CTA Case No. 1520

(EPUBLIC OF THE PHILIPPINE

COURT OF TAX APPEALS

QUEZON: CITY

0 NATIOWAL DEVTLC PuEET x) Gt Petitioner,

Acting Commissioner of

Xe «<a @ mw @w@weewna o ak

DECLSToOBS

Petitioner hes appealed from the decisien of re sponient Commissioner of Customs whieh affirmed ip tete thet of the Collector of Customs ef Manila ordering the ferfeiture of 276 bottles of assorted whiskey; the for- feiture ani destruction by burning of 3,050 cartons of assorted elgarettes;*+ and the imposition ef a fine of 910,000 upon the vessel M/Y “Dofia Aurore” ened by and registered in the aame of petitioner.

The fects of the case may be briefly summarized as fellows; Upon arrival of the M/V “Dofis Aurera®* at the Port of Maniia on June 25, 1961, s party composed of agents of the Pronidential Fact Finding Committee (PFC) Lor the original 4,596 cartons of ghgerestes 1,5% eartons were pilf area whitle stored in the Auction Room ef the Bureau ef Customs daring tne Pendency of the seizure procesding.

r O55.

DeCIGIGE -

CTA CASE No. 1520 2 and the lew Saforconent Command (NO) boarded said vessel. after searching the vessel, assorted cigarettes and whiskey were foun) unmanifested, as follows: | io_the slop vhes ts 115 cartons of assorted cigarettes Slee 5 bottles of assorted whiskey Tes fove tole (attis 3,700 eartons of assorted cigarettes "276 bottles of assortea whiskey The Store List submitted by the Master of the vessel showed thet the provisions of the vessel consisted of

(1) 1,200 cartous of cigurettes; (2) 700 bottles of liquor; and (3) 69 bottles of wine. accordingly, the cigarettes and whiskey waich were in excess of the quan- tities shown in the Store List were declared unment- fested cargo and seigure proceeding was instituted for the forfeiture of said articles.

/fter hearing, the Collector of Cus tome of Manila foumi thet the elgarettes and whiskey in excess of the provisions of the vessel were unmanifested cargo ood ordered the same forfeited pursusat te seetion 2530(g) of the Tariff and Customs Code, in relation to Section 1005 of the same Code, At the same tise, the saxinun fine of #10,000 was inmposca upon the vessel for convey- ing anmanifested cargo under Section 2921 of the sane Code.

256

Decision -«

CTA CASE Us, asco Petitioner disputes the finding ‘end eonelusion of the Golleetor of Customs and contends thet said cigoretées and whiskey were necessary provisions of the vesse) and an amendment of the Stere List so as to inelude the same shoula have been allowed. We are fully in agreement with the finding an@ eonelusion of the Colleeter ef Cus- toms ih The evidence of record shows thet while in the United Stater, the Mester and Purser of the vessel par- chased «tthout authority 6,750 cartons of assorted cigarettes worth 07,090.00 and 1,464 bottles of assorted whiskey worth $2,910.00, while the normal consumption of cigarettes end whiskey of seid ver sel for one trip Was 1,124 cartons of cigorettes and 464 bottles of whis- key. Alse, it was shown that the arrival of said ves- sel on June 25, 1961 in Mantle was its lest trip prior to its being turned over to the Liberation Steamship Company. It is obvious that . portion of the cigarettes and whiskey purchased in the United States by the Master and Purser of the veseel without authority ef petitioner was intended tc be imported into the Philippines 4llegal- Ay, and ote, therefore, subject to forfeiture not only as The quantity of cigarettes and whis supposedly Aecasaary for provisions of the vessel for one trip, although not questioned by the Collector of Ccus- toms, appears to us excessive. :

297

DECISION «

GTA CASE NO. 1520 & anmanifested cargo under paragraph (g) but also as ar- - theles attempted to be imported into the Philippines in Violation ef Customs Laws, pursuant to paragraph (f) of Seetion 2530 ef the Tariff and Cus tons code. \ro quote .

from the deelsion of the Collector of Customs;

". . . ‘this Offiee holds, on the evidence adduced, that subject artieles are not part of the ship's previsions as

Claimed Claimant-intorvenor §DC but

Pether comes within the above well-defined of the word *cargo*. The fact that ®@ great quantity of cigarettes anc whiskey were purchased under unusual conditions as earlier discussed and then stored in a rope hole without being declared whatsoever, — strongly indicated that the eigarettes and whiskey in question are not part of the ship's og ions, and what is more, the rope hole waz not sealed as one of the . Wessel's slop chest at the time of boarding and thet subject cigarettes and whiskey were found no lenger required on the vessel, are indications that the articles were intended to . o" (See pp. 47-445, Customs With respect to the fine of #10,000 imposed upon the vessel for conveyin; unmanifested cargo, we are of | the opinion that the same is excessive ani not war- ranted by the circumstances of the case. It appears that 4t was the manager of petitioner who, in a formal communication to the proper authorities, requested — that the vessel be searched upon arrival to prevent 1Llegel inportation of goods by the members of the crev of seid vessel, And considering that said vessel was Owned aad operated at the tine by petitioner, a cor- 258 DAL, vs « CTA OA0u Bo. 1920 poretion owned by Che Govetnnent, ve balieve thet «a noudaad Pine Of 970020 would be adequate.)

in Vie GW Tie FOMmULN, thse deeision appeaigt frou te hereby alfiroed, except wits reepest to the fine, wien ¢ he hereby reduced from 0105000. 20 vo OF0%.0%, aotording~ ay, petitioncr is hereby orlercd w pay Me seid gua of $90.00 witaie thirty days from the dnite thie decision be- comes fiual.

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