CTA Case No. 767 (Decision)

a.IC � YRB I'I!IIIWI..U!Iall GOURT TAX gp .A&"'liii". . . .I U I FORUM TRADING & Co . Petitionerr, -versus- C.T . A. CASE No. 767 ~ CO:tv1NISS IONER OF CUSTOMS, Respondent. x- - - - - - - - - - - -x DECI S I 0 N This case involves an importation of 534 bales of overissue newspapers by petitioner on a "no-dollar" remittance basis, which was dec- lared forfeited in favor of the government by the Manila Collector of customs for violation of Central Bank Circulars Nos . 44 and 45 in rela- tion to Section 1363(f) of the Revised Adminis- trative Code. As the shipment was previously released upon the filing of a surety bond, pe- titioner, together with Paramount Surety & In- surance Co ., were ordered to pay in cash, joint- ly and severally, the sum of ~6,720.18. The decree of forfeiture was affirmed by the Commis- sioner of Customs. Hence this appeal. The appeal was submitted for decision be- fore this Court on the basis of t he following stipulation of facts: "That the Mone tary Board which exercises the po\vers and functions of the Central Bank of the Philip- pines promulgated on June 12 and June 25, 1952, respectively, Circu- lar Nos. 44 and 45; '

Decision - CT CASE No . 767 - 2- 11 That the petitioner by virtue of a no-dollar remittance of ICC Li- cense No . to766b8rl1n dat ed ~~rch 26, 1952, was able gi nto the Phil ip- pines 53~ bundles of overissue news- papers, as raw materials for the n~nufacture of paperboard; "That the petitioner has never been engaged in the manufacture � of paper board, but has sold to local manufacturers its previous importa- tions of overissue newspapers, and has accordingly deposited the pro- ceeds realized therefrom with the Equitable Banking Corporation, in a special account credited to the name of the Worldwide Trading Company; "That the validity of the said ICC License No . 7668 expired on September 26, 1953. However , prior to its expiry date~ the petitioner on September 7, 19?3 filed a re- quest for extension fhereof with the Central Bank thru the Equitable Banking Corporation, but such re- quest was not granted; 11 That the subject 53~ bundles of overissue newspapers left the port of origin on October 30, 1953, and arrived at Manila on December 2'7' 1953; 1'Tha t the notice of the action of the Central Bank on the request of petitioner for extension of the ICC License No . 7668 was only re- leased on February 1, 1954; "That the request of the peti- tioner filed with the Central Bank for the issuance of a release certi- � ficate of the goods in question which were already in port was also denied; and "That in view of the foregoing circumstances, the Bureau of Customs,

Decision - CTA yii.SE N0 � 767 - 3- for alleged violation of Central Bank Circular Nos . l.tl+ and 45 in relation to Section No . 1363(f) of the Revised Administrative Code seized the 534- bundles of overissue newspapers, under Sei- zure Identification No . 1333. 11 11 That petitioner as principal , with the Paramount Surety and In- surance Company as surety, filed jointly and severally, in considera- tion for the release of the seized merchandise, a PSIC Bond in the total amount of Six Thousand Seven Hundred Twenty Pesos (~6,720.00), which boi.a.d is introduced and marked as Exh. 1 for respondents�; and "That - the petitioner and the Paramount Surety and Insurance Com- pany were duly served with copies of the decision of the Collector of Customs and the decision of the Com- missioner affir ming the same. 11 The only question :for determination is whether or not the Central Bank of the Philip- pines has the power to issue Circulars Nos. 44 and 45 as measures to regulate imports which do not involve the sale o:f foreign exchange. This question is not new. The rule in this jurisdiction is well settled that the Cen- tral Bank has authority to regulate importations which do not involve the sale of :foreign ex- change; that Circulars Nos . 44 and 45 have been validly promulgated; and that goods imported in violation of said circulars are subject to sei-

Decision - CTA VASE No . 767 - 4- zure and forfeitllre (Com. of Customs v. Nepo- muceno , G. R. No . L- 11126 , March 31, 1962; Com. of Customs v . Santos , G. R. No . L- 11911 , Mar ch 30, 1962; c t i ng C~~ . of Customs v . Estanislao Leu- terio , G. R. No. L-9142 , Oct . 17 , 1959 ; Francis - co Pas cual v . Com. of Customs , G. R. No . L-10979 , June 30 , 1959). Petitioner ' s contention that the importa- tion was made on the basis of a valid and sub- sisting import control license is without merit because , even before it lef t the port of origin, said import license had already expired . The fact that petitioner requested for an extension of the same , which was denied by the Central Bank , does not in any way detract from the fact tha t the subject importation was not covered by either a valid and subsisting import control li- cense or a release certificate from the Central Bank. Petitioner has no right to presume the grant of such extension . Relative to respondent ' s claim for pay- ment of a dditional damages amounting to �500 . 00 , it may be sta ted that there is as yet no final judgment of forfeiture . Consequently, there is as yet no liability on the part of the petitioner

Decision - CTA CASE No. 767 - 5- for said damages (Bombay Dept. Store vs. Com. of Customs, CTA Case No. 788, ug. 1, 1962; Lazatin vs. Com. of Customs, CT Case No. 782, Jan. 19, 1962; Que Hua Shirt Factory vs. Com. of Customs, CT Cases Nos. 739 and 753, Jan. 11, ~� WHEREFORE, the decision appealed from is hereby affirmed with costs against petitioner. SO ORDERED.~ Manila, November 21, 1962 � ~~ MARIANO N LE Presiding Judge WE CONCUR: ROMAN 111. UMALI sso<;:ia te Judge r--:--