CTA Case No. 1574 (Decision)

P

REPURLIC OF TEE PHILIPPINRY CYURT OF TAX APPEAIS QUEZON CIT

PRO AACA Petitioner,

-Versug- C.TACASNO.17

CUSTOHS TRE CONISSIONER OF B Hespnndent Noe 0

DECISIOM

This is an apoeal by petitioner from tha de

cision of responient dnted September 9, 195+

sffirsing that of tha Acting Colleetor of Customs

for Maniln ated May 2+, 1955, in Custome Case

No. 586 salzure Identification #o, l9B2 ecree-

ing the forfeiture of the abject importation

and/or psyment in cash to the Burean of Customs

of the sum of 8,967.77 reprasenting the appraiaed

Value of the merehandise covered by a aurety bond

cICO No.294+)dated 5eptember 28195. Thi

Cnse Was submittad for decision on tha baais ot

the Custoe rocordi.

The nniisputed facts, ps stipulated by the

parties, are a follows soe pp. 46-7, Cutom

Raocra)

at the Port of kanila from Hongkong consigned to Pedro AWaaasa arrivsd On Saptembar 23,1954 per tha s.s. Hermod nnor Hag. Ho. i230an eclared nnder ntry No..75803, eries l. Thmt the Varios merchandise

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DRCTSIOn- CTA CASR N6. 1574

2

of 195+5

ments covering the saia shipment ars coipt o. 54030, aated Beptembar 25 ing adaitionai sples tax, and No. 1954,in the amount of #1.627.17 tano.5+307,Ceted 3eptember 28 the amount of i4.lo covering adai- a the bill of ledingy (b) the com- mercial invcicej and (c) cfficial Re- covering estimated duties and sales tional dut end ssles tax 1954 54280, dated 8optemben 25, 1954,.in 2. Tho pertinent hipping aocu in the amount of 88.45 cover

lensel to the claimant herein under bona 3. That the merchandise was re-

merchandise is2,676.37: and 4 That the Value of subjeet

hence it was ordered seized for vio- iation or Central Bank Ciroular Nos. 44 ena 45 in relntion ta Sectionr is not eovered by any release certifi cato and it has not consular invoice, 1363(f) an 1250 of the Revised Admin istrmtiya Code." 5.Tht the subject merchanaise

The oniy issue raised by the pirties is whether

or not Central Bank Circulars Nos.4+ and 5 have

been repealed by Central Bank Cireular No. l33.

VTha issue is not of first impression. In

previous cases pf similar or analogous iseue (Pascual

v.Comm.of Customs, G.R.o.L-10979, June 30, 1959

Acting Comm, or Customs V. Rstanislao Leuterio

.R.o.L-9142,0ctober 17, 1959;Co.of Customs

Y. Serreo investment Co., G.R.o.I-l2007, ay 16

1960 Comm. of Cuatoms v.astern Sen Trading, G..

53

DRCISION CTA CMSE No.1574

-3-

No.L-1+279, Cetober 31,196l Comm.of Cuetoms V

Santos G..No, L-11911, Maroh 30,1962 Comn f Custom v.opomceno . o. L-lll26, Karch 3i,196 Sarres Investmant Co.V.Comm.of Cus toms0..NoL-1956+,Hovamber 28,196 5erroe Investment Co., V. Comm. cf Cuetoms, O.R.lio. L-2117,ovomber 29, 1965 and Andres E.Laxar

V. The Gomm of Cuetoms, G..No.L-21790 an L-2l79* Decsmber 24,1965; Bienvaniao Capulong v

The Acting Com.of Customs,R.HoL-22990,My

19, l966 the @upreme Court bus upheld the valiaity of Cantral ank Ciroulrs Mos.and 5and re jected tha theory of thair repmal by Central Bant

Cireular No. l33. In the caae or ienventdo Cn pulong v. The Acting Comm of Customs, unra the Suprome Court; reiternting its previous ruling in

sinilar cases involving the ome isaue, held

inr thet sala circulars de not provide Court satd that these clroulars ahould be correlated with Section 1363 of for the pmnalty of forfeiture in case of violation of their provisicns,Ba in view of the several declsionn rendered of merchandise imported in violation or aaiaCirealars os.end 5.This Hevised Adsinistrative Code which or Tax Appeals erred in declnring the Torfeiture of thg articles in question mgrely becmune it violates Central Hank circulars Los. 4 and 45 consider thia question is now a settlad matter Dy this Court ssnotioninr ths forfeitur "Petitionar laims thet the Court the

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DECISION CTA CASE NO.57

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of prohibited importation or of any the im- portation of which is effected contrary to iv, as may be gleaned frou the folloving portion of our decision authorizss the forfeiture of any merehandlse

on. and 5 ere issaad by the in the official Monetary Noard within tha ncope lease eertiricntes issued by the Central Dank or its auly authorized agent banks for the importation in vised Adminiatra tive Code. provide Tor the penalty of forfei in question were made without the certificates issuad by the Central in the preacribed form pursunnt in the class of I merchanaise of 1953. $ toms may, therefore, seize then and order their forfeiuure under the sforequoted true that neither of the Cireular nncensary import license issued by Cireular No. Bank or ita authorized agent bank prohibited importation or mer- chanalse tho importation x x nugatory the nim and purpose of ths Pank to telporarily suspend or change to licensing during an ex OE0 question. the Konetary of of theory of the a ase wbuld rander law when it authorizes the Central rastrict the oale of forelgn ex- change crisis in order to proteet tha interna tional reserve and to tare. feited. give the Monetary Board ond the Government tisa in which to R V its powers. the Commissioner of Customs re- Circular No. , they fali vith which is effected z x x contra- Customs may aaize and order for as alrandy to law that the Comminsioner But since the importations Appellaat faiied to present To sustain the appellant Tha Coamissioner of Cus provisions of tho le- 45 and the release Yoard purnuant to tated, Circulars Gaxette in June They were publimhed It is take

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DCIION CTA CASK MO. 1574 5

Cutom, L11947, Juno 30,1959 missioner of cio Tonk Tok v Commiawionar of opl .u Po Lay,50 0.Q. 10.800 constructive measurem to combat suoh erisis. June 30, 1959: CustosZ-10979 (Paseual y.Com See alo Vonan

I I

chsndise in muoation cannot be legally for W and h5 because theso circulars have al cular 133 Central Benk Circalar l33 has not exnotly ana 45 but rather it raenacted them when it Noa.nd 5 and Central Bank Ciroular 133 have a commnn purpone - which is to reqaire s tah of the volnme of imports that come Cencrel Bank to make a aurvoy and study or feitad under Central Bank Cireulara Won reedy been repealed by Cantral Dank Cir- rapealad Contral Benk Circulars Hot. y provided tharein that all exinting regula- are daened incorporated and ade integral bo aisputed that both Central lank cireulars the nrenentation of n ralease certlfieate fron tho Central Bank before any importation may ba mgde to the Philippines. thm purpose of these circulars is to keop into the Philippines in order to enable ths ths approprlata oaures thet mey bo adopte to ronedy ths iong drawn finanoial crisis in the country. tions not inconsistont with the circuiars parts thereor by Petitioner also contondg that he mer- Thia contention is ithout merit referenee. And it cannot avidently

Wnsaercal, finding ao error in the decision

appoaled from, the aamg is hereby afrirmed, with

costs ageinst netitioner.

SO ORDERD

quezon CityFebrury 28,1967

WE CoNCHR 78 Presiaing OMAN MUMALI BUual Judge

ituda Asrociate Jaige siao RALVAR Ue

HANON L AVANCERA Asapciate Judge V MM 5 8