GR L 3875; (July, 1950) (Digest)
G.R. No. L-3875; July 6, 1950
UNITED STATES TOBACCO CORPORATION, petitioner, vs. RUFINO LUNA, in his capacity as IMPORT CONTROL COMMISSIONER, IMPORT CONTROL BOARD, and ALFREDO JACINTO, in his capacity as Acting Commissioner of Customs, respondents.
FACTS
Petitioner United States Tobacco Corporation, prior to the approval of Republic Act No. 426 on May 19, 1950, inquired from the Secretary of Commerce and Industry (who was also Chairman of the Import Control Board) whether leaf tobacco could be imported without a license. In a letter dated March 7, 1950, the Secretary confirmed that Virginia leaf tobacco was not under import control and encouraged its importation as part of the initial capital for a new cigarette factory, provided no dollar outflow occurred. Relying on this official assurance, the petitioner caused shipments of leaf tobacco to be sent from the U.S. in April 1950, which arrived in Manila in June 1950. However, Republic Act No. 426, approved on May 19, 1950, placed leaf tobacco under import control and required an import license. The Commissioner of Customs, upon directive of the new Import Control Board, refused to release the shipments, leading the petitioner to seek a writ of mandamus.
ISSUE
Whether the leaf tobacco shipments, which were in transit (shipped from abroad before but arrived after the effectivity of Republic Act No. 426), are covered by the import control requirements and license under the new law.
RULING
No. The Supreme Court granted the writ of mandamus. The Court held that for the purpose of applying Section 6 of Republic Act No. 426, the date of importation is the date the goods were shipped from the port of origin, not the date of arrival. Since the shipments left the U.S. in April 1950, before the law’s approval on May 19, 1950, they were not subject to its control requirements. Furthermore, even assuming the law applied, the respondents’ refusal to release the shipments based on a formalistic lack of a license would be unreasonable and unjust. The petitioner had relied in good faith on the official written assurance from the Secretary of Commerce and Industry, which was consistent with the government’s policy of attracting investors and conserving dollar reserves. The government is bound by such commitments made through its responsible officials to honor and instill public confidence.
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