G.R. No. L-22991 January 16, 1968
BIENVENIDO CAPULONG, petitioner, vs. ACTING COMMISSIONER OF CUSTOMS, respondent.
FACTS
On October 8, 1954, petitioner Bienvenido Capulong imported several packages of merchandise from Hongkong through the no-dollar remittance system. For failure to produce the Central Bank release certificate and the import license required under Central Bank Circulars Nos. 44 and 45 in relation to Section 1363 of the Revised Administrative Code, seizure proceedings were instituted against him. The goods were subsequently released to him upon the filing of a surety bond in the amount of P18,852.00 executed by him and Pioneer Insurance and Surety Corporation. After proceedings, the Commissioner of Customs rendered a decision on May 23, 1960, ordering the confiscation of the goods and holding petitioner and the surety jointly and severally liable to pay the bond amount in cash. The Court of Tax Appeals affirmed this decision.
ISSUE
Whether the importation of goods without the required Central Bank release certificate and import license subjects the goods to forfeiture and makes the importer liable under the bond.
RULING
Yes. The Supreme Court affirmed the decision of the Court of Tax Appeals. The petitioner admitted in the Court of Tax Appeals that the goods were imported in violation of Central Bank Circulars Nos. 44 and 45 and are thus subject to forfeiture under Section 1363 of the Revised Administrative Code (now Section 2530 of the Tariff and Customs Code). The Court rejected petitioner’s arguments that his liabilities were abrogated by Central Bank Circular No. 133 and that violations of the circulars are not punishable by forfeiture. It held that the penalty of forfeiture is expressly provided by law. The requirement of a release certificate for all imports, including no-dollar imports, is necessary for the Central Bank to monitor the volume of imports for policy formulation. Therefore, importation without the required certificate constitutes a violation of law, making the goods subject to forfeiture and the importer liable on the bond. Costs were imposed on the petitioner.