G.R. No. 48886-88 July 21, 1993
COMMISSIONER OF CUSTOMS, petitioner, vs. COURT OF TAX APPEALS and LITONJUA SHIPPING COMPANY represented by Granexport Corporation as sub-agent, respondent.

FACTS

The berthing facilities at Kiwalan, Iligan City were constructed, improved, operated, and maintained solely by and at the expense of Iligan Express Corporation, a private corporation. Several vessels represented by private respondent Litonjua Shipping Company used these facilities on various dates and were assessed berthing fees by the Collector of Customs, which were paid under protest. Private respondent filed for a refund with the Bureau of Customs, which was denied by the Collector and affirmed by the Commissioner of Customs. Private respondent then appealed to the Court of Tax Appeals, which consolidated the cases and ordered the refund. The Commissioner of Customs filed the present petition.

ISSUE

Whether a vessel engaged in foreign trade, which berths at a privately owned wharf or pier, is liable to the payment of the berthing charge under Section 2901 of the Tariff and Customs Code, as amended by Presidential Decree No. 34.

RULING

No. The Supreme Court denied the petition and affirmed the decision of the Court of Tax Appeals. The Court held that under Section 2901 of the Tariff and Customs Code, as amended by Presidential Decree No. 34, berthing charges are assessed only against vessels mooring or berthing “at any national port in the Philippines.” The port of Kiwalan is not listed as a national port under Executive Order No. 72, series of 1936, or in the Bureau of Customs’ own memorandum circulars. It was constructed, operated, and maintained privately, not by the national government. The insertion of the word “national” in the amended law indicated a legislative intent to limit the imposition of berthing fees to national ports only. Therefore, vessels berthing at the private port of Kiwalan are not liable for berthing charges, and the fees paid under protest must be refunded.