GR L 12260; (May, 1960) (Digest)
G.R. No. L-12260; May 30, 1960
THE COMMISSIONER OF CUSTOMS, petitioner, vs. FARM IMPLEMENT AND MACHINERY COMPANY, respondent.
FACTS
A shipment of thirty-four (34) packages declared as containing “cereal” arrived at the Port of Manila from Hongkong on July 23, 1954, consigned to the Farm Implement & Machinery Company. It was accompanied by a Central Bank release certificate and was initially classified by the respondent under “Commodity Code No. 040802-NEC” (Groats semolina and cereals; flaked, pearled or prepared in a manner not elsewhere specified). Upon examination, customs officers found the merchandise to be “sotanghon” and reclassified it as “vermicelli” under “Commodity Code No. 040804-UI” (Macaroni, spaghetti, noodles, vermicelli and similar preparations). The shipment was seized for alleged violation of Central Bank Circular No. 44. After seizure proceedings, the Collector of Customs ordered the forfeiture of the bond filed for the shipment’s release, a decision affirmed by the Commissioner of Customs. The Court of Tax Appeals reversed the Commissioner’s decision, ordering the cancellation of the bond.
ISSUE
Whether the merchandise “sotanghon” properly falls under Commodity Code No. 040802-NEC or under Commodity Code No. 040804-UI of the Central Bank’s Statistical Classification of Commodities.
RULING
The Supreme Court reversed the decision of the Court of Tax Appeals and affirmed the decision of the Commissioner of Customs. The Court ruled that “sotanghon” is a kind of alimentary paste made in cords, similar to macaroni, spaghetti, noodle, and vermicelli in appearance, manner of preparation, and use. Testimony from the Chief of the Food Technology Division established that “sotanghon” should be classified as “vermicelli.” The fact that its basic material (glutinous rice) differs from other listed items does not negate its similarity. The Court found that “sotanghon” is prepared in the manner specified in Commodity Code No. 040804-UI and not as a cereal “flaked, pearled or prepared in a manner not elsewhere specified” under Code No. 040802-NEC. The subsequent 1956 amendment that expressly mentioned “sotanghon” in Code No. 040804-UI was intended to clarify, not to cure an omission, confirming its proper classification. Costs were imposed on the respondent.