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True or False:

A. First statement is correct; second statement is incorrect

B. First statement is incorrect; second statement is correct
C. Both statements are true
D. Both statements are false

1. Examination is necessary after every goods declaration is lodged. Examination is necessary to

obtain the release of goods under Red Lane Selectivity.
2. Examination is always in the form of Physical Examination. The use of xray machines is an
example of how physical examination is conducted.
3. Physical examination shall be conducted when goods are subject to an Alert Order issued by
competent authority. It shall likewise be conducted when it is directed by the Collector of
Customs on account of a derogatory information.
4. Non-intrusive examination is an international accepted standard adopted by the Bureau. The
Collector may exempt from physical examination the goods of authorized economic operators.
5. The Bureau may examine the goods without the declarant if it has valid and justifiable grounds.
The Bureau may require the declarant to be present or to be represented at the examination of
the goods.

6-10. Identification

6. This shall indicate the violations and other necessary specifics thereof.
7. Who shall borne the cost of physical inspection if such results in the assessment of additional
duties and taxes or issuance of a warrant of seizure?
8. It is the central clearing house for alert orders.
9. Refers to an act of importing goods into the country without complete customs prescribed
importation documents, or without being cleared by customs or other regulatory government
agencies, for the purpose of evading payment of prescribed taxes, duties and other government
10. Refers to the act of importing goods into the country by means of fraudulent, falsified or
erroneous declaration of the goods to its nature, kind, quality, quantity or weight, for the
purpose of reducing or avoiding payment of prescribed taxes, duties and other charges.
11. Refers to the fraudulent act of importing any goods into the Philippines, or the act of assisting in
receiving. Concealing, buying, selling disposing or transporting such goods, with full knowledge
that the same has been fraudulently imported, or the fraudulent exportation of goods.

Enumerate at least 4 of those that are not considered as derogatory information.