Long Quiz 314
1. Frenchie Cigars, an importer registered here in the Philippines is
importing 950,000 grams of chewing tobacco into the Philippines with
a total gross weight of 150,000 kilograms and a net weight of 80,000
kilograms. Said shipment are required to pay excise tax from the
importer. If you were a customs officer in charge of the shipment, how
much excise tax does the company need to pay for 950,000 grams of
chewing tobacco?
950,000 grams / 1000 = 950 kg
ET = 950 kg x 2.31
ET = Php 2,194.5
2. An importation of 700 boxes of Cigars is pending release from the
Bureau of Customs. If each box contains 50 pieces with NRP of Php
250.00 each, compute the excise tax per each cigar inclusive of value
added tax.
ST = 7.75
AVT = 250 x .20 = 50
ET w/ VAT = 57.75 x 1.12 = P 64.68
3. How many cases of cigarettes packed by hand were imported if the
total excise tax paid by the importer is Php 882,000 inclusive of VAT.
ET w/o VAT = 882,000 / 1.12 = P 787,500
787,500 / 63 / 10 / 50 = 25 cases
4. 5000 packs of powdered cereal beverage using purely high fructose
corn syrup is set to remove from its place of production. If 10 packs
weigh 30 grms and can be dissolved in 1,500 ml pitcher, what is the
total ET inclusive of VAT?
T.ST = Number of packs x vol. (L) x Rate
T.ST = 500packs x 1.5 x 12 x 1.12
T.ST = Php 10,080
5. Parfum la Senteur has a shipment arriving from France which consists
of Caron Poivre. Consignee paid a total of Php 233,525.60 of ET
inclusive of VAT. If the ocean freight is amounted to $1,500 and the
exchange rate is Php 46.75/$1.00, compute the total number of bottles
imported if said perfume has FOB value of $20/bottle.
233,525.60php/1.12/.20/46.75-$1,500/1.04/20 = 1,000btls
6. Strength Twenty One Inc., a manufacturing plant in Isabela, Philippines
imported 10,000 kg of Petroleum coke from India. Said petroleum coke
will be used as a feedstock to supply and generate power in one of
their facility in Isabela. The Excise Tax rate during that time was Php
6.00 per metric ton. Assuming you are the Customs Broker assigned to
facilitate the releasing of the specified petroleum coke in the Bureau of
Customs, how much will be the total excise tax to be paid from the
Importer?
NONE – ZERO RATED
7. Dune Motors will remove from customs custody their importation of 2
units motorized jetski contained in 2x20’ container. Invoice shows
freight value of $ 1,200 which accounted for 120% of the insurance
premium paid by the seller. What is the total ad valorem tax if the
exchange rate is Php 52.75 at the time of importation and ME and CUD
has aggregate amount of Php 6,758,923.89 with 10% rate of duty.
1200/1.20/.04=FOB (25,000 + 1200 +1000) *52.75 *.20 = 286,960php
8. Cloud Z Inc. a popular Vape Shop in Ermita Manila, imported a 3x20
container of Heated Tobacco in the Philippines. Each container
contained 10 pallets wherein each pallet contained 10 boxes. Each
boxes contained 50 packs. The total gross weight of the shipment was
equivalent to 100,000 kilograms and the net weight was equivalent to
50,000 kilograms. If you were the Customs Officer assigned in the
shipment, how much will be the Excise Tax to be paid from the
importer?
3 containers x 10 pallets x 10 boxes x 50 packs = 15,000 packs
T. ET = 15, 000 packs x Php 34.13
T. ET = Php 511,950
9. Compute for the total excise tax for the importation of vapor products
with conventional freebase nicotine with a total of 500 packs with
2btl/pack and a container size of 75 cc.
T. ST = Total number of packs x STR
T. ST = 500 x 63 (8)
T.ST = P 252,000
10. A cement manufacturer located in Abra imported from Kenya
826,719.5767 lbs. of coke to be used as fuel to their furnace which
would suffice to their 3 months of operation. If the importer paid a total
of Php 5,275,200.76 for dutiable value, find the total excise tax due
inclusive of VAT.
826,719.5767 lbs. x .4536kgs / 1lb x 1MT/1000kgs x P 150 / 1MT x
1.12 = P 63,000
11. A construction company imported 2x40’ container consisting of
50MT silica sand. The entry shows FRT/invoice of $2,750 which is 8% of
FOB and rate of duty of 7%. Compute for the AVT if the LC and ME has
a value of Php 4,062,815.76 and Php 50,285 respectively with
50php/USD as Exchange rate.
2750/.08*1.10*50*.04 = 75,625php
12. Red Rose Refinery imported 500 bottles of champagne with CIP
value of US$ 6,700.00, miscellaneous expenses of P 5,000.00, NRP of P
600.00 per bottle, and total liters of 500. If the prevailing rate of
exchange was P 40.00/US$ 1.00, determine the excise tax payable
inclusive of VAT.
500L * 63.12 *1.12 = 35,347.2php
13. Pineda Flowerpot Corporation imported 500 drums of clay from
Taiwan having CFR value of US$ 200.00/drum. The total ocean freight
charges amounted to US$ 5,500.00 while exchange rate was P
50.00/US$ 1.00. Determine the total ad valorem tax, Exclusive of Vat
$200/drum*500drums-5,500*1.04+5,500*50*.04 = 203,780php
14. Lang Gum industries, the best tooth denture sanitizing company
has a shortage in ethanol thus importing 348 drums worth $18,560
EXW value. Mr. Bug Ang, the producer from Germany, quoted the
invoice with loading to collecting vehicle charges amounted to $148
and $210 as transport cost from his warehouse up to the Wisdom
tooth Airlines. if the Air Freight per SAD amounted to $4,500 and the
IATA Freight amounted to $5,000. Find the Excise tax for this shipment
exclusive of VAT if the Alcohol content is 88.75%.
(1,208,736 *1.775*.22)= 472,011.408php + 8,153,640php
(348*200*1.775*66)
Ans: 8,625,651.408php
15. XYZ company imported Gin from United Kingdom. Said shipment
is set to arrive at POB before the end of the month. Said importation
contained in 100 cases and has a total volume of 1200. If the rated
proof is 80, what is the proof liter for each bottle?
T.PL = T.GL x %PF
T.PL = 1200 x .80
T.PL = 960
TNOB = 100cases x 12btls/case (standard conversion) = 1200
PL/BTL = 960/1200
PL/BTL = .8
16. Don Aron Pogi Dinglasan, one of the youngest billionaire in the
Philippines loves to collect Antique items from 19 th century. He
imported an Antique Gold Lorgnette from Paris, France with a total
customs FOB value of $25,000. The shipment was arrived in Manila last
October 10, 2024 with a freight charges of 2% of the FOB value. The
Exchange rate during that time was Php 57.00/ 1 US Dollar. If you were
the customs officer in charge of the shipment, how much will be the
Excise Tax to be paid from the importer?
FOB - $ 25,000
FRT - $ 500
INS - $ 1,000
___________________
DV - $ 26,500
ER – 57
___________________
DV – Php 1,510, 500
ETR – 20%
ET – Php 302,100
17. ABC Tobacco Inc. based in the Philippines imported 50 cases of
Premium Cigarettes. Said cigarettes are subject in excise tax based on
the National Internal Revenue Code of the Philippines (NIRC). In order
to release the said importation, the importer must pay the Total excise
Tax. Calculate for the Total Excise Tax to be paid by the importer.
50 cases x 50 reams x 10 packs = 25,000 packs
Total excise Tax = No. of packs x Php 63.00
T. ET = 25,000 x 63.00
T. ET = Php 1,575,000
18. An importation of 250 drums of undenatured ethanol with total
volume of 1000 deciliters paid a total amount of Php 1,567,500 for
specific tax. The NRP per drum is Php 2,500.50 based on the current
price survey conducted in Metro Manila. In line with this, find the
degree of strength in percentage proof of the shipment as well as the
total excise tax to be paid.
T.ST = T.NOB x Vol. Cap/L x %PF x P66
1,567,500 = 250 x 100 x %PF x 66
1,567,500 = 1,650,000 %PF
1,567,500 / 1,650,000 = 1,650,000 %PF / 1,650,000
%PF = .95
NO DV – cannot compute the AVT
19. The current NRP of a bottle of Manila Beer Litro is P100. How
much will be the NRP per 740-ml bottle?
100php/1L *.74L = 74php/btl
20. Queen Judith Andal, a royal queen from Britain stayed in the
Philippines for good. Since Queen Judith, decided to live in the
Philippines one of her beloved jewelry, specifically the Bulgari Serpenti
Viper necklace (the similar necklace that was worn by Heart
Evangelista in the GMA Gala) was imported in the Philippines. The
Aggregate value of Ad Valorem Tax and Customs Duty was amounted
to Php 950,000. Rate of Duty during that time was 7%. Calculate for
the total Excise Tax to be paid from Queen Judith.
DV + CUD = Php 950,000
0.20DV + 0.07DV = Php 950,000
0.27DV / 0.27 = Php 950,000 / 0.27
DV = 3,518,518.52 x 0.20
AVT = 703, 703.704
