Caridad Capistrano vs. A Gotsa, et al.

DECISION

This is a petition to review the decision on ap- peal of the respondent Commissioner of Customs in Manile Seisure Identification No, 2793, affirming the decision of the Collector of Customs for the Port of Manila which ordered and decreed the forfeiture of the one hundred (100) pieces Philippine peso bills at #60, 00,

0. #¥ b " _— seventeen (17) pieces U. S, dollar bill at ,$40. 00 belonging to the petitioner Caridad Capistremo on the ground of al- leged violation of Circulars Nes, 37 and 20 as imple- mented by Circualr No, 42 as emended by Circular No, 565, all of the “entral Bank, in relation to section 1363

(f) of the Revised Aduinistrative Cede. From the stipulation ef facts subaitted by the parties, it appears that the petitioner, who was sche- duled to leave for muayhehe, had a licensef from the Cen- tral Bank to bring with her $200.00, $50.00 of which was in cash and the balance in traveller's check. On March 31, 1965, and before the petitioner was able to board C.T •• NO. 174 th ple .

/ for Ho gkon • $b ubjedt d to oust . ry searc.h by on · g nt of tbe ureau of Cu to '. in t.bc Ai .. port. at ichol Fleld, Rtzal, a d th oney bUl , con ..

tilting of 100 pl ees PhlUppSno peso Uta at Mo.oo, 17 pleaes u. 5. dollar bUJs at $20. 00, a d 1 piece U. s. dollar bUl at 10. l, r found ln heJ' e re 1ze for 11: ged violation otl ctrcu- lars · s. 37 and 20 as t pl o11tod by CSreulal' No. 2 as a. nde by Circular ?\10. 5511 all o£ tho ""ontr 1 nk, 1 relation to Section 1363 (f) of tbc n vi eel Ad tf e Code.

· ftcr thE" seizure proceedin s, and o the: t,;olleetor cf Customs for the rort. of nil :rend r d ., a deeisloo ordertou nd d oree !ng tho forfeituro ot ~he ~~ oney b 11 i question.

"rom this decision, tho , etl~, . tioner appeal d to th re p nd nt !ssioner of ustoms, \ ,no aff!r ed the sa e in a decisiun on appeal datod uly '-- 29, .1955.

lienee, on August 11, 1955, tbo petitlone~ \ ~ I ttl d a f!etition tor evte~ before tbts "ourt. \\ case hi ges u o the Issue of ther or not th money · Th pro r d termfnat.ion d disposition of tbts \ bUl$ in question are subject to fol."f,~iture under the \ \ ntral Bank Circulors Nos. 37 end 20 as 1 le . nt d by lrcular No. 42 as nded by Ctrcul r l

o. 55 1n 1 tlon to S c:Uon 1363 (f) ot tbe v1 ed ' l - Ce1ptl'· l t 1\.

k Circulars ar reprod ce• ol ow; \ \ \ \ • DECISIO ...

C.T.A. CASE RO.

74 Clrcul . r 1 'o. 37 :- "'5 c. 3.

T . toll owl 9 11 also be held U ble within tbe · nl g of t.hl C:.., ...

cular:

' ·( ) ny outgoing as nger alreodf booked and read to leav · th cou tty found aving i,n tis pers.,n or among his luggage, at t.h a.trp . rt. or piers, an ·ount exceeding 100.00 or PbU1ppie cotns exceedinc PG. OO when o U cens us · e pr vtously obt in d for the excess u ount. " Cireulir 'o. 20;- "4~ (a} All receipts of f reign ex- change shall e sold· d lly to the ~entr 1 n by those authorized to de 1 in foreigP exchange.

All rec !pta of fol'eign exch nge by uny person, firm, part rship, ssoe - tton, brancb offle • agency, co pany or othew unincorporated body or corporati n sh 11 be old to tbe autbort•ed ag nts oft e C•ntral nk by the recipients ith o e bus 'ness d y follo ing t r c lpt of such toretgn e chantJc.

x x. • ..

1'Sec. 3.

.ibe folJowin,lg shall also be held 11 ble it in the antn of t e prohi- bit1otl r exportation of seeuwU.:tes and \ foreign ~xehe~g unless proper license as been obtnined from the antral ' tk 1 ' ,.( ) Any passenger lcoving the Philip- pines found in his possession of any securi- ties or foreign exch nge in any form, vbetbel' such securitieS· ·or foreign xc ange · re found i hi er on or among his luggag or in any article taken by blm

t. '-be piers or airpons . o nt a y other poi t of mbarkatton. S X "See. 4. (a) X tt(b) Ph1Upptn re !dents leavinf the Philippines for broad shall. upon departure, declare all PhiUppJne currency, foreign ex- change and securities of whatever n ture car- r i y th on E. c. (•'or

o. 3 • x x ,.

Circullar o. 55:

"See. 1.

198 CISI c.T ••

o. t174 - - t d h r by :X peso he ettt oncr co tends that the forf ituro f th ·n question i n by C ntr 1 a Cir ul~r o. 37 in a ton to Se tion 34 f e- p bltc ct . .. 265.

· e orditlgly, tort it r • 1 t 1 g vi d th r tn, he ~ cann res ed.

th p tittoner's eont ntion that lther Central nk Cireul r . o.

7 n r public Act

o. 265 <X ressly prescribe the penalty of for et ure. Likewi e, s provid~l for pcnul ! rfeiturt .• For cl ar und r ta ding of tbe e olu to of t 1 ~ourt on the 1ssu rais d b he p rttes, find it ec s -ry to diore s on tbe pbi.osophy po bfe T ese Cireuh,rs have for th tr source of authority e- public et . o. 265.

nk t d ty f si t und r t ct oct ve the folio i o ~ ctiv a: ( ) to :• 19 9

DEC IS ION~

C.T.A. CASE NO, 174 maintain the aonetary stability in the Philippines;

{b) te preserve the international value of the peso and the convertibility of the peso into other freely con- | vertible currencies; and (¢) to promote e rising level of production, employment aud real income in the Philip- pines. *hese objectives are national policies enunciated f by “ongress, heir proper achievement and implesestetion : are lodged in the Monetary Deurd which exercises the L, powers and functions of the Central Bonk, “nd to bring ‘about the effective discharge of there powers and funé= tiohs, Section 14 (a) of said Act authorized the Monetary Board to “prepare and issue rules and regulations as it counters necessary for the effective discharge of the Fesponsibilities and exercise of the powers assigned to the Monetary Bead and to the Central Bank under this Act,” It is in pursuance to this authority that Circulars Nos, 37, 20, 42 ond 55 were.edopted and promulgated, \ Civeulars Nos. 37, 20, 42 and 55 are keyed to the achfevement of the afore-recited national policies. Nonetry Stability in the | Ailippines, the maintenance ef whith is a declared national policy, is inseparably Menem with the circulation of our peso. “ith exo~ ‘| / onte foresight and wisdoa, the Centdel Sank regulates the ‘cfreulotion of the peso. It allows in cérculation only: sufficient amount of Fhilippine aoney, in bills or coins, \in order not to disturb the stability ef our cur- reney, It is gxfomatic in economics thet an amount of antel in cireuletion over or below the margin of suffi- cieney disturbs the stability of the peso, If sore a -r 900 \ D lSION "" · C.T •• c, NO. 174 - 6 - ney than i aecess ry l allow to etrtul teiinfla- tlon Y sult • If lo s oney circulates. def t t n fol- low • In both ses, the people suffer t.r con Sc biUppib ey exported or rought outside the co ntry h put out of l 1 cJr ul t:lon.

t bring.s down · tb a unt of mo y circulating in t cou try below the rgln of autfici ncy.

It es d · stie insta illty of t peso w lcb in tar produces an dver e :repereus- . ton on lt international value and its convertibility into other fre ly convcr ible eurrenei • n tebl r at to t ud wltb ''· ... he Ptt lippines is not eco- o JcaUy selt-suf.t'icient tq f'ford being shunned in intetna tonal trade nd c ree.

y xported or bro ht of t e country an obligation of o r •ern nt.

l:tte f ct that it 1 placed out ide the erritorial jurlsdtet- ton ot th~ i'hilippines doe not free the responsibility it.

So ti , it has to redee ed.

Except in few holnte4 cues, tb re- d ion is ith l rei n exchange • ijostly, !t i dt wlth United States doll r w ie is the most soug t for tor tgn e:xc ange. It y s Sd that as a general rcantile practi e, ~h111ppi e n 1 found broad is disco nted agatn t our dollar reserve. It drains our dollar r serve.

Finally, l'biUppi e ol'.ley exported or withdrawn · tr local ctrculatlo tr strates th decl rod notion 1 • • • o •. 174 p Ucy ot pro ot.1 ~ rbin lev 1 of roduct on, nt ond r al f nc e i th l lil p It c nnot ones 1n the c untry.

t c·· n il of to lend pro otton to Ligher 1 v 1 or e• loy nt and, c nse- q·ently, of al n the eutntry.

It i ror th se co lling eo ic reo on and n ee sit Centr 1 1reul rs cs. 37 a d 42 ~er cone fve is d.

e etrculn restrict the exp rt t:ion f i' ill pin d eotns.

In !feet, hey prohibit h exp rto- t to of l'hiUppinc on y, ills or coin , in '~ces of ·t 1 censed and nll cd by t C ntr 1 e co to ~cnt 1 ) L·rcul< s 10 • n 55 • .&.hes circu o ·s rc tr c th expor <t .' o or ringing out ide th V il ppine o !ore1 n c chan c n any or , c us t t c 1 if p 1t of c Pnit d :t tc i t rcton . rkct , the n tnt rn t1onal ten er~ It an accept tender on th eo nter of foreign rt *t • (.;

ntri ' • blg r s ll, tl t intnln th ·r o n d 11 t re 6r • s. It i for t 1 in - ble • ilip 1nes, t roug the c tr. 1 u·n , is eo mitt to the olicy t c tscrving \ 11 ail bl dollar i ord r o a t in and bolster I dn lor r cr e o i n.

ClSIO -

c. • . c SE I o. 174 f a <.toll r res rve 1 inti- mat ely stability n tb f 11- i 1ne • in r doll.

re l"V a vcr el ~f- f ct , loa lly a l il\t r ation Uy, of tb s cor llary, ed or r ilip iale • defl t djvalu o tb p o lo~or th level of pro- ductton, ·1plo:1 ..!nt .ld r al inc r~ n th 1 1 p s.

F o di r si n, it app r ate \ · nd vid nt til :tUo op y be 1 d the odo t:l and pr ul at iun of C ntr: l la1 Circulars . os. 37, 20, 42 nd 55 1 to prohi It t indi crtm ate and · unlic nscd ex ortatio of oncy, local ::m for ign.) Tbes ircul r, ·vi pursu nt to i' . o. 2 5, buv tllo ore 1nd effect o! law c rdit to seitl juri prud nee.

(See opl ' · u Po y, ,• • L- 791, reb 29, 1954, 50 '). G. r 4 5 , citing J. "'.

• Tu i . ol int~, _ hil . uq and uthorltl t cit d. )

hall er inc h ther or not t ap r on y in qu sUor y le ally b subject to forfeitur in r l·t on t ·ection 1363 !)

f t Revised d i- ni tr tivc ~ de.

ai codal ro on prot d "S.c. l 63.

Property subject to for iture u tder cu t lAS 1 . - ess 1 , rc nndi 1 and th r objeet • n th all, ndel" tlt c dit.ion herein lo st.ecified, be subj forfeiture:

X X (f) n 1 - rary to • r- » i• 2 0 3 ------------~~------~ I I I I I I !

I

I I

I

I I

) t / I 17 - 9 - ch 1d e htcb, · n t le opinion of the Got- lector, h• ve b ~ usedt r or ere tn- t nded t be used as i st rum nt 1n the 1 ... ort<l tton r export t ion o! th !or · er. " n this point, th ~ctitto cr c ds th t the paper m ncy i q'estion c nnot f rf it en us· it 1 ot rc ondis • In thl conn ct.lon, \ hb t roint to the 1 ovisio of ectio 14 9 ·of the vi ct.! , 1 inictr ·t tvc C . t~hic r ads:

"SE • 1419. lords nd phr es defined.- ·ords and Phr-se U!; d in th s ch pt r shall be tnlwn in th sense defined b X X "' creh nd.se' when used ~itb rc- fercnc to rnport ationG or exportations, i el udes good , arcs, d in t-ner 1 ony- thino th t y the subject ot ·~porta- tion or exportat o . " I he li t of he above-quoted cod· 1 deAni- tion, k the ob ervution that ·ntt d s ates doll r rch n tse.

.lh y ha e cc sed t be 1 gal tender i the ''hili rinc • How er, s ave heretn pr Yio sly i ti. t d, thy are yre·tly i 1 c l, as \\' 11 s in .forei n · rk ts . rchan ble c it! • y nre old n e ubj •ct of · ' rtatio tat ion.

ey re . reb is ithin t c ooteJ 1 tio 0 s ction 1419 nu 13 (£) of th~ tr tivc l-ode.

... heir d e i violation ot cnt:ral n '-ircul· rs Nos. 2. , 42 ud 55 forfeiture in relati on to said sect ion .........

)ll ! "'' ..

204

CISI I

- C.T. • ASE o. 174 - 10 ..

( nut, nt rtatn a different tiew and observe- tto with respect to ~billppt e n y.

Ueve, nd we ar con train d to rule that t'blUppino peso btU eaflnot e aecorded · he oat~gory ot , rcllandh at lca.at jn the Philipptnes. hey are not goods /,or wares that cu.n be the subject f purcha e nd aal • They cannot t e snbject of port tto or export•• I t.io • e t1 d o aut ority n justification tor { ../ .,..

old ng t . for it re under tbe pro sion of S - tion 1363 (f) of the evi d Ad Jni trat1vc Code, or ven un er any other law. We c nnot d cree their tor- eiture for 'l'b t,ourt. cannot creot pennltie ond ... ey llst found tn l U ot1 • tt of the l w, nd not raised by i - nd onnruction. u (A Ullag oox of Sugar, lt eat· to u t wt in the atte _pted xporta- tion of t e Pbllippi onay bill in the instant case, 1olaiion of \ient:tal Ba lt Circulars Noa .. 37, and 42 ha en co ittea.

n pdr$uance: to Section 17 of Re- ubUc A \ No. 112' , e refer this . matt r to the pro- per depart nt, bureau or · .fiice tor investigation d t e i stit.ution of cri lli al actio under S ction 34 of t pul.>Uc Act No. 2 a .i st iUoner Caridad pistrano, lf the t cts and cure . stance of the case y rra t..

1'ho petitioner's eont nt ion tho t til u. s. dollar bil.ls in quest! n c nnot forfeit ,,d because their ;' 2 0 5 .

. \.

,.

CISior - C.'l' • . • C 174 -n- oxPOttat1o was merely attempted !$ unt able. Sec- .

...

tton 1 3 (f) of tb evis d ~ dminhtr Uve Lode sp - eiitc lly and akptessly ordains the fort iture of "any rebandise of prohJblt d x x x xportation, iy x ;· x exportation or Nhich is eff cted or attumpted ontrnry to hu • • • :JiL ~F'fJf ·, the declston on app 1 o.r t:.hc respou ... dn t. "' lssioner of Lustoms i hereby nlodifi d 1n the a nse th<> e deer e tlle forfeiture Jn favor o! the Go ern ·ent of the eventoon (17) piece !\ s . dolhr bills t

20. 00 n t.he one (l) piece n .. s. ollar bill at 10.

, nd th role • to tlle p·•Ut.toncr ·ridad · piatrano the one ndred (100) io es Pbil- i questio • t copies of tlis d cision bo fur~lshed the Governor flf t e C ntral nk of t·he htlippines and the Pdvincial ·i col of Htzal., tllrou h tbc Secretary ot Justic , tor whatever actio pr per to t·k. in the pre ises. June 41 1956.

(Sgd. )

I; NO NJ\Ut.E residin~ Jldge ( . l STO

• LUCIANO

(Sgd. l .11.ssvci~te Judg ...

Q, n.

'·

J' ALI

ssQeiate Judge 206 \ I ~