CTA Case No. 857 (Decision)

Republic of the Philippine�s COUFI.T OF TAX APPEALS Manil~ FER.L\1IN SARE _, Petitioner,. ... versus - C.T.A. CASE NO. 857 THE COMMISSIONER OF CUSTOMS� Respondent. X~ - ~ ~ - - - - - - - ~X DECISION , This is an appeal from the decision of respond" ent affirming that of the Collector of Customs of Mani- la which ordered the forfeiture of various articles imported by petitioner sometime in 1954 and 1955. The facts of the case are stated in the stipulation of facts submitted by the parties, the pertinent por- tions of which are as follows: 2. That the petitioner imported from Hongkong into the Philippines the following, to wit: (a) Three (3) separate shipments of various merchandise which arrived in Manila on: 1954, (v1i)aDtehceemsb.esr. 25, Kam- bodia under registration No. 1621 and declared in Entry No. 103972, Series of 1954; 1955, (2) Jathneuasry. s1.4 1 Kam- via bodia under Registry No. 54, and declared in Entry No. 4191, Series of 1955; via th(e3)sM.sa.rchEr3r,ia1, 9u55nder Registry No. 238 and de- clared in Entry No. 78553, Series of 1955.

DECISION � C.T.A. CASE NOo 857 (b) Tnree (3) separate shipments of various merchandise whi ch arrived at Manila on: 1954 (v1i)aDtehceemsb.esr.. 11, Ner- var and declared in En- try No. 99510 , Series of 1954; (2) December 18, 1954, via the s.s. Her- mod and declared under Entry Nos. 101581 and 101583, Series of 1954; 1954, (v3i)aDse.cse.mbHeres2s3en, - stein, declared in En- try No. 102246-f, Ser- ies of 1954.. {c) Three (3) separate ship- ments of various merchandise which arrived at Manila on or about 0ct- ober � 20, 1954, via the s. So �Ta- lisman� and declared under Entry Nos. 84027, 84028, and 84031. 3. That the above shipments particular- ly specified in paragraph 2, sub-paragraph a, b and c were all accompanied and covered by their respective Bills of Lading and Com- mercial Invoices; but all these shipments were not covered by Central Bank Release Cer- tificates as well as Consular Invoices al- though all duties and Internal Revenue taxes have been paid for; 4.. That the shipments above mentioned were the subject of Seizure Identification: (a) Nos. 2341, 2412, and 2663 for the shipments of various merchandise specified in paragraph 2, sub-paragraph (a); ' I (b) Nos. 2266, 2304, 2299 and 2319 for the shipments of. various merchandise specified in paragraph 2, sub-paragraph {b); and, (c) Nos. 2081, 2082 and 2089 for the shipments of various mer- chandise specified in paragraph 2, sub-par agraph (c),

DECISION .. � C.T.A. CASE NO. e57 -3 - instituted by th~ respondent and or his duly authorized representative for the fail- ure of the petitioner to produce the Central Bank Release Certificates covering the sub- ject shipments above~entioned as required by Central� Bank Circular Nos. 44 and 45 in relation to Section 1363(f) of the Revised Administrative Code. 5. That petit~oner herein has posted Century Insurance Company Inc . Bond No. 3307 in the sum of 18,930.00 in Seizure Identification No. 2663 and Pioneer Insur- ance & Surety Corporation Bonds Nos. 134, 135� 137, 211, 218, 219, 223, 228, and 245 in the sums of ~9 ,934.94, ~237.87, ,8,230.76, ~1,513.oo, P4 ,467.oo, ~4,880.00 , 4,524.00, �17,425.00 P8,169.00, respectively, in Sei- zure Identification Nos. 2081, 2082, 2089,. 2266, 2299, 2304, 2319, 2341, and 2412, for and in consideration of the release of the merchandise subject of the aforestated for- feiture proceedings; 6. That on: (a) .February 5, 1960, in Sei- zure Proceedings Nos . 2341, 2412, and 2663, the respondent rendered judgment, the dispositive part of which reads as follows: "WHEREFORE, by author- ity of Section 1380 of the Revised Administrative Code in relation to Section 3702 of the Tariff and Customs Code of the Philippines, the Pioneer Insurance & Surety Corporation Bond Nos. 228, dated December 28, 1954; 245, dated January 14, 1955; and the Century Insurance Co. , Inc. Bond No. 3307, dated March 4, 1955, respectively, which were filed for the re- lease of the articles in ques- tion are hereby confiscated; and the principal, F. Sare and Enterprises , as well as the aforesaid sureties are hereby ordered to pay in CASH jointly and severally, the amount of FORTY-FOUR THOUSAND FIVE HUNDRED TWENTY FOUR PESOS ( 44,524.00), Philippine Cur- rency, to ~ the Bureau of Customs within thirty (30) days from re-

DECISION ... C.T.A . CASE NO. 851 .,. 4- ceipt ' of a copy of this deci- sion in accordance with the terms of the said bond.� (b) February 10, 1960, the res- pondent rendered judgment in Seizure Proceedings Nos. 2081, 2082, and 2089, the dispositive portion of which reads as follows: � � '/HEREFORE, by authority of Section 1380 of the Revised Administrative Code in relation to Section 3702 of the Tariff and Customs Code of the Philip- pines, the Pioneer Insurance & Surety Company Bond Nos. 134 in the amount of 9 , 934. 94; 135 in the amount of P237.87; and 137 in t h:e amount of 8, 230. 76, dated October 21, 22, and 22, 1954, respectively, which were filed for the release of the articles in question are here- by confiscated ; and the prin- cipal, F. Sare Enterprises, as well as the aforesaid surety are hereby ordered to pay in CASH , jointly and severally , the total amount of EIGHTEEN THOUSAND FOUR HUNDRED THREE PESOS and 57/100 ( 18 , 403. 57), Philippine currency, to the Bureau of Customs within thirty (30) days from receipt of a copy of this decision in ac- cordance with the terms of the said bonds. � � (c) February 18, 1960, the res- pondent rendered judgment in Seizure Proceedings Nos . 2266, 2293, 2304, and 2319, the dispositive part of which reads as follows: �WHEREFOP~, by author- ity of Section 1380 of the Revised Administrative Code in relation to Section 3702 of the Tariff and Customs Code of the Philippines, the Pioneer Insurance and Surety Co, Inc. Surety Bonds Nos. 211, 218, 219, and 223, in the respective sums of ONE THOUS.~ FIVE HU N- DRED AND THIRTEEN PESOS (Pl,- 513.00 ); FOUR THOUSA.ND FOUR HUN- DRED SIXTY St:.VEN PESOS (i 4,467.- 00 ); FORTY-EIGHT HUNDRED EIGHTY

DECISION .. C.ToA. CASE NO. 857 -5- PESOS ' (P4,880.00); and FORTY-FIVE HUNDRED AND T#ENTY-FOUR ( 4,524.00) 1 dated December 13, 21, 21, and 24 1 1954, respec- � tively, which had been filed for the release of the arti- cles in question, are here- by confiscated; and the prin- cipal, F. SARE ENTERPRISES, as well as the aforesaid Surety are hereby ordered to pay in CASH, jointly and severally, the total amount of FIFTEEN THOUSAND THREE HUNDRED AND EIGHTY- FOUR PESOS (Pl5,384.00), Philippine currency, to the Bureau of Customs within thirty (30) days from re- ceipt of a copy of this deci- sion in accordance with the �terms and conditions of the said bond.� (See PP� 58-61, c. T.A. records. ) / There is no question that the goods described above were imported in violation of Circulars Nos. 44 I and 45 of the Cen ral Bank and that they are subject to forfeiture under Section 1363(f) of the Administra- tive Code (now Section 2530(f), Tariff & Customs Code}. It is, however, contended that with the promulgation ) of Central Bank Circular No. 133, all actions and pro- ceedings involving forfeiture of goods for violation of Circulars Nos. 44 and -45 which have . not been reduced to final judgment are deemed abrogated. ',.. . The question has already been resolved by this Court. We have consistently held that Circulars /Nos. / �) 44 and 45 were not repealed by Circular No. 133, and ---- that even if they were repealed, the legality of the forfeiture proceeding under the old circulars is not affected by their subsequent repeal. This is so because the expiration or repeal of said circulars did not have

DECISION .. C. T. A. CASE NO.. 857 -6- the effect of legalizing an importation of goods which was illegal at the time of importation~~ (See Litto'n & Co., IRCo v. Com.. of Customs, c.T.A. No. 784, Octo ' 30, 1963. and cases cited therein.) ~VHEREFORE, the decision appealed from is here- by affirmed� with costs against petitioner. SO ORDERED. Manila, February 24p 1964. ROM.t\N M. tlMALI Associate Judge WE CONCUR: