G.R. No. 167510 July 8, 2015
ALVIN MERCADO, Petitioner, vs. PEOPLE OF THE PHILIPPINES, Respondent.

FACTS

Petitioner Alvin Mercado, owner of Al-Mer Cargo Management, was charged with violation of Section 3602, in relation to Section 2503, of the Tariff and Customs Code (TCCP). The information alleged that on or about July 29, 2000, at the Port Area, Manila, he willfully and unlawfully made an entry of various articles (including fabric, branded bags, jeans, shoes, and other goods) by means of a false and fraudulent invoice and declaration, describing them as “162 cartons of personal effects of no commercial value,” to pay less than the legally due duties and taxes. The shipment from Bangkok, Thailand, consigned to his company, was examined upon an alert order and found to contain general merchandise in commercial quantities. The petitioner sought a settlement, paid P85,000 in taxes and penalties, and the shipment was released except for infringing items. He was nonetheless prosecuted. At trial, the prosecution presented evidence of the false declaration. The petitioner defended that he merely accommodated the shipment upon request, believing it contained personal effects, and that the import entry was prepared and signed by a licensed customs broker, Rolando Saganay of Consular Cargo Services, not by him. The Regional Trial Court convicted him, and the Court of Appeals affirmed the conviction.

ISSUE

1. Whether the petitioner may be held guilty for violation of Section 3602 in relation to Section 2503 of the Tariff and Customs Code absent proof that he willfully made a false entry and absent criminal intent.
2. Whether the petitioner may be held guilty for violation of Section 3601 of the Tariff and Customs Code when he was charged under Section 3602.

RULING

The Supreme Court REVERSED the decision of the Court of Appeals and ACQUITTED the petitioner.
1. The prosecution failed to prove the petitioner’s guilt beyond reasonable doubt for violation of Section 3602. The essential element of making or attempting to make a false or fraudulent entry through a false or fraudulent invoice, declaration, affidavit, letter, or paper was not established. The evidence showed that the Informal Import Declaration and Entry (IIDE) was prepared, signed, and filed by licensed customs broker Rolando Saganay, not by the petitioner. The petitioner’s signature did not appear on the document. The prosecution did not present Saganay to testify, and no evidence linked the petitioner to the preparation or filing of the false entry. The Court emphasized that criminal intent is necessary for the offense, and the prosecution must prove the accused personally committed the act or participated in its commission. The petitioner’s act of seeking settlement and paying duties did not constitute an admission of criminal liability for making a false entry.
2. The petitioner could not be convicted under Section 3601, as he was charged under Section 3602. A conviction under a provision not alleged in the information violates the constitutional right to be informed of the nature and cause of the accusation. The elements of the two offenses differ; Section 3601 pertains to fraudulent practices against customs revenue generally, while Section 3602 specifically penalizes the act of making a false or fraudulent entry. The Court held that the prosecution must rely on the specific crime charged and prove all its elements. Since the evidence failed to establish the petitioner made or attempted to make the false entry, he must be acquitted. The burden of proof is on the prosecution to establish guilt beyond reasonable doubt, and in this case, the evidence was insufficient.