PEOPLE OF THE PHILIPPINES v. ENRIQUITO DIZON, REYNALDO DIZON, ROBERTO JOSE, GLORIA LIM-TOLENTINO, LIBERTY DE RAMOS, HAROLD DE RAMOS, WALTER DE RAMOS, ATTY. EDUARDO UYBUCO, JOSEPHINE FABRO, ELENA AMBROSIO, RENAN S. REYES, WENDELYN G. CABANG, TERESITA ARQUERO, JOEL BAGIO, ARLENE MAMAED, RODERICK TAGAYON, JOSELITO ANAKAN, RAUL D. LUCANAS & TERESITA JUGADO. (Consolidated with Case No. O-138, O-139 & O-140 dtd. Jan. 12, 2010)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY SECOND DIVISION PEOPLE OF THE PHILIPPINES, CTA Criminal Case Nos. Plaintiff, 0-137 & 0-138 -versus- CTA Criminal Case Nos. 0-139 & 0-140 ENRIQUITO DIZON, REYNALDO DIZON, ROBERTO JOSE, GLORIA LIM-TOLENTINO, LIBERTY DE RAMOS, HAROLD DE RAMOS, WALTER DE RAMOS, ATTY. EDUARDO UYBUCO, JOSEPHINE FABRO, ELENA AMBROSIO, RENAN S. REYES, WENDELYN G. CABANG, TERESITA ARQUERO, JOEL BAGIO, ARLENE MAMAED, RODERICK TAGAYON, JOSE B. ANACAN, RAUL D. LUCANAS, and TERESITA JUGADO, Accused. X-------------------------------------X PEOPLE OF THE PHILIPPINES, Plaintiff, -versus- ENRIQUITO DIZON, REYNALDO DIZON, ROBERTO JOSE, GLORIA LIM-TOLENTINO, LIBERTY DE RAMOS, HAROLD DE RAMOS, WALTER DE RAMOS, ATTY. EDUARDO UYBUCO, JOSEPHINE FABRO, ELENA AMBROSIO, RENAN S. REYES,

RESOLUTON CfA CRIM CASE NO. 0-137 to 0-140 WENDELYN G. CABANG, Members: TERESITA ARQUERO, Castaiieda,Jr., Chairperson JOEL BAGIO, Casanova, and ARLENE MAMAED, Cotangco-Manalastas, JJ. RODERICK TAGAYON, JOSE B. ANACAN, JOEL RUIZ, and Promulgated: TERESITA JUGADO, AUG 0 4 2016 / Accused. ~ - X- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - -X RES0 LUT I 0 N ~ f:lr t . � For resolution is the Demurrer to Evidence, filed by accused Enriquito T. Dizon on June 9, 2016. 1 Prosecution filed its Manifestation on July 1, 2016, stating that it is adopting its Comment/Opposition to the Demurrers to Evidence dated August 10, 2015, and submits the case for resolution without further arguments. The accused is one of many charged for violation of Section 3601, in relation to Section 2530, paragraph 1, subparagraphs (3), (4), and (5) of the Tariff and Customs Code of the Philippines (TCCP); and violation of Section 3602, in relation to Section 2530, paragraph 1, subparagraphs (3), (4), and (5) of the TCCP, under four (4) Informations, which read: Crim. Case No. 0 -137 "That during the period of October 28, 2005 to January 10, 2006, in the City of Manila and within the jurisdiction of this Honorable Court, the above-named accused Enriquito Dizon, Reynaldo Dizon, Roberto Jose, Gloria Lim-Tolentino, Liberty de Ramos, Harold de Ramos, Walter de Ramos, Atty. Eduardo Uybuco, Josephine Fabro, Elena Ambrosio, Wendelyn C. Cabang, Teresita Arquero, Joel Bagio, Arlene Mamaed, Roderick Tagayon, Jose B. Anacan, employees j officers and directors of Great Harbour Forwarding Services Corporation (GHFSC), Teresita V. Jugado and Renan S. Reyes, licensed custom broker, RSR Custom Brokerage, in conspiracy with Raul D. Lucanas, consignee and proprietor of Lucanas Trading, did then and there knowingly, unlawfully and feloniously import/bring into the Philippines under IEIRDs Form Numbers 66330214, 67185562, 67185377, 67154841, 67498812, 66822673, 67498751, 67498742, 68282837, 68282846, 68282952, 68282943, 68282907, and 68282934, covering 66,732 cartoons (sic) of STC tiles with total assessed amount of P9,512,740.00, by filing two (2) sets of falsified Import Entry 1 Docket, pp. 5073-5085.

RESOLUTON CTA CRIM CASE NO. 0-137 to 0-140 and Internal Revenue Declarations (IEIRDs) and other supporting documents, thereby making it appear that correct taxes or duties have been paid where in fact only less than that amount of duty legally due was paid, and in consequence thereof, the tiles covered by the IEIRDs were accordingly released. CONTRARY TO LAW." Crim. Case No. 0-138 "That during the period of October 28, 2005 to January 10, 2006, in the City of Manila and within the jurisdiction of this Honorable Court, the above-named accused Enriquito Dizon, Reynaldo Dizon, Roberto Jose, Gloria Lim-Tolentino, Liberty de Ramos, Harold de Ramos, Walter de Ramos, Atty. Eduardo Uybuco, Josephine Fabro, Elena Ambrosio, Wendelyn C. Cabang, Teresita Arquero, Joel Bagio, Arlene Mamaed, Roderick Tagayon, Jose B. Anacan, employees/ officers and directors of Great Harbour Forwarding Services Corporation (GHFSC), Teresita V. Jugado and Renan S. Reyes, licensed custom broker, RSR Custom Brokerage, in conspiracy with Raul D. Lucanas, consignee and proprietor of Lucanas Trading, did then and there knowingly, unlawfully and feloniously import/bring into the Philippines certain cartoons (sic) of STC tiles under IEIRDs Form Numbers 66330214, 67185562, 67185377, 67154841, 67498812, 66822673, 67498751, 67498742, 68282837,68282846,68282952,68282943,68282907,and 68282934, by means of falsified Import Entry and Internal Revenue Declarations (IEIRDs) and other supporting documents, making it appear that full payment of taxes and duties were made as evidenced by the fake bank 'rubber stamp' or 'check write' to avoid the corresponding payment of the correct custom duties and import taxes in the aggregate amount of P9,512.740.00 to the damage and prejudice of the Philippine Government. CONTRARY TO LAW." Crim. Case No. 0-139 "That during the period of November 3, 2005 until December 2, 2005, in the City of Manila and within the jurisdiction of this Honorable Court, the above-named accused Enriquito Dizon, Reynaldo Dizon, Roberto Jose, Gloria Lim-Tolentino, Liberty de Ramos, Harold de Ramos, Walter de Ramos, Atty. Eduardo Uybuco, Josephine Fabro, Elena Ambrosio, Wendelyn C. Cabang, Teresita Arquero, Joel Bagio, Arlene Mamaed, Roderick Tagayon, Jose B. Anacan, employees/ officers and directors of Great Harbour Forwarding Services Corporation (GHFSC), Teresita V. Jugado, universal processor of Equitable-Pel Bank, Binondo Branch, and Renan S. Reyes, licensed custom broker, RSR Customs Brokerage, in conspiracy with Joel A. Ruiz,

RESOLUTON CTA CRIM CASE NO. 0-137 to 0-140 consignee and proprietor of Joruan General Merchandise, did then and there knowingly, unlawfully and feloniously import/bring into the Philippines under IEIRDs Form Numbers 66330494, 66822576, 66822682, 66822655, 67158386,67185474,67185553,67185571,67154771,and 67154717, covering 53,888 cartoons (sic) of STC tiles with total assessed amount of P6,349,652.00, by filing two (2) sets of falsified Import Entry and Internal Revenue Declarations (IEIRDs) and other supporting documents, thereby making it appear that correct taxes or duties have been paid where in fact only less than that amount of duty legally due was paid, and in consequence thereof, the tiles covered by the IEIRDs were accordingly released. CONTRARY TO LAW." Crim. Case No. 0-140 "That during the period of November 3, 2005 until December 2, 2005, in the City of Manila and within the jurisdiction of this Honorable Court, the above-named accused Enriquito Dizon, Reynaldo Dizon, Roberto Jose, Gloria Lim-Tolentino, Liberty de Ramos, Harold de Ramos, Walter de Ramos, Atty. Eduardo Uybuco, Josephine Fabro, Elena Ambrosio, Wendelyn C. Cabang, Teresita Arquero, Joel Bagio, Arlene Mamaed, Roderick Tagayon, Jose B. Anacan, employees/ officers and directors of Great Harbour Forwarding Services Corporation (GHFSC), Teresita V. Jugado, universal processor of Equitable-PCI Bank, Binondo Branch, and Renan S. Reyes, licensed custom broker, RSR Customs Brokerage, in conspiracy with Joel A. Ruiz, consignee and proprietor of Joruan General Merchandise, did then and there knowingly, unlawfully and feloniously import/bring in the Philippines under IEIRDs Form Numbers 66330494, 66822576, 66822682, 66822655, 67158386, 67185474,67185553,67185571,67154771, and67154717, covering 53,888 cartoons (sic) of STC tiles, by means of falsified Import Entry and Internal Revenue Declarations (IEIRDs), making it appear that full payment of taxes and duties were made as evidenced by the fake bank 'rubber stamp' or 'check write' to avoid the corresponding payment of the correct custom duties and import taxes in the aggregate amount of P6,349,652.00 to the damage and prejudice of the Philippine government. CONTRARY TO LAW." During the hearing on April 14, 2016, the prosecution and counsel de parte manifested that they are adopting the testimonial and documentary evidence previously presented by the prosecution and the other accused.

RESOLUTON CfA CRIM CASE NO. 0-137 to 0-140 Accused Enriquito T. Dizon argues that prosecution failed to prove the commission of the offenses when it failed to prove the falsification of the alleged documents and failed to produce the originals of the Import Entry and Internal Revenue Declarations (IEIRDs). Further, accused Dizon argues that prosecution failed to prove his participation in the commission of the said offenses, or the existence of a conspiracy among the accused. Prosecution, on the other hand, adopts the arguments it raised against the Demurrers to Evidence of the other accused. Thus, prosecution argues that the Court has already admitted the secondary evidence during the hearing on January 20, 2014, that they have presented sufficient testimonial and documentary evidence. With respect to the admission of the disallowed evidence as secondary evidence, the Court disagrees. As clarified in the same hearing of January 20, 2014, the admission of the secondary evidence was for the purpose of continuing the hearing and not to delay the proceedings. Upon review of the formal offer, the Court denied the admission of the said evidence upon finding that prosecution failed to prove the requirements for the admission of secondary evidence. The Court shall now resolve the demurrer to evidence. A demurrer to evidence is an objection by one of the parties in an action, to the effect that the evidence which his adversary produced is insufficient in point of law, whether true or not, to make out a case or sustain the issue. The party demurring challenges the sufficiency of the whole evidence to sustain a verdict. The court, in passing upon the sufficiency of the evidence raised in a demurrer, is merely required to ascertain whether there is competent or sufficient evidence to sustain the indictment or to support a verdict of guilt.2 In the instant case, the Informations charge the offense of unlawful importation through falsified IEIRDs and other supporting documents, and making it appear that full payment of the customs duties and import taxes have been paid, when in fact they have not been fully paid. The Informations specifically relied on Section 2530, par. 1, 2 Gutib vs. Court ofAppeals, G.R. No. 131209, August 13, 1999.

RESOLUTON CTA CRIM CASE NO. 0-137 to 0-140 subparagraphs (3), (4) and (5) of the TCCP, which provides, as follows: "Sec. 2530. Property Subject to Forfeiture Under Tariff and Customs Laws. - xxx XXX 1. Any article sought to be imported or exported (1) XXX (2) XXX (3) On the strength of a false declaration or affidavit executed by the owner, importer, exporter or consignee concerning the importation of such article; (4) On the strength of a false invoice or other document executed by the owner, importer, exporter or consignee concerning the importation or exportation of such article; and (5) Through any other practice or device contrary to law by means of which such articles were entered through a customhouse to the prejudice of the government." Based on the Informations, prosecution had to prove that the accused conspired and participated in the unlawful importation of ceramic tiles through falsification of the IEIRDs and other supporting documents, making it appear that the correct taxes and duties have been paid, when in fact, the same have not been paid. The presentation of the IEIRDs and their supporting documents, as well as the alleged "second set" of IEIRDs, is central to the prosecution's theory. However, out of prosecution's voluminous evidence, only one IEIRD was admitted, Exhibit "WVVV", while the bulk of the admitted evidence refers to notations and logbook entries showing the receipt and transmittal of "specific original copies of the import entries" between and among the divisions of the Port of Manila and Bureau of Customs. These pieces of evidence do not show the alleged falsification of the IEIRDs and supporting documents, which allegedly resulted in the release of the imported tiles without proper payment of the required taxes and duties. Thus, this Court finds that prosecution failed to prove the alleged scheme employed by the accused of using two sets

RESOLUTON CTA CRIM CASE NO. 0-137 to 0-140 of IEIRDs to secure the release of the imported tiles, without having completely paid the taxes and duties thereon. Neither was the participation of the accused in the alleged scheme shown and proven by the evidence. Considering the foregoing, prosecution has not presented evidence sufficient to overturn the presumption of innocence of the accused. The demurrer to evidence is granted. In People vs. Sandiganbayan3, the Supreme Court discussed the effect of granting a demurrer to evidence, to wit: "The demurrer to evidence in criminal cases, such as the one at bar, is filed after the prosecution has rested its case, and when the same is granted, it call for an appreciation of the evidence adduced by the prosecution and its sufficiency to warrant conviction beyond reasonable doubt, resulting in a dismissal of the case on the merits, tantamount to an acquittal of the accused." WHEREFORE, the Demurrer to Evidence is GRANTED. Accordingly, accused ENRIQUITO T. DIZON is ACQUITTED of the crime charged. It appearing that the Court has not acquired jurisdiction over the remaining accused, namely: Liberty De Ramos, Walter De Ramos, Atty. Eduardo Uybuco, Josephine Fabro, Elena Ambrosio, Renan S. Reyes, Roderick Tagayon, Raul D. Lucanas, and Joel Ruiz; and in order that this case may not remain pending in the Court's docket for an indefinite period of time, the abovementioned case is hereby ARCHIVED, without prejudice to its revival immediately upon the apprehension of any of the above-named remaining accused. SO ORDERED. 9 e_ .~~f). JUANfTo c. CASTANEDA, JR. Associate Justice CAESAR~SANOVA ~r-~~?-- Associate Justice AMELIA R. COTANGCO-MANALASTAS Associate Justice 3 G.R. Nos. 137707-11, December 17,2004.