CTA Case No. 866 (Decision)

REPUBLIC OF :�THE ?HILIPPH' :n:s COURT Of TA,X AP.t>EALS Wj,i:~;.-HIA FE. MH~ S :{E , C. f.A. Petitioner, CASE NO . 866 -versus - TI:"OTEO Y. ASERON , in his capacity as the Acting Com- missioner of Customs, Respondent . X- - - - - ~ - - - - - - - X This is an appeal from the decision of the Acting Commissioner of Customs dated June 23, 1960, affirming an order of the Collector of Customs of hlani la decreeing the forfeiture of the various merchandise im~orted by the petitioner from Hong - kong on October 28 , 1954 , and Novembe r . 2, 1954 , for all eged violation of Central Bank Circulars Nos . 44 and 45 in relation to Section 1363 (f) of the Revised Administrative Code. This case has been submitted for decision on the following stipulation of facts, to wit : 11 1. That the peti t.ioner is a natural person, of legal age , and a resident of the City of lc~anila , while the respondent vvas the Acting Commissioner of Customs , with offic es located at the Bureau of Customs , Manila; "2. That on October 28 , 1954 , petitioner imoorted from Hongkong into the Ph ilipp ines two (2) shipments of various merchandise un- der ~egistry No . 1371 which were declared under Entry Nos . 85328 and 85327 , respect - ive~y , both s:ries .of 1954 and covered by t~e1r.res~ect1ve~B1lls of Lading and Commer- Clal 1nvo1ces . Customs duties and sales "taxes I '

GECISI0: 1 - C. I . A. CASE NO . 866 - 2- due th er eon ~ere paid before these shipMents were rel eased under bond ; 11 3 . That on r�:ovenber 2 , 1034 , peti - t ioner likewis e import ed fro ~ Hongkong into the r' hili pt-;ines one sr1ipmcnt of variou s ;r2 rcharC.ise under ll.e~istry lb . 13�5 whic;, was de clared under Entry no . 3 7016 ~ Series of 1954 , duly covered by Bill of Ladi:;; arld commercia 1 invoice . Customs dut i es an~ Ga l es taxes due thereon were paid befo re thi s shipreent was releas ed under bond ; 11 4 . That these importations were not covered by import licenses , consu lar invoices , and elease Certificates from the Central Bank an d were conseq uen t~y seized by the Col - lector of Customs of th e iJort of Manila , un - der Seizure I den t ifi cation No s . 2112 , 2121 and 2134 , respectively, for alleged violation of Cent ral Bank Circulars Nos . 44 and 45 i n � relation to Section 1363(f) of the evised d~inistrative Code ; " 5. Th at duri ng tl1e pendency of the above - mentioned se izure pro ceedi ngs the im- portatio ns i n question were , ho~e v er , r e- leased and delivered to the petitioner under surety bond s Nos . 151 , 154 and 153 , all se - r:es of 1954 , in the res ective sums of '�2 , 890 . 69 , 1-2 , 411.00 and F-4 , 069 . 00 or a total of ~9 , 370 . 69 posted by the Pioneer Insur ance and Surety Corporation ; "6 . That on June 23 , 1960 , respondent rendered judgment in the above -mentioned Seizure Identification No s . 2112 , 21 21 and 2134 , the dispositive po rtion of whic h reads as follows : ' ''JJ,J~-.'.n. cr~.u,"""",E1 by a u�,c, nor�l -'cy of Se ction 1330 of ti.e evised Adminis - trative Code in relation to Section 37Cf2. of the Tariff and Cl1 s toms Cod e of the 2hilippines , t he ioneer In - surance & Surety Corpo ration Bo nd Nos . 151 , 154 andl l 58 , all series of 1954 , which have been filed for the rele~s e of the sub j e ct me rchan -

DECISION - C.I . A. CASE .'-JO . 866 - 3- dise respectively cover ed by ~~nila 3eizure identification Nos . 2112 , 2121 and 2134 , are hereby conf is - cat ed ; and the pri ncipa l F. Sa re Enterprises , as well as the afore- said surety are hereby ordered to pay , j oi t( t1y and severally , in CASH, the respective amou nts of T'I'JO THOU- SAl'W EIGHT HUnDRED NI NETY PESuS and SIXTY NH:E CB!TAVOS (F2 , 890. 69) , T.Ju THOUSAl'!D FOUR HUnDRED ELEVGN ~E S)S (i-2 , 411. 00) , and FOU THUUSAND SIXTY - NI NE PESOS (P4 , 069 . 00) or a total of NH:E THOUSAi-JD THREE HUIJDRED SEVENTY f'E3US A~iD SIXTY-l':INE CENTA - VOS (?9 , 470. 69) , Philippine Currency to th e Bureau of Customs within thirty (30) days from receipt of a copy of this decision in accordanceV with t he terms of the said bonds . t The only issue iaised i s whether or not the forfeiture of the merchandise i n question is legal. The same issue has been al ready de cided by the Supreme Court in Pascual vs . Commi ssioner of Customs , G. R. No . L- 10979 , June 30 , 1959 ; Com- missioner 6f Customs vs . Leuteri o, G. R. t:o . L- 9142 , October 17 , 1959 ; See also Mendo za vs . Aseron , CIA Case No . 852 June 17 , 1963 ; and Es tanislao Leuterio vs . Commissioner of Customs CIA Case No . 977 , J uly 2 , 1963 , wherein it was consistently held tha t importations effected in v io l ation of Central Bank Circulars Nos . 44 and 45 i n relati on to Section 1363 (f) of the Revised Administra tive Cod e (now Se ct ion . 2530LI1 of the Tariffs and Customs Code) , are sub- ject to forfeiture.

DECISION - C.T.A. CASE NO. 866 - lf. - In the cases of Andres E. Lazaro vs. Com- missioner of Customs, CTA Cases Nos. 833 and 83lf. dated June 14, 1963, this Court held: npetitioner questions the validity of the seizure and forfeiture proceed- ings on the premise that Central Bank Circulars Nos. 44 and 4~ have been re- pealed by Central Bank Circular No. 133. uThere is no inconsistency between Circulars Nos. 44 and 133 in so far as the presentation of a release certifi- cate of the Central Bank is concerned. Section 14 of Central Bank Circular No. 44 provides as follows: 1 llf-. No item of import sq.al l be released by the Bureau of ~us toms without the presentation of a release certificate issued by the Ce,ntral Bank in a form prescribed by the Monetary Board.' nThis Se~tion has a counterpart in Central Bank Circular No. 133, paragraph 6 of which reads: '6. Imports shall be released from the port of entry only upon presentation of a release certifi- cate issued by the Central Bank based on letter of credit opened. (See 58 O.G. No. 5 p. 882.) 1 Moreover, Circular No. 133 further provides: 18. All existing circulars, rules regulations, and conditions governing transactions in foreign exchange not in- consistent with the provision of this 6ircular, are deemed incorporated here- to and made integral parts hereof by reference. (Paragr~ph 8.)' "Obviously, Central Bank Circular No. 133, far from ,repealing the provision of Central Bank Circular No. 44 relative to the requirement of a release certificate, has adopted the same requirement.

DECISION - C. I . A. CASE NO . 866 5- "Since Central Bank Circular l':o . 44 has not been repealed by Central oank Cir- cular No . 133 with respect t o the requirement of a release certificate of the Ce ntral Jank , it follmv's that tl1e se:i.zure and for - feitu~re of the ."'ierchandise in ()Uest:i.on pursuant to the forner c~rcular ,~ in Iela - tion to Section 1363( �) of tne Revised Administrative Code , are in order . 11 l"oreover , even granting a:caue rmdo that Central J ank :ircular No . 44 has been repealed by Circular No . 133 , the validity of the forfeiture � under �tJ-te oJ.d circular is not affected by its r~peal , the merchandise in question having been � imported illegally whilo i t was still in force . The expi r ation of Central Bank Circular r\:o . 44 did not nave the effe-ct of legalizing an importation of goods which vvas illegal at the time of impor- tation (Gola y Buchel and Cie 9 vs . Com- missioner of Cus torLs , G. R. :.;o . L- 10994 , 11012 , December 29 , 1959 ; Leonora Ro xas v s . Sayoc , G. R. IJo . L- 6502 , Iioven:ber 29 , 1Q56 )." dHEaEFORE , finding no error in the decision appealed from , the same is hereby affirmed , witn costs against the petitioner. l~nila , October 7 , 1963 . r,;;tUAlJO NAlliE Presid i ng Judg e I CVTCLJR : Associate ,