Tariff Computation 644w41

MOCK BOARD EXAM TARIFF COMPUTATION INSTRUCTION: Select the correct answer for each of the following questions. Mark only one answer for each item by marking the box corresponding to the letter of your choice on the answer provided. STRICTLY NO ERASURES ALLOWED. 1X40= 40 Points MULTIPLE CHOICE Situation No. 1: Hayahay Trading imported from Los Angeles California, U.S.A. 4 Rolls Guy Wire. The covering invoice reveals the following information: Ex-works $5,500.00 per roll, packing expenses $200.00 and ocean freight $450.00. The covering insurance certificate from Manila Insurance Corp. shows the insurance of P12,300.00. Determine the following if the exchange rate is P40.00/US$1.00: 1. Total Invoice value a. b. c. d.

$22,907.50 $22,600.00 $22,000.00 $23,250.00

2. Dutiable value in Pesos per roll. a. b. c. d.

P229,075.00 P230,940.00 P229,575.00 P232,500.00

Situation No. 2: Darena Designs imported from Vietnam the following items. 200 cartons dolls, 250 cartons scissors, 180 cartons photo albums valued at $4,500.00, $6,300.00 and $7,000.00 respectively, and arrived at the Port of Manila on March 3, 2014. The commercial invoice also shows the freight and insurance amounting to $300.00 & $ 142.00 respectively. Darena Designs received from its supplier 4 sets of commercial invoice with corresponding packing list per set, 3 original bill of lading and a certificate of insurance. The declared weight is 9,260kgs and the prevailing exchange rate is P43.00/US$1.00. Having all of the above information determine the following: 3. How much is the dutiable value of the scissors in peso? a. P 277,626.92 b. P 264,173.08 c. P 280,883.74 d. P 262,900.93 4. How much is the dutiable value of the Dolls in peso? a. b. c. d.

P 200,631.12 P 198,304.82 P 188,695.11 P 187,786.32

5. How much is the dutiable value of the Photo Albums in peso? a. b. c. d.

P 312,093.14 P 292,112.05 P 293,525.73 P 308,474.26

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6. An importer X solicited your expertise in international trade and transportation. X is need of Cumin Powder for its Taco Food Cart Franchises in Manila. He found Grover Inc. a supplier from Maharashtra, India and X is scheduled to purchase 2MT of Cumin from the said supplier. They agreed that goods will shipped through Port of Neva Sheva, however X having limited knowledge on the shipment of goods and the Inco 2010, is reluctant of giving its supplier the authority to designate the shipping lines for this shipment. Moreover, X is also worried of the risk that the Cumin he purchased will be damage during the voyage of the vessel from Neva Sheva to Manila. In their agreement the seller is bound to load the goods to vessel at the named port of shipment and he is likewise responsible to secure all export formalities. As a customs broker, what will be the best option you can recommend to X on how he shall go about with his shipment? a.

Suggest that the shipment will be done under FOB term and shipment insured in India since insurance abroad is cheaper than in the Philippines. b. Suggest that the shipment will be done under FOB term and shipment insured locally with an insurance company in Manila. c. Suggest that the shipment will be done under CIF term so that X will not worry against any risk of damage to his goods while in transit. d. Suggest that the shipment will be done under DDP term so that X will just have to wait for his goods to be delivered to his warehouse in Manila. Situation No. 3: A shipment of 200 boxes of Isopropyl Rubbing Alcohol arrived at the Port of Davao . Said shipment was assessed with a VAT amounting to P21,863.79. If each box contains 50 bottles at 250ml/bottles and 80 Proof alcoholic strength, determine the following if the rate of duty is 1%: 7. The amount of dutiable value if the total G.W. is 1,890kgs. a. b. c. d.

P147,429.11 P174,399.10 P147,400.00 P175,340.00

8. The amount of customs duty. a. b. c. d.

P1,474.29 P1,753.40 P1,743.40 P1,474.00

9. The amount of brokerage fee. a. b. c. d.

P5,300.00 P4,700.00 P4,000.00 P3,600.00

10. The amount Specific Tax, if any. a. b. c. d.

P27,180.00 P27,000.00 P28,180.00 None of the above

11. The amount of landed cost. a. b. c. d.

P127,180.00 P155,018.25 P182,198.25 None of the above

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12. UCAS Manufacturing Corp. a duly ed customs bonded warehouse imported several containers of textile fabrics valued at $15,000.00. On its manufacturing process, said firm on 5 occasions was able to legally withdraw its imported materials for manufacturing. How much is the applicable brokerage fee? a. b. c. d.

P 5,300.00 P 4,700.00 P 7,500.00 P 4,000.00

Situation No. 4: Chiup Palm Beach Resort owned by a well-known Filipino-Chinese philanthropist imported twelve (12) units Jet-ski from Finland. A customs broker X [not a graduate of Adamson University] submitted a computation reflecting an amount of P787,828.10 for the VAT of the said shipment. You were furnished by X with the following additional information: -

Gross weight: 4,300 Kgs Port of Destination: Port of Cebu Rate of Duty: 10%

You are now being challenged by the above customs broker to determine the following: 14. The amount of ad valorem tax. a. b. c. d.

P 1,313,046.84 P 1,191,064.69 P 1,008,000.00 P 1,191,053.25

15. The amount of customs duty. a. b. c. d. 16.

P 656,523.42 P 595,532.35 P 504,000.00 P 595,526.63 The brokerage fee.

a. b. c. d.

P 13,256.54 P 12,494.15 P 12,712.00 P 12,494.08

Situation No. 5: UCAS Motors imported 10 units of Chevrolet Spark 2014 1.0L 5 Speed M/T model and 8 units Chevrolet Cruze 1.8L M/T 2013 model. UCAS Motors submitted to Bureau of Internal Revenue sworn statements showing the following information: Net ISP for Chevrolet Spark is P 436,350.00 and P 617,500.00. Determine the following: 17. How much is the AVT for five Chevrolet Spark? a. b. c. d.

P 87,270.00 P 43,635.00 P 103,650.00 None of these

18. How much is the AVT for three Chevrolet Cruze?

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a. b. c. d.

P 124,000.00 P 37,050.00 P 46,500.00 None of these

Situation No. 6: UCAS Wines & Spirits imported of 400 boxes Hennessy V.S. Cognac (Brandy) in 70cl bottle. This Cognac is rated at 40% of alcoholic strength and has an NRP of P10,320.00 per box. Determine following if each box contains 12 bottles:

19. How much is the total excise tax? a. b. c. d.

P53,760.00 P549,120.00 P495,360.00 None of these

20. How many bottles were imported? a. b. c. d.

400 bottles 4,800 bottles 2,688 bottles None of these

21. What is the total Proof Liter? a. b. c. d.

3,360 PL 4,800 PL 2,688 PL None of these

22. 3,000 yards of textile was used by MFG manufacturing in the manufacture of various shirts. Said shirts were eventually exported to USA Corp. in Utah. If the importer had previously paid an amount of P 384,000.00 as payment for the duties, taxes & charges for its importation of 4,500 yards of textiles, determine the amount of the duties & taxes that the importer can potentially refund from the government if said importer avails the incentive under Sec. 106 of the TC as amended. a. b. c. d.

P 384,000.00 P 256,000.00 P 380,160.00 P 253,440.00

23. If the computed customs duty is amounting to P 8,530.00 based on 1% ad valorem duty rate. How much is the customs value if you have the following information: Freight is $185.00, exchange rate is P 43.00/US$1.00 and the commodity imported was Fluocculating Pump. a. b. c. d.

$ 18,856.48 $ 19,837.21 $ 19,652.21 None of these

Situation No. 7: Shipment of several drums newly formulated asphalt ship-out as sample by Asphalts & concretes USA to Tigasin Construction Co. and arrives at the Port of Davao. The importer, having known you as a graduate of Adamson University, asked to compute the following if his previous customs broker [not a graduate of Adamson University] furnished the following information:

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-

Arrastre charge and excise tax amounting to P6,380.41; Unit price for the asphalt of US$1.25/kg; and Freight charge is 3% of the cost.

24. Customs duty if the exchange rate & rate of duty are P43.00/US$1.00 and 3% respectively. a. b. c. d. 25.

P 16,123.63 P 14,537.17 P 18,473.69 None of these The amount of brokerage fee.

a. b. c. d.

P 5,721.82 P 5,655.72 P 5,819.74 None of these

Situation No. 8: Tobacco Corp. was assessed with a total excise tax amounting to P42,240,000.00 for its importation of 2,000 cartons of YYY cigars. You learned that each carton has a specific tax of P1,040.00. You are to determine the following: 26. NRP per cigar. a. b. c. d.

P 527.00 P 502.00 P105.40 None of these

27. Total Ad valorem tax. a. b. c. d.

P 41,160,000.00 P 40,160,000.00 P1,000,000.00 None of these

28. The BOC assessed an Excise Tax amounting to P70,933.30 for the importation of Silver Bracelets & Eyeglasses. The said shipment has an FOB value of $ 100.00/set & $50.00/box respectively. If the total number of eyeglasses was 200boxes & the total ocean freight is $ 280.00 with the insurance computed at 4% of the FOB value, how many sets of Silver Bracelets was imported assuming the exchange rate is P42.00/USD? Additional Info: freight for Silver Bracelet is $124.44. a. b. c. d.

100 sets 90 sets 80 sets None of the above

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