CTA Case No. 396 (Decision)

IU P\ ULIC.. OP' 111L PHILlPPlNIQ ClhJHf UI l \X APPEALS MANILA UI - versus - e� T� � � 396 c c Tespon� ent. .. X � � � � � � � � -~- - - This 11 an ppeal fr the ecision n app al of the Co ission r o usto. affir 1ng the ee1- s1on of the ollector of Custo a f an11a nd deny� ing petitioner� 1 cla - for refun of t au of collec ed as w arfage feea on 1ts p rta� tlon of 1, etr1c tons of industrial 1 lt. The aterlal facta of the case are not dis- pute � It appears t at on u ust 18, 1956, ther arrJ.ved 1n anila on boar tn. 1~ "Chi hung� ro aoshuing, r sa, 1, etr1c tons of 1n ustr1al salt con11 ned to tit1 ner, UPtrior as quip- ent o. ( ere1nafter referred t as for short) and cov red by uat 1 entry o. 0171125 ( xh. y VJ.rtue of pec1al er it o. 21 (Exh. � � , p. 1 � ust s rec.), the cargo 1n est1on was dlschar ed and elivered sh1ps1 � � utaide the rea water but within the har r sea- ll, into our lighter& btlongtng to and operated y the Luzon te� vedoring Co., h1ch too charge of its delivery for final unloading at a private arf at Punta ta. na hich is o-ned by the Atlantic ulf & ac1f1c Co. of 203

6 - 2- � an1la (hen~eforth eferred to aa ATLA. 1~ GU � �4 - for brev ty). t ~id wh�rf th 'ar~ " unloaded fr the l.1 hter tru o rsed eans Q{ � rrlc.t o .. ci ... .d o;:er t y T :r~ � :..a per .a.nvo1.c t~o. 7 � p. 52, uat s rec.) � �r~ lC OU char ount of �782... err1c uae 1n sa1o un din~ r t n � t c r in quest1 n c uld oe u 1 a ' � 0 h p tit oner, thru ita eu&toms QX r , ~ llie urp- oration a5 re �utre to a l ct t pay on ugust 2 � 1 6. tvreon, llC ������� agalns 1 11 ct r o u tu 1 of anila at th rate per ~ric ~ n, r th total amount of r ~ffici 1 ceipt �� ~ (p. 11 , \.tUstoa. rec. ). Thia pa ~ant aa ure u o Custo un e �r l , 1 ...6. t1 i n r, cl 1.:! t at wrauant to ..eP'.JDlic ct o. 1:0,71 lt as ex ~t fr the pay. ant f h rfage u a n t ~thiprtent 1n question , f le a pr teat � th t � ureau of ~ust s . Aft�r due hearing thereo � t � cting �olleetor of usto 1 of anila ren er a c~&1un d nytng t pr test. Thereupon petit ner appealed this dec1� a1on to the o 1ss oner of ~uat aff the allle on Jun 21 , 19~7. on5e ently, on July 18, 19~7 petitioner f~led t 1nat nt appe 1.

D C.tSl .r�. E � 96 - 3- The only issue 1n the ea � at ar involve� a question of la ana m'y b postulated thus: - Is pe- ./ titioner. pursuant to the pr vis1 ns of epubl1c Act o. 1371 exempt fro~ th4 pa nt of harfa fee& on its portation of dustr~al salt discharge a d delivered sh1psid unto lighters and later un- a pr1vate h rf it out akino uae~ f th f c11 ties of government wharv s or piers? ' This issue here reVolv � around the ter �wharfage� . as e ployed in .epubl c Act o. 1~71 , in the law force at the t of the u ject porta- tion. lt 1 the content1on ef petit oner that the erchandiao in quest on hich was unloa ed 1thout aking use f the fecillti a o govern nt � arvea 11 not subject to he pa~ent of wharf ge dues. On the other han � respondent c nten s . that notwlth- - standing the fact that govern ent wharves have not en used 1n the unloading of the u J8Ct i porta- tion. th collection of harfage char ea ther on y the gove~ ent was leg ~ and proper. In supp rt of the latter e ntentton r s ondent argues; - first. that in t his jur1scl1ct1on the ur::>re � � Court. in th case of Philippine ugar entrals gency vs. Collector of usto ' � 51 Ph l . 131, has enlarged the rdinary concept of the ter rtwharfaga�J and ec n , that a strict construction of t e exe pting proviso foun ln ection 3, f epubl1c ct o. l 71 , e~cludes tl 1n&tant portation fro the pale of the exe ption 205

- C.T . A. CASE o. 396 - 4- rantecl therein.. � flnd res nde t �s vlew n t �ell taken. lt is true that the upr e Court, in the aforecited ease of fn111pp1ne ar entrals A ency va. ol- lector of Cust � case h ld that wh fage feea ay lega ly b eoll cted n products expor �a fro t � Ph111pp1nei , wh thor r not the f~il t.iea ot overn .. ent arvea have b en u ed. 1n the exPortation th reo � Ho ever , find thiG rut)1nc; not appllc .ble to the case at bar. The afore ntS.on decis on is aseel l�. on t prov1slona of vect1on ot t � Philippin Tariff ct of fore the a was a en <i y � ect1 n , of pu lie Act o. 1371. ccor - a1ze here that th1a case at res lveo n anc wlth the rovisionr.. ep llc c � 1 71 the l w enforc at t t of 1 port t1on erein was e. ccor 1ng to th xplana~ory ote t ouae ill o. 401~ . later enec � into epu l~c ct o. l 7 , t purpo � of th 1ll �1� to f x, ef1ne, cl as1fy, re~ulate ~ c s l1date all t. c rg s nd f s to ~ ~ coll cted in e h111pp1ne ports 1n ~ ping it present cond1t1ons. not nly locally u ol o f the entire hipping orld �� as oeen o aerved in t � trips abr ad by off ~1ala of th Ex cutlve Depar - nt of the over ent nd �l5o o~ th different von &- en. � (p. 2844. Vol . II, o. 69. Congresslon 1 e- cords, House of epresentatives.) As afor�-quoted. ~06

� 396 - !t - i eet tnt nt of th legisl tive o y 1n the �nee nt o epu 11~ Act o. 1371 to fix, ef1ne, classify, r� ulate an conscl dato ll th f��� char �� n to collect d 1n th hilippin ports 1n ��Pin wi the un1v rsal r ct � c� cepte y tb nti.r sh pp1n rld. In ot r �� y legislative t nt, h ter s rf ge ch g defined in ~�ct n l , of epu 11e ct o. 1 71 , �� �the unt asses d ain t th carg of a veasel f .rei n tr � e on t antity, w.lght r aaur rece1v d n I r dtach�r ed y such vettel� should 1v n eanlng no differen fr t � universally c pte c nnot t1on f t t r. " haria ". utborltiea n h r n ut1cs, le 1 and 1 y, 1 the llo 1n efi it1 na of wharf e, e ol- lowss ,. , "' r � for the privlle ( ebster'� U D1ct. 2nd d. p. ( pply1n the above� oted universally acce te ean1ng of the tera �w arfa � , it uld ��� th t by �wharfage char ��� �� define in acti n 1 of 1c .. 207

� 396 - 6 .. ~t o. 1371, � our legislators authorized only th levying nd collection f fee � duea r ct.ar9es for the usa o t e fa~ilit1ea of gover nt haxve& or piel'a. nd to stres thla leg1slat1ve intent ~n avo! t po&s1b111ty that the over- looked r l&a p11e , ur la kers exp~essly ex- empted fr the pa ent of harfa e dues �articles impo.r:ta or ought into the Philippines icb re unloaded o 1371). / � � o. I rusal of t de 1 at1 na 1n ~ h 11 of Con r��� relative to t t nt of t e a re- ent one ex pting provi o out th f ct th t ongress ally nt nd d to x ~Pt fr t pa ent of u-fa � fees ortat on of o s or rch n 1 lch o not a of t fac1l1t1a of gov rn- ent arvea. r oted hereunder er th p r� t.tnent portions th con ssio a1 procee 1n � 1n rel tl n to ntc Tig~ts nder th en will oe th w rfa fee n s 1p t land at th eo st and do not � u.. of port f c111tl s? � .Jpea er, t entl n the pr.:&.nc pal etektra ntle an fr o blon y hav the floor. f���� � Tible: fhe bill as n .pose� wh~f g� o � hat wlll the ah1p pay for w rfa fees lf .f.t loads off t co st and do & not avail itself of ort facilities? 20

v. 96 - 7- t ther ar &hip t at o nd nload rch d!se off t coast. at 111 at c th t tho ...,.....,.~__,n-.' fher 1& no uch prov1 ion use o unlo ff t coa t 1s al. 4h t 1 ally b ing d~ne. X -....&.....;~,.,..: t fe� h01ul.d t shi 1 illg on 1vat ....,......-.-ww.~-.: ly har:bor fee�. epresen- tr� afore� oted excerpt� r lion 1 reG ~ au �in tit n r's conten ion th t portatlons of rchan 1 � n t make us of t � fac111tle ove nt h ve~ or p1 r er 209 2(){

�Cr.lS.I E � 396 -8- n t au ject t t � pa nt of harfa e charges. Co 1ng to the eaee at ar , it 1 not 11� puted t at the 1nst nt portation dld n t in� volve the us of the fac lities of ~arves or piers. In fact , lt 1& a it d that the aae lae in ueatlon �as; deliv. r d a ip� ai e yond the reak at~r t lth a.ro ���-�tvaall 1n � 1 ter 1c t d t d ectly to a arf at nt � a. An � J 11�. lt appeerin t at titivn~r 1n affe~ ing the subje~t not a � use o t fae111t�ee of go rn nt arves o.r piers . t � �� sh uld not ubj ct to t. e p nt fa � e ar �� !n � pin tth t 1nt of x- e pt1 pr v d d for by e ct � 71. That t n a ch f und r t1 n 28 l of an Cust ct ,. � 1937) the point, o l t o e ect nly n July 1, 1957, lon af e t u j ec t :1m ~ a on � c on appeale ould �n-�.,.,.[: rdered to to ... t1t1on r uper r ~ ui nt C � � t of err eoualy ~ 11 ct d as w,ar fee5 n the latter'� portation o 1, 200 tr e on of 1n uatr al salt under C ato s ntry io. 210

seriea of 1956. -9- lthout pronounce nt as to costs. enil�� Ph l!pp s . June � 1958. 211