GR 37196; (December, 1932) (Digest)
G.R. No. 37196, December 23, 1932
Ang Giok Chip vs. Insular Collector of Customs
FACTS
Ang Giok Chip, a Chinese national residing in the Philippines, sought the admission of his wife and three minor children. The Bureau of Customs, through a board of special inquiry, denied admission on the ground that Ang Giok Chip failed to prove he was a merchant as defined under the Chinese Exclusion Act. He claimed merchant status based on owning a 2% interest (valued at P4,500) in a Chinese copartnership (Seng Kee & Company) engaged in mercantile enterprises and being employed by the firm as a customs broker with an annual salary of about P1,000. He also claimed he previously owned an independent mercantile business worth P45,000 that was destroyed by fire, but provided no details. The Acting Collector of Customs confirmed the denial. After the Court of First Instance of Manila denied his petition for habeas corpus, he appealed to the Supreme Court.
ISSUE
Does the mere ownership of a minor share in a mercantile copartnership, without more, conclusively establish that a person is a “merchant” under the Chinese Exclusion Act?
RULING
No. The Supreme Court affirmed the denial, holding that the mere ownership of a share in a mercantile business is not conclusive proof of merchant status. Under the applicable U.S. law, a merchant is defined as a person engaged in buying and selling merchandise at a fixed place of business conducted in his name, who does not perform manual labor except as necessary for that business. The Court, citing U.S. Supreme Court precedent, emphasized that a merchant must have an ownership interest that fixes him to the business, distinguishing him from a mere employee like a salesman or manager. Here, the customs officials did not abuse their discretion in finding that Ang Giok Chip failed to prove he was actively engaged in buying and selling as a merchant, as his evidence showed only a minor partnership interest and employment as a broker, not active conduct of the mercantile business in his own name.
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