G.R. No. L-19440




Republic of the Philippines SUPREME COURT Manila EN BANC G.R. No. L-19440 July 31, 1962 CESAR CLIMACO, as Commissioner of Customs, TEOTIMO ROJA, as Collector of Customs of Manila, CENTRAL BANK OF THE PHILIPPINES, AGRICULTURAL CREDIT & COOPERATIVE FINANCING ADMINISTRATION, and its Administrator, VICENTE ARANETA, petitioners, vs. THE HON. JUDGE HIGINIO B. MACADAEG and AGRO-INDUSTRIAL PRODUCTS, INC., respondents. Nat. M. Balboa and F. E. Evangelista for petitioner Central Bank of the Philippines. Office of the Solicitor General for petitioners Cesar Climaco, et al. Claudio Teehankee for respondent Agro-Industrial Products, Inc. R E S O L U T I O N LABRADOR, J.: In a motion dated May 22, 1961 petitioners Commissioner of Customs and Collector of Customs pray this Court that the following questions be clarified: Whether the respondent Agro-Industrial Products, Inc. may be entitled to the release and delivery of the imported Virginia leaf tobacco subject of the proceedings upon payment of the tariff duties that were in effect until December 31, 1961, or such as were collectible starting on January 1, 1962. Whether the sun-dried or filler tobacco purchased by the Agro from the farmers or the Facomas should be exported by said respondent Agro-Industrial Products, Inc. Petitioners claim that the reference made in the lower court's order of duties payable on the shipment amounting to P19,617,853.00 was merely by way of comment; that the assessment of tariff duties is not within the jurisdiction of courts of first instance since the enactment of Republic Act No. 1125; that no tender of payment of such amount of P19,617,853.00 was ever made; that said amount represents 1961 duties on 1,718,240 kilos of imported leaf tobacco, but the balance of the shipment should be at the rates of tariff duties in 1962. The respondent denied all the above claims, contending that both the order of the court and Agro's own motions expressly stated that Agro tendered payment of taxes and charges due in the amount of approximately P19,617,853.00 but payment was rejected by the Collector of Customs; that the tender of the said amount was admitted by the customs officials; that in Agro's counterclaim it was prayed that the court declare that by the tender of the duties duly made, the importation may be discharged upon payment of the amount of approximately P19,617,853.00; that in their pleadings movant have admitted that the Agro had offered to file customs entries, etc. An examination of the record confirms the above claim of tender of import entries and of customs duties, taxes, etc. in the amount of P19,477,298.00 on the leaf tobacco importations arriving in Manila on different dates, from October 31, 1961 to December 30, 1961, thus: i) Under date of December 29, 1961 and prior to the expiration of the year 1961 and the coming into effectivity this year of an increase by 50% in the customs duties on all imported merchandise from the United States under the Laurel-Langley Agreement (from 50% to 75%) which increase is estimated in the amount of P9,808,926.50, herein defendant, through its importing entity under the Commodity Loan Agreement, the Fimco of the Philippines, Inc., filed with the Collector of Customs, Manila, as the public official having immediate supervision over said port, the corresponding entry forms duly accomplished, together with other documents for consumption covering its said importation of said tobacco which had all arrived in the year 1961 and tender of payment of the duties, taxes and other charges due thereon in the total amount of P19,477,298.00, itemized as follows: x x x x x x x x x (Copies of said tender of payment contained in two letters both dated December 29, 1961 are hereto attached and made integral parts hereof as Annexes "9" and "9-A".) j) The Acting Collector of Customs declined to accept the said entries and tender of payment, per his letter dated December 31, 1961 (copy of which is hereto attached and made an integral part hereof as Annex "10"). (Amended And Supplemental Answer of Agro-Industrial Products, Inc., Annex "Q" to petition.) k) Ordering the Commissioner of Customs and the Collector of Customs and all their subordinates and all persons acting under them to effect the immediate release of the said imported tobacco, upon payment of the duties, etc. payable thereon in the said amount of P19,617,853.00 (Prayer, supra) The filing of entry forms is evidenced by Annex 9 of the amended answer of Agro. The refusal thereof is evidenced by Annex 10 to said amended answer. In the answer of the petitioners herein to the cross-claim of the Agro, they expressly admitted the offer to file entry papers and payment of the duties and the refusal of the Collector to accept them, thus: 8. That they admit the allegations in paragraph 20(i) of the Amended and Supplemental Answer with cross-claim that the Agro-Industrial Products, Inc., offered to file certain customs entries for certain importations of Virginia leaf tobacco and likewise offered the tender of payment of the estimated duties, taxes and other charges due thereon; with the qualification that said offer was justifiably rejected by the Acting Collector of Customs of Manila for the reason that they were not accompanied by the necessary release certificates from the Central Bank and the list of authorized local manufacturers of cigarettes which are the beneficiaries of said importations; (Answer, Annex "T" to Petition.) The order of the judge below granting the injunction confirms the offer to present unpaid entries and tender of the duties, thus: 3. To compel the Commissioner of Customs and his Deputy, the Collector of Customs for the Port of Manila and all their subordinates, employees and all persons acting under them, upon presentation of such release certificate of the Central Bank to immediately effect the release and delivery of the said imported tobacco shipments to the herein defendants or its nominees, upon payment of the duties, etc. payable thereon as above stated. (Order, Annex "U" to Petition.) One very important thing to note is the fact that when the Agro presented its cross-claim, alleging the tender of payment of the 1961 customs duties, the petitioners did not allege or claim in reply that the customs duties so tendered were not the customs duties chargeable on the importation, but the customs duties imposable beginning January 1, 1962. When the Judge of the lower court entered its order granting the writ of preliminary injunction, neither was its attention called to the petitioners' claim that the Agro should pay the 1962 customs duties. Finally, when the Case came to this Court for review of the order granting the writ of preliminary injunction no mention was ever made of petitioners' present claim that the customs duties due are those chargeable or collectible in the year 1962, and not those in force in 1961. As a consequence, we were constrained to affirm the order of the lower court without modification, which means that we find that the duties collectible were the duties in force in 1961 and not those in 1962. For all these reasons the answer to the first question should be thus: those collectible in 1961. On the second point sought to be clarified, the pleadings do not contain any allegations about the supposed obligation of the Agro to export the sun-dried or filler tobacco purchased; neither does the presidential directive, under whose authority the importation was made, impose such exportation as a condition for the importation of Virginia leaf tobacco. The query is, therefore, answered in the negative. So ordered. Bengzon, C.J., Padilla, Bautista Angelo, Concepcion, Barrera, Paredes, Dizon, Regala and Makalintal, JJ., concur. The Lawphil Project - Arellano Law Foundation