CTA Case No. 860 (Decision)

.~ Republic of. the Philippines COURT OF TAX APPEALS Manila EXTPJS I VE ..:tiTERPTU S ES CORP- ORATION , Pe.t i t.i. one r, - versus - C. T. A. CASE NO. 860 ,.-- THE COMI.USSIOl\JEE OF CUS TOi lS, Respondent~ X- - - - - - - - - - - - X DEC I S I 0 N This is an appe a l from the decision of the res- pondent affirming that of the Collector of Customs of Manila ordering the forfeiture of nine (9) cases of rubber bal loons valued at� 1,945.80. The facts, as stipulated by t he parties, are as follows: ~1. That the merchandise (claimed by petitioner under Customs Entry No~ 9506 8- 19 Series of 1954 consisting of nine (9) cases rubber balloons and twelve (12 cases rubber nipples) , subject of forfei- ture in Seizure Identification No. 2397 were importe d into the Port of r�.-1anila on November 27, 1954; -2. That the said entry covering the s a id merchandise was accompanied by a Cen- tral Bank release certificate which speci- fies the shipment as 'rubber nipples ' only under Code N o~ 620915 EC; �3. That because the said release certificate s pecifies the merchandise as rubber nipples 9 the release of the twelve (12 ) . cases rubber nipple s was ordered by the Bureau of Customs while the nine (9) cases rubber balloons falling under Code No. 890949 NEC were seized on the ground that the s ame were imoorted in violation of Circular Nos* 44 a~d 45, in relation to Section 1363(f) of the Revised Administra- tive Code the s ame not being covered by the said r elease certificate;

DECISION - C.,T.A .. CASE NO,. 860 -2- ~4. That after the seizure and deten - tion of the said merchandise , the claimant thereof sotight their release under bon d , which was authorized by the Collector of Customs for the Port of Manila 1 upon the filing of a cash bond in the amount of Two Thousand Seven Hundred Sixty-Nine 1Pesos { 2 ,769. 00) , Philippine curr ency; �5. That the claimant of the seized commodities in this case contests the valiQ- ity of the forfeiture thereof , on the argument that Circulars Nos . 44 and 45 are null and void ; ~6 . That Seizure Identification No- 2397 was decided adversely against the importer with respect to the nine (9 ) cases rubber balloons which were ordered for - feited in a decision of May 31 , 1960 copy of which he and his surety received on June 6, 1960; x x x.~ (Partial Stipula - tion of Facts , Oct .. 18 , 1961... ) It is contended on behalf of petitioner that the forfeiture of said merchandise under Circulars Nos. 44 and 45 of the Central Bank , in relation to Section 1363(f) of the Administrative Code , is null and void on the ground that said circulars were not validly promulgated, and thatt assuming the validity of said circulars , they have been repealed by Circular No . 133 ~ As to the validity of Circulars Nos~ 44 and 45 , it is enough to state that the validity thereof has been sustained in several cases decided by the Supreme Court . (See Com. of Customs v .. Nepomuceno , G. R. No.. L- 11126 , March ' 3, 1962 and cases cited therein .. ) As to the effect of Circular No . 133 upon forfei - ture proceedings held for violation of Circulars Nos . 1 The sum of ~2,769.00 includes the appraised value of 12 cas es of rubber nipples .

DECISI0IY - C. T.. � CA. ~ 0 �. 860 -3 - 44 and 45 , in relation to Section 1363 (� of the Ad - ministrative Code , our decision in Andres c o Lazaro v . Com . of Customs , c . T � . � Nos ~ 833 and 834 , June 14 , 1963 , is in point. Moreover, even granting arguendo that Central . ank Circular No ~ 44 has been repealed by Circular No. 133 , the validity of the forfeiture under the old circular is not affe cted by its re- peal , the merchandise in question having een imported illegally while it was still in force. e expiration of Cen - tral Rank Circular No. 44 id not have the effect of legalizing an importation of goods whi ch was illegal at the time of importation (Golay uchel anrl Cie. v. Commissioner of Customs , G. R. Nos. L-10 994 & L-11 12 , Dec . 29, 1959; Leo- nora qoxas v. Sayoc , G. q . No . L- 6502 , Jovember 29 . 1956 ). IJ'.T VIETh] OF . TE 0 -(":DI JG , the e cis ion a pealed from is here y af ime ~ with costs against petition- er. SO O�ERED. Manila , October 28 , 1963. ROI\W! M. UI�.1ALI Associate Judge I corrcuR: ,