GR 39679; (March, 1934) (Digest)
G.R. No. 39679; March 13, 1934
GENATO COMMERCIAL CORPORATION, plaintiff-appellant, vs. THE INSULAR COLLECTOR OF CUSTOMS, defendant-appellee.
FACTS
Genato Commercial Corporation, a domestic corporation, imported frozen butter and veal from Australia pursuant to contracts to supply the United States Navy in the Philippines. The Insular Collector of Customs assessed and collected customs duties on these imports under the Philippine Tariff Act of 1909. Genato protested, arguing that commodities imported for the use of the U.S. Army and Navy are not dutiable. The Collector overruled the protest, and the Court of First Instance of Manila affirmed the Collector’s decision.
ISSUE
Whether a local merchant who imports goods from a foreign country and sells them to the United States Navy under contracts is liable for payment of customs duties under the Philippine Tariff Act of 1909.
RULING
Yes. The Supreme Court affirmed the lower court’s decision, holding the importer liable for customs duties. The Philippine Tariff Act of 1909 imposes duties on all articles entering the Philippine Islands, except those specifically exempted. The Act’s free list does not include supplies imported for the U.S. Army or Navy. The deliberate omission of a provision allowing free entry for government supplies, unlike in prior tariff acts, indicated Congressional intent to subject such imports to duty. This interpretation aimed to protect local industries by placing local merchants on equal footing with importers and encouraging purchases from the Philippines or the United States. The Bureau of Customs’ consistent construction of the Act for over twenty years, holding such goods dutiable, was accorded great weight. Therefore, the appellant, as a local merchant importing supplies for the U.S. Navy, is liable for the corresponding customs duties.
AI Generated by Armztrong.