CTA Case No. 4029 (Decision)

_ ,; ____ .JLL.. ' REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY AMERICAN PRESIDENT LINES, LTD. in its capacity as agent of SS "PRESIDENT TAFT", F'r:'t.i t.i.unE'I'", C.T.A. CASE NO. 4029 COMMISSIONER OF CUSTOMS, F!r:~s por1df?n t .. D E f:::::: I .T.... 0 N '' F' l'"" f~ 3 i d e nt T;�,, f t: '' , �f u ,... \ � :! r 1 l <'\ t �..'i. O "'l CJ f !::; r:�c t i. on :J. 0 0 5 :i n ,... C'~ l '"' �L.i. r l n to t:;C' c l: .i. o ,,., 2 :~i? ..1. o �f t. h r;~ T'a r� i f -1' r,, r 1cl Cl .l ~::; torn ~; Cod c~ � T i::1�ft.'' .. \., On D2cc mbcr 1 9, .1.9T7!, C:')' C'' ''F'r � cs.; id(~nt !"1 i H1 .i. l <'~. " Power Shovel Par �t s of f i f t y (50) kg s .. consigned to pE't:i.. tioner.. , AF'L 1'1anila, c:\S ~;o m,":\n.ife~:;ted in the COVf:?l""illq B i l l of L.aclinq f'.lo .. .1528 1.1-'7. Subsequent Cus torn ~:; e :-: ;:,1.m .i. nation 11CJ\'�!8Vr:?r� s-, hn ws t. he:~ t t h(�? c a.rqo .eui 'I � 1

DECISION CTA CASE NO . 4029 ,.., ,t:', con~;. i CJ n C?P. cIT J [:(11'\11': !I q r�o~-~" .i. n q one hun cl r �E'cl C�~ i.. q h t y��-on E~ ( .t t3 .1. ) k q <:=; .. In rectification o f the' e r-,.-n r � p c~ t .i. t .i. on.-.~ t- sotJ q h t:. an ,��~rnc:!n c! rn E~n t. to t h e 1....s.it h out: p i �c:~juc!:i. cc t�::J .~:HlY i.:\dm i ni.. <;'\..rD.t:i. vr.=o' <J.c:t:i.on +�. h <.:\ t may hE' l 'l�:'.\t"' l'"i'\ ni:'. c?d unde1�'" '! �. he�~ p t"'C fTl .i. SC'~S � 01 �1 i"i<.'Y ...... ;~, .1978, t 1�1c Cn l l 0c l.'.o ,... of C t .1~s '\".nrn~:; o f ,,�:..,:�.!I the ~pp1 �� opriate n 0rnini s t r a t i ve t t p I'" OC: ( ;> (~>ci :i.. l'l (j c:; a q <':\ .i. l'l r,.; h r�~ ".:~I'"' I .. .i. rl q V!', c�;~~\:~), pU I"S I..lc~\fl t. tt:l d l"ld (~<;: ; CDI"l"'~l'' qUf-? 1' \ C: ("!, acl rn .i.. n i ~=~ l : r i�.\ t: :i.v � f inc' u�f .i. rn pu ':; (:") cl � (:Jr! fT\ .i. l''l :i. ~::~ -1:�. t' <::1 t �..i. VE~ 1'-lo ,. \�'�-- l 0 J. : :r.:? -. �B l , - by -1-.l�lc p(?t.i '\".ionP t- . . 'i:: i lF! of t. h c~ r�; u 1 J. c:~ c t (, r.. � �==:; i (,'i ~.:~ ( : :.i.. ~:�; or , . <Ct.'.,, t ( )(!\ "'; r ;d ''--c' l\ln. B l �--26, Uc l::ubr:~t .1. ~5, .1.. CifJ~.i) 1�-1 (�'~'' c r:~ , -!.: h :.i. s pn t .it i. nr1 f c:,,.. r �(�)v i C'!l�~ � J r 1 <::\ ~:=; <:=;,,,, .i. l :i.n q Lh E~ d !~,c: :i. ~; :i..on , p E�? l': .i. t: .i. o n PI'" c: on tc�?n d s t h at the d .i.scre p <-:~nc: y bearing on tile d!:=si gn at ed cons .i. gn ee as h iC:} 1 l <'.\s u n dE~r-� dc-:!c: 1 cH"a t .i. o n o �f l'l f2 .i g h t , \�~ .::\ ~'5 duc0 1.-.o 'L')"phogt"<':l [) i l:i.c::.3 l er�r-ot�-s co rnrnj_ttecl .i n qo od �f ..., .i. t h \�~ .i. t I'I l'l Cl i l"l t. \~ l 'l t :i. C) l 'l t u v iol a t e t h e l aw or 2

DECIS I ON CTA CASE NO. 4029 ���.:.-:�� defraud thrn govmrnmGnt. :i.. m r\(J t"' t. l.i.. i.:\ hi J j_ t�.:i..e~:; on tht�:~ \'~hn l C'~ c~ n te:-?l'"(:>cf i':\rld ,:;~ 1:�. t r-:\c:: hed to the-:-~ or.. :i.q .i.rt t:\ 1 f!li::ln .i. �f E' f:5 t ~ C:\S ~;:;uc h, t.hE~ i ':\ cl rn .i.n :i. ~:; �1-. ,. .. i':\ t .i. v e F'30, 000 -1:: hE' VE~~:; �:;:; c;:~ 1 c:: nn v c:~ ')-' c��.:l c:\ r1cJ d .i. ~:=; c: h <-:1 1r� 'J eel ,3. n u n rna.n :i. 'f (? <;:; t.c:~d C:<J.I�� go" Th r � 1,�;,1_ ,_,~ ma l-:e �:;; :i. �l.�. ,,,,n .i.flip E'i"�,�J t. :( vr~ obl:i.cJat:i.on vc<::.�;:;e l r:. c1rn.i. n q f I'"Ufll ;,:~ ('u l'� r:; :i. ':.l r1 poi'" t to 1�1..,,, \/(? � r y ,;;\ t L(0 ill p t f i::\ :i. J t 0 t :Ll I' 1"} i�!.cl () l 'l ('" :i.. n t [\ c: ( :i -1:: .i 1 �...'. ::. ! I ..,1 1'. cl ]. Any su.ch qf m.i. ''' t-.i�J.I:: c , l ,~c: 1:: uf 'f r.. aud u J. (c' n t :.i. n t: E~ n t t-.c1 ci c~ f r �''' '�.t cl t: l1 r..,, (J u v L' r �1�1 mE' n "1.". Dl'" E!YE'I'l qood f , �: \ : i . t h , to relie ve t. h E' B(~ t. l l iJt ,;:\s it:. fll i::~y, Thr-:,� si mple:~ quE;stion for� c: on::;;:i.dPr.. at:i.on .J.s h'heti�lei�-� thE~r-e Wi:1~'> clE~arly an er-,'�o r .in conclusion peti. ti.one r� fai lE?d c:ompl :i.i::\l"lC("! wit h t. h Ei~ .ind i ~spPn~;ab J. e r-(?q u i r-r-:~rnr:~n t: t.h,;�,, t comi n g f I'" OfT! a I �I 3 �., .:. j

I. DEC I SION CTA CASE NO. 4 029 ... �1 �~) f <.":1. 1 1 ( Sc:)c::-l.:..i.. on �r i':1.r� .i. i' r .in d :i. r: 01. t C) -!.". h r-~ ~-~ "' .i.. (_:) h t rJ �f t. he c <:\ r�(J o t 1�1 r? s �-='� n c �1:�. .i n n .i. n tJ f:l e c: t .i on 2 ~-.i:? :J.. , _i i q_~ �f i n d <:'> a p p 1 .i c a t-. i CJ n , t. h a t . i. f "' n y v~ .i. 1:�. hou t:. s; ubm.i. t t i rl f:J m<-:1.ni �f r::!st~:;, u.r1 m,::\ n i �f Q'':>�I:�P.cf C:<'.1. t"' (_JO "�,-:; u c:: h vc~-:;sc::~ l n r� ,:;~ :i. t �c r-- 0. f t c; hi-:~ 1 l be f i. nc-:�r�l i1�1 ;�1. �::; urn no �1�. 1. c~=.~:; -!:: l1i r- '1::. y �L 1�1(� !<..t �:;;;:.1r1 r::l ( F�~~:o, 000 ) p(::�~�:; o~:; ,. L�-Jc:� eli <:'>i':I CJ r--(~f�'! , ._, :i. t 1�1 t. h r:-� I''C"<::> pun cl E) I' I t Cum m.i. ,;:;<;; :i.. onE'! r- .. Ir1 t-.h.i.t::; r::<'."iF) 1.--. I I'"I' 'F~ i<::; I"I F~ �.i.t.IICI' .:::1. -f<:.\.i.lur�co� Of'- om .i.<::;<::;_i.OII -t�.r:�) <:�;t.t.hm.i.�i�:. r� r~ q u :i. �:;; :.i. t:c:~ nm.i�::;�o;.i.n n �1--_rJ :i.nclu.dr:� i�:lny C::-':}.f'i]U .i..n t.l1 e-~ tll�::lrl.i.-fc~st.� The (:: .:-:~. I'"'J o :i. t�. ""f'' 1 'f .:,1.n d 'l. [: c:; pi::\r�t:..i..c:: <..<. �1. iJ I' <-:; inc J <..<.d i nq t.he ���Jr' .i. (] 11 t. t\ ,� �c: (I J. t. 1�1n t !.q 1�1 �!_-. h C' ~\' F' j_ C;J h +� .~1. p f: !f':l ;:,\ I'"<::; -!.: 0 1:l fc' U n d r;;) r �dec: J. �':1 t"'�~ d , �::;ill(.' f''} pu r� pu~::;r:.-~�s pl�-- oper thuo.:; h E~ ld in<::\ c:;:1se of s i.m.ilat-- impor�t, ''The propc~r ma nif est as pro vi.de cl in SR~ti.on 2521 s hould be 4

DECISION CTA CASE NO . 40 29 t .lle pPt-- t :i..nPnt portj_on of which provides: 11 F ;,,,_c 1�1 mi':\ n i f f.'?~"; t. '> 1�1i.\ J 1 :.i r1c: J. u r:1 C' t:�. l1 F' I' o I"" t of dPpi:.\1� t�.u. t�"C' ' HH::I til e pur t: tJf de!! :i.vc� t� '/ ~t-l.'i. t.h -1:�. h r:~ rtk\1":� 1::''' ~ l"l Ltrn L11:'~ r-<:;;_ ~ t i q U i:~ 1 �1 ty dl"l cl... cl r::.� ~:.>': cription . uf tho _packagPs 0 nd the names uf -I:'. he:~ Ct"Jf'l<::; .i..gnc-~E�?''; ther�t:-?of , ( Uncl c.� r�..... scori ng su pplied) dfllCJl...l f'l t tll i.:\l"l rjuc� ~; not. t. hE'! "'(:~ by ( Commissioner o f Customs vs. Cour t of Ta:-: Appeals I!{ Smith Bell I!{ Co . , I nc. ~ f:-!. F\ . cone! i. t :i .o n c~ \'~h.i.c: h <;:;uc h �:;:i. t.uat jorl t''f:?D.d:i.nq i'.''?.i follo\1~:-;~ SEC . 2523. Discrepancy Between Ac:: tt.t <':l J. <::\ l"l d Dr~c 1 ,:;1_ r"ed l1J r2 .i. g h t . of 1'1<'"-f'l :i. f es ted Arti c l e. - If the gross WPight of any arti c l e ot � package descr�ibecl in the fll<7!.n:i.. fpst E-':�:cec-2r:l!'; by rnc!r-p ti�lc:\ n t t�Jr,:,�nty (20 j por rpnturn the gross wei ght as declared it1 t. h c mi1. ni fr:! �:,,t ut' ' b.i 1.1 elf l ading t�.l H::qr�c" o 'f !I n.n d -1:: he~ Col 1. c:.�c: t :cw s h c:1 l l b e:;~ n f th e o p .i. n .ion �1.�. 1�1,3. t ~:i t tc: h cl.i. <::;c ,.-� P. r.� ,:'ln c y � t�-Ja ';'j 5

DECISION CTA CAS E NO . 4029 �j 1..1 C.~ �I� C'1 �l.�. llr' r: i-.1. r� �::~ J. r-~"3 '"~ f'l c<:,;:�, C:l r � .i.. ll ,...:( llll i'lC~ �(�.r:� r )l"� y t u f" ll('�' rn ,�::l. <;~ Lc t" 0 r� rl.'i. ]. u +.: :.i. n r i'lll\fl\ '-" I r�i , (")\�'.'1) (.'~I'' >.J I'" ('~ fll pJu yc:~ r' u�f thF! VC~<::;<::;c�} Ul'' <"l. :i. !'CI���df t , �'~ f :i. l l (:O c.� f nut. mn 1r�c t.lli�:\ l"l �f'.i.ft�.~".'(".'l"l (.1.~'1 ) p t.�~r� c t:' r 1t 1.\ rn o f �t�. 1�1r:~ v ,,,, J. I.J c-.� o �r t l1 r�� p n. (: I:: ''" q E~ or� dr � l:�.i c. J. c .ir1 I'' P. <:; p co~c:t�. tu 1;.,1 h.i.c:l�l l .l�>r' d t:,fi--- L ..i. ,.,., ,.! ,.... )' m ,::~ y l'l F� i. rn p() ~::; r:>cl u.pon t llE.> .i.. m p1.~ , .. �i�..:i. 1�1q v�c'"i"or-.� 1. or� a :i.. ,.. c. ,,�""' f L " 1 .ii':1.b.!.l.i.l.�.y t-. h i::l l" c:uu l.d .i.nc u r i"'c~d 1.\llllF.~ I� l� l\�:~ r.. r.~ n C ) r� t�. l l(' t � r:~ .i. r1 ~�. he:.> a.~;<;:;.:.,, :i. 1 ro:� c:l cl r:�c :i. �::;:!.. Dl"l .. du1.1 b 1. F' _j c:�.-., 1'' �'-' r�cl y '' (JI�i.rl .. WHEREFOR respon dent's dec ision is hereby set "'side and the ad minis tt- a ti v e fin e against petitioner cance lled . No costs. SO ORDERED. 6

DECIStON CTA CASE NO . 4029 .J ,J '-�'� cl g c-:-~ ~f ...'----_ .. ANTE i t:. ROAQUIN (') ~�::" F. i , d :.r:� ,"J u c:! g r--~ CERT I F I CAT I 0 N ( " C' t . t .i. f y -l:: ll ,'.l. L F' , --r,~�::: i. d :.i. 11 q ,J t.l! �1r_';J C' c:nt,r�t. r)f T c.\>~ nppr-~a.l s 7