GR L 12859; (November, 1959) (Digest)
G.R. No. L-12859; November 18, 1959
CEBU UNITED ENTERPRISES, plaintiff-appellee, vs. JOSE GALLOFIN, Collector of Customs, Cebu Port, defendant-appellant.
FACTS
Cebu United Enterprises filed a suit for mandatory injunction to compel the Collector of Customs, Jose Gallofin, to release two imported shipments of 7,834 bales of over-issue newspapers. The importation was made under Import Control Commission License No. 1225, validated on June 18, 1953, with a six-month validity period. The license condition stated that commodities “must be shipped from the country of origin before the expiry date of the license.” The bills of lading for the shipments were dated December 17, 1953, one day before the license’s expiration. However, the vessels carrying the merchandise, M/S VENTURA and M/S BATAAN, actually left the ports of Los Angeles and San Francisco on January 12 and January 16, 1954, respectively. The Collector refused release, contending that under Central Bank and Monetary Board regulations, shipments covered by ICC licenses may be released only if they “left the port of origin within the period of validity of the licenses,” and no Central Bank release certificate was presented. The lower court granted a preliminary mandatory injunction, ordered the release of the goods, and later made the injunction permanent, ruling that the valid shipment date was the bill of lading date (December 17, 1953), not the vessel’s departure date.
ISSUE
Whether the term “shipped” in the import license refers to the date the goods were loaded on board the vessel (as indicated by the bill of lading date) or the date the vessel actually left the port of origin.
RULING
The Supreme Court affirmed the lower court’s decision, ruling that the term “shipped” means the date the goods were loaded on board the vessel, as indicated by the bill of lading date. The Court cited the case of U.S. Tobacco Corporation vs. Rufino Luna, et al., which held that “the date of importation is the date of shipment and not the date of arrival.” The issuance of a bill of lading presumes the goods were delivered to the carrier for immediate shipment, and from that time, the goods are deemed in transit. The shipper has no control over the vessel’s departure date. The Central Bank regulations relied upon by the Collector, which required the shipment to have “left the port of origin within the period of validity,” were inapplicable as they took effect on July 1, 1953, after the license was issued. The Collector had admitted that the bill of lading date (December 17, 1953) was one day before the license’s expiration. Therefore, the importation was valid, and the Collector was ordered to release the shipments. The appeal was dismissed.