CTA Case No. 174 (Decision)

BILll-' ' l �s lT OF 'l' A �E f.S ILA .ru C t' IST 0, { q~ Utl n r, ~ c.T.1 � a e No. 174 ( CO, SSIO 0 UST � espond n � - - - - - - - - ~ ~~~ 0 Cl"IO This la p tltlon ~o re h el ton on p- peal of the rcspo d nt Co is loner of usto in / 11 S izurc Identi!icati n No. 2793, affirming the ord r t e torfel ur the (100) plec s Philippine pe o billa at o,o � ~f ' ti~� )0 - I f ieeea u. s. dollar bill at ~ 0. oo, elong1ng to ~he etitfon r C rid d C pis r no on the grou d o! al- leged violution t irculars o � 37 an 20 a i �Pl - nt by Circualr 'o. 42 11 of the ~ ntrol nk , i r latton to section 1363 (f) ot the vfs d d !n!str t1 ~ e. r th 1 ulatjon t f ct sub itt parties, it uppeors that the petitioner, � o 1 sch - ul t lev for fo gko g� d lice soJ fr th Cen- tr 1 to bring with her 50. 00 t �hicb us i caa and th b 1 nc 1 tr vell r' c eck. n . rch I able to board 31, 1955, und !ore the p t tioner t.' � .... 1 9 6 e- jliil)

C. T�� NO. 174 th ple . / ubjedt d to oust . ry for Ho gkon � $b searc.h by on � g nt of tbe ureau of Cu to '. in t.bc Ai .. port. at ichol Fleld, Rtzal, a d th oney bUl , con.. tilting of 100 pl ees PhlUppSno peso Uta at Mo. oo, 17 pleaes u. 5. dollar bUJs at $20. 00, a d 1 piece U. s. dollar bUl at 10. l, r found ln heJ' e re 1ze for 11: ged violation otl ctrcu- lars � s. 37 and 20 as t pl o11tod by CSreulal' No. 2 as a. nde by Circular ?\10. 5511 all o� tho ""ontr 1 nk , 1 relation to Section 1363 (f) of tbc n vi eel Ad tf e Code. � ftcr thE" seizure proceedin s, and o the: t,;olleetor cf Customs for the rort. of nil :rend .,r d a deeisloo ordertou nd d oree !ng tho forfeituro ot ~he ~~ oney b 11 i question. "rom this decision, tho , etl~,. tioner appeal d to th re p nd nt !ssioner of ustoms, ,no aff!r ed the sa e in a decisiun on appeal \ uly '-- datod petitlone~ ~ 29, .1955. lienee, on August 11, 1955, tbo \ I\\ ttl d a f!etition tor evte~ before tbts "ourt. Th pro r d termfnat.ion d disposition of tbts \ case hi ges u o the Issue of ther or not th money � bUl$ in question are subject to fol."f,~iture under the \ \ ntral Bank Circulors Nos . 37 end 20 as \ \ 1 le . nt d by lrcular No . 42 as nded by Ctrcul r l o. 55 1n 1 tlon to S c:Uon 1363 (f) ot tbe v1 ed ' Ce1lpt-l'� l k Circulars ar reprod ce� ol ow; t \ \ 1\.

DECISIO ... C.T.A. CASE RO. 74 � Clrcul . r 1'o. 37 :- "'5 c. 3. T . tollowl 9 11 also be held U ble within tbe �nl g of t.hl C:..,... cular: ' �( ) ny outgoing as nger alreodf booked and read to leav � th cou tty found aving i,n tis pers.,n or among his luggage, at t.h a.trp .rt. or piers, an �ount exceeding 100.00 or PbU1ppie cotns exceedinc PG. OO when o U cens us � e pr vtously obt in d for the excess u ount . " Cireulir 'o. 20;- "4~ (a} All receipts of f reign ex- change shall e sold� d lly to the ~entr 1 n by those authorized to de 1 in foreigP exchange. All rec !pta of fol'eign exch nge by uny person, firm, part rship, ssoe - tton, brancb offle � agency , co pany or othew unincorporated body or corporati n sh 11 be old to tbe autbort�ed ag nts oft e C�ntral nk by the recipients ith o e bus 'ness d y follo ing t r c lpt of such toretgn e chantJc. x x. � .. 1'Sec. 3. .ibe folJowin,lg shall also be held 11 ble it in the antn of t e prohi- bit1otl r exportation of seeuwU.:tes and \ foreign ~xehe~g unless proper license as been obtnined from the antral ' tk 1 ' ,.( ) Any passenger lcoving the Philip- pines found in his possession of any securi- ties or foreign exch nge in any form, vbetbel' such securitieS� �or foreign xc ange � re found i hi er on or among his luggag or in any article taken by blm t. '-be piers or airpons . o nt a y other poi t of mbarkatton. S X X "See. 4. (a) tt(b) Ph1Upptn re !dents leavinf the Philippines for broad shall. upon departure, declare all PhiUppJne currency, foreign ex- change and securities of whatever n ture car- r i y th on E. c. (�'or o. 3 � x x ,. Circullar o. 55: 198 "See. 1.

CISI o. t174 c.T�� -- td h r by :X peso he ettt oncr co tends that the forf ituro f th �n question i n by C ntr 1 a Cir ul~r o. 37 in a ton to Se tion 34 f e- p bltc ct . .. 265. � e orditlgly , tort it r � 1 t 1 g vi d th r tn, he ~ cann res ed. th p tittoner's eont ntion that lther Central nk Cireul r . o. 7 n r public Act o. 265 <X ressly prescribe the penalty of for et ure. Likewi e, s provid~l for pcnul ! rfeiturt.� For cl ar und r ta ding of tbe e olu to of t 1 ~ourt on the 1ssu rais d b he p rttes , find it ec s -ry to diore s on tbe pbi.osophy po bfe T ese Cireuh,rs have f or th tr source of authority e- public et . o. 265. nk t d ty f si t und r t ct oct ve the folio i o ~ ctiv a: ( ) to :� 19 9

C. T�� � 17 in tb - () ry $t bUU.y 1 tl e ill pl �; int ru�tional val oft so and v r 1 1 eurr eie ; ( ) to pro.ot a rlsi 1 vel f r uct on, m lo cnt nd r �1 i co 1 tb billp- pin s. .tb 1 poliei ~ongre � b 1r p or i Jle Uon r lode i the o e y o:r 'h ch x roi s the d t ncti of th C ott 1 k. itn to brin II t t effective dischor of t e p 1 ti � � S ti 14 ( ) f 'id Act autborlz d the onet y d i sua rul a regulations it co sld r ne ar .or th ! ctivc discbarg of I � s onal 1Utte nd exerci o t e powers as ign d to ' tbe ne ary d n to t t..entral n under this Act . " ;I lt Ia 1 p nu e to this author! y �th� t Circular ' I! op 2 � 42 nd 55 re keyed to t h :} . t o t e afor -r cited n tto 1 policies. ); I I , th �� inte no a d clared t1on 1 olic � is inse1 rably t eireul�tion o our 1e o. ith o- �I ig t and 1 do�, t nt 1 nk rcgul t s /j t 1e ); � rctl tton of the F o. I llo in ctrcul tio / '! t of hU ppine one � ... b 11 or I ot to i turb st bllity t r cur- t n mount of circulation over or lo th rgi of ufti- di t urb t e t il ty f so. If or 1 20 �'

D lSION "" � C.T�� c, NO. 174 - 6- ney than i aecess ry l allow to etrtul teiinfla- tlon Y sult � If lo s oney circulates. def t t n fol- low � In both ses, the people suffer t.r con Sc biUppib ey exported or rought outside the co ntry h put out of l 1 cJr ul t:lon. t bring.s down � tb a unt of mo y circulating in t cou try below the rgln of autfici ncy. It es d � stie insta illty of t peso w lcb in tar produces an dver e :repereus- . t on on lt international value and its convertibility into other fre ly convcr ible eurrenei � n tebl r at to t ud wltb ''� ...he Ptt lippines is not e co- o JcaUy selt- suf.t'icient tq f'ford being shunned in \ intetna tonal trade nd c ree. y xported or bro ht of t e country an obligation of o r �ern nt . l:tte f ct that it 1 placed out ide the erritorial jurlsdtet- ton ot th~ i'hilippines doe not free the responsibility it . So ti , it has to redee ed. Except in few holnte4 cues , tb re- d ion is ith l rei n exchange � ijostly, !t i dt wl th United States doll r w ie is the most soug t for tor tgn e:xc ange. It y s Sd that as a general r cantile practi e, ~h111ppi e n 1 found broad is disco nted agatn t our dollar reserve. It drains our dollar r serve. Finally, l'biUppi e ol'.ley exported or withdrawn � tr local ctrculatlo tr strates th decl rod notion 1

��� o� .174 p Ucy ot pro ot.1 ~ rbin lev 1 of roduct on, nt ond r al f nc e i th l lil p It c nnot ones 1n the c untry . t c��n il of to lend pro otton to Ligher 1 v 1 or e� loy nt and, c nse- q�ently, of al n the eutntry. It i ror th se co lling eo ic reo on and n ee sit Centr 1 1reul rs cs . 37 a d 42 ~er cone fve is d. e etrculn restrict the exp rt t:ion f i' ill pin d eotns . In !feet, hey prohibit h exp rto- t to of l'hiUppinc on y, ills or coin , in '~ces of �t 1 censed and nll cd by t C ntr 1 e co to ~cnt 1 ) L�rcul< s 10 � n 55� .&.hes circu o �s rc tr c th expor <t .' o or ringing out ide th V il ppine o !ore1 n c chan c n any or , c us t t c 1 if p 1t of c Pnit d :t tc i t rcton . rkct , the n tnt rn t1onal ten er~ It an accept tender on th eo nter of foreign rt *t � (.; ntri ' � blg r s ll, tl t intnln th �r o n d 11 t re 6r � s . It i for t 1 in - ble � ilip 1nes, t roug the c tr. 1 u�n , is eo mitt to the olicy t c tscrving \ 11 ail bl dollar i ord r o a t in and bolster dn lor r cr e o i I n.

ClSIO - c. � . c SE I o. 174 f a <.toll r res rve 1 inti- mat ely stability n tb f 11- i 1ne � in r doll. re l"V a vcr el ~f- f ct , loa lly a l il\t r ation Uy, of tb r ilip iale � s cor llary, ed or defl t d jvalu o tb p o lo~or th level of pro- ductton, �1plo:1 ..!nt .ld r al inc r~ n th 1 1 p s . Fo di r si n, it app r ate \ � nd vid nt til :tUo op y be 1 d the odo t:l and pr ul at iun of C ntr: l la1 Circulars . os . 37, 20, 42 nd 55 1 to prohi It t indi crtm ate and � unlic nscd ex ortatio of oncy, local ::m for ign.) Tbes ircul r, �vi pursu nt to i' . o. 2 5, buv tllo ore 1nd effect o! law c rdit to seitl juri prud nee. (See opl ' � u Po y, ,� � L- 791, reb 29, 1954, 50 '). G. r 4 5 , citing J. "'. � Tu i . ol int~, _ hil . uq and uthorltl t cit d. ) hall er inc h ther or not t ap r on y in qu sUor y le ally b subject to forfeitur in r l�t on t �ection 1363 !) f t Revised d i- ni tr tivc ~ de. ai codal ro on prot d "S.c. l 63. Property subject to for iture u tder cu t lAS 1 . - ess 1 , rc nndi 1 and th r objeet � n th all, ndel" tlt c dit.ion herein lo st.ecified , be subj forfeiture: X X (f) n 1- rary to � r- � i� 2 0 3

17 - 9- ch 1d e htcb, � n t le opinion of the Got- lector, h� ve b ~ usedt r or ere tn- t nded t be used as i st rum nt 1n the 1 ... ort<l tton r export t i on o! th !or �er. " n this point, th ~ctitto cr c ds th t the paper m ncy i q'estion c nnot f rf it enus � it 1 ot rc ondis � In thl conn ct.lon, \ hb t roint to the 1 ovisio of ectio 14 9 �of the vi ct.! , 1 inictr �t tvc C . t~hic r ads: "SE � 1419. lords nd phr es defined.- �ords and Phr-se U!; d in th s ch pt r shall be tnlwn in th sense defined b X X I "' creh nd.se' when used ~itb rc- fercnc to rnport at ionG or exportations, I i el udes good , arcs , d in t-ner 1 ony- I thino th t y the subject ot �~porta- tion or exportat o . " t I he li t of he above-quoted cod� 1 deAni- ) tion, k the ob ervution that �ntt d s ates doll r ! rch n tse. .lh y ha e cc sed t be 1 gal I tender i the ''hili rinc � How er, s ave heretn I pr Yio sly i ti. t d, thy are yre�tly i I 1 c l, as \\' 11 s in .forei n � rk ts . I I rcha n ble c it! � y nre old n I e ubj �ct of � ' rtatio I tat ion. ey re . reb is ithin t c ooteJ 1 tio I 0 s ction 1419 nu 13 (�) of th~ I ... tr tivc l-ode. heir de i violation ot cnt:ral n '-ircul� rs Nos. 2. , 42 ud 55 forfeiture in relat i on to said sect i on I/ ... ... . )ll 204 ! "'' ..

CISI I - C.T. � ASE o. 174 - 10 .. ( nut, nt rtatn a different tiew and observe- tto with respect to ~billppt e n y. Ueve, nd we ar con train d to rule that t'blUppino peso btU eaflnot e aecorded � he oat~gory ot , rcllandh at lca.at jn the Philipptnes. hey are not goods /,or wares that cu.n be the subject f purcha e nd aal � I They cannot t e snbject of port tto or export�� t.io � e t1 d o aut ority n justification tor { ../ .,.. old ng t . for it re under tbe pro sion of S - tion 1363 (f) of the evi d Ad Jni trat1vc Code, or ven un er any other law. We c nnot d cree their tor- eiture for 'l'b t,ourt. cannot creot pennltie ond l U ot1 � ... ey llst found tn tt of the l w, nd not raised by i - nd onnruction. u (A Ullag oox of Sugar, lt eat� to u t wt in the atte _pted xporta- tion of t e Pbllippi onay bill in the instant case, 1olaiion of \ient:tal Ba lt Circulars Noa .. 37, and 42 ha en co ittea. n pdr$uance: to Section 17 of Re- ubUc A \ No. 112' , e refer this .matt r to the pro- per depart nt, bureau or � .fiice tor investigation d t e i stit.ution of cri lli al actio under S ction 34 of t pul.>Uc Act No. 2 a .i st iUoner Caridad pistrano, lf the t cts and cure . stance of the case y rra t. . 1'ho petitioner's eont nt ion tho t til u. s. dollar bil.ls in quest! n c nnot forfeit ,,d because their ;' 2 0 5

. ''\.. CISior - ,. C. 'l'� . � C 174 -n- oxPOttat1o was merely attempted !$ unt able. Sec- ... tton 1. evis d ~ dminhtr Uve Lode sp - (f) of tb 3 eiitc lly and akptessly ordains the fort iture of "any rebandise of prohJblt d x x x xportation, iy x ;� x exportation or Nhich is eff cted or attumpted \ ontrnry to hu � � � :JiL ~F'fJf � , the declston on app 1 o.r t:.hc respou... dn t. "' lssioner of Lustoms i hereby nlodifi d 1n the a nse th<> e deer e tlle forfeiture Jn fa vor o! the Go ern �ent of the eventoon (17) piece !\ s . dolhr bills t 20. 00 n t.he one (l) piece n.. s. ollar bill at 10. , nd th role � to tlle p��Ut.toncr �ridad � piatrano the one ndred (100) io es Pbil- i questio � t copies of tlis d cision bo fur~lshed the Governor flf t e C ntral nk of t�he htlippines and the Pdvincial �i col of Htzal ., tllrou h tbc Secretary ot Justic , tor whatever actio pr per to t�k. in the pre ises. June 41 1956. (Sgd. ) I; NO NJ\Ut.E residin~ Jldge ( .l STO � LUCIANO .11.ssvci~te Judg (Sgd . l Q, n. '� J' ALI ssQeiate Judge ... 206 I~