Taxation, 2011 Bar — Question 5

MULTIPLE CHOICE

Amaretto, Inc., imported 100 cases of Marula wine from South Africa. The shipment was assessed duties and value-added taxes of P300,000 which Amaretto, Inc. immediately paid. The Bureau of Customs did not, however, issue the release papers of the shipment yet since the Food and Drug Administration (FDA) needed to test the suitability of the wine for human consumption. Is the Bureau of Customs at fault for refusing to release the shipment just as yet? (A) Yes, because the importation was already terminated as a result of the payment of the taxes due. (B) Yes, the Bureau of Customs is estopped from holding the release of the shipment after receiving the payment. (C) No, if the amount paid as duties and value-added taxes due on the importation was insufficient. (D) No, because the Bureau of Customs has not issued the legal permit for withdrawal pending the FDA's findings.

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