Prelim Exam Tm3 Summer Class

RAMON MAGSAYSAY MEMORIAL COLLEGES
Office of the Program Director

BACHELOR OF SCIENCE IN CUSTOMS ADMINISTRATION
General Santos City, Philippines
Document Type: Document No.: DAP-03-06-012
TEST PAPER Issue No.: Revision No.: 00
Document Title: Effective Date: October 1, 2019
FINAL EXAM Page 1 of 1
Name: _______________________ Date: _____________ Permit No.: ____________
TM3: CUSTOMS VALUATION SYSTEM
GENERAL INSTRUCTIONS: Read and analyze each item carefully. Answer the given
items by providing the necessary information asked for. Use black ball point pen only. A
blank paper is provided for your solution.
PART I: Provide the correct answer.
1. As an exporter you were asked by importer “A” to quote for an export order to be
shipped by air. “A” said he will pick up the order from your warehouse and he
will be responsible for export customs clearance. What is the term of purchase?
Answer: EXW
2. It is a term of purchase where the seller pays for the freight and insurance and
the responsibility of the seller is to deliver the goods to the plane’s terminal at
the country of exportation.
Answer: CIP
3. What is the proper way of invoicing an import order where the exporter shall be
responsible for the payment of freight and marine insurance and the manner of
shipment is by sea only?
Answer: CIF
4. You were asked by buyer “A” to quote for an export order to be shipped by air.
“A” said he will pick up the order from your warehouse and will be responsible
for export customs clearance. What is the term of purchase?
Answer: EXW
5. What is the proper term where the seller delivers the ordered goods to a carrier
and pays for the air freight?
Answer: CPT
Part II. Read and analyze the problem. Encircle the correct answer.
1. Seller in Tacurong City delivered the goods to carrier’s warehouse in

Davao. Bill of lading shows freight charges as “FRT COLLECT” and will be
paid by importer upon arrival of goods in Nagoya.
a. FCA Nagoya
b. FCA Davao
c. EXW Tacurong
d. CFR Nagoya
2. Invoice shows cost of the goods, ocean freight and loading charges to
vessel. Covering B/L indicated freight charges as “FRT PREPAID”.
Importer paid local insurance premium against loss or damage of the
goods during transit from Manila to Tokyo. What is the proper term?
a. CFR Manila
b. CPT Manila
c. CPT Tokyo
d. CFR Tokyo
3. Exporter delivered the goods to Philippine Airlines warehouse at NAIA

terminal and paid air transport and insurance premium from Manila to
Sydney. Air waybill indicated freight charges as “Pre-Paid”.
a. CPT Sydney
b. CIP Sydney
c. CPT NAIA
d. CIP NAIA
4. As Import and Export Manager of Company “A” you were asked by the
President of your company to purchase from Delaware, Inc. from USA 500
assorted household goods with the condition that the supplier will be
responsible for customs clearance and delivery to warehouse in
Sanciangco Street, IloIlo City. Further the customs duty and VAT should
be incorporated in the selling price. What is the purchase term your boss
is thinking of?
a. DPU Iloilo
b. DDP Iloilo
c. DAP Iloilo
d. DDP USA
5. As exporter of rattan made furniture in Cagayan you want to quote to buyer

“A” of Singapore on the basis that you will only be responsible to deliver to
the CY of the shipping line but without you paying for the freight. Your
buyer however wants you to be responsible to process the Export
Declaration (ED). What is the applicable purchase term?
a. FCA Cagayan
b. FAS Cagayan
c. EXW CY
d. FCA Singapore
6. What is the purchase term where it is noted in the bill of lading “freight
prepaid” for an importation of 3 X 40’ FCL but the importer from Singapore
asked the shipper to secure for marine insurance, the delivery is made in
the warehouse of the carrier in Novaliches?
a. CPT Singapore
b. CIP Novaliches
c. CIP Singapore
d. CIF Singapore
7. What is the purchase term where it is noted in the HAWB “freight collect”
and where the supplier in Cairo, Egypt delivered the ordered goods by an
importer in Davao to the warehouse in Cairo of the freight forwarder
nominated by the importer and prepared the required export clearances?
a. EXW Cairo
b. FOB Cairo
c. FAS Cairo
d. None of the choices
8. Which of the following is true in a DDP transaction?

a. The seller has the responsibility to the buyer to cover the marine
insurance of the ordered goods.
b. The buyer has the responsibility to the seller to cover the marine
insurance of the ordered goods.
c. The seller will unload from the vehicle delivering the ordered goods
at the agreed place of delivery.
d. The buyer will unload from the vehicle delivering the ordered
goods at the agreed place of delivery.
9. Which does not belong to the group?

a. Ocean Freight
b. Marine insurance
c. Duties and taxes
d. Adjustment
10. Which does not belong to the group?

a. Destination Charges
b. Post Importation Cost
c. Pre-carriage Cost
d. Permissible Deductions

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RAMON MAGSAYSAY MEMORIAL COLLEGES

Office of the Program Director

Name: _________________ Date: _ Permit No.: ______

TM3: CUSTOMS VALUATION SYSTEM

PART I: Provide the correct answer.

1. Seller in Tacurong City delivered the goods to carrier’s warehouse in

3. Exporter delivered the goods to Philippine Airlines warehouse at NAIA

5. As exporter of rattan made furniture in Cagayan you want to quote to buyer

8. Which of the following is true in a DDP transaction?

9. Which does not belong to the group?

10. Which does not belong to the group?

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