GR L 22819; (April, 1967) (Digest)
G.R. No. L-22819; April 27, 1967
PROCTER & GAMBLE PHILIPPINE MANUFACTURING CORPORATION, petitioner, vs. COMMISSIONER OF CUSTOMS, respondent.
FACTS
In 1958, Procter & Gamble Philippine Manufacturing Corporation imported two shipments of caustic soda from San Francisco, California, U.S.A., on board the vessels Bronxville and Banggai. The vessels anchored outside the breakwater in Manila Bay. The caustic soda was unloaded from these vessels onto lighters of the Atlantic Gulf & Pacific Co., which were then towed by tugboats to Procter & Gamble’s private wharf at Estero Vitas, Tondo, Manila. The cargo was finally transferred from the private wharf to Procter & Gamble’s warehouses. The Collector of Customs of Manila levied and collected a total of P720.00 as wharfage dues under Section 2802 of the Tariff and Customs Code (Republic Act 1937). Procter & Gamble protested the collection, arguing it did not use a Government wharf or facility to unload the merchandise. The Collector denied the protest, the Commissioner of Customs sustained the denial, and the Court of Tax Appeals upheld the Commissioner’s decision. Procter & Gamble then petitioned the Supreme Court for review.
ISSUE
Whether or not Procter & Gamble is liable for the payment of wharfage dues imposed under Section 2802 of the Tariff and Customs Code on the two shipments of caustic soda which were not unloaded on a Government wharf.
RULING
Yes, Procter & Gamble is liable for the payment of wharfage dues. The Supreme Court affirmed the decision of the Court of Tax Appeals. The Court held that wharfage dues are assessed against the cargo discharged by a vessel engaged in foreign trade, distinct from harbor fees or berthing charges levied on the vessel. These dues are a charge for the benefit derived by the cargo from the safety and facilities of the port provided and maintained by the Government, irrespective of whether the unloading occurs at a Government wharf. Since the vessels called at the port to unload cargo, and the cargo was unloaded amidst the safety afforded by the port, it is chargeable with wharfage dues. The Court noted that Section 2802 of the Tariff and Customs Code, unlike its predecessor (Section 3 of Republic Act 1371), does not contain a proviso exempting articles unloaded on private wharves. Wharfage dues partake of the nature of a tax collected to support Government operations in relation to customs affairs.