CTA Case No. 2757 (Decision)

QU~l,~� CITY �� n r. - - v r:;.us c. � � .1' 757 .... I 'I -J , \.... - - n ent. sl'(q I~ - X - - - -: \ 1 ~) p p l t }en y petitic nrr ~ti nal ;entcl u ly, nc �� fro ~ te: ci �i n of r ��p en ( nt Cot is i c. ; ~r f un tr� : s d d . tc - . u Col- 1 cto r of c�~t ms of il� in r c;.t: t o ~ .. .~ 34 2 , c 6 4 , . fF 1 I r o t t.., g - in .,., ila . t ( � 11 ur if r. 1<> ti i ... ner � t c 11 cti n o iti nd t t ri cl icuti ns c v ricus ~ h i - . f � 32 c n h S..;h d- in fr ctc ry t e ri� ls ( ultiv } )'"' ( j r or. I it'"'ti. n c t ut cf uturin no ri.., vinl ( ent 1 lo...,s) nd 12 bottl <:! F..W ur 0! r ..~nd i uid; nd th - l l 9 a errcn-o u v . lu t e n of: Jel .<..r n I uc :i. t o � 1_ :'18

D'C CT '( � 27 57 - 2- It a 1 ears th t titian r i a corp _r ion or~ nizeo no r e L , t r d \-litl he c;r ties and xch ng iness .d po t l d- dr ~- at - 201 c rn .... n 1uildin_ .. 85 Ron �uillo .:.>t �� uia o . M nil �. e itic .I eff etc t t- ti n n v ri us t s f n fr 11 >{jfl( it . s . uno r th foll ing ntri r-, t �it: .. gn sium hos pn~te rn fractory at ri 1.::. ( t) under lmt"ort. �ntry os. 1) 61746 342) � 2) 034794 968 9685) os . 9684 96b5) 3) 034946 rt o . 9049) t c . 9509) 4) 73 62-73 5} 99 93 - 74 B. Nylon lmitati n C t:_)ut of uturing E: D bri Removing () ntal lcso) und r Im~ort �ntry tos . 1) 73462-73 90.1 <)} 2) 304-75 � 9696) ) � 99 93 9509) c . New qu_r otd r & Licuio und r Import n ry os � . 1) 73 62-73 ( r tent o . 90 ~> 2) 99893-74 ( rotG t o. 95Q9) J . J ltr te under Import ntry �. o . 99803(74) ( rote.-,t o . ~50 ) � Lucit.. n lS9 una r lrnp rt �ntry o � 99 93 (74} (t r t t c . 95 ~} -1 . citon l..-9 under lm.ort ntry . 0 . 99~S.3(74) { rot t � o . 950 ) titioner p id, n� fil d th ab v -. nti n d rot ts g in..,t tt nt aw c 11 ctio n o 149

� 2757 - 3- dditio 1 c ~t .s duti nd t x on th ab,;ve imp rt ti ns , b s~d on 11 g rr eous t riff ti n, t tit: v 7 . 074 . 00 5, 767 . 00 8 . 596 . 00 2. 1�:1 . 00 5, 552 . 00 600 . 00 f t r du aring . th Collector of Cu t_ms \ o , an la 1 ~ix ~ par t deci ions . is1 iss d th s ret ..,t c S(~s for 1 c k o' .� it . ccc.:r ing - ly, p titi ner l('d th s i ecisionL to res ,n nt . Com i ... l n r f Cu<tc IS , �ho on tern r 17 . 1 7-...> , rend r a c_ns li tc d cisio ' t.e i'"tO rt of ic. r ds ollows: lee �or tariff .. tion at 150

DECl...,I C A 'E NO . 27 57 - 4- On October 16 , 19 7 5 , peti tion r filed its p titian f r r evi ew wi t h thi~ Co urt praying tha t i ts appeal b g i ven due course . ~etitioner d i d not ' p r esent a brcakdo n of the r efundab e amount c la i med, in the total oum of 29, 712 . 00 , c orrespon ing to each item under th qu stioned t ariff classification and valu - tion . Inasmuch as the parties are not in dispute as to the c ompu t a t ion of the customs duti~s nd tax s p i d by , or amount r efundable to, petitioner as the c se may be, for the pur pose of this action , we will therefo r e ac c ept the sum of 29 , 7 12 . 00 a s c laimed by p t itioner and not controvert d by r s - pendent, t o be the ba""is i n determining th r efun- dable amo nt , tak i ng i nto account the alleged ex- c 1ss paym nt mad for eac h articl , i n the event this Court decides th c se in favor of p titicner and finds the latter entitled to the refund of the amount clai m d by i t , totally or p rtially . The i ssu.s t be resolv dare , t wit; 1) 'heth r or not the t riff classiiications of the importation of Magn sium fhasphate �mbedding efrac tor y at rials (Multivest) under Tariff Heading 38 . 19- B a t 50~ ad valor m, o f ylon Imita- tion Cat gut of suturi ng and Debris Remcving (Den- 151

DECI SI ' C CASE O. 2757 - 5- tal Floss) under riff Heading 51 . 02 t 30% ad valorem and of tew Op ~uer Powder or Liquid un- der Tariff Heading 39.01 - B at 50~ d valorem ar correct; 2 ) The correct hortEc<nsum tion value of the imported Jeltrate and Lucitone, as prescribed in ection 201 of the Tariff and Cuotoms Code, as am n ed by Presidential Deere No. 34 , for purposes of basis in the assessment and c llcction o� cus- toms duties and taxes due thereon; and 3) ~lhether or not petitioner is entitled to the refund , totally or partially, of the addi~ional cus toms duties and taxes it paid on the various importations in question . � Ma nesium efractor y l-"etition r maintains that Hultivest, being a mixture of heat insulating mineral mat.rials by precise design and function , should be classified under T ri~f H ading 68 ~ 07 at 20~ ad v 1 rem , to wit: 68 . 07 Slag wool , rock -<vJ ol and similar mineral wools ; exfo- li ted vermiculite, expand d clays, foam d slag and oi i ar expanded mineral materials ; 152

D Cl..JICt - CTA C . 1E NO. 2757 - 6- mixtures and articles of h at- insulating, sound-insuLating , or sounc- absorbing mineral ma- terials, other than th se fal- lin in h ading No . 68 . 12 or 68 . 13 , or in Chapter 69 � � ad val . 20% hile r espo dent claims that Multivest, hav ing b en i port d in r tail cont ' iners numbering 2, 832 5- lb . cans and clearly consisting of refrac- tory materials for use in refractory molds and for st blishing beds of dentistry, properly falls un- d r Tariff raragraph 38.19-B at 50~ ad valorem , wrich reads as foJ lows: 38 . 19 Chemical rcducts and reparat'ons of the cherr.ical or allied indus- tries (including tho~e consisting of mixtures of n tural products) , not elsewh re sptcified or inclu- ded; resi ual products of the c h mical or allied industries, not elseJhere specified or included: � Prepared catalysts, hydraulic brake fluids and anti- oxidant retarders for processing or com~ouncing rubb r proaucts � � � � � � � � � � � � ad val . 20% B. Other �� � � � � � � � ad val . 50% Th records show that ultivcst is a reddish powder, consisting of 90 c quartz and cristobalite, and 10~ binders , m g ncsium oxi d e and aci phos - phate , which if mixed in precise propertion with ater, turns into a plastic mass whic h hardens in a few minutes . It c ntains no gypsum nor ny derivativ s . Therefcr it c o n~ a ins no lasters.

DE'Cl ~ C J. C -...-E N � 27 57 - 7- Th princip 1 use of th rtic e in que ion is to make igh- he t r sist.ing nd insu1 tln<J mold,;;o into h1ch 1t n chrom cob lt 1 t 1 m y c t. ub idi ry us s r for kin crucib � m onry f r furnaceo . nd other pur o s wh r he t r - sisting and ir �ul~tlng m t r1 1 is r l uired . (pp . 7-108 , cr~ r ccrds) . t s IS cl r . th r for- , t t M ltiv t i a .ixtur C�f iner 1 m t rials th t r by them- s lv s h t-insul tin � It i heat-in ul t ng min r 1 mat ri 1 .. not by r c �ci nt , b t by design. and its precis functi n is tc stor h t. Only he t-inoul tin materi~l c n p rfor this functi .n . inc i i the g n r 1 s t' hich rticles r Q nerally d pted ano �or which th y r gener lly u.., �� ich r t r mines their ct arac- ter ithin h ning o th riff laws (L Co �l fli Gener 1 b �0 e Fili in o vs. Uni d tat~s , 8 i 1 � 4 3 6) , tn r to b no d ll t tllat lUlLiV �t shc.uld f 11 n r T ri �f He din � 07 t 20, au va r , � hile t e pertin nt .x 1 n t ry ot s to the Bru~� ls o. ncl ture u on �I ich th t riff 1 s d . stat� , un r Ta r~ff H ing 68 . 07 , th t " ubj ct to he tol r nces cone rning the as estes cont nt (re rre tc b 1 >. thio h.adiny lsc 154

O�Cl I �' - CT!; A o:.~ t � 2757 - 8- COV rs mineral , in ulk , x Y. xu (p . 1068, T j m, ont no , Com- . nt ri�C'! en h vis d l r1 � n ~u�to s Cod of t hilippin s , ol . l , 1973 oition} , it iv U....S hat " uch mixtur t.ould b, cY. d in DU �" , as r s� ondent '>vould 1ant to str os (p. 234 , r.ccr G) , that f for~s th t t cf ul- tiv st b in cov r d und r T riff L a ing 6 . 07 . or ng L ture of min r . m t / ri ls in ; ul � II lt c n n t e s i th- t th t. rrr.in ti ve t ... t is lnc ing m .r ly b.c use the ,ultivest in / qu '"-'tl n a e i ort.o in r . t i l c~nt iners numb rin 2 , 832 -lb . cans . It is th. ht t-insu- rily th p c ing in bulk, t ich riff �- ding 6 . 07 refer � he w rds "mi.Ytures and rticles of h.at-insul ting in~ 1 m t ri 1 " m. n h t th mi tur s r rt~cle of in r 1 at ri lc r by th ms .lv s heat-instJl tin<: , nd w ile th m "" 155

D Cl I N - CT c, ~E t~ 2757 - 9- or volume of th u L� ur may ffcr illu. ration /. of th rticle, the riff ding hould not be limit d nd it ~ur ~se thw rted by rul cf cons- tructicn w ich w u d pl c �t in bu k." th final cri- terion of wh ther or not such m~ t. r s or artlC les fall un t Tariff leading 68 . 07 . nd it c n net b s id that Multiv ot , s uming . / th t it� c -nsists of refr c cry m t ri ls for use in r,..fractcry molds n for st bltshin be s of 'den iotry, pr p rly f�lls uncer ariff araqre h 3 . 1 - at SO, ad valorem, s r~svon ent maint. ins , b cause , accordln< t th Jertir .nt Brus~els xpla- natory .otes, r fractory m.t�rials to b classifi d un r the oaid .. ing 38 . 19- sh uld be refractory cerr nts or Mort rs b. s c en ch~. r>ott n di �s e<:rth tc. jam, ont n , Comment~tries on th R vi ed ariff and Cu~tcms Cod of th �hili 1 ines, Vol . 1 , 1970 C:di tion.) ,J ch r fractory cer.e nts o r �rnort rs ar t ere fer based on clay 1rc.:- ucts (chaz~ott and in s earths} c ar- ct ri .ed by har- de in only rtcn ired , unli e .ultiv st , wh ich is b on si ica lus magnesium oxide ana cid hosph t as binders . ctaract rized by rc nine; ' only whe n mix ( P � 205-20 1 c rec rd . ) Even mor , the rt.in nt r\1... 1s Ex- 156

Dt::C ~ ..� 1 . c c.. . '.;. 27t 7 - lO - p l natory 'o cl arly st te th t .ixture of h t-insul tin mat ri 1 lling nd r He ding . 01 . and h t - insul ting lXture ba d on asb ~to or n be o~ nd .m gn ium carbon t o tea in 6c . l3 , re not inclu din' riff aragr x.;h 38 . 9 . ( � 704, 'I jd':'l , ' bi,. . ) There s ems to b no ouot . tl'l r �fore, tb t , I ul iv t is cover d under 1 riff B din 60 . 07 t 20 ' d v l~r . � a. I ti tion r su mi ts th t D �.tal Ploss, by preci de i n nd func 1 n . conror ~ in ev ry r .. ect t t d initicn "in.1:ru. nt nd . Brus els tory app i nc .s" rovi d in ... ot ... , n l r for it in the m ning sco of T rif aracra h 90 . 17 at 10, d valor , guot.d h r.un r s f . lo g; 90 . 17 1e ic 1 , d r.t l . surgic 1 an veterinary instrur nt n I;li nc~s (ir.!C.I.U inI _l ctro- rn die 1 a� �~r tus n phthal ic ins :ru. ent } � � � � � � � � � d v 1 . 10% imituticn c�tgut (Dent 1 Flos~) h ' u . lien � and n t th t f n nstrw.~ nt nd 157

0 Cl.:i i CT, CA �~ o . 2757 1- therefore it 1 classiii dun r Tariff h �ading 51 . 02 t 30 ' valor . w ic covers. eng cth rs , imit t-1, n c tgut of m. - mad fib r m t i ls . riff . H ing 51 . 02 re ds: 51 . 02 ronofil . stric ( rtifici 1 tr no th lik ) nd d v l . 30 ~ imit tion c tgut, of 1 n- m d fi re m t ri 1 � � � i'his rticl is thr a -1ik m t ri 1 of sc- veral Xt - fin ny1 n trends . a rar tly n t � t idt d long it~ xi � tc f o .. hr u - li e It is "s)001f.:d" tc 1 nc th of 15 y r.~ . such th t th beginning ~ t h 0 it s�r n cc~ul d b pu1le out cf th c nt r o ginar s ol. rh rticle is enc ~ed in cy1in- dric� 1 . 1 .ss contc iner vith m.t 1 c ver, the c n ter of ich h s h ll thr u h ~ ich th t read c ues t' r~u � Outsil nd n~ r th f ri~h ry , n poin o th _ ccv r is ind nt d out rd to s rve cut er. Th article is co. o nly no�m s "d nt:.al flos � It (p . 110 , c r _�cc r ls . ) Jent 1 Floss i!.> used to r .ove for ign .att r fr m p ro in ~ur � ac s of th te th . l t work into th cr vice bct'.'lf� nri he b ttl n 1 gin_ivc: to rerr-ov or 1 debris ~nd interrup r.. l� ue f rmatirn . Oertal Floss mY e us a lso to det ct overch n ing fil- � 158

� �Cl..- ! C ..; C' ' C �E ' � 2 7 57 - 12' - l ing nd in c s inc! i nt to th ..ec y . n 0 c us of i s "wax a" q uality it I y ud a a vehic1 for cl ~ nin an p li ing co . o n s . ev n f ouride , t ... r ach i nt r r xirna1 and l i tly b~y nd th. gi giv 1 m :c;; n ... . Its s c � n ry net ion, c us cf i r 1a~ivc ~tr ngth and t c nv nie ce o its pr s nc in deit 1 o .ice, is for .uturin~ a i mitaticn c tgut . Th lit ratur r .c rt. e n s .ri 1izatic,n for us �s "'Ut r � (p � 110- 111 . c r cc-r c. � I' A carr ctly �-oin d out by r sron cnt, n in�-tr~.~. nt i<> tcol , t nsil or im lernent. .,.uch it i . c for th - 1 )C i r u d ovc:r n ov r se ,.;i t.'lOU "b in ;; CvO umed or b c~o n ing .I ) bj ct imitati n c t- gu f~ con urn d r aft; r ch use nd , th refor h h n tur. 0 II u p lies" nd n t ' th t o . n in~trur.,er t . ln th r cr .... "' , i t 1 n t an in. rum nt , not v>n n1 nt , � 1ich c n b_ cl sifi c un e Tnriff odin1 90 . 17 s cluim d by petition r . - 51 . 02 , und :c wh'ch r~ u d r 1.urif � l in (Ou nt cl ssifi d th 5 Jl j ct n lon irni t t' on c t<]Ut cr ~nt~ ~lo s . i171it ti r c ro y rn of man-rn de fi cr:'"' c v�r d ther in c nsl t.s 159

c ..~ 1 0 1- - .. CT C r.. 1 . � . 2757 - 13 - of highly i t y rt it � h vy r re ~ ing to incr s 1 s s r n..:tt. nd r n r it wat rproof nd 1 1 s t r.s uc t.. 1 t i s t.i... s dy d . - Imitat ion c atg t r 1 ain in thi h. ain;, .:.rr s - p_ctiv of i cross- sectirn 1 dim n 1 � ( x- plan tory ot s to th Bruus ls om ncl turc� quot d in eja. .. , Comm nt ri en the n_vi"' d ri ff nd Cust ms Cod of t. h11ippin , Vol . II , 1973 di .i n, � 01 . ) All r ct r g n r lly i~ long lengths , ut r rn i .cl-.� ifird h~r v n i c t into h rt 1 net s n t r or n t for r � il s 1 � h y r us u ccor in to t!. ir di er r.t c r c ter stfc in th cture o , on ot .rs , bru~ .eQ a s r ic ur � ( .x- 1 na .ory ot� s to h ru ~ 1s 'o ncl t r uot d in3eja , bic . ) T e 0 ntal ~lo s in est ion i" ort d in 300 100-gr m j rs but no c rtifi d to st ril � ccor jn to not 3( ) to Ch t r 30 , T ri f nd Cu tom Co e , ny on i itatio catgut fur t u ring cov red : T if' h d1 a 3 . o � Thi~ mat rial is , h~ v r , u�u lly ut u in an 1- s ic olu i n or in ~ 1 st r11 c n r in r , unlike th 1hj ct 11 hie is �po 1 1CO

Oc.Cl -. ,'. 2757 CT - 14 - nd enca d in cylindric 1 gl sa cont in.r ith m t 1 ccver , witl hcl . t.hr ugh ich th thr d c m �::> t ro� � ar d net cer f to 1 eril � nd the Brussels �x lan tlry ot d t T ri f ar r h 3 . 05 st t th t this h adin (?S n n- st rile sut r mat ri 1 , I ch m ter lQ acconinq to their n tur f 11 itrin ~ch aul Xl . (; . 572 . Teja , lbia) rS stat d ~r.ov 1 CCCrding tc th xpl n tory otes o th Sr ss lz cm.ncl r , ncn-steril nylon irnit t on c tgut for suturin i� cl��ssified under Tari f Heading ~1 . 02 t 30~ aa v lor m which covers , rn nJ ethers , imitation cat ut of I~n-ma e ib r n.at~ri ls . There would s . to 10 a ubt, t. r for , th t ~h correct fie ti, of lyl � Imitation Catgut for urin � na '!'if, e1 . vine (Dent 1 0 s) is Tari f din� 51 . 2 t 30J ~ valorem . c. .lid e t i t i ner con ten :::. t1 t T ri . c:HJ.ing 39 . 01- t so� J valor ., ;hich r c. w.�. 3 . 01 nopl sts , oly llyl uns tur t o c nes): 16 1

DEC! I N CTA CASE NO . 2 7 57 - 15 - A. Artic les not including in sub heading B her eof �� ad val. 30% B. Aminoplas t s and pheno- plasts , alkyd r es i ns, un- satura ted polyesters a nd epoxy esters, 'whether or not modified or poly- merized; urea and phenol formaldehyde mold i ng c om- pounds and adh sive; plates, sheet s, strips, film and foil and other extruded shapes o � ad val. 50% under whic h the n ew opaquer powder or l i qui d was c lassified by r esponden t, is n ot a "beautifier11 made of "self-curing acrylic restoration" but covers dental cements and fillings wl 1i c h should fall under Tari f f Heading 30.05 at 10% ad valore m: 30.05 Ot her pharmaceut ical goods � ad v al . 10% Respondent, on the other hand, avers that the explanatory notes of Tariff Heading 30.05 is very spec ific t hat only dental c ements and fillings based on inorganic materials fall under it. Opaquer being a self-curing a cryl ic restora tion and, there- fore, a beautifi er, should fall under Tariff Para- graph 39o01-B at 50% ad valorem . (pp . 5-6, Memo o of Respondent .) The stand of r espon ent i s well t aken . A perus al of Tariff Heading 39.01 shows t hat Opaquer should fall under thi s heading and not under Pa- ragraph 30.05 whic h specifically cov ers dental c e - ment and fillings. The evidence shows tha t Opaquer 162

D JCl ., I{ f - c ,\ f' w � 2757 - 16 - comes i powder form of vario u � color hues � usual~� 1ith �li~u id . One woul b usele~s wit cut th other � It 1~ gcn ally kr. n a self- curinq acrylic�r sino � c ot Jositio which has the follo in Chair: a. b . or mashinq et l ac in n r 'nfcrce:-: .nts . c . For stop~ing th ddr� hadow of h ��outh fr:c ... sh( l>l in'::J t ru an inci 1 or r xi, 1 filling ~ere the CiVity is ~xt n�i v , from lin -�1 t o 1- idl . a . or rnd~Ming venc r crowns . me � a l reinforce~~ nts or att~c ~�n t . It~ use rna kino agent is not new � L cquers� of yo r lOUC: ol!c. des have b~en used for y rs. b . Th der is ct ith be s corr - ctly ointed out by r~ap n ent~ fro . th foreg~in g li~t o: us s , i t i n~tc~ t . t su - ject � rticle is n ver ucro � .s dent l ce;.. nt or ent 1 fi ling . Instead . i 1~ co ting o con- ' ceal , . sk or stot fr ~ inc di~c lor- t~cth structur,_ , stcF>l 1uckin�� �nd r in. orce.ent., ~

.\ DECJ."-; C CT C 4' � 2757 - 17 - veneer cr n , att c .. nt � nd ~irr.il r .th ro. in denti try . , s t t d by peti i ncr ito lf, i m k d rk urf ee n s dow un ~r cr 1 ic res- tor ti ns in /r er tc cone al di5c r d tooth structure to stop r].. h 0 s 0 mouth fro showing thr ...gh t � fi in wh re th c vity is xte -..ive . 'tile it y b us d as filling t ri 1 upon which v nc r crylie illing i;.;o sup rim os f it is only t . rev_nt sh d o., , r - fl .ction of und rlyin tooth ti�su �Or m t 1 hoed fro -It ring th actu 1 e lcr of th v ncer- filling. (p. 213 , c rec r s . ) Opa(�U r c n h rdly be cl sifi d, t r for ' as ut 1 c �.� nt or L.ling ince t ls s lf- curing crylie re�t r tcr �hie b a tj.~.i hum n d ntu s . If rul y he � upr me Court in n r 1 e . cc.s de r� ilipina.s . , it is th g n r u t hie tiel s re en r lly da ted fer hich th y r gener lly us ;d hich ines t1 ir cl ract r wic� i tte ning to be no do bt th t u .r for p os s of tarif f cl ;.;o i- fication f lls und r Tar'ff e ding 39 . 01- t 50 ad valcre1 � In resu � tte cc _ct t riff c ~ ifie ti n 4 �_t tOr-

l D .. cr ..;r l'l C ~ Cl~� N � 2757 - 18 of th rticles in questi are as f c.: llows: 1 . Magnesi m ~hosthate Embe!ding Refract0ry r t ri ls (Hultivest) ��� Tari f He aing 68 . 07 at 20% ad valore � 2 . ylon Imitati n Cat~ut or v utu - ring and Debris Rem vine; (D ntal Floss) � � � ariff Heading 51 . 02 at 30% ad valorem . 3 . New Opaquer er or li uid �� ~ Taritf ieading 39 . 01-B at 50% ad valorPm . Going to th que>:>-i n as to the hem c onsumption value cr price of the in~orted J ltrate nd ucitone as bavis for assessment and collection of cu toms duti s nd ta es , petitioner. ryues that it is the value or ;,:>rice decl-red in the consular, commercial; tra e or sales invc.ioe at: (a) us 12 . 96 for Jeltrate (8- can carto ns) {b) U~$ 85 . 80 for Lucitone 199 (lab . pk<;; . ) (c ) u '$ 1 . 10 for Lucitone (1- unit pkg . ) and not at: . ( a) tJ'"' $ 19 . 20 for Jeltrate p} g . ) (b) U.:>') 97 . 50 fer uciton 199 (la (c) U.:~;,> 1 . 15 for Luciton 199 (on - unit pkg . ) as established by r spondent . The law involved is ~~ct ion 201 of the Tariff and Cu~toms Code , as men ed by Iresicential Decree No . 34 , which r ads as foll NS: EC . 201 . Basis of Dutiable Value . - The duti le value of an ir.1 rt 0. article su ject to an d valor , rate 0~ ty shall be based on th heme c cnsumpti .n value or price (exclu- 1G5

D C'". t c . 27?7 - 19 - ding in rnal cis or similar rticles . or ff red for s l in \ho l ~. e q uantlti of tra e , the cot ntry fr rr v.} .r _ cx, or ation o th th r L Idt CO SUI t or rice . or . rice under v 1 �r pric r..;ular, ccrri.ercial , �tra 'e Where th r exi ts th Vol�u or price of the im~ort~d ar�icle eclar.� in th~ correct �~iable vnlu cf th . c.rtain d fr here- ' t t che or Co ~:rei 1 e t romctio tt- c~) # ct NumberPct � ifty-four or other hilippin~ n from � ch tt: r in- a ~ail ble t th From t dat guthf.:rec , th Com- ~issioner of Gusto s 11 asc rt 1n an es- tab i"" he. ho .a ~ c�- n~umpti n va lut"!s of rti- cl s xpcrt-d t<.: th Philip,tJines nc s all pu.lish such lists of value.., from tim t time � . h n the du i�ble valu ~rovided for in the prec dine p ragra :t: hs c nn�)t b -s- cert�in d f .r failur o the im,ort r to produce t.he docum nts mentioned in th. s.- cond para r"' h, or �r ere ttl re exi ts re sonable dou t as t duti.-ble valu th im orted artie! decl r~ in the it s 11 b tl e don 1. t.ic w 1 les 1 pric of s 1ch r 1 icilar articlP i t1 � � la or oth r princi ) l ark~ts in h Fhili iDes on th date the duty J co. spay leon the 166

.. . 0 Cl<J 2757 CT - 20 - , rticle under ap!raise~ nt , in he un al hole le quantiti_ nd in th or'inary course of tr o_, . inus - ( ) T enty (20) per cent her of for exJens s nd r fits; nd (b) Duti ~ and tax s id there n . The lavJ se J, s cl ur nd spcci-ic . lt m r ly calls f r i-s applicaticn ~s reed . h r is no room for interpr t( tion. 11 Thc h� 1 C'm...,umption value or pric un~ r thi~ section shall be th valu or pric declared in th~ consular, corn cr- ci�l , tract or s 1 c invoice . " Th_ rJ 11 abl pr vision rnak s cl ar thdt the vc.lue or ric consular, ccmrtercial , tr 1e cr s es invoice is th hem c nsum tion valu or orice on hich } .. ti bl v lue cf the imported rticlc should b b sed . If res .ondent hus any r ascnabl t, the v lu or rice of tt import d articled clared in th� entry, t1en the correct auti' lev lue oh<uld be ascertain d , in accor�tanc nith the m<n �ate of the 1 , from re- ports of the R v nu ttach or Com .~rcial . t t che (~or ign trade r m tion ttach~), ~ursuant to ���u lie_, ct ���o . 5466, or other 'hilippin diplo - matic o fie rs nc fr m ~uch ther inicr .ation that m y te v 11 e to the Bure u of Cust~ms . Fr01, th c t< thus thAr d , res on nt shculc 167

0 � Cl L> < t c ~< c..~ . r t.. 21r:;,1 - 21 - sc rt in nd est o ish th hom cons�mpti�n v lu s of rticl ortP.d to th 1hilippin s nd publi h such lict of v luev fro. time to cim � (.:.~ e B.ll Hob rt 1. u acturing ncorp r t ~li vs . Corrrnis ... ion r � of Cu~t ms , CT1 ~ s s ~o . 27so . 2751 , 2752 nd 27 3 . March 10. 1~79 . ) lt is t tnat r.s on ent om is- ioncr Cu.;t... r �B is r. U.lred by la , to ascertain nd t lish the ho .e c r.s mr tion v lue of r- ticles x~orted to th hili � ines and publish such lists of val es r :, ti e to t.i. � He does not only bav t nd st� bli.. th em consum�ti n v lues, ut mu t a l o publ' h such lists f v lues fro ti , o im � t ould ".>e m tc r ire th t i crter b infcrmed in adv .c the or c !J u .vtior. V� l 0 r- tiel ~ e.x;.,crt d tc th ..hi i .inc-.. . 'l'his would pr vent uncert inty, let al net e exerci!e of pur ly pers n 1 iscreti n, s� ci lly on ch rt of cu t ;;.> - i, n.ioer"' , in h_ .,at r f th as- cert in.ent ond d.ter.in tion of the vric or va- lue of 1 .. rt u rtlcle:) . urth rm re, if im- porters - r . inrr... rr.1ed in dv nee of tht> horne con- sum ti n values of rticl s x~ rt d to th~ hi - lipJi. e, th y c n pro, rly decl r th uti bl 168

DEC i.JIC t - CT C dE O. 27 57 - .22 - values of their shi pments and thus avoid the heavy penalti s im osed for misdeclaration, if not delays in the release of goods fr m cus toms custody whic h entail loss o time, mon y and nergy . ( Bell Hobart }anufacturing Incorporated vs . Commi ssioner of Customs , sup ra . ) Coming back to ~h instant cape , it should be une uivocably stated, s the r cor s nd th evidence will s hew, t at there ere no publiDhed values of the subject Jeltrat nd uciton dec- lar d or establ i shed by respon ent, as required by par ~raph 3 of ~ection 201 , dis c ussed above . ~s a matter of fact , the witness of res pon ent , Miss Ma r ia ura Noble , a~praiser of the Bureau o f Cust oms , explicitly admitted on cross- examination and exami nation by the Court during th hearing of th i s case that th re were no ~ubl i sh d values of th subject articles . hile she stated thut she rec ived an alert notice as to the value of the articles in question , she ma e it clear to th Court th t the va ue as p-r al rt nGtice did not cvnform with bection 201 of the Tariff and cu~toms Code because the it ms haa no published values . (t . s . n ., December 9 , 1976, pp . 43- 46 .) And neither th records of this ca e sh w of the 169

) C~L.�I � - c . .. ~� '. . 27 57 - 23 - al .rt notic r ferr d to by th i n or ~S..; ny uu ish.d v 1 . of h im ,crt d J ltr t nc Lucit ne . Grcnting that h r w r son le dou t nt .t tain d by r pen r of Cu tor.."" s to tre value or rice (.) th im ort J ltr t und ucitcn d c r d 1 t,h r..t i .s . t e 1 ... c - cifi s th t. th correct out~ bl v lu 0 th it s shoul v. b n a c rt in . r tn r e- .. crt. of 1,. f..'.V nu or tt ch CommPrci 1 tt ch � pur~.u nt: to Rep .:Jl ic ct �c . 5466 or ot r hili.' - � pin aiplor tic 0 fie rs nd fr t, such th r in- f r ,aticn th� t m y a ail 1 to th ur u of . us to s . � nd fr-.-r. ct data 9 th~r , the;; co mi ion r of Cu... t m SlOUld have sc t in d nd zt b ish d l hom ccn um1tion v lu ot th articles n "JUbli .... h d such val "" � �Ccorr i gly . un r 'he c nd ~ar 'r�ph 0 o.) cti n 201 , th h~rn cons ' tion valu or . ric s 1 b the valu or t-�rice decl rE!d in ... h consul� r , co rei 1. tr e or 1 ..,. inv ice . inc th re 1 nc lity nor comrli nc cf wh t ar re uire oy the provi i'ltl$ pplic 1 in th bs ncP. of e i<.ienc. to t cvntr ry , th�re ib , th r for , no b si for the ss rtion of re )0 nt that th t bli h d . 170

0�C t { � 2757 t:'lt - 24 - valu of th . imp~rt d J ltr t wa t U'"" 19 . 20 nd th . Lucitone was ~7 . 50 . The terms of th statu e prc.vide th s fest g�1ide s t t 1 tatu- tory lic:t, to hich ob oi nc i e n fr m 4 . wrich vi tion 1~ n.t le. ( ~e a 11 ob r t M nuf cturing Inccr�or�t~ v. � Commis-..ioner of Cu - t .a � ::upr . ) find m r itorio _ t r fore, p tition r ' s st n that th v�lu whi c h sh uld e co oi r the h w._ c ns ption valu is t t 'ich as dec- 1 r d in th con ul r co ..f!rci l invo ic s t Uci 12 . ~6 for Jeltr t (8 - c n c rtons); U ~ S . BO f or .uciton 199 (1 � kg �2.; u nd tl . lO for Luc i~ t n 1~9 (on - unit kc ~ ) . hi s c se seeks the r f na n t nly ct th ditio 1 c � t ,.., d1ti but lso th r v n1 t xes 1 v if d n- l c 1 ctcd n .ent stares� lt of .the 11 g d erroneous t�rlf classific tion of th ulttv t _ nt 1 Fl a .n ~ p ay _r _ s w 11 th rroneous v 1 tion of tt Jeltr. t ru Lucit n � 1h r .cor1s s .ow _ t of th� tvt 1 s ~of 2 _71 . oo cl i m~d :...y p tition r s refund, ble cunt r ,s duti s nd al t x , the � m un of 25, 23 � < corre ends to the - uti s p i by' petiti r on tle rroncous t ri f cl zsificati n ot t 1 r;' 1

J DECI S I CN - CT CASE NO . 27 57 - 25 - article Multivest a nd t he erroneous valuati o n of Jeltra t and Lucitone. e note , however, t hat insofar as the c lai m for r efund of t he r evenue t ax (sales t ax) is c onc e rn ed, th e Commi ssioner o f Internal Rev enue h ad no t been implead d in t h i s j udicial suit fo r r ecovery o f an internal r evenue ta~ errone osly or ill egally c olle c ted so th a t thi s Court d i d not ac q uire j urisdiction ov er him . (Section 306 Lnow �ecti on 2 �1, National Inte rnal Rev nue Cod e.) As held by thi s Court i n the c ases of Bell Hoba rt Manu fa cturing Incorpo rat ed vs. Com- mi ssioner o f Customs, supra; NCR Corp ora ti on (Ph i l i pp i nes ) v s . Commi ss i oner of Customs , CTA Case No. 2599 , I Februar y 28 , 19 78 ; ase & Company, Inc. v s . Ro lando G. Geo tin a , Commi ss ioner of Cu s toms, CTA Cas No. 2717, December 29 , 1977, the curt of Tax ppeals h as no j urisdiction because petitioner failed t o f i le th e cl a i m fo r r efund in wr it ing with � t he Co~m i ssioner of I n t rnal Revenue in a ccorda nce with ection 309 ( ection 295 ) o f t he Nati o nal In- tern al Reven u e Code, and t hat sa i d Commissioner of Inte rnal Rev enue has not been made a party r e spon- ~- (Luna v s . Comm i ss i oner of Cus t oms , CTA Case No. 1 9 47, Novembe r 29 , 1968; Ph ilippine allboa r d Corp . vs. Commi ss i one r f Cu ~toms , CTA Case o . 172

D CI 1, 2757 CA...,' 213 � -~ t er 30 . 4972 ; Prcct r u bl I hi - 11. pin nuf ct1ring Cor.or ton VG . Co.~is � � n r of Cust., s . cr C ... e o . 2155 . esolu ion d ted A ril 5� 197 ; tC u lie tions , l c . vs . Co mis- nd Coll c cr of Cu toms , - 18 0 , ay 29 , 147 : gurr. lectric COI� ny , nc . v., . Cort.mi sicn r f Cu or ;o , A c .o . 27 .. . s 1� ti n dat d .pt r not un w r. of 'th rovi..,� �1-ns r.f th s c n p r gr h of ecticn 170 of the T riff and Cu t m Co e , am nde by r icenti 1 ecre � 34 . that "if "" - r � ~ul t of the r-ef nd of cu tom d' i ~- h r �.o 1( n c $.;;> rily r sult C1 ccr- r .s ondin Cf" un f in rnal rev nu t e 0 th: s .. m import tiv � th Collector hall li e i c r - tify th~ t tl Co, i siv. r I. ria. 1 c use th s ia J ce�>....: t xe t b p-1 , r� fum.i CJ , or t�x cr.dit~:c in f vor of h im orter , with a vice to . th co .mL.. icn.r oi Int n 1 v nue . fl Ho� t:V r , und r th nt 1 th 11 t ., t ~ r iti. 0 t s�m u jC!Ct r to e c nstru .d with r ��er, .c t e c � oth so that f.. ct {. y .e iv n t o 11 th rovisi n of each 0�: drit~al vs . afff_rty , 38 il . 414 ; 51 ; m. Jur . 363) , h fore- l t.d prcv iGI of

� .c J !'< - cr, t:,. � 2757 - 27 - h �1 b in ~.ret in co n cti0n �ith . ction 306 (now ecti n 292) of thE tin l lnt rnt.l v n� Co � �rhe eommissit: ncr of lnt rnal e- v nue b i g p rs n he is brund by he jucg- rn nt to b rem. r 0 in a judici l 3 it f th r c v ry of -ny natio ... it t rn 1 r v nu t X all (J d to have been rro ,-.-usl.i or illeoally as or collect d . h i~ p rty n t Cl c let r in t.ion no. ttl nt of th ion'"' J.nvo lv h r in . ( ell iObart .unu- f�c.uring Jncor or e vs . Co� ~i~si n r of cu~- tcr. s , Uj ra . ) CCOI �ir gly, only h tion f t i . rt d r icl 1-'.ulc.iv t , nd th _ rron us v�l .tion cf J ltrate n� luciton~ is r f un� 1 � c eti 1cner � ( � res ond nt Corr i eion r of Cust 11~., is h reby or erec to r to I� tit i n c~ r tion~ D nt 1 u ply # Inc . th . unt. of 25 , 23 . < . � itnout ron unc menta"" to co~ts . - 174 -

J:; � 27 57 - 28 - 0 1_; � u z n City ~ M y 16 . 1979 . I C t, U ) c l 175