GR 35242; (August, 1931) (Digest)
G.R. No. 35242; August 6, 1931
MATSUI SAWHATSU AND MORI, petitioner, vs. C. C. HAMMOND, Insular Auditor of the Philippine Islands, respondent.
FACTS
The petitioner imported merchandise into the port of Davao in 1929. The Collector of Customs liquidated the import duties using the current exchange rate of the Japanese yen at the time of exportation, instead of the official rate proclaimed by the U.S. Secretary of the Treasury as required by Bureau of Customs regulations. The petitioner paid the duties and received the goods after being notified that it could file a protest against the liquidation. No formal protest was filed. Months later, the petitioner requested a refund of the alleged overpayment. The Insular Collector of Customs issued refund warrants, but the Insular Auditor refused to countersign them, arguing that no timely protest was filed, the error was not a clerical error under the Administrative Code, and the liquidation had become final.
ISSUE
Whether the Insular Auditor may be compelled via mandamus to countersign the refund warrants, despite the petitioner’s failure to file a timely protest against the original liquidation of customs duties.
RULING
No. The petition for mandamus is denied. The original liquidation was final and conclusive due to the lack of a timely protest as required by law. The error in applying the incorrect exchange rate was not a clerical error under Section 1300 of the Administrative Code, as it was not an error visible from the papers themselves. The petitioner’s subsequent letters requesting a refund did not constitute a valid protest under Section 1372, as they lacked the required “reasonable precision.” Since no protest was filed, Section 1371 of the Administrative Code rendered the liquidation final. Section 1369, allowing the Collector to correct errors, applies only to pending cases, not those already final. Equity does not favor the petitioner, as it chose not to protest and assume the risk of possible additional duties, and cannot now seek a refund after the fact.
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