GR L 24247; (May, 1968) (Digest)
G.R. No. L-24247 May 13, 1968
COMPANIA GENERAL DE TABACOS DE FILIPINAS, petitioner, vs. ACTING COMMISSIONER OF CUSTOMS, respondent.
FACTS
The petitioner, Compania General de Tabacos de Filipinas, as agent for the vessels Rita Maersk and Effie Maersk, protested the imposition and collection of berthing fees by the Collector of Customs of the port of Cagayan de Oro. The fees, amounting to P379.25, were levied when the vessels docked at the Bugo pier in June 1961. The petitioner’s protest was based on the ground that the Bugo pier is privately owned and operated by the Philippine Packing Corporation. The petitioner contended that under Section 2903 of the Tariff and Customs Code, berthing fees are assessable only against a vessel berthing at a Government pier or wharf, and such charges can be collected only if the Government provides pier and wharf facilities. The Collector of Customs denied the claim for refund, a decision affirmed by the Commissioner of Customs and subsequently by the Court of Tax Appeals, leading to this petition.
ISSUE
Whether a vessel engaged in foreign trade, which berths at a privately-owned wharf or pier, is liable to pay berthing fees under Section 2903 of the Tariff and Customs Code.
RULING
Yes. The Supreme Court affirmed the decision of the Court of Tax Appeals, holding that the government’s right to collect berthing charges is not conditioned upon the pier being publicly owned. The statute uses the word “pier” without qualification as to ownership. Berthing charges, like wharfage dues, are imposed for the use of a wharf regardless of ownership; the difference is that berthing charges are assessed against the vessel, while wharfage dues are assessed against the cargo. The money derived from such fees constitutes a trust fund for the government’s purpose of acquiring, constructing, and maintaining port facilities, including keeping bodies of water navigable. These charges are in the nature of taxes to support government operations in relation to customs affairs. Vessels enjoy the benefits of these governmental undertakings and should contribute thereto. The Court cited the precedent in Luzon Stevedoring Corporation vs. Court of Tax Appeals and Commissioner of Customs, which sustained the collection of berthing charges even at privately owned piers.