,000.00
c. P420,000.00
d. P1,092,000.00
3. A shipment of 3 x 20’ vans STC: cement materials from Japan arrived at South Harbor. The BOC
required the importer to submit a sales record for his importation. However, the importer failed to
produce such record. How much is the surcharge imposed if the customs duty was assessed at
P110,550.00 subject to 3% duty rate?

a. P1,105,500.00
b. P1,138,884.00
c. P737,000.00
d. P3,316.50

4. A tourist travelling from Germany arrived at NAIA and failed to declare his baggage with assessed
dutiable value of P78,100.00 subject to 5% duty rate. How much is the total payment to be made to
BOC?

a. P38,684.00
b. P24,820.50
c. P13,863.00
d. P38,654.00

5. A shipment of bulk cargo from China arrived at MICP with total duties, taxes and other charges paid
amounting to P1,160,000.00. But after one month from release of their shipment from Customs, a
notice of deficiency was sent by BOC based on total duties, taxes and other charges of P1,420,000.00
as re-assessed. If said delinquency was settled 7 months after receipt of notice, how much is the total
payment to be made by the importer?

a. P26,000.00
b. P320,320.00
c. P65,000.00
d. P286,000.00

6. An importer paid a total amount of P1,539,062.50 to BOC based on the notice of deficiency from LBD.
The total dutiable value was P2,100,000.00 subject to 15% duty rate. The rate of exchange was
P52.60/$1.00. If such deficiency was paid 15 months after receipt of notice, how much was the
surcharge imposed?

a. P452,665.44
b. P306,015.63
c. P384,765.63
d. P246,250.00

7. A shipment of rice from Vietnam arrived at Port of Cebu. The assessed total dutiable value amounted to
P3,330,000.00 while the total dutiable value as declared in the entry was P2,900,000.00. The
miscellaneous expense was P11,500.00 while the duty rate is 30%. If the percentage of discrepancy is
12.90%, how much is the surcharge imposed by BOC for such undervaluation?

a. P1,519,860.00
b. P3,309,450.00
c. P1,323,780.00
d. P3,799,650.00

8. A shipment of 10 units of brand new automobiles from Japan arrived at Port of Manila and was
assessed with total dutiable value of P8,600,000.00 subject to 20% duty rate. The SAD indicated only 7
units of automobiles based on the submission of fraudulent invoice knowingly made. The total
miscellaneous expense was assessed at P18,750.00 whereas the total ad valorem tax was assessed
at P750,000.00, net of value-added tax. How much is the surcharge imposed by BOC for such
misdeclaration?

a. P9,501,625.00
b. P19,003,250.00
c. P14,803,250.00
d. P7,401,625.00
 9. A shipment of newly-invented equipment for renewal energy was imported under Sec. 800 of the CMTA
for public exposition in the Philippines. The re-export bond amounted to P66,850.40 dated March 1,
2022. However, the re-exportation was made on August 1, 2022. How much is the surcharge imposed
for breach of bonds?

a. 5,000.00
b. P6,685.04
c. P1,337.01
d. P10,000.00

10. A surcharge was imposed for misclassification of a shipment of corn from Indonesia. The surcharge
amounted to P5,374,718.00 based on the percentage of discrepancy of 25%. The rate of duty as found
by BOC was 35%. How much was the total duties and taxes as declared by the importer or customs
broker?

a. P537,471.80
b. P1,612,415.40
c. P8,599,548.80
d. P2,149,887.20

FINES AND REDEMPTION VALUE

1. A shipment of 1 unit of automobile, 2018 yr. model and 4-seater was brought by a Filipino returning
resident under the NDI program. The shipment was assessed with total dutiable value of P575,000.00
whereas the total miscellaneous expense was assessed at P7,518.75. The ad valorem tax was
assessed P75,501.88, net of value-added tax. However, the importer was not able to produce the proof
of income abroad. How much is the fine imposed by BOC?
a. P209,255.63
b. P249,156.19
c. P226,505.63
d. P231,906.19

2. An importer was penalized by the BOC-PCAG after it was found in post clearance audit that the total
duties and taxes declared by the importer amounted to P620,000.00 incurred deficiency against the
correct total duties and taxes of P840,000.00. The importer is guilty of negligence. Compute the amount
of penalty imposed under Sec. 1005.

a. P1,050,000.00
b. P220,000.00
c. P275,000.00
d. P775,000.00

3. A shipment of used trucks with gross vehicle weight of 5 tons had a total dutiable value of
P1,050,000.00 subject to 15% duty rate. The total miscellaneous expense was assessed at P8,362.50.
However, the importer was not able to present the CAI prior to importation for the 3rd time, thus
forfeiture was made. How much is the redemption value to be paid if the BOC approves such payment?
a. P364,758.75
b. P243,172.50
c. P1,215,862.50
d. P1,251,826.50

4. A shipment of 25 barrels of denatured alcohol for motive power from UAE arrived at Port of Batangas.
The customs duty was assessed at P77,555.00 whereas the total miscellaneous expense was
assessed at P9,150.00. However, the importer failed to mark the barrels under Sec. 710 per instruction
from BOC. If the rate of duty was 10%, how much is the fine imposed by BOC?
a. P86,225.50
b. P38,777.50
c. P172,451.00
d. P258,676.50
5. A shipment of 100 sacks of animal feeds from China arrived at South Harbor. The shipment was
assessed with total dutiable value of P1,125,000.00 subject to 3% duty rate. The total miscellaneous
expense was assessed at P14,936.25. However, the importer was not able to present an import permit
to BOC. How much is the fine imposed if the offense has been committed for the 2nd time?
a. P704,211.75
b. P58,684.31
c. P234,737.25
d. P352,105.88

6. An importer was penalized by the BOC-PCAG after it was found in post clearance audit that the total
duties and taxes declared by the importer amounted to P1,350,000.00 incurred deficiency against the
correct total duties and taxes of P2,250,000.00. The importer is guilty of fraud. Compute the amount of
penalty imposed under Sec. 1005.
a. P4,500,000.00
b. P1,125,000.00
c. P13,500,000.00
d. P5,400,000.00

7. A shipment of 500 cases of beer had a total dutiable value of P910,000.00. The rate of duty declared
in the SAD was 1% whereas the rate of duty found by BOC was 15%. The total miscellaneous expense
was assessed at P8,212.50 whereas the total specific tax was assessed at P15,600.00, net of value-
added tax. If the percentage of discrepancy was 47.97%, how much is the amount of fine imposed for
1st violation?
a. P321,093.75
b. P316,413.75
c. P214,062.50
d. P210,942.50

8. A shipment of 2 units of yachts have total dutiable value of P1,000,000.00 subject to rate of duty of
10%. The total value-added tax base amounted to P1,321,965.00. The said shipment was subject to
forfeiture. If District Collector approves the payment of redemption value, how much is the domestic
market value of the forfeited goods?
a. P1,121,965.00
b. P10,816,375.00
c. P224,393.00
d. P336,589.50

9. A shipment of 1 unit of automobile, 2020 yr. model, 4-seater was brought by a Filipino returning
resident from abroad under the NDI program. The value-added tax was assessed at P165,117.60
whereas the ad valorem tax was assessed at P229,330.00, net of value-added tax. However, the BOC
found out that said automobile lacks six months use or registration. Determine the amount of fine
imposed by BOC.
a. P412,794.00
b. P343,995.00
c. P275,196.00
d. P229,330.00

10. An importer was penalized by BOC-PCAG for failure to keep importation records. The total duties and
taxes of said shipment amounted to P480,000.00. How much is the amount of fine imposed by BOC
under the CMTA?
a. P600,000.00
b. P1,000,000.00
c. P300,000.00
d. P144,000.00
METHODS OF VALUATION

1. Which among the following is FALSE?

a. The methods of valuation should be followed in randomly order of application
b. There are six methods of customs valuation used in determining the transaction value
c. The primary method in determining the dutiable value of imported goods shall be the Method One
d. Method 4 and Method 5 may be reversed at the request of importer

2. It refers to the total payment made or to be made by the buyer to or for the benefit of the seller of
imported goods.
a. Price actually paid or payable
b. Transaction value
c. Dutiable value
d. Invoice price

3. Which among the following is NOT a type of discount?

a. Quality discount
b. Quantity discount
c. Cash discount
d. Trade discount

4. Method One shall be used if the following conditions are fulfilled EXCEPT:
a. There must be no restrictions as to disposition or use of the goods by the buyer
b. The buyer and seller are not related, or where they are related, such relationship has influenced the
price of goods
c. No part of the proceeds of any subsequent resale, disposal, or use of the goods by the buyer will
accrue directly or indirectly to the seller, unless an adjustment can be made
d. The sale or price must not be subject to some conditions or considerations for which a value cannot
be determined with respect to the goods being valued

5. Which among the following is NOT an instance where the buyer and seller are related?
a. The seller and buyer are legally recognized as partners in a certain business
b. The seller and buyer are related by affinity to 3rd civil degree
c. The seller directly holds 4% of the outstanding voting stock or shares with the buyer
d. The seller is an employer while the buyer is an employee

6. A buyer paid an amount of $8,000.00 to the seller for his importation of computer accessories. The
seller would have charged the buyer of $10,000.00 but the buyer settles the seller’s debt owed to him
during a previous transaction amounting to $2,000.00. How much is the price actually paid or payable?
a. $12,000.00
b. $10,000.00
c. $8,000.00
d. $20,000.00

7. A shipment of 3 units of washing machine were sent by a manufacturer in China to the Philippines per
instruction by the seller in Japan. The manufacturer’s price amounted to $3,000.00. Earlier, the seller
enters into trade agreement with the buyer to sell the said washing machines worth $5,000.00 and thus,
prompted the seller to order from a manufacturer in China. How much is the price actually paid or
payable?
a. $5,000.00
b. $8,000.00
c. $2,000.00
d. $3,000.00

8. A shipment of aircraft engine was the subject of sales agreement between the buyer and seller. The
invoice price amounted to $18,000.00 less 3% cash discount granted by the seller for payment by the
buyer at the earliest date. If the buyer was a wholesaler and was granted a trade discount of 10% as a
wholesaler, how much is the price actually paid or payable?
 a. $17,460.00
b. $15,660.00
c. $15,714.00
d. $16,200.00

9. ABC Trading Inc., a wholesaler of construction supplies, imported 100 boxes STC: iron nails from
Shenzhen, China at FOB value of $275.00/box. The transaction value under Method 1 cannot be
established but BOC had a record on file covering previous importation identical to the shipment being
valued. It showed 10 boxes sold by a different seller in China at gross retail price of $350.00/box, less
5% trade discount as a retailer. The seller likewise grants 20% trade discount for wholesalers with a
minimum purchase of 50 boxes. Upon arrival of the shipment, the importer paid $1,500.00 for ocean
freight charges. How much is the total dutiable value under Method 2? Use rate of exchange
P42.75/$1.00.
a. P1,263,262.50
b. P1,285,065.00
c. P1,309,005.00
d. P1,286,775.00

10. Which among the following does NOT conform to the use of Method Two?
a. Produced by same producer of the goods being valued
b. Produced in the same country as the goods being valued
c. Produced by different producer in different country as the goods being valued
d. Produced by different producer in the same country as the goods being valued

11. In applying Method Two and Three, if more than one transaction value of the goods is found, which
value shall be used to determine the dutiable of imported goods?
a. Highest of such value
b. The value of the lowest quantity
c. The value of the highest quantity
d. Lowest of such value

12. Delaware Enterprise, a wholesaler of fruits, imported from Green Corp. in Australia 30 cartons STC:
raspberry with FCA value of $875.00/carton. The air waybill shows freight collect of $1,250.00. Method
1 cannot be established by BOC prompting the retrieval of import records for price comparison. There
were 4 previous importation of similar fruits made under Method 1 and were compared to the air waybill
dates of the similar fruits being valued, namely: 20 days ago - $880.00/carton, 35 days ago -
$750.00/carton, 40 days ago - $800.00/carton and 60 days ago - $700.00/carton. The similar fruits were
purchased by different wholesalers and sold by same seller in Australia as the fruits being valued. How
much is the total dutiable value under Method 3? Use rate of exchange P44.70/$1.00.
a. P1,081,740.00
b. P1,252,717.50
c. P1,276,185.00
d. P1,101,855.00

13. What does the term “unit price” under Method Four mean?
a. The price at which the greatest number of units is sold in sales to persons who are related to the
persons from whom they buy such goods at first commercial level after importation
b. The price at which the greatest number of units is sold in sales to persons who are not related to
the persons from whom they buy such goods at first commercial level after importation
c. The price at which the lowest number of units is sold in sales to persons who are not related to the
persons from whom they buy such goods at first commercial level after importation
d. The price at which the lowest number of units is sold in sales to persons who are related to the
persons from whom they buy such goods at first commercial level after importation

14. Mystic Leather Inc. imported 100 leather bags from Zon Inc. in Australia. The transaction value cannot
be determined under Method 1 since the seller and buyer are related and relationship has influenced
the price and there were no previous importation of the same shipment thus Methods 2 and 3 were not
used. However, the BOC had record of domestic prices of said leather bags and information below:

 A previous importation of 500 leather bags were sold in the domestic market in the Philippines.

 200 bags were sold to an unrelated buyer at P3,500.00/bag while the rest of the bags were sold
to another unrelated buyer at P3,000.00/bag.

 Importer’s profit and general expenses at P480.00/bag.

  Import duties and taxes at P250.00/bag.

 Export duties and taxes at P100.00/bag.

 Local freight and internal insurance cost in the Philippines at P50.00/bag.

Determine the total dutiable value under Method 4.

a. P272,000.00
b. P212,000.00
c. P222,000.00
d. P271,000.00

15. Under 3.6.2 of CMO 16 – 2010, states about the calculation of dutiable value under Computed value,
which of the following is NOT to be added in the calculation of dutiable value under Method Five?
a. Engineering, development, artwork, design work and plans and sketches undertaken in the
Philippines and charged to the producer
b. Add amount of profit and general expenses equal to that usually reflected in the sales of goods of
different class or kind as the goods being valued which are made by producers in the country of
exportation for export to the Philippines
c. Materials employed in producing the imported goods
d. Fabrication, production and processing cost for the imported goods

16. Hard Drive Inc. imported 10 units of computers from USA for its office operations. The BOC found out
that the such was made under leasing contract thus Method 1 was not used. There were no previous
importations of identical and similar computers and no domestic sale was ever recorded thus, Methods
2, 3 and 4 were not used. However, BOC had record of the following cost breakdown for the computers
under valuation:

• Cost of materials at $2,500.00/unit.

• Cost of fabrication at $1,500.00/unit.

• Profit and General Expenses at $250.00/unit.

• Ocean freight cost to Philippines at $20.00/unit.

• Marine Insurance cost to Philippines at $10.00/unit

• Import Duties and Taxes at $180.00/unit

If the rate of exchange was P47.80/$1.00, how much is the total dutiable value under Method 5?
a. P1,912,000.00
b. P2,045,840.00
c. P2,131,880.00
d. P2,031,500.00

17. If the dutiable value cannot be determined under Method Four and Five, then the dutiable value shall
be determined under Method Six. No dutiable value shall be determined under Method Six on the basis
of the following instances, EXCEPT:
a. Arbitrary of fictitious values
b. The cost of production, other than computed values, that have been determined for identical or
similar goods in accordance with Method Five
c. The selling price in the Philippines of goods produced in the Philippines
d. The price of goods for export to the Philippines

18. Yun Trading Inc. enters into trade agreement with Wex Trading Inc. in China to supply 150 cartons of
phone parts and accessories with FOB value of $18,000.00. However, the shipment was imported in a
consignment basis thus Method 1 was not used. Customs had information of the following:

• Wex Trading Inc. sells the same phone parts and components to his local market in China at FOB
value of $20,000.00;

• Wex Trading Inc. exports the same phone parts and accessories to an importer in Singapore at
FOB value of $21,000.00;
 • Similar phone parts and accessories from the Philippine industry locally made at FOB value of
$20,500.00;

• Identical phone parts and accessories imported by a buyer in the Philippines from a seller in Korea
at $21,500.00.
The bill of lading shows freight charges of $1,600.00. The domestic insurance was P29,450.00 with
official receipt and certification presented to BOC. Based on rate of exchange P58.90/$1.00, how much
is the total dutiable value under Method 6?
a. P1,331,140.00
b. P1,390,040.00
c. P1,301,690.00
d. P1,360,590.00

1. Given:
Shipment : 1 x 40’, STC: 500 cylinder tanks- Fire Extinguishers
Total CIP : $27,721.00
Ocean Freight Rate : $35.00 per cubic meter
Total volume : 2, 366.07 cubic feet
Marine Insurance : 4% of total FCA value

Find: TOTAL FCA VALUE

a. $24, 000.00
b. $24, 400.00
c. $26, 654.81
d. $25, 376.00

2. Given:
Consignee : Nat’l. Food Authority
Shipment : 1, 500 bags- Rice
Total DAP : $22, 800.00
Total FRT/INV : $2, 200.00
Total FRT/BL : $2, 388.00
Dest. Inland Frt : $300.00
Exch. Rate : P48.150/ $1.00

FIND: Total Dutiable Value

a. P1,126,710.00
b. P1, 124,302.50
c. P1,131,525.00
d. P1,129,117.50

3. Given
Shipment : 3 x 40’ van, STC: 6 units- All Terrain Vehicles 2022 year model from Japan
Total CFR : JPY 16,802,610.00
Total FRT/INV : $5,500.00
Total FRT/BL : $5,550.00
Exch. Rate : Php 47.825/USD 1.00
Php 0.4406/JPY 1.00
USD 0.009195/JPY 1.00

FIND: Total Dutiable Value

a. P 7,388,962.45
b. P7,486,531.51
c. P7,691,228.93
d. P7,725,160.43

4. Given:
Importer : Filipino Returning Resident
Shipment : 1 x 20’ van, STC; 1 unit Hybrid automobile, 2020 yr. mdl., 5 seater
Origin : Tokyo. Japan
Book Value : JPY 2,125,000.00
Total M/E : P7,907.95
Exch. Rates : P49.850/ $1.00
$0.009142/ JPY 1.00
Total Frt : $1,050.00

FIND: Total Dutiable Value

a. P858,070.84
b. P891,082.21
c. P893,246.14
d. P995,924.19

5. Given:
Importer : Returning Ambassador from California, USA
Shipment : 1 x 20’, STC; 1 unit- Hybrid Automobile 2018 year model, 9 seater
Book Value : $28,750.00
DOF Exemption : $3,000.00
Total Misc. Exp : P11,623.05
Exch. Rate : P48.625/$1.00S
Total O/Frt : $2,500.00

FIND: Total Dutiable Value

a. P442,001.25
b. P842,185.00
c. P854,631.00
d. P993,895.00

6. Given:
Shipment : 6 units- Payloaders
Total Gr. Wt. : 231,481.48 lbs

FIND: (for assessment purposes)

Total Arrastre Charges per entry if discharged at pierside, net of VAT

ANSWER: T.AC= P62,265.00

7. Given:
Shipment : 50 crates- Galvanized pipe elbows
Gross wt. : 1,500 pounds per crate
Dimension : 2ft x 3ft x 4ft per crate
Port of Discharge : South Harbor via Pierside

FIND:
Total Arrastre Charges, as a component of total landed cost net of VAT

a. P5,063.02
b. P5,670.58
c. P5,953.50
d. P6,667.92

8. Given:
Shipment : 3 x 20’ vans, STC- Kaolin Clay
Inv. Price : $20,875.50, inclusive of packing/handling charges of $200.00
Delivery : On board carrying vessel at origin
Frt Pre-paid : $3,300.00
Total LC : P1,060,115.35
R/D : 1%
E/R : P48.438/$1.00
FIND: Total D/T and O/C

a. P184,839.00
b. P185,566.00
c. P143,711.00
d. P144,438.00

9. Given:
Shipment : 1 x 20’ van- Frozen Dressed Poultry Meat
Origin : Thailand (with Cert. of Origin Form “D”)
Total CIF : $39,950.25
Total LC : P2,055,142.77
Total ME : P15,432.80
Duty Rates : MFN- 40%
ATIGA- 5%
AMS enjoying concession: ALL
Exch. Rate : P48.625/$1.00

FIND: Total Amount paid to BOC

a. P98,625.00
b. P345,269.00
c. P778,555.00
d. P1,025,172.00

10. Given:
Shipment : 2x40’ vans- STC: 100 MT- Coal in bags
CIF Value : $250.75 per metric ton
Total Ocean Frt : $2,800.00
Origin LCL : $500.00
Origin Inland Frt : $450.00
Total LC : P1,322,398.55
Rate of Duty : 7%
Exch. Rate : P48.247/$1.00

FIND: Total Duties / Taxes and O/C

a. P262,419.00
b. P247,419.00
c. P262,169.00
d. 261,454.00

11. Given:
Shipment : 50 boxes- Ladies Hand bags
Total CIP : $1,305.00 (with L/C)
Frt/Inv : $250.00
Frt/AWB : $275.00
Rate of Duty : 7%
Exch. Rate : P48.275/$1.00

FIND: Total Amount due to BOC

a. P13,611.00
b. 12,856.00
c. 12,593.00
d. 12,826.00

12. Given:
Shipment : Heated Tobacco Products
Total no. of cases : 50
Reams per case : 50
No. of units : 20 units per pack
Specific Tax : P308.00 per ream, VAT included

FIND: Total Specific Tax, Net of Vat

a. P650,000.00
b. P687,500.00
 c. P770,000.00
d. P728,000.00

13. Given:
Importer : Manila Autosales
Shipment : 2 units- Hybrid Automobiles, 2022 year model, 9 seater
Net ISP/unit : P4,150,000.00

FIND: Total AVT, inclusive of VAT

a. P2,075,000.00
b. P2,324,000.00
c. P4,150,000.00
d. P4,648,000.00

14. Given:
Shipment : Vapor products with Nicotine Salt
Total no. packs : 1,000
No. of pods : 2 pods per pack
Container size : 3.25 cubic centimeters

FIND: Total Excise Tax, Inclusive of Vat

a. P421,478.40
b. P373,000.00
c. P376,320.00
d. P421,120.00

15. Given:
Shipment : Vapor products containing Classic Nicotine
No. of packs : 1,200 cases with 1 bottle/pack
Container size : 0.01575 liters

FIND: Total Specific Tax, Vat Included

a. P120,000.00
b. P150,000.00
c. P147,840.00
d. P105,840.00

16. Given:
Importer : Individual
Shipment : 1 unit – Traditional, Passenger Van 2022 year model, 11 seater
Total CIF : $25,526.00
Total Frt : $2,100.00
Internal Ins. : $75.00
Origin Inland Frt. : P192,761.05
Exch. Rate : P50.425/$1.00
Total Misc. Expense : P12,185.30

FIND: Ad Valorem Tax, net of Vat

a. P155,676.36
b. P174,357.52
c. P311,352.71
d. P348,715.04