CTA Case No. 3497 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY LIBERTY AVIATION CORPORATION , Peti tionf?r-�, C.T.A. CASE NO. 3497 COMMISSIONER OF CUSTOMS , ~/, 5 r.;:pspon d(::>rl t. -� -- -�- -~ -- -- >~ DEC I S I 0 N This i s a bout the li abili t y of petitioner to a impo <::,f.?. d o n p ay rn r:> n t of impol'" t. Ji a bil i t ies on a n i mporta tion. As i t a pp ears~ a n importation of One (1) u n i t o f Beechcraft Dueh~ ss '7A Model with Serial No. ME 13 4 arrived at t he Manila Inte rn ational Airport (1'"11(.) �fot�� s; hort.) on l"l c"'l r��c h .1. ~::i , .1. 9"/�9, c::on s~-iqn e cl to petitioner L i b erty Avia t ion Co r poration by Be ech Aircraft Corporation o f Wi c hit a, Ka n s a s , U .S .A.; th f.? ;,:~.ir�� c: ,,- .,~. �ft. w;,:~. ~; .i.mpor� t(�?c:l �f olr ''demon r:,, t.r�,;,,tinn f l i q ht on l y'' a nd W c"":\S t��p J. pasP d f r��om Custo ms:- ' c u sto d y o n a cond .i. t :i.o n;::~J.l y t pi...li'"S U 1.1"1 to p rov i s ions of Secti6n 105(i) of t he Ta r i ff and

DFr:: I !3 I Uf\.! CTA CASE NU. 3497 Cu s tom s Code, as a me nded, upon posting of Ordinary in the tot.<:\l a mount of F'2.1.5,6.1.4.00 issued by the F'hi l ipp.inr2 Amr:~ r�� i c: an Co. o f the cor.. r�e~;pond in<:J dutie s, and other t.�J.i thin si:-: ( 6) months date of <:l cr:::E~ptancE' n �f the import entr-y .'' !=3 ul::l sF:>quf?n t 1 y, p etit ir.mt? r- opted to ,:;~. cqui re �for itse lf the conditionally entered aircraft by paying t. h r:> ;:>. mount. F'.l44,84 2.00 repr�esen t. ing the a sce rtained duties, taxes and other charges as evide nc:f?d by an () �f fi c:i.::t.l Receipt ,?.ncl '"' '' Stateme nt o �f F'.?.ymPnt' ' .i.sf::; uE~d .by the Bur. eau o�f Cu sto mf::;. The relea se of the aircraft was effected on August 28v 1981 under a covering Cu~toms Re l ease Certificate. As consequence, petitioner sought the di s charge of the Re E x port Bond earlier posted but Co 11 ector�� of Customs District III (MIA) instead, demanded the payment of the face value of the bond in the amount of F'2J..5,6.1. 2 .00 for the taJ.J.un.7.�' to the a.i.rcr.:dt vJ.it hin thf? si:-:�-month per� iod e:-:pir�ing on September

DE:C I ElI Clt' l - � CTA CASE NO . 3 49 7 l5l 1979. rE-~~;ponclen t Co mrn.i. c;::.s.i.o n t.:' r of Customs in hi s 1 et.ter d ated June 15l 1982 . H e n ce ~is appeal . In the c ou ~~ ~:; e o"f thE? hf:~i:1r� .i.nq r�� espcmden t d ropped the demand "for the "face v alue o"f the bond t. ,"k .i.ng valid of petitione r 's the corresponding dutie s~ t <:l :-:es and ot.h t:>r� c h ,::~r gE-.>s du e on t.hf:? ~s ub..i r.~ct .impor�� tat.i.on but in s; :i.c.; t.Pd on the l i r.:lbi l.i ty pe:-~t:i. tioner ' for� sur-c har-ge i n the a moun t o-t' P.1 ~>~ ~j7 1r.95 comput.(?d at f:..,f.. pP1r� r.:1n num b c:I Se cl on the total amcJunt n"f c1ut:.ie s a nd taxes -for delaye d payment pursuant to the provi s ions of P ar . 3~ . re~ Impo s ition of s ur c harge "for�� the p;~yrnen t of du tie~::; <~ nd t:a :-:e~; ~ o �f Customs Admini s tr a ti ve Or d er No . 8-80. T ,::~ k i.nq e :�: c E-? p t .ion P�~t.i t:.ion(�? r- dVf?.I'" S Custo ms Admini s trative Or der l ac k s t he requisite publ.i. c:;~ t.i.nn and unen �forceab 1 e ; in 2.!.:::.9l-:l!2f.l.cJ. o~ th P sa id Or�dpr i s inapplicable as n o bond was breached; the payment of the dut.i.es l ta xes and o t. h E-' r 1 a~"l �fu 1 could h C.:IVf.�~ included th e �'

DFC I f:3 I ON -- CTA CASE NO. 3 497 -� LJ. -- s urcharges then due and paya ble on the subject im p o r- t ,"\ticm; and~ thE� claimed s urcharg e ha s Posed i s the s implE~ qu es tion of the l P gality of a surc h arge i mpos ed as a pen a lty for impor- t l :ir.,\bi l i ties on impor� ted i:'\it~cr� aft. thu �s s hown the con cl i t .i. CHI'"' l l y t. a :�: -- f r�ee e:�: por- t. P d nor� the corrpsponc:ling duties~ taxPs and other charges paid upon expiry of the r e-Px port bond on SPptemher 15 ~ I 1. 979 .in br- p .:~ch of the condition ther-eof. P ay me nt of c:or� r<�:?~; pond .i nq .i.mpor� t liabilities was e �ff pc::te d only orY April 15~ .198.1. or� a lapsf.? of one (l) year an d sevPn ( 7 ) months from due date. 1 j E.'S t .h P n ..t b. un v i:'\t"' Yinq asset'.. tion that the p ay ment on April 15~ 1981 (Official Recei pt No. 44 - 2836) was long ove rdue thus incurring the s urc harge of Pl3,75 9 .99 computed at 6% per annum b ase d on the to ta l amount of dutiPs and taxes~ impo se d under Customs Administrativ e OrdPr No. 8 - 80~ implementing thP pr �o v:i.s.io n s o�f th e Cu.st:.oms la~.-<J i~:; mor�e than a sta t e me nt of the ob v iou s . 427

DECI f:3 I 0 1\1 CTA CASE NO. 3 49 7 -- 5 -- l."le s u s t a in . F' P t .i t .ionE�' r ' s bre ac h of the term s o�f the Re - Bond po s ted on the .imported ~J. ircr,:~ �ft " c: u nd .i. t ion ed for� e :-: porta t ion the reo 1' or� pa ymE>n t. of th e co r� rf~ <:.:. pondinq duties~ ta:�:es .:~nd othPr char-�ges within s, .i:-: (6) months frr.Jm elatE~ o �f acceptance of import i.n "compliance with the formaliti es prescribed in~ or with~ the regulation s \.'Jhi. c h sh a l l be pr� omulqat. e d b y the Commi ~; ~; i.oner of Custom s with th~ approval of the Minister (now S E~c: r(�:>. t .ar�y ) of F inancf?. '' (Section 105 of the T a r i f f and Cu <:; t.om s Cod e ) " s h c.:\l J. be s; ubject. t.o �fcwfeitlu�e r.:\ nd �f r- a u d u l e n t - �.:. t h E> impor� tati.on shall constitute a pr�a c t.i c::e:� a(J a in s t c:us tom s r�� f.;)v e nue pun .i s hab 1 e under E3ect�..ion Thir� ty �-<;:; .i.:-: hundr��ed and t\.'JO !, c"'\S .:~mended of th.i. s CcHJE: ." (Id.). We s hall be less than r es pecting the full and c ompelling import and force of the customs law s hould th e va l.i.clity o �f the as~; ailec:l implementinq r e qul a tory thrust .issued pursuant thereof remains contingent upon publication.

, DE::C I ~:; I DN ��- CTA CASE NO . 3 4 97 -�- 6 -- l'-lH F I:-;:EFDF:E ~ petition i ~; di s mi ss ed at pe tition e r 's c os{s. DLH? :Z.CH"l C.i. t.y ~ Metrri M a nila~ June 15~ l9!3B. Associate Judge WE CONCUR: AMANTE Presiding Judge (On offic .. l l l e a ve) CONSTANTE C. ROAQUIN Associate Judge CERT I F I C AT I 0 N I certify that this d e cision was r eached after d u e con su ltation among t he members of the Court of Tax Appeals i n accordance with Section 1 3 ~ Article VIII of the Con stitution . AMANTE ILLER Presiding Judge Court of Tax Appeals _ ., 'A:i .0._ .4_,,