Court of Tax Appeals
0Mo Ye the Aw T Ul | + Li K's ~ Farm Implement Machinery Co vs. Commissioner of Customs, et al.
~-
/
FARM IMPLEMENT
~.IACHINERY CO. ,
Petitioner,
- versus -
CO~WISSIONER OF CUSTOMS,
Respondent.
X -
-
-
-
-
-
-
-
X
C.I. A. CASE NO. 239
~~
\l\
~~ \\
D EGIS I 0 N ~
This is a petition to review the decision on·
appeal of the respondent Commissioner of Customs in
Seizure Identification No. 1691, affirming the deci-
sion of the Collector of Customs for the Port of
Manila which ordered the forfeiture of 833 cases of
semolina macaroni and semolina spaghetti for viola-
tion of Central Bank Circul'r No. 44, in relation to
Section 1363 (f) of the Revised Administrative Code.
It appears from the records of the case that
on July 10, 1954, there arrived at· the Port of
Manila on board the •ss VIGAN•, Reg. No. 884, eight
hundred thirty-three (833) cases of merchandise with
commercial invoice No. M-503, dated June 15, 1954,
of Thos. D. Stevenson & Sons, Inc., San Francisco,
California (Exhibit •E") and consular invoice No.
C9701, dated June 21, 1954 (Exhibit "C").
The Cen-
tral Bank issued Central Bank Release Certificate
Ref. No. 15480, dated July 2, 1954 9 (Exhibit "F")
,
authorizing the release to petitioner of 833 cases
of "semolina" under Commodity Code No. 040802-NEC.
136
DECISION-
C.I . A. CASE NO. 239 - 2 - Upon examination of the shipment, the Bureau of Customs classified the articles as macaroni and spaghetti falling under Commodity Code No. 040804- UI, as a consequence of which it was seized for alleged violation of Central Bank Circular No. 44, in relation to section 1363 (f) of the Revised Administrative Code.
Pending the seizure proveed- ings, the importation was released to petitioner upon the filing of Surety Bond No. C-54/7708 of the South Sea Surety & Insurance Co. , Inc. in the amount of ~6,677.00.
After said proceedings, the Collector of Customs for the Port of Manila decreed the for- feiture of the shipment in question for violation of Central Bank Circular No. 44, in relation to sec- tion 1363 (f) of the Revised Administrative Code. This decision having been affirmed by respondent Commissioner of Customs on December· 17, 1955 (Exh- ibit "C"), petitioner filed the present appeal. The only issue in this case relates to the proper classification of the articles in question: Petitioner was granted a foreign exchange allocation by the Central Bank for the importation of •semolina" included within Commodity Code No.
040802-NEC of the Statistical Classification of
Commodities, which embraces: - "Groats, semolina and cereals; flaked, pearled or prepared in a manner not elsewhere specified (including prepared breakfast foods)."
137
DECISION-
C.I.A. CASE NOo 239 - 3 - Upon examination by customs authorities of the articles imported by petitioner, the former classified the articles as macaroni and spaghetti under Commodity Code No. 040804-UI, covering: "Macaroni, spaghetti , noodles , vermicelli and similar preparations.~ An analysis of samplesl of the subject importation made by Mr. Forencio Soliven, Head of the Depart- ment of Food Technology of the Institute of Science and Technology, disclosed that - "Sample A is SEMOLINA ~~CARONI while Sample A-I is SEMOLINA SPAGHETTI. Both are made of Semolina and are American and European eereal food preparation. "
(Exhibit "A-1" , P• 42,
Customs Records)
The petitioner cohtends that the report of analysis of Mr. Soliven conclusively shows that the subject shipment consists of "semolina".
Whether
an article is classified as SEMOLINA ~~CARONI , or SEMOLINA SPAGHETTI, or simply SEMOLINA does not alter the fact that the articles is semolina. Thus, it argues that the importation was property clas- sified under Code No. 040802-NEC, and, therefore, should not have been forfeited.
The respondent , on the other hand, maintains that the articles in question are "macaroni",and "spaghetti" and, therefore, fall under Commodity Code No. 040804-UI of the Statistical Classifica- tion of Commodities , which is a more specific classification.
138
I~ I
DECISION-
C. I.A. CASE NO. 239 - 4 - ( A cursory reading of the aforecited classi- fications shov1s that for "semolina" to fall under Code No. 040802-NEC, it should be •flaked, pearled or prepared in a manner UQt elsewhere specified~ .
While the macaroni and spaghetti in question are made of semolina , yet they cannot justifiably be classified under the commodity code number autho- rized by Central Bank Release Certificate Ref. No. 15480.
They are not flaked or pearlee or prepared in a manner not else~here specified. On the co~tra ry, they are prepared as macaroni and spaghetti of Commodity Code No. 040804- UI of the Statistical Classification of Commodities.
Finding the articles subject of the present seizure proceedings as falling squarely under Com- modity Code No. 040804-UI, the said arti~ere brought into the Philippines in contravention of the foreign exchange license granted for the same, and as such were imported contrary to law. We are, therefore, of the opinion and so hold that the said articles were properly forfeited under Section 1363
(f) of the Revised Administrative Code, in relation to Central Bank Circular No. 44.
WHEREFORE, the decision of respondent is hereby affirmed 9 Ve decree the forfeiture of Sure- ty Bond No. C-54/7708 of the South Sea Surety & Insurance Co., Inc. in the amount of P6,677.oo which was filed for the release of the import~- 139 t
I
DECISION-
C.I.A. CASE NO. 239 - 5 - tion in question, with costs against petitioner.
SO ORDERED.
Manila , April 1, 1957.
I CONCURS
(Sgd~h~RIANO NABLE
Presiding Judge
( Sgd .) ROMAN Mo UMALI
Associate Judge
Associate Judge Augusto M. Luciano did not take part • • ' 110