G.R. No. L-14217; November 29, 1960
LUZ H. COLOMA, petitioner, vs. COLLECTOR OF CUSTOMS and COURT OF TAX APPEALS, respondents.

FACTS

On September 2, 1954, the Philippine Navy vessel RPS Misamis Oriental arrived in Manila from Japan carrying 180 packages of various dutiable merchandise as cargo. The shipments consisted of three groups: (1) 137 packages consigned to the Philippine Army Post Exchange; (2) 23 packages to the PNOB commissary; and (3) packages belonging to individual persons, including officers of the Philippine Army and Navy. The Customs authorities received no manifest for this cargo and discovered it only when a Customs policeman intercepted the truck carrying the cargo. The Collector of Customs ordered the forfeiture of the merchandise on grounds that they were unmanifested cargo, imported without a permit from the Central Bank, and not covered by the requisite consular invoice. On appeal, the Court of Tax Appeals sustained the forfeiture solely for the reason that no consular invoice was presented, violating Sections 17 and 18 of the Philippine Tariff Act of 1909. The Tax Court declared that Philippine Navy vessels are not required to present a manifest and that there was no violation of Central Bank regulations because the importation did not involve the sale of foreign exchange. Petitioner assails the decision, arguing that lack of a consular invoice is not a cause for forfeiture and that the importer should be given reasonable time to secure consular verification or file a bond. The Solicitor General, in turn, calls attention to the Tax Court’s error in holding that Philippine Navy vessels are not required to submit a manifest.

ISSUE

Whether the cargo aboard the RPS Misamis Oriental is subject to forfeiture due to the absence of a manifest.

RULING

Yes. The Supreme Court affirmed the decision of the Court of Tax Appeals, but on the ground that the cargo was unmanifested. Citing Commissioner of Customs vs. Relunia (105 Phil., 875) and Commissioner of Customs vs. Brillo (G.R. No. L-11902, June 29, 1959), the Court held that all vessels, whether private or government-owned, including ships of the Philippine Navy, coming from a foreign port are required to prepare and present a manifest to the customs authorities upon arrival at any Philippine port, with the possible exception of war vessels or vessels employed by any foreign government not engaged in the transportation of merchandise in the way of trade. Since the RPS Misamis Oriental failed to present a manifest, the forfeiture of the cargo was justified. This resolution rendered unnecessary the determination of the other questions raised in the petition. Costs were imposed against the petitioner.