Remedies Under The Tariff and Customs Code Movido Outline

REMEDIES UNDER THE TARIFF AND CUSTOMS CODE
A. SEIZURE AND FORFEITURE OF GOODS AND COMMODITIES 1. SEARCH, SEIZURE AND ARREST
Sec. 2201. Obstructio o! Custo"s #re"ises. No person shall obstruct a customhouse, warehouse, office, wharf, street or other premises under the control of the Bureau of Customs, or any of the approaches to such house or premises. Sec. 2202. S$eci%& Sur'ei&&% ce !or #rotectio o! Custo"s Re'e ue % ( #re'e tio o! S"u))&i ). In order to prevent smuggling and to secure the collection of the legal duties, taxes and other charges, the customs service shall exercise sur'ei&&% ce over the coast, beginning when a vessel or aircraft enters Philippine territory and concluding when the article imported therein has been legally passed through the customhouse. Sec. 220*. #erso s H%'i ) #o&ice Aut+orit,. For the enforcement of the customs and tariff laws, the following persons are authori ed to effect searches, sei ures and arrests comformably with the provisions of said laws! a. O!!ici%&s o! t+e -ure%u o! Custo"s, collectors, assistant collectors, deputy collectors, surveyors, security and secret"service agents, inspectors, port patrol officers and guards of the Bureau of Customs. b. O!!icers o! t+e #+i&i$$i e N%', when authori ed by the Commissioner. c. #ny person especially %ut+ori.e( i /riti ) b, t+e Co""issio er. d. $fficers )e er%&&, e"$o/ere( b, &%/ to effect arrests and execute processes of courts, when acting under direction of the Collector. e. #ny person es$eci%&&, %ut+ori.e( b, % Co&&ector, sub%ect to the restrictions stated in the next succeeding section. Persons exercising the powers hereinabove conferred shall, in the exercise thereof, have the same authority, be entitled to the proper protection, and shall be governed by the same law, not inconsistent with the provisions of this section, as other officers exercising police authority in general. Sec. 2200. #&%ce 1+ere Aut+orit, M%, -e E2ercise(. Persons acting under authority conferred pursuant to subsection &e' of the preceding section may exercise their authority (within the limits of the collection district only and *in or upon the particular vessel or aircraft, or *in the particular place, or in respect to the particular article specified in the appointment. #ll such appointments shall be in writing, and the original shall be filed in the customhouse of the district where made. #ll other persons exercising the powers hereinabove conferred may exercise the same at any place within the jurisdiction of the Bureau of Customs. Sec. 2203. E2ercise o! #o/er o! Sei.ure % ( Arrest. It shall be within the power of a customs official or person authori ed as aforesaid, and it shall be his duty, to ma)e sei.ure of any vessel, aircraft, cargo, articles, animal or other movable property when the same is sub%ect to forfeiture or liable for any fine imposed under customs and tariff laws, and also to %rrest any person subject to arrest for violation of any customs and tariff laws, such power to be exercised in conformity with the law and the provisions of this Code. Sec. 2204. Dut, o! O!!icer or O!!ici%& to Disc&ose O!!ici%& C+%r%cter. It shall be the duty of any person exercising authority as aforesaid, upon being questioned at the time of the exercise thereof, to make known his official character as an officer or official of the *overnment, and if his authority is derived from special authori ation in writing to exhibit the same for inspection, if demanded.
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Sec. 2205. Aut+orit, to Re6uire Assist% ce. #ny person exercising police authority under the customs and tariff laws may demand assistance of any police officer when such assistance shall be necessary to effect any search, sei ure or arrest which may be lawfully made or attempted by him. It shall be the duty of any police officer upon whom such re+uisition is made to give such lawful assistance in the matter as may be re+uired. Sec. 2207. Ri)+t o! #o&ice O!!icer to E ter I c&osure. For the more effective discharge of his official duties, any person exercising the powers herein conferred, may at anytime enter, pass through, or search any land or inclosure or any warehouse, store or other building, not being a dwelling house. # warehouse, store or other building or inclosure used for the )eeping of storage of articles does not become a dwelling house within the meaning hereof merely by reason of the fact that a person employed as watchman lives in the place, nor will the fact that his family stays there with him alter the case. Sec. 2208. Se%rc+ o! D/e&&i ) House. # dwelling house may be entered and searched only upon warrant issued by a %udge or %ustice of the peace, upon sworn application showing probable case and particularly describing the place to be searched and person or thing to be sei ed. Sec. 2210. Ri)+t to Se%rc+ 9esse&s or Aircr%!ts % ( #erso s or Artic&es Co 'e,e( T+erei . It shall be lawful for any official or person exercising police authority under the provisions of this Code to go abroad any vessel or aircraft within the limits of any collection to go aboard any vessel or aircraft within the limits of any collection district, and to inspect, search and examine said vessel or aircraft and any trun), pac)age, box or envelope on board, and to search any person on board the said vessel or aircraft and to this end to hail and stop such vessel or aircraft if under way, to use all necessary force to compel compliance, and if it shall appear that any breach or violation of the customs and tariff laws of the Philippines has been committed, whereby or in conse+uence of which such vessels or aircrafts, or the article, or any part thereof, on board of or imported by such vessel or aircraft, is liable to forfeiture, to ma)e sei ure of the same or any part thereof. -he power of search hereinabove given shall extend to the removal of any false bottom, partition, bul)head or other obstruction, so far as may be necessary to enable the officer to discover whether any dutiable or forfeitable articles may be concealed therein. No proceeding herein shall give rise to any claim for the damage thereby caused to article or vessel or aircraft. Sec. 2211. Ri)+t to Se%rc+ 9e+ic&es, -e%sts % ( #erso s. It shall also be lawful for a person exercising authority as aforesaid to open and examine any box, trun), envelope or other container, wherever found where he has reasonable cause to suspect the presence therein of dutiable or prohibited article or articles introduced into the Philippines contrary to law, and li)ewise to stop, search and examine any vehicle, beast or person reasonably suspected of holding or conveying such article as aforesaid. Sec. 2212. Se%rc+ o! #erso s Arri'i ) Fro" Forei) Cou tries. #ll persons coming into the Philippines from foreign countries shall be liable to detention and search by the customs authorities under such regulations as may be prescribed relative thereto. Female inspectors may be employed for the examination and search of persons of their own sex.
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2. ADMINISTRATI9E #ROCEEDINGS
Sec. 2*01. 1%rr% t !or Dete tio o! #ro$ert, -o (. .pon ma)ing any sei ure, the Collector shall issue a warrant for the detention of the property, and if the owner or importer desires to secure the release of the property for legitimate use, the Collector may surrender it upon the filing of a sufficient bond, in an amount to be fixed by him, conditioned for the payment of the appraised value of the article and/or any fine, expenses and costs which may be ad%udged in the case! Provided, -hat articles the importation of which is prohibited by law shall not be released under bond. Sec. 2*02. Re$ort o! Sei.ure To Co""issio er % ( Au(itor. 0hen a sei ure is made for any cause, the Collector of the district wherein the sei ure is effected shall immediately ma)e report thereof to the Commissioner and to the #uditor *eneral. Sec. 2*0*. Noti!ic%tio to O/ er or I"$orter. -he Collector shall give the owner or importer of the property or his agent a written notice of the sei ure and shall give him an opportunity to be heard in reference to the delin+uency which was the occasion of such sei ure. For the purpose of giving such notice and of all other proceedings in the matter of such sei ure, the importer, consignee or person holding the bill of lading shall be deemed to be the 1owner1 of the article included in the bill. For the same purpose, 1agent1 shall be deemed to include not only any agent in fact of the owner of the sei ed property but also any person having responsible possession of the property at the &missing' of the sei ure, if the owner or his agent in fact is un)nown or cannot be reached. Sec. 2*00. Noti!ic%tio to U : o/ O/ er. Notice to an un)nown owner shall be effected by posting a notice for fifteen days in the public corridor of the customhouse of the district in which the sei ure was made, and, in the discretion of the Commissioner, by publication in a newspaper or by such other means as he shall consider desirable. Sec. 2*03. Descri$tio % ( A$$r%is%& % ( C&%ssi!ic%tio o! Sei.e( #ro$ert,. -he Collector shall also cause a list and particular description of the property sei ed to be prepared and an appraisement or classification of the same at its wholesale value in the local mar)et in the usual wholesale +uantities to be made by at least two appraising officials, if there are such officials at or near the place of sei ure, in the absence of such officials, then by two competent and disinterested citi ens of the Philippines, to be selected by him for that purpose, residing at or near the place of sei ure, which list and appraisement shall be properly attested to by such Collector and the persons ma)ing the appraisal. Sec. 2*04. #rocee(i )s i C%se o! #ro$ert, -e&o )i ) to U : o/ #%rties. If, within fifteen days after the notification prescribed in section twenty"three hundred and four of this Code, no owner or agent can be found or appears before the Collector, the latter shall declare the property forfeited to the government to be sold at auction in accordance with law. Sec. 2*05. Sett&e"e t o! C%se b, #%,"e t o! Fi e or Re(e"$tio o! For!eite( #ro$ert,. If, in any sei ure case, the owner or agent shall, while the case is yet before the Collector of the district of sei ure, pay to such Collector the fine imposed by him or, in case of forfeiture, shall pay the appraised value of the property, or, if after appeal of the case, he shall pay to the Commissioner the amount of the fine as finally determined by him, or, in case of forfeiture, shall pay the appraised value of the property, such property shall be forthwith surrendered, and all liability which may or might attach to the property by virtue of the offense which was the occasion of the sei ure and all liability which might have been incurred under any bond given by the owner or agent in respect to such property shall thereupon be deemed to be discharged.
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2edemption of forfeited property shall not be allowed in any case where the importation is absolutely prohibited or where the surrender of the property to the person offering to redeem the same would be contrary to law. Sec. 2*07. #rotest % ( #%,"e t u$o #rotest i Ci'i& M%tters. 0hen a ruling or decision of the Collector is made whereby liability for duties, fees, or other money charge is determined, except the fixing of fines in sei ure cases, the party adversely affected may protest such ruling or decision by presenting to the Collector at the time when payment of the amount claimed to be due the *overnment is made, or within thirty days thereafter, a written protest setting forth his ob%ections to the ruling or decision in +uestion, together with the reasons therefor. No protest shall be considered unless payment of the amount due after final li+uidation has first been made. Sec. 2*08. #rotest E2c&usi'e Re"e(, i #rotest%b&e C%se. In all cases sub%ect to protest, the interested party who desires to have the action of the Collector reviewed, shall ma)e a protest, otherwise, the action of the Collector shall be final and conclusive against him, except as to matters correctible for manifest error in the manner prescribed in section one thousand seven hundred and seven hereof. Sec. 2*10. For" % ( Sco$e o! #rotest. 3very protest shall be filed in accordance with the prescribed rules and regulations promulgated under this section and shall point out the particular decision or ruling of the Collector to which exception is ta)en or ob%ection made, and shall indicate with reasonable precision the particular ground or grounds upon which the protesting party bases his claim for relief. -he scope of a protest shall be limited to the sub%ect matter of a single ad%ustment or other independent transaction, but any number of issue may be raised in a protest with reference to the particular item or items constituting the sub%ect matter of the protest. 14ingle ad%ustment1, as hereinabove used, refers to the entire content of one li+uidation, including all duties, fees, surcharges or fines incident thereto. Sec. 2*11. S%"$&es to be Fur is+e( b, #rotesti ) #%rties. If the nature of the articles permit, importers filing protests involving +uestions of fact must, upon demand, supply the Collector with samples of the articles which are the sub%ect matter of the protests. 4uch samples shall be verified by the custom official who made the classification against which the protest are filed. Sec. 2*12. Decisio or Actio b, Co&&ector i #rotest % ( Sei.ure C%ses. 0hen a protest in proper form is presented in a case where protest in re+uired, the Collector shall reexamine the matter thus presented, and if the protest is sustained, in whole or in part, he shall enter the appropriate order, the entry reli+uidated if necessary. In sei ure cases, the Collector, after a hearing, shall in writing ma)e a declaration of forfeiture or fix the amount of the fine or ta)e such other action as may be proper. Sec. 2*1*. Re'ie/ b, Co""issio er. -he person aggrieved by the decision or action of the Collector in any matter presented upon protest or by his action in any case of sei ure may, within fifteen days after notification in writing by the Collector of his action or decision, give written notice to the Collector of his desire to have the matter reviewed by the Commissioner. -hereupon the Collector shall forthwith transmit all the records of the proceedings to the Commissioner, who shall approve, modify or reverse the action or decision of the Collector and ta)e such steps and ma)e such orders as may be necessary to give effect to his decision.

Sec. 2*10. Notice o! Decisio o! Co""issio er. Notice of the decision of the Commissioner shall be given to the party by whom the case was brought before him for review, and in sei ure cases such notice shall be effected by personal service if practicable. Sec. 2*13. Su$er'isor, Aut+orit, o! Co""issio er A ( o! De$%rt"e t He%( i Cert%i C%ses. If in any case involving the assessment of duties the importer shall fail to protest the ruling of the Collector, and the Commissioner shall be of the opinion that the ruling was erroneous and unfavorable to the *overnment, the latter may order a reli+uidation, and if the ruling of the Commissioner in any unprotested case should, in the opinion of the department head, be erroneous and unfavorable to the *overnment, the department head may re+uire the Commissioner to order a reli+uidation. 3xcept as in the preceding paragraph provided, the supervisory authority of the department head over the Bureau of Customs shall not extend to the administrative review of the ruling of the Commissioner in matters appealed to the Court of -ax #ppeals. Customs Administrative Order No. 10-2007 (November 28, 2007): Rules and Re ulations in t!e Condu"t o# $ubli" Au"tion and Ne otiated %ale &s1': cover the di !o ition o" artic#e $nder c$ tom c$ tod% &Sec2'(1) TCC*+ thro$,h !$-#ic a$ction or ne,otiated a#e .S2/0 artic#e $nder c$ tom c$ tod% ha## -e di !o ed thro$,h a#e -% !$-#ic a$ction &UN1ESS0 !ecia# !rovi ion o" #a2+ .S3/0 F#oor *rice in A$ction Sa#e0 not #e than the 2ho#e a#e va#$e o" the canva ed dome tic 2ho#e a#e !rice o" the ame) #i4e or imi#ar artic#e and in the $ $a# 2ho#e a#e 5$antitie and in the ordinar% co$r e o" trade &determined -% the concerned e6aminer 7a!!rai er 8 $-9ect to a!!rova# o" the Chie") ACDD and Di trict Co##ector+ :not -e #e than the $m o" the tota# #anded co t -a ed on the !$-#i hed7circ$#arized ;RIS:OCOM te t va#$e 8 ta6e :ta4e into con ideration0 o- o#ence 8 condition 8 rea ona-#e de!reciation .S</0 Notice o" !$-#ic a$ction0 !re!ared -% the Chie" ACDD or i t e5$iva#ent $nit :a!!roved -% the Di trict Co##ector :contain 0 a. !eci"ic time) date and !#ace "or the a$ction a#e -. 1ot No. !er a#e #ot= name o" con i,nee c. !eci"ic de cri!tion o" ,ood > d. "#oor !rice !er a#e #ot e. !eci"ic date) time and !#ace "or the in !ection o" a## the item 7#ot 2hich ha## -e 2 da% -e"ore a$ction date ". term and condition o" the !$-#ic a$ction . ?/0 S$-mi ion o" the Notice o" Sa#e to the Commi ioner "or Monitorin, *$r!o e 0 Chie") ACDD ha## "$rni h the Commi ioner o" C$ tom a co!% o" the Notice and $-mit the ""0 doc$ment 0 inventor% 8 certi"icate o" "ina#it% o" "or"eit$re7dec#aration o" a-andonment7order o" the Di trict Co##ector 8certi"ication "rom the a i,ned e6aminer7a!!rai er atte tin, that ,ood are !eri ha-#e . '/0 !$-#ication and !o tin, notice o" a#e . @/0 condition "or re,i tration and !artici!ation in !$-#ic -iddin, . A/0 Sea#ed -id % tem . B/ C#$ terin, % tem0 occ$r 2hen the di""erence -et2een the hi,he t and the econd hi,he t -id i 2ithin 1(C o" the hi,he t -id. O!enin, -iddin, ha## -e cond$cted amon, the -idder o" the !artic$#ar a#e #ot 2ho are !re ent 2ith the hi,he t -id ervin, a ne2 "#oor !rice> . 1(/ a2ardin, o" a#e . 11/"ai#ed -iddin, . 12/ 2nd -iddin, . 13/ ne,otiated a#e . 1</ mandator% re!ortin, o" the 2nd "ai#ed -iddin, . 1?/ committee on ne,otiated a#e . 1'/ re5$irement and !roced$re in ne,otiated a#e >
*. COM#U;SOR< AC=UISITION CUSTOMS ADMINISTRATI9E ORDER NO. 3>2001? IM#;EMENTING RA 81*3? AN ACT AMENDING CERTAIN #RO9ISIONS OF #D 1040 @TCCA AS AMENDED -<BCUSTOMS ADMINISTRATI9E ORDER NO. 0>2000 @-UT I DONCT HA9E A CO#< OF THIS CAOA
Section 1A .S1/ O-9ective . 2/ D$tia-#e ;a#$e ((. Administrative )rovisions A. Re"erence ;a#$e a Ri 4 Mana,ement Too# D $ e c$ tom va#$e or an% other va#$e re"erence to e ta-#i h do$-t or a#ert C$ tom to do a va#$e veri"ication chec4
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C$rrenc% Conver ion0 rate o" e6chan,e ha## -e the duly published rates published by BSP + reflect as effectively as possible the current value of currency in commercial transactions Re#ea e $nder S$""icient E$arantee D
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*. Com)ulsor+ A",uisition :in order to !rotect the EovernmentF reven$e a,ain t undervaluation of goods subject to ad valorem duty >Commi ioner o" C$ tom ma% ac5$ire rossl+ undervalued oods "or a !rice e5$a# to the dec#ared C$ tom va#$e 8 an% d$tie a#read% !aid on the ,ood :!a%ment made 2ithin 1( 2or4in, da% "rom i $ance o" a 2arrant i,hned -% Commi ioner "or ac5$i ition o" ,ood EROSS UNDER;A1UATION0 2hen the di cre!anc% -et2een the dec#ared C$ tom va#$e and an% o" the te t va#$e i 2((C or hi,her0 Di""erence -et2een the te t va#$e and dec#ared va#$e7dec#ared va#$e 6 1((
-. DUDICIA; ACTION AGAINST THE TAE#A<ER

Sec. 2001. Su$er'isio % ( Co tro& o'er Du(ici%& #rocee(i )s. In the absence of special provision, %udicial action and proceedings instituted on behalf of the *overnment pursuant to the provisions of this Code shall be sub%ect to the supervision and control of the Commissioner. Sec. 2002. Re'ie/ b, Court o! T%2 A$$e%&s. -he party aggrieved by a ruling of the Commissioner in any matter brought before him upon protest or by his action or ruling in any case of sei ure may appeal to the Court of -ax #ppeals, in the manner and within the period prescribed by law and regulations.

.nless an appeal is made to the Court of -ax #ppeals in the manner and within the period prescribed by laws and regulations, the action or ruling of the Commissioner shall be final and conclusive. 4ecretary of Finance upon recommendation of the Commissioner of Customs. -he criteria for selecting firms to be audited shall include, but not be limited to, the following! &a' 2elative magnitude of customs revenue from the firm, &b' -he rates of duties of the firm8s imports, &c' -he compliance tract records of the firm, and &d' #n assessment of the ris) to revenue of the firm8s import activities.
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C. #OST ENTR< AUDIT

Sec. *310. Re6uire"e t to Fee$ Recor(s. " #ll importers are re+uired to )eep at their principal place of business, in the manner prescribed by regulations to be issued by the Commissioner of Customs and for a period three &6' years from the date of importation, all the records of their importations and/or boo)s of accounts, business and computer systems and all customs commercial data including payment records relevant for the verification of the accuracy of the transaction value declared by the importers/customs bro)ers on the import entry.chan robles virtual law library #ll bro)ers are re+uired to )eep at their principal place of business, in the manner prescribed by regulations to be issued by the Commissioner of Customs and for a period of three &6' years from the date of importation copies of the above mentioned records covering transactions that they handle.1 Sectio *313. Co"$&i% ce Au(it or E2%"i %tio o! Recor(s. > -he importers/customs bro)ers shall allow any customs officer authori ed by the Bureau of Customs to enter during office hours any premises or place where the records referred to in the preceding section are )ept to conduct audit examination, inspection, verification and/or investigation of those records either in relation to specific transactions or to the ade+uacy and integrity of the manual or electronic system or systems by which such records are created and stored. For this purpose. # duty authori ed customs officer shall be full and free access to all boo)s, records, and documents necessary or relevant for the purpose of collecting the proper duties and taxes. In addition, the authori ed customs officer may ma)e copies of, or ta)e extracts from any such documents. -he records or documents must, as soon as practicable after copies of such have been ta)en, be returned to the person in charge of such documents. # copy of any such document certified by or on behalf of the importer/bro)er is admissible in evidence in all courts as if it were the original. #n authori ed customs officer is not entitled to enter any premises under this 4ection unless, before so doing, the officer produces to the person occupying or apparently in charge of the premises written evidence of the fact that he or she is an authori ed officer. -he person occupying or apparently in charge of the premises entered by an officer shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this 4ection. .nless otherwise provided herein or in other provisions of law, the Bureau of Customs may, in case of disobedience, invo)e the aid of the proper regional trial court within whose %urisdiction the matter falls. -he court may punish contumacy or refusal as contempt. In addition, the fact that the importer/bro)er denies the authori ed customs officer full and free access to importation records during the conduct of a post"entry audit shall create a presumption of inaccuracy in the transaction value declared for their imported goods and constitute grounds for the Bureau of Customs to conduct a re"assessment of such goods. -his is without pre%udice to the criminal sanctions imposed by this Code and administrative sanctions that the Bureau of Customs may impose against contumacious importers under existing laws and regulations including the authority to hold delivery or release of their imported articles. Sectio *314. Sco$e o! t+e Au(it. G &a' -he audit of importers shall be underta)en! &7' 0hen firms are selected by a computer"aided ris) management system, the parameters of which are to be based on ob%ective and +uantifiable data and are to be approved by the
&9' 0hen errors in the import declaration are detected, &6' 0hen firms voluntarily re+uest to be audited, sub%ect to the approval of the Commissioner of Customs. &b' Bro)ers shall be audited to validate audits of their importer clients and/or fill information gaps revealed during an audit of their importers clients. Sectio *315. Docu"e ts i Forei) ;% )u%)e. > 0here a document in a foreign language is presented to a customs officer in relation to the carrying out of any duty or the exercise of any power of the Bureau of Customs under this Code, said document in a foreign language must be accompanied with a translation in the official language of this country.1 Sec. *317. Recor(s to -e Fe$t b, Custo"s. : -he Bureau of Customs shall li)ewise )eep a record of audit results in a database of importer and bro)er profiles, to include but not be limited to! &a' #rticles of Incorporation, &b' -he company structure, which shall include but not be limited to! &7' Incorporators and Board of ;irectors, &9' <ey officers, andchan robles virtual law library &6' $rgani ational structure, &c' <ey importations, &d' Privileges en%oyed, &e' Penalties, and &f' 2is) category&ies'.
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CAO --2001 .. Com)lian"e Audit 1. Im!orter 7C$ tom -ro4er ha## a##o2 an% C$ tom o""icer a$thorized -% the Commi ioner o" C$ tom to enter during office hours an% !remi e or !#ace 2here the record are 4e!t to cond$ct a$dit) e6amination) in !ection) veri"ication and7or inve ti,ation o"0 a. doc$ment "#o2 -. "inancia# "#o2 c. ,ood inventor% d. other -$ ine !roce e Nece ar%7re#evant in determinin, the ade5$ac% and inte,rit% o" the man$a#7e#ectronic % tem7 -% 2hich $ch record are created and tored and to en $re com!#iance 2ith C$ tom #a2 and e6i tin, r$#e and re,$#ation >G

2. A$thorized C$ tom o""icer ma% re5$ire im!orter and7or -ro4er to ma4e certi"ied co!ie o" an% $ch doc$ment 7e6tract :an% record m$ t -e ret$rned to c$ todian 2ithin 2< ho$r 3. co!% o" $ch doc$ment certi"ied -%7on -eha#" o" the im!orter7-ro4er0 admi evidence in a## co$rt a i" it 2ere ori,ina# i-#e in : $cce "$# a!!#icant "irm ha## -e cho en $ in, criteria that determine their re !ective ri 4 #eve# :"oc$ on determinin, 2hether the "irmF % tem and !roced$re ) !artic$#ar#% it inventor%) "inancia# and record:4ee!in, % tem ) a## #ead to the ,eneration o" com!#iant c$ tom dec#aration 2. En"orced com!#iance a$dit0 cond$cted on "irm that are not inc#$ded in the com!#iance !ro,ram 8 have -een "o$nd to have com!#iance i $e :cho en "rom amon, tho e ta,,ed "or a$dit0 a. -% the co##ector o" c$ tom a a re $#t o" ;CRC revie2 -. -% TIRAU created $nder CSO ?(:2((1 a a re $#t o" it !eriodic ana#% i c. a a re $#t o" en"orcement o!eration
<. a$thorized c$ tom o""icer s!all not enter an+ )remises /N01%% -e"ore doin, o) the o""icer !rod$ce to the !er on in char,e o" the !remi e the ""0 a. d$!#icate ori,ina# o" the AUDIT NOTIFICATION 1ETTER -. o""icia# c$ tom ID ?. Un#e other2i e !rovided) the HOC ma%) in ca e o" di o-edience) invo4e the aid o" the !ro!er RTC 27n 2ho e 9$ri diction the matter "a## '. 27o !re9$dice to crimina# anction im!o ed -% #a2 and admini trative anction that the HOC ma% im!o e a,ain t cont$macio$ im!orter ) inc#$din, a$thorit% to ho#d de#iver% or re#ea e o" their im!orted artic#e C. %"o)e o# t!e Com)lian"e Audit 1. Audit underta2en 3!en: a. "irm are e#ected -% a com!$ter:aided ri 4 mana,ement % tem) !arameter o" 2hich -a ed on o-9ective and 5$anti"ia-#e data 2hich ha## inc#$de &not e6c#$ ive+0 >re#ative ma,nit$de o" c$ tom reven$e "rom the "irm >rate o" d$tie o" the "irmF im!ort >com!#iance trac4 record o" the "irm >a e ment "o the ri 4 to reven$e o" the "irmF im!ort activitie -. 2hen error in the im!ort dec#aration are detected) i" $ncorrected 2o$#d re $#t in substantial revenue loss/grave distortion of relevant statistical data c. "irm vo#$ntar% re5$e t 2. Hro4er ha## -e a$dited onl+ to validate audits o# t!eir im)orters4 #ill in in#ormation a)s revealed d$rin, a$dit o" im!orter c#ient 5. Condu"t o# Com)lian"e Audit
H. *ro"i#in, and In"ormation Ana#% i a. ,atherin, in"ormation -% do2n#oadin, c$ tom data on the tar,eted im!orter) co##atin, in"ormation "rom other o$rce -oth interna##% and e6terna##% -. !ro"i#in, the com!an%F activitie on the -a i o" the ca!t$red data c. identi"%in, ri 4 hi!ment accordin, to i $e invo#ved "or veri"ication !$r!o e d. am!#in, o" e6ce!tion re!ort accordin, to nat$re o" variance e. revie2in, o" !a t deci ion o" HOC vi :J:vi the e#ected hi!ment ". !re!arin, a re!ort "or the Commi ioner to erve a -a i "or the ,rant o" a$thorit% to erve a -a i "or the ,rant o" a$thorit% to cond$ct "ie#d a$dit C. A$dit Noti"ication D. A$dit *re!aration7A$dit *#an E. *re:A$dit Con"erence 2ith A$ditee F. Cond$ct o" A$dit *ro!er D Fie#d A$dit E. E6it Con"erence H. A$dit Re!ortin, I. A$dit Monitorin, and Im!#ementation
D. Duris(ictio o! t+e Co&&ector o! Custo"s o'er i"$ort%tio o! Arti&es

Sectio 1204. Duris(ictio o! Co&&ector O'er I"$ort%tio o! Artic&es "Collector shall! 5cause all articles entering the %urisdiction of his district and destined for importation through his port to be entered at the custom house 5cause all articles to be appraised and classified 5assess and collect duties, taxes and other charges theron 5hold possession of all imported articles upon which duties, taxes and other charges have not been paid or secured Sectio 1205. Duris(ictio o! Co&&ector O'er Artic&es o! #ro+ibite( I"$ort%tio "duty of collector to exercise such %urisdiction in respect thereto as will prevent importation or otherwise secure compliance with all legal re+uirements
A"e ("e ts CAO o. 2>2002

(*. Com)lian"e Audit O)erations *endin, the creation o" *o t Entr% A$dit O""ice) the !o t entr% a$dit % tem ha## -e initia##% hand#ed -% the interim *o t Entr% A$dit Unit a de"ined $nder C$ tom S!ecia# Order No. ?(:2((1 *EA *roce 0 A. Se#ectin, Firm "or A$dit $ in, Ri 4 Mana,ement A!!roach0 2 t%!e o" a$dit 1. ;O1UNTARI COM*1IANCE AUDIT0 cond$cted $nder HOCF Com!#iance *ro,ram) deve#o!ed to ma4e com!#iant tho e "irm that contri-$te $! to A(C o" c$ tom reven$e :vo#$ntar%
6AO * CA 7AC8%: The O""ice o" the Director) En"orcement and Sec$rit% Service &ESS+) H$rea$ o" C$ tom ) received in"ormation re,ardin, the !re ence o"

$nta6ed vehic#e and !art in the !remi e o2ned -% *at Hao #ocated a#on, K$irino Aven$e) *arana5$e and Hond$ra St.) Ma4ati. A"ter cond$ctin, a surveillan"e o" the t2o !#ace ) re !ondent Ma9or Laime Ma,#i!on) Chie" o" O!eration and Inte##i,ence o" the ESS) recommended the issuan"e o# 3arrants o# sei9ure and detention. Di trict Co##ector o" C$ tom Tit$ ;i##an$eva issued t!e 3arrants o# sei9ure and detention. Ma,#i!on coordinated 2ith the #oca# !o#ice to a i t in the e6ec$tion o" the re !ective 2arrant o" eiz$re and detention.The team earched the t2o !remi e . The% 2ere barred #rom enterin t!e )la"e) -$t ome mem-er o" the team 2ere able to force themselves inside and were able to inspect the premises and noted that some articles were present which were not included in the list contained in the warrant. Amended 2arrant o" eiz$re and detention 2ere $- e5$ent#% i $ed -% ;i##an$eva. Con e5$ent#% c$ tom !er onne# tarted ha$#in, the artic#e !$r $ant to the amended 2arrant . Narci o Lao and Hernardo Em!e%nado "i#ed a ca e "or In9$nction and Dama,e 2ith !ra%er "or Re trainin, Order and *re#iminar% In9$nction -e"ore RTC Ma4ati Hranch ?' on A$,$ t 2@) 1BB( a,ain t re !ondent . On the ame date) the tria# co$rt i $ed a Tem!orar% Re trainin, Order. Re !ondent "i#ed a Motion to Di mi on the ,ro$nd that RTC ha no 9$ri diction over the $-9ect matter) c#aimin, that it 2a the H$rea$ o" C$ tom that had e6c#$ ive 9$ri diction over it. RTC denied motion to di mi . Re !ondent "i#ed MFR . MFR 2a denied. CA et a ide the 5$e tioned order o" the tria# co$rt and en9oined it "rom "$rther !roceedin, 2ith the Ca e. The a!!e##ate co$rt a# o di mi ed the aid civi# ca e. ISSUE0 MON the RTC ha 9$ri diction over ca e 5$e tionin, the va#idit% o" eiz$re and "or"eit$re !roceedin, cond$cted -% the H$rea$ o" C$ tom HE1D0
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8!e R8C is devoid o# an+ "om)eten"e to )ass u)on t!e validit+ or re ularit+ o# sei9ure and #or#eiture )ro"eedin s "ondu"ted b+ t!e .ureau o# Customs and to en:oin or ot!er3ise inter#ere 3it! t!ese )ro"eedin s .8!e Colle"tor o# Customs sittin in sei9ure and #or#eiture )ro"eedin s !as e;"lusive :urisdi"tion to !ear and determine all ,uestions tou"!in on t!e sei9ure and #or#eiture o# dutiable oods. 8!e Re ional 8rial Courts are )re"luded #rom assumin "o ni9an"e over su"! matters even t!rou ! )etitions o# "ertiorari, )ro!ibition or mandamus. It i #i4e2i e 2e##: ett#ed that the !rovi ion o" the Tari"" and C$ tom Code and RA 112? NAn Act Creatin, the Co$rt o" Ta6 A!!ea# )N !eci"% the !ro!er "ora and !roced$re "or the venti#ation o" an% #e,a# o-9ection or i $e rai ed concernin, the e !roceedin, . A"tions o# t!e Colle"tor o# Customs are a))ealable to t!e Commissioner o# Customs, 3!ose de"ision, in turn, is sub:e"t to t!e e;"lusive a))ellate :urisdi"tion o# t!e Court o# 8a; A))eals and #rom t!ere to t!e Court o# A))eals. The r$#e that Re,iona# Tria# Co$rt have no revie2 !o2er over $ch !roceedin, i anchored $!on the !o#ic% o" !#acin, no $nnece ar% hindrance on the ,overnmentO drive) not on#% to !revent m$,,#in, and other "ra$d $!on C$ tom ) -$t more im!ortant#%) to render e""ective and e""icient the co##ection o" im!ort and e6!ort d$tie d$e the State) 2hich ena-#e the ,overnment to carr% o$t the "$nction it ha -een in tit$ted to !er"orm. The i##e,a#it% o" a eiz$re -% the Co##ector o" C$ tom doe not de!rive the H$rea$ o" C$ tom o" 9$ri diction thereon. The a##e,ation o" !etitioner re,ardin, the !ro!riet% o" the eiz$re ho$#d !ro!er#% -e venti#ated -e"ore the Co##ector o" C$ tom . Me have had occa ion to dec#are0 The Collector of Customs when sitting in forfeiture proceedings constitutes a tribunal expressly vested by law with jurisdiction to hear and determine the subject matter of such proceedings without any interference from the Court of irst !nstance" &A$%on, Hian v. Co$rt o" Ta6 A!!ea# ) et a#.) 1B SCRA 1(+.

1NR(01 vs *(N/<A NA8/R1 Certiorari and !rohi-ition !roceedin, 7AC8% : The then Co##ector o" C$ tom o" the *ort o" Mani#a i $ed a 2arrant o" eiz$re and detention a,ain t the Cadi##ac car invo#ved in thi ca e) the o2ner:c#aimant -ein, a certain Rodo#"o Ce za) a the ta6e and d$tie had not -een !aid.# h 7CITEP The 2arr : It 2a moreover ho2n in the !etition that the o2ner) Rodo#"o Ce za) had o#d $ch car to one Franci co Dee "rom 2hom re !ondent ;in$%a ac5$ired the ame. : ;in$%a "i#ed a com!#aint "or re!#evin in the a#a o" re !ondent L$d,e on the ,ro$nd o" a##e,ed i##e,a#it% o" the eiz$re 2hich) in the o!inion o" re !ondent ) did not con"er 9$ri diction on the Co##ector o" C$ tom . : *etitioner "i#ed a motion to di mi on the ,ro$nd that "or"eit$re !roceedin, had a#read% -een in tit$ted -e"ore the Co##ector o" C$ tom 2ho ha the o#e 9$ri diction to determine 5$e tion a""ectin, the di !o ition o" !ro!ert% $nder eiz$re a 2e## a the a- ence o" a ca$ e o" action. Thi 2a denied "or #ac4 o" merit. Th$ thi !etition. (%%/1 MON the co$rt o" "ir t in tance i ve ted 2ith 9$ri diction to entertain a com!#aint "or re!#evin "or the recover% o" a Cadi##ac car) $-9ect o" a eiz$re and "or"eit$re !roceedin, in the H$rea$ o" C$ tom =105 NO. The !revai#in, doctrine i that the e6c#$ ive 9$ri diction in eiz$re and "or"eit$re ca e ve ted in the Co##ector o" C$ tom !rec#$de a co$rt o" "ir t in tance "rom a $min, co,nizance over $ch a matter. Thi ha -een o) a noted) ince *aci v. Averia. Rea onin, a. The e6i tence o" the !o2er and the re,$#arit% o" the !roceedin, ta4en $nder it are di tinct "rom each other. The ,overnmenta# a,enc% concerned) the H$rea$ o" C$ tom ) i ve ted 2ith e6c#$ ive a$thorit%. Even i" it -e a $med that in the e6erci e o" $ch e6c#$ ive com!etence a taint o" i##e,a#it% ma% -e correct#% im!$ted)
@
the mo t that can -e aid i that $nder certain circ$m tance the ,rave a-$ e o" di cretion con"erred ma% o$ t it o" $ch 9$ri diction. It doe not mean ho2ever that corre !ondin,#% a co$rt o" "ir t in tance i ve ted 2ith com!etence 2hen c#ear#% in the #i,ht o" the a-ove deci ion the #a2 ha not een "it to do o.# h 7CILFOALOL-e"ore th -. Nthe Co$rt o" Fir t In tance ho$#d %ie#d to the 9$ri diction o" the Co##ector o" C$ tom . The 9$ri diction o" the Co##ector o" C$ tom i !rovided "or in Re!$-#ic Act 1B3@ 2hich too4 e""ect on L$#% 1) 1B?@) m$ch #ater than the L$diciar% Act o" 1B<A. It i a6iomatic that a #ater #a2 !revai# over a !rior tat$te. c. Moreover) on ,ro$nd o" !$-#ic !o#ic%) it i more rea ona-#e to conc#$de that the #e,i #ator intended to dive t the Co$rt o" Fir t In tance o" the !rero,ative to re!#evin a !ro!ert% 2hich i a $-9ect o" a eiz$re and "or"eit$re !roceedin, "or vio#ation o" the Tari"" and C$ tom Code. Other2i e) action "or "or"eit$re o" !ro!ert% "or vio#ation o" C$ tom #a2 co$#d ea i#% -e $ndermined -% the im!#e devi e o" re!#evin.N d. Section 23(3 o" the Tari"" and C$ tom Code re5$ire the Co##ector o" C$ tom to ,ive to the o2ner o" the !ro!ert% o$,ht to -e "or"eited 2ritten notice o" the eiz$re and to ,ive him the o!!ort$nit% to -e heard in hi de"en e. Thi !rovi ion c#ear#% indicate the intention o" the #a2 to con"ine in the H$rea$ o" C$ tom the determination o" a## 5$e tion a""ectin, the di !o a# o" !ro!ert% !roceeded a,ain t in a eiz$re and "or"eit$re ca e. The 9$dicia# reco$r e o" the !ro!ert% o2ner i not in the Co$rt o" Fir t In tance -$t in the Co$rt o" Ta6 A!!ea# ) and on#% a"ter e6ha$ tin, admini trative remedie in the H$rea$ o" C$ tom .N e Co##ector o" C$ tom i not "ina#. An a!!ea# #ie to the 5(%$O%(8(ON The 2rit o" certiorari !ra%ed "or i ,ranted) re !ondent L$d,e -ein, c#ear#% 2itho$t 9$ri diction. A%(AN 81R>(NA0%, (NC. * R(CA7OR8 18 A0 7AC8% :Section 1) RA No. A?(' !rovide that it ha## -e $n#a2"$# "or an% !er on to im!ort) ca$ e the im!ortation o") re,i ter) ca$ e the re,i tration o") $ e or o!erate ri,ht:hand drive vehic#e

:Noe# Ta-$e#o, et a# are d$#%:#icen ed im!orter o" vehic#e ) 2ho) -et2een A!ri# and Ma% 1BBA) im!orted @2 econdhand ri,ht:hand drive -$ e :Mhen the hi!ment arrived at the *ort o" Mani#a) the Di trict Co##ector o" C$ tom im!o$nded the vehic#e and ordered them tored at the 2areho$ e o" the A ian Termina# ) Inc. &ATI+ :Con"orma-#% 2ith Section 2'(@ o" the Tari"" and C$ tom Code) the Di trict Co##ector o" C$ tom i $ed Marrant o" Di traint a,ain t the hi!ment and et the a#e at !$-#ic a$ction :On Octo-er 2A) 1BBA) the Secretar% o" L$ tice rendered an o!inion tatin, that hi!ment o" ri,ht hand 2hee# vehic#e #oaded and e6!orted at the !ort o" ori,in -e"ore Fe-r$ar% 22) 1BBA 2ere not covered -% RA No. A?(' $n#e the ame 2ere #oaded and im!orted a"ter aid date. :On Novem-er 11) 1BBA) the im!orter ) "i#ed a com!#aint 2ith the RTC o" *ara=a5$e Cit%) a,ain t the Secretar% o" Finance) C$ tom Commi ioner) et a# "or re!#evin :The RTC ,ranted the a!!#ication "or a 2rit o" re!#evin on a -ond o" *12)((()(((.((. :The Chie" o" C$ tom *o#ice and "o$r &<+ c$ tom !o#icemen !revented the Sheri"" and the !o#icemen a i tin, him "rom ta4in, c$ tod% o" the vehic#e ) c#aimin, that the Di trict Co##ector o" C$ tom had 9$ri diction over the vehic#e . :On motion o" the !#ainti"" ) the co$rt i $ed an order directin, the *N* Director to a i t the Sheri"" in im!#ementin, the 2rit it i $ed :The Di trict Co##ector o" C$ tom a,reed to tran "er the c$ tod% o" the vehic#e to the RTC) on the condition that the re5$ired ta6e ) d$e ) and other char,e -e !aid. :On Novem-er 2@) 1BBA) the de"endant ) thro$,h the OSE) "i#ed a motion ee4in, the recon ideration o" the RTC Order on the ,ro$nd that the RTC ha no 9$ri diction over the vehic#e $-9ect o" eiz$re and detention -e"ore the H$rea$ o" C$ tom . The ATI "i#ed a motion "or the co$rt to a##o2 the vehic#e to remain in it 2areho$ e. :On Decem-er 1) 1BBA) the ATI "i#ed a Third:*art% C#aim over the hi!ment) a##e,in, that it had a #ien over the vehic#e "or acc$m$#ated and $n!aid tora,e and arra tre char,e ) and 2har"a,e d$e :He"ore the co$rt co$#d re o#ve the motion ) !#ainti"" "i#ed a NMotion7Notice to Di mi 7Mithdra2 Com!#aintN a,ain t the de"endant on the ,ro$nd that the% had a,reed to the im!#ementation o" the 2rit o" re!#evin
A
:ATI "i#ed a Motion "or Intervention and "or Admi ion o" it Com!#aint:in:Intervention) a##e,in, that it had a #ien on the vehic#e "or acc$m$#ated tora,e and arra tre char,e and 2har"a,e d$e . :On A!ri# 2@) 1BBB) the co$rt i $ed an Order di mi in, the com!#aint :The OSE "i#ed a motion "or recon ideration. For it !art) ATI "i#ed a motion "or c#ari"ication o" the order) and a# o !#eaded "or the co$rt to admit it Com!#aint:in:Intervention :On Se!tem-er 23) 1BBB) the RTC i $ed it Order di mi in, the Com!#aint:in:Intervention :ATI "i#ed a motion "or recon ideration) 2hich the co$rt denied on L$#% 31) 2(((. :ATI "i#ed a *etition "or Certiorari $nder R$#e '? -e"ore the CA :On Novem-er 3() 2((<) the CA rendered 9$d,ment di mi in, the !etition "or #ac4 o" merit. The a!!e##ate co$rt r$#ed that the RTC had no 9$ri diction over the com!#aint "i#ed -% re !ondent ) ince the Co##ector o" C$ tom ittin, in eiz$re and "or"eit$re !roceedin, had the e6c#$ ive 9$ri diction to hear and determine a## 5$e tion re#atin, on the eiz$re and "or"eit$re o" d$tia-#e ,ood . Since the RTC had no 9$ri diction over the main ca e) it 2a a# o -ere"t o" a$thorit% to hear the third:!art% c#aim or the com!#aint:in: intervention "i#ed -% ATI. :ATI "i#ed a motion "or recon ideration) 2hich the CA denied) hence) thi !etition (%%/1 MON the #o2er co$rt erred in di mi in, ATIO !etition
=105 No. :Section '(2 o" the TCC !rovide that the H$rea$ o" C$ tom ha## e6erci e e6c#$ ive 9$ri diction over eized and "or"eited car . It i ta 4ed to en"orce tari"") and $!ervi e and contro# c$ tom #a2 and a## other #a2 ) r$#e and re,$#ation re#atin, to the tari"" and c$ tom admini tration= and to $!ervi e and contro# a## im!ort and e6!ort car,oe ) #oaded or tored in !ier ) termina# "aci#itie ) inc#$din, container %ard and "rei,ht tation ) "or the !rotection o" ,overnment reven$e . Under Section 23(1 o" the TCC) the Co##ector o" C$ tom i em!o2ered to ma4e a eiz$re o" car,oe and i $e a recei!t "or the detention thereo" :Section 2?3(. *ro!ert% S$-9ect o" For"eit$re Under Tari"" and C$ tom 1a2 . An% vehic#e) ve e# or aircra"t) car,o) artic#e and

o-9ect ha##) $nder the "o##o2in, condition -e $-9ect to "or"eit$re0 &"+ An% artic#e the im!ortation or e6!ortation o" 2hich i e""ected or attem!ted contrar% to #a2) or an% artic#e o" !rohi-ited im!ortation or e6!ortation) and a## other artic#e 2hich) in the o!inion o" the Co##ector) have -een $ ed) are or 2ere entered to -e $ ed a in tr$ment in the im!ortation or e6!ortation o" the "ormer. :In Lao v. Co$rt o" A!!ea# ) it 2a he#d that the Re,iona# Tria# Co$rt are devoid o" an% com!etence to !a $!on the va#idit% or re,$#arit% o" eiz$re and "or"eit$re !roceedin, cond$cted -% the H$rea$ o" C$ tom and to en9oin or other2i e inter"ere 2ith the e !roceedin, . It i the Co##ector o" C$ tom ) ittin, in eiz$re and "or"eit$re !roceedin, ) 2ho ha e6c#$ ive 9$ri diction to hear and determine a## 5$e tion to$chin, on the eiz$re and "or"eit$re o" d$tia-#e ,ood . Action o" the Co##ector o" C$ tom are a!!ea#a-#e to the Commi ioner o" C$ tom ) 2ho e deci ion) in t$rn) i $-9ect to the e6c#$ ive a!!e##ate 9$ri diction o" the Co$rt o" Ta6 A!!ea# and "rom there to the Co$rt o" A!!ea# . :The r$#e that Re,iona# Tria# Co$rt have no revie2 !o2er over $ch !roceedin, i anchored $!on the !o#ic% o" !#acin, no $nnece ar% hindrance on the ,overnment drive) not on#% to !revent m$,,#in, and other "ra$d $!on C$ tom ) -$t more im!ortant#%) to render e""ective and e""icient the co##ection o" im!ort and e6!ort d$tie d$e the State) 2hich ena-#e the ,overnment to carr% o$t the "$nction it ha -een in tit$ted to !er"orm. :The RTC had no 9$ri diction to ta4e co,nizance o" the !etition "or re!#evin -% re !ondent herein) i $e the 2rit o" re!#evin and order it en"orcement. The RTC ho$#d have di mi ed the !etition "or re!#evin at the o$t et. :Mhi#e it i tr$e that the Di trict Co##ector o" C$ tom a##o2ed the re#ea e o" the vehic#e and the tran "er thereo" to the c$ tod% o" the RTC $!on the !a%ment -% the !rivate re !ondent o" the re5$ired ta6e ) d$tie and char,e ) he did not there-% #o e 9$ri diction over the vehic#e = neither did it ve t 9$ri diction on the RTC to ta4e co,nizance o" and a $me 9$ri diction over the !etition "or re!#evin. :The RTC cannot -e "a$#ted "or di mi in, !etitioner com!#aint:in: intervention. Con iderin, that it had no 9$ri diction over re !ondent action and over the hi!ment $-9ect o" the com!#aint) a## !roceedin, -e"ore it 2o$#d -e void. The RTC had no 9$ri diction to ta4e co,nizance o" the com!#aint:in:intervention and act thereon e6ce!t to di mi the ame. Moreover) con iderin, that intervention i mere#% anci##ar% and $!!#ementa# to the e6i tin, #iti,ation and never an inde!endent action) the di mi a# o" the !rinci!a# action nece ari#% re $#t in the di mi a# o" the com!#aint:in:intervention. 1i4e2i e) a co$rt 2hich ha no 9$ri diction over the !rinci!a# action ha no 9$ri diction over a com!#aint:in:intervention.
Section ##$c% of the &udiciary 'ct of ()#* lodges in the Court of irst !nstance original jurisdiction in all cases in which the value of the property in controversy amounts to more than ten thousand pesos" This original jurisdiction of the Court of irst !nstance+ when exercised in an action for recovery of personal property which is a subject of a forfeiture proceeding in the Bureau of Customs+ tends to encroach upon+ and to render futile+ the jurisdiction of the Collector of Customs in sei,ure and forfeiture proceedings" This is precisely what too- place in this case"l h .OAC * $1O$01 NA8/R1 A!!ea# -% certiorari $nder R$#e <? 7AC8% : Ra$# Ha i#io Hoac) Ramon Het$in Eo#on,) Ce ar Fantone He#tran) Ro,er A#cantara Ha adre) and Hen9amin Ca taneda A#"on o are mem-er o" the *N*:CIDE. : The% 2ere char,ed 2ith vio#ation o" Sec. 22(3 in re#ation to Sec. 3'12 o" the Tari"" and C$ tom Code in that 2itho$t #a2"$# a$thorit% or de#e,ation "rom the Co##ector o" C$ tom ) the% "#a,,ed do2n) earched and eized three &3+ container van con i,ned to La!an Tra4 $r!#$ &Qa4ia,e S$r!#$ +. : Att%. 1o$rde ;. Man,aoan,) then C$ tom Di trict Co##ector o" Ca,a%an de Oro Cit%) te ti"ied that the CIDE o!erative &herein !etitioner + did not have a 2ritten a$thorit% "rom the Commi ioner o" C$ tom or the Di trict Co##ector. Accordin, to her) Eo#on, c#aimed that the% had c#ear order "rom Hoac to o!en and earch the van . She in tr$cted her !er onne# to o!en the van on#% to ho2 that there 2a nothin, i##e,a# in their content . She !re!ared a #etter o" !rote t addre ed to Hoac -$t it 2a i,nored= hence) he "i#ed the in tant ca e.

: For the de"en e) Hoac te ti"ied that on L$#% 2@) 2((<) he 2a in Mani#a on #eave. He#tran a##e,ed#% in"ormed him that three container van 2ith contra-and 2ere re#ea ed -% the HOC= th$ ) Hoac in tr$cted Eo#on, and hi team to "#a, do2n the $-9ect van . A"ter the in !ection o" the van and 2itho$t "indin, an% contra-and) Hoac directed Eo#on, to #eave the !remi e . : The Sandi,an-a%an convicted the !etitioner . The anti:,ra"t co$rt r$#ed that !etitioner -e#on, to the cate,or% o" o""icer in Sec. 22(3&d+= th$ ) the% needed a 2ritten a$thorit% "rom the Commi ioner o" C$ tom or Di trict Co##ector in order to cond$ct earche ) eiz$re and arre t . In thi ca e) the co$rt aid) the !ro ec$tion e ta-#i hed the #ac4 o" aid 2ritten a$thorit%= even He#tran and Eo#on, admitted that the% did not have an% a$thorization to earch the van . : *etitioner a ert that the% did not cond$ct an% earch) eiz$re) or arre t= hence) there 2a no vio#ation o" the Tari"" and C$ tom Code. D$rin, the earch cond$cted in the con i,neeF 2areho$ e on L$#% 2A) 2((<) the em!#o%ee o" the o2ner o" the hi!ment $n#oaded the ,ood $nder HOC !er onne# $!ervi ion. *etitioner a##e,e that the% on#% 2itne ed the earch= the% did not ma4e an% eiz$re or arre t . A"ter earchin, the "ir t van and ha#" o" the econd van 2itho$t an% contra-and -ein, "o$nd) C$ tom *o#ice Iamit and Eodo% decided to to! the earch de !ite the re5$e t o" !etitioner to contin$e. Since the C$ tom *o#ice 2ere a#read% #eavin, the area) Hoac in tr$cted hi team to #eave the vicinit%. : *etitioner "$rther c#aim that the !o#iceF a$thorit% to to!) earch) and e""ect eiz$re and arre t) i" nece ar%) i no #on,er e6c#$ ive#% ve ted on the Co##ector o" C$ tom . Re,$#ar *N* mem-er are ,enera##% em!o2ered -% #a2 to e""ect arre t in accordance 2ith Re!$-#ic Act No. &RA+ 'B@?. : *etitioner contend that the% 2ere inve ti,atin, a !o i-#e connivance o" m$,,#er 2ith ome corr$!t c$ tom !er onne#. The% maintained that their act o" "#a,,in, do2n the container van 2a not connected 2ith the en"orcement o" the tari"" and c$ tom #a2 ) m$,,#in, -ein, a "orm o" economic a-ota,e 2hich i 2ithin the !o2er o" the *N*:CIDE to monitor and inve ti,ate. Th$ ) accordin, to them) no !rior a$thorit% "rom the Co##ector o" C$ tom i re5$ired in !er"ormin, their d$tie a !o#ice o""icer . He ide ) the% aid the% immediate#% coordinated 2ith the C$ tom *o#ice "or the #atter to cond$ct the act$a# earch o" the container van = hence) there 2a no vio#ation o" Sec. 22(3. (%%/1 MON !etitioner are ,$i#t% o" the crime char,ed
1(
=105 NO Reasoning - *etitioner ho$#d -e ac5$itted o" the char,e. The !ro ec$tion ha the -$rden o" !rovin, the ,$i#t o" the acc$ ed -e%ond rea ona-#e do$-t. In thi ca e) it i c#ear that !etitioner neither earched the container van nor e""ected eiz$re and arre t. : It ho$#d -e noted that the container van 2ere -ro$,ht to the con i,neeF 2areho$ e and not to the CIDE head5$arter . On L$#% 2A) 2((<) the container van 2ere earched -$t not -% !etitioner . The earch 2a act$a##% cond$cted -% C$ tom *o#ice Iamit and Eodo% on L$#% 2A) 2((<. The C$ tom *o#ice he#d the 4e% o" the van . F$rthermore) the van 2ere o!ened 2itho$t the !re ence o" the *N*:CIDEF team #eader) In !ector Eo#on,. The earch 2a $nder the direction o" the C$ tom *o#ice -eca$ e 2hen the C$ tom *o#ice decided to to! the earch) !etitioner acceded and #e"t the !remi e . : The "ore,oin, te timon%) 2hich Eo#on, corro-orated) 2a not di !$ted -% the !ro ec$tion. It i th$ ver% c#ear that the earch 2a not done -% !etitioner -$t -% the C$ tom *o#ice. *etitioner did not eize an%thin, nor arre ted an%-od%. The% mere#% o- erved the earch 2hich the% re5$e ted to -e $nderta4en to chec4 "or contra-and . Nota-#%) the con i,nee did not "i#e an% com!#aint a,ain t !etitioner . : The in"ormation char,ed !etitioner "or i##e,a##% "#a,,in, do2n) earchin,) and eizin, the three container van on L$#% 2@) 2((<. *etitioner ) ho2ever) co$#d not a# o -e he#d #ia-#e "or the e act . It i a "act that no earch and eiz$re o" the van 2a done on the ni,ht o" L$#% 2@) 2((<. The act o" "#a,,in, do2n the vehic#e i not amon, tho e !ro cri-ed -% Sec. 22(3 o" the Tari"" and C$ tom Code. Mere "#a,,in, do2n o" the container van i not !$ni ha-#e $nder the aid #a2. : A re,ard the econd i $e) there i no con"#ict -et2een the a"ore5$oted !rovi ion o" the Tari"" and C$ tom Code and RA 'B@?) a amended. The 9$ri diction o" the Commi ioner o" C$ tom i c#ear#% 2ith re,ard to c$ tom d$tie . Sho$#d the *N* $ !ect an%thin,) it ho$#d coordinate 2ith the HOC and o-tain the 2ritten a$thorit% "rom the Co##ector o" C$ tom in order to cond$ct earche ) eiz$re ) or arre t .

Disposition Deci ion rever ed and et a ide. II. REMEDIES A9AI;A-;E TO THE TAE#A<ER
Sec. 2*07. #rotest % ( #%,"e t u$o #rotest i Ci'i& M%tters. > 0hen a ruling or decision of the Collector is made whereby liability for duties, fees, or other money charge is determined, except the fixing of fines in sei ure cases, the party adversely affected may protest such ruling or decision by presenting to the Collector at the time when payment of the amount claimed to be due the *overnment is made, or within thirty days thereafter, a written protest setting forth his ob%ections to the ruling or decision in +uestion, together with the reasons therefor. No protest shall be considered unless payment of the amount due after final li+uidation has first been made. Sec. 2*08. #rotest E2c&usi'e Re"e(, i #rotest%b&e C%se. > In all cases sub%ect to protest, the interested party who desires to have the action of the Collector reviewed, shall ma)e a protest, otherwise, the action of the Collector shall be final and conclusive against him, except as to matters correctible for manifest error in the manner prescribed in section one thousand seven hundred and seven hereof. Sec. 2*10. For" % ( Sco$e o! #rotest. > 3very protest shall be filed in accordance with the prescribed rules and regulations promulgated under this section and shall point out the particular decision or ruling of the Collector to which exception is ta)en or ob%ection made, and shall indicate with reasonable precision the particular ground or grounds upon which the protesting party bases his claim for relief. -he scope of a protest shall be limited to the sub%ect matter of a single ad%ustment or other independent transaction, but any number of issue may be raised in a protest with reference to the particular item or items constituting the sub%ect matter of the protest. 14ingle ad%ustment1, as hereinabove used, refers to the entire content of one li+uidation, including all duties, fees, surcharges or fines incident thereto. chan robles virtual law library Sec. 2*11. S%"$&es to be Fur is+e( b, #rotesti ) #%rties. > If the nature of the articles permit, importers filing protests involving +uestions of fact must, upon demand, supply the Collector with samples of the articles which are the sub%ect matter of the protests. 4uch samples shall be verified by the custom official who made the classification against which the protest are filed. Sec. 2*12. Decisio or Actio b, Co&&ector i #rotest % ( Sei.ure C%ses. > 0hen a protest in proper form is presented in a case where protest in re+uired, the Collector shall reexamine the matter thus presented, and if the protest is sustained, in whole or in part, he shall enter the appropriate order, the entry reli+uidated if necessary. In sei ure cases, the Collector, after a hearing, shall in writing ma)e a declaration of forfeiture or fix the amount of the fine or ta)e such other action as may be proper. CAO No. *>2002? A"e ("e t o! CMO 25>88 o t+e #roce(ure i #rotest C%ses A)%i st t+e Deter"i %tio o! Custo"s 9%&ue % ( T%ri!! C&%ssi!ic%tio o! I"$orte( Goo(s U (er t+e 1TO 9%&u%tio Re)i"e I. $b%ective! provide clear and transparent procedures for the resolution of formal protest cases arising from valuation and classification issues resolved by the ?aluation and Classification 2eview Committee &?C2C' pursuant to C@$ on New Cargo Clearance Procedure
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II. Procedural Flow Collector of Customs 7. upon final determination of the Customs ?alue and/or the tariff classification by the ?C2C, importer adversely affected may file a !or"%& $rotest with the $FFIC3 $F -A3 C$BB3C-$2 $F C.4-$@4 through the B#0 ;I?I4I$N of the port concerned or its e+uivalent unit in order to dispute the assessment 5at the time when payment of the amount claimed to be due the government is made $r 5within 7C days thereafter 9. importer shall 5 state! reasons for protest 5pay doc)et fees : rate fixed by C#$ No. 7"DE# 6. Collector form panel of experts to hear the case! hearing officer from law division F C$$ ? and C$$ III from assessment unit G. Collector ensure that those involved in the initial assessment shall not be chosen as members of the expertHs panel C. panel shall hear all parties! authori ed to issue necessary notice of hearings, subpoenas and other interlocutory orders, receive evidence E. panel terminate proceedings, recommend decision to the Collector of Customs for approval /it+i *0 ( !ro" t+e 1st +e%ri ) I. protest cannot be resolved for meritorious reason within 6Jd! panel shall re+uest additional time ot e2cee(i ) *0( /it+i /+ic+ to reso&'e c%se K. Collector render FIN#B decision within 7C days from receipt of recommended decision F shall notify importer in writing of deci D. Collector renders deci #;?3243 -$ *$?32N@3N-! deci F entire records of the case L automatically elevated to Commissioner for #.-$@#-IC 23?I30 within C days from promulgation 7J. If importer not satisfied with CollectorHs deci &#;?3243 -$ I@P$2-32'! notice of appeal with collector 5within 7C days after notification in writing by Collector 5with a copy of the notice furnished to the Commissioner of Customs 77. Collector shall immediately transfer all the records of the protest F assailed deci to Co""issio er BCommissioner shall approve/modify/reverse the action or deci of Collector 5ta)e steps and ma)e such orders as may be necessary to give effect to his deci C$@@I44I$N32 $F C.4-$@4 79. #ppeal to Commissioner of Customs! perfected upon a. filing of notice of appeals b. payment of appeal doc)et fee in accordance with prescribed rates c. @emorandum of appeal at option of appellant &within 7C days from receipt of notice of deci' 76. #ppeal &regular/ automatic'! ;eliberated on by a permanent board of 6 created by Commissioner 5board! chaired by lawyer from the appellate division, @ems! legal service and 9 valuation experts from import and assessment service 7G. board shall recommend deci of Commissioner through proper channels 7C. Commissioner shall render a decision w/n 6J d from receipt of the records of the case from the Collector 5shall noticy the appellant/aggrieved party in writing 7E. w/n 6Jd from receipt of the record of the case! no decision by Commissioner is rendered L deemed that Commissioner upheld the CollectorHs decision 5if deci adverse to govHt! case shall li)ewise be elevated to 4oF for automatic review 7I. Commissioner decides in favor of *ovHt F no appeal perfected w/n reglementary period w/C-# L deci of Commissioner shall become final and executory

43C23-#2M $F FIN#NC3 7K. Commissioner renders a decision adverse to govHt! elevated to 4oF for %uto"%tic re'ie/ F records of proceedings forwarded to 4oF w/n Cd from promulgation of decision 7D.w/n 6Jd from receipt of the record of the case by 4oF no deci rendered! deci under review FIN#B #N; 3N3C.-$2M 9J. ;3CI $F 4$F! final and executory if no appeal to C-# C$.2- $F -#N #PP3#B4 97. Importer not satisfied with Commissioner of Customs/4oF deci! file an appeal with C-# w/n6Jd from receipt of a notice of such deci
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or vehicle shall be sufficient cause for the outright sei ure and confiscation of such beast or vehicle but the forfeiture shall not be effected if it is established that the owner of the means of conveyance used as aforesaid, is engaged as common carrier and not chartered or leased, or his agent in charge thereof at the time, has no )nowledge of the unlawful act, 7. #ny article sought to be imported or exported &7' 0ithout going through a customhouse, whether the act was consummated, frustrated or attempted, &9' By failure to mention to a customs official, articles found in the baggage of a person arriving from abroad, &6' $n the strength of a false declaration or affidavit executed by the owner, importer, exporter or consignee concerning the importation of such article, &G' $n the strength of a false invoice or other document executed by the owner, importer, exporter or consignee concerning the importation or exportation of such article, and &C' -hrough any other practice or device contrary to law by means of which such articles was entered through a customhouse to the pre%udice of the government. SEC. 23*1. #ro$erties Not SubIect to For!eiture i t+e Abse ce o! #ri"% F%cie E'i(e ce. : -he forfeiture of the vehicle, vessel, or aircraft shall hot be effected if it is established that the owner thereof or his agent in charge of the means of conveyance used as aforesaid has no )nowledge of or participation in the unlawful act! Provided, however, -hat a prima facie presumption shall exist against the vessel, vehicle or aircraft under any of the following circumstances! 7. If the conveyance has been used for smuggling at least twice before, 9. If the owner is not in the business for which the conveyance is generally used, and 6. If the owner is not financially in a position to own such conveyance. SEC. 23*2. Co (itio s A!!ecti ) For!eiture o! Artic&e. " #s regards imported or exported article or articles whereof the importation or exportation is merely attempted, the forfeiture shall be effected only when and while the article is in the custody or within the %urisdiction of the customs authorities or in the hands or sub%ect to the control of the importer, exporter, original owner, consignee, agent of other person effecting the importation, entry or exportation in +uestion, or in the hands or sub%ect to the control of some persons who shall receive, conceal, buy, sell or transport the same or aid in any such acts, with )nowledge that the article was imported, or was the sub%ect of an attempt at importation or exportation, contrary to law. SEC. 23**. E !orce"e t o! ;ie , A("i istr%ti'e Fi es, % ( For!eitures. > #dministrative fines and forfeitures shall be enforced by the sei ure of the vehicle, vessel or aircraft or other property sub%ect to the fine or forfeiture and by subse+uent proceedings in conformity with the provisions of Parts 9 and 6, -itle ?I, Boo) 77, of this Code. For the purpose of enforcing the lien for customs duties, fees and other charges on any sei ed or confiscated article in the custody of the Bureau of Internal 2evenue., the Bureau of Internal 2evenue is hereby authori ed to impose and enforce the said lien. SEC. 23*0. Sei.ure o! 9esse& or Aircr%!t !or De&i 6ue c, o! O/ er or O!!icer. " 0hen the owner, .agent, master, pilot in command or other responsible officer of any vessel or aircraft becomes liable to be fined under the tariff and customs laws on account of a delin+uency in the discharge of a duty imposed upon him with reference to the said vessel or aircraft, the vessel or aircraft itself may be sei ed and sub%ected in an administrative proceeding for the satisfaction of the fine for which such person would have been liable. SEC. 23*3. -ur(e o! #roo! i Sei.ure % (Hor For!eiture. " In all proceedings ta)en for the sei ure and/or forfeiture of any vessel, vehicle, aircraft, beast or articles under the provisions of the tariff and customs laws, the burden of proof shall lie upon the claimant! Provided, -hat probable cause shall be first shown for the institution of such proceedings and that sei ure and/or forfeiture was made under the circumstances and in the manner described in the preceding sections of this Code. SEC. 23*4. Sei.ure o! Ot+er Artic&es. " -he Commissioner of Customs and Collector of Customs any other customs officer, with the prior authori ation in writing by the Commissioner, may demand evidence of payment of duties and taxes on foreign articles openly offered for sale or )ept in storage, and if no such evidence can be produced, such articles may be sei ed and sub%ected to forfeiture proceedings! , however, -hat during such proceedings the person or entity
2. SEIZUREHFORFEITURE CASES
SEC. 23*0. #ro$ert, SubIect to For!eiture U (er T%ri!! % ( Custo"s ;%/s. " #ny vehicle, vessel or aircraft, cargo, article and other ob%ects shall, under the following conditions be sub%ected to forfeiture! a. #ny vehicle, vessel or aircraft, including cargo, which shall be used unlawfully in the importation or exportation of articles or in conveying and/or transporting contraband or smuggled articles in commercial +uantities into or from any Philippine port or place. -he mere carrying or holding on board of contraband or smuggled articles in commercial +uantities shall sub%ect such vessel, vehicle, aircraft, or any other craft to forfeiture! Provided, -hat the vessel, or aircraft or any other craft is not used as duly authori ed common carrier and as such a carrier it is not chartered or leased, b. #ny vessel engaging in the coastwise which shall have on board any article of foreign growth, produce, or manufacture in excess of the amount necessary for sea stores, without such article having been properly entered or legally imported, c. #ny vessel or aircraft into which shall be transferred cargo unladen contrary to law prior to the arrival of the importing vessel or aircraft at her port of destination, d. #ny part of the cargo, stores or supplies of a vessel or aircraft arriving from a foreign port which is unladen before arrival at the vessel8s or aircraft8s port of destination and without authority from the customs officials, but such cargo, ship or aircraft stores and supplies shall not be forfeited if such unlading was due to accident, stress of weather or other necessity and is subse+uently approved by the Collector, e. #ny article which is fraudulently concealed in or removed contrary to law from any public or private warehouse, container yard or container freight station under customs supervision, f. #ny article the importation or exportation of which is effected or attempted contrary to law, or any article of prohibited importation or exportation, and all other articles which, in the opinion of the Collector, have been used, are or were entered to be used as instruments in the importation or the exportation of the former, g. .nmanifested article found on any vessel or aircraft if manifest therefore is re+uired, h. 4ea stores or aircraft stores ad%udged by the Collector to be excessive, when the duties assessed by the Collector thereon are not paid or secured forthwith upon assessment of the same, i. #ny pac)age of imported article which is found by the examining official to contain any article not specified in the invoice or entry, including all other pac)ages purportedly containing imported articles similar to those declared in the invoice or entry to be. the contents of the misdeclared pac)age, Provided, -hat the Collector is of the opinion that the misdeclaration was contrary to law, %. Boxes, cases, trun)s, envelopes and other containers of whatever character used as receptacle or as device to conceal article which is itself sub%ect to forfeiture under the tariff and customs laws or which is so designed as to conceal the character of such articles, ). #ny conveyance actually being used for the transport of articles sub%ect to forfeiture under the tariff and customs laws, with its e+uipage or trappings, and any vehicle similarly used, together with its e+uipage and appurtenances including the beast steam or other motive power drawing or propelling the same. -he mere conveyance of contraband or smuggled articles by such beast

for whom such articles have been shall be given the opportunity to prove or show the source of such articles and the payment of duties and taxes thereon. CAO No. ?-?@: Rules and Re ulations Aovernin t!e (ssuan"e o# Barrants o# %ei9ure and 5etention, t!e Condu"t o# %ei9ure $ro"eedin s and $ro"edure in A))eals to t!e Commissioner o# Customs and to t!e %e"retar+ o# 7inan"eC Tit#e I Tit#e and Con tr$ction Tit#e II Eenera# *rovi ion .Sec3/ Co##ector o" C$ tom $!on ma4in, an% eiz$re s!all issue a 3arrant #or t!e detention o# t!e )ro)ert+ .Sec</ O2ner7im!orter de ire to ec$re the re#ea e o" the !ro!ert% $nder eiz$re "or #e,itimate $ e) Co##ector o" C$ tom ha## $rrender it u)on "i##in, o" a $""icient ca h -ond in an amo$nt to -e "i6ed -% the Co##ector o" C$ tom ) $-9ect to the "o##o2in, condition 0 a. amo$nt o" ca h -ond ha## not in an% ca e -e #e than the a!!rai ed va#$e o" the artic#e !#$ "ine) e6!en e and co t that ma% -e ad9$d,ed in the ca e. A**RAISED ;A1UE0 d$tia-#e va#$e o" artic#e 8 d$tie ) ta6e ) and other c$ tom char,e -. no !rima "acie evidence o" "ra$d attendant to im!ortation c. not !rohi-ited im!ortation d. re#ea e $nder ca h -ond a!!roved -% the Commi ioner .Sec?/ re#ea e o" !ro!ert% $nder ca h -ond0 SHA11 NOT RE1IE;E THE OMNER OR IM*ORTER o" the ,ood "rom CRIMINA1 1IAHI1ITI ari in, "rom the im!ortation7e6!ortation o" the hi!ment Tit#e III Ero$nd "or the i $ance o" 2arrant o" eiz$re and detention !roceedin, -e"ore hearin, o""icer .Sec'/ !ro-a-#e ca$ e that artic#e 2ere im!orted7e6!orted contrar% to TCC0 the Co##ector o" C$ tom ha## i $e a Marrant o" Seiz$re and Detention in C$ tom .Sec@/ Forma# Hearin,0 $ncontroverted "act ha## -e ti!$#ated on and i $e to -e heard ha## -e a,reed $!on in order to a--reviate the !roceedin, >determine MON there i a vio#ation o" #a2 >Di trict Co##ector o" C$ tom ha## render deci Tit#e I; Revie2 -% Commi ioner .SecA/ A!!ea#0 !er on7!art% a,,rieved -% the deci ion7action o" Co##ector in an% ca e o" SEIRURE >ma% "i#e a 2ritten notice to Co##ector o" C$ tom >27n 1?d a"ter recei!t o" the notice in 2ritin, o" action7deci ion o" the Co##ector o" C$ tom >co!% "$rni hed 2ith Commi ioner o" C$ tom o" intention to a!!ea# >$!on !er"ection o" a!!ea#0 Co##ector ha## immediate#% tran mit a## the record o" the !roceedin, to Commi ioner >A!!ea# "i#ed -e%ond 1?d0 deemed di mi ed >Commi ioner ha## a!!rove7modi"%7rever e the Co##ector o" C$ tom deci7action 8 ta4e $ch te! and ma4e a!!ro!riate order .SecB/ A$tomatic Revie2 -% the Commi ioner on Action or Deci ion o" the Co##ector o" C$ tom adver e to ,overnment
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>record o" the ca e0 e#evated 27n ? da% "rom !rom$#,ation o" deci o" co##ector o" c$ tom >"rom recei!t o" the record o" the ca e0 Commi ioner render deci on a$tomatic revie2 27n 3(d >deci o" Commi ioner RE;ERSINE THE AD;ERSE DECI o" Co##ector) on a$tomatic revie2) ha## -e FINA1 AND ESECUTORI .Sec1(/ Commi ioner AFFIRMS Adver e deci ion o" Co##ector0 record o" the !roceedin, ha## -e e#evated to SoF 27n ?d "rom !rom$#,ation o" the deci -% Commi ioner >Commi ioner "ai# to render a deci on a$tomatic revie2 27n 3(d "rom recei!t o" record 0 deemed a$tomatica##% a!!ea#ed to SoF= record o" the !roceedin, ha## -e e#evated -% Commi ioner to the SoF 27n ?d a"ter the #a! e o" 3(d >adver e deci o" Co##ector AFFRIMED -% SoF0 a""irmed deci "ina# and e6ec$tor% >va#$e o" the im!orted artic#e $nder eiz$re0 *?480 adver e deci o" Co##ector deemed a$tomatica##% a!!ea#ed to SoF >27n 3(d "rom recei!t o" the record o" the !roceedin, -% SoF) no deci i rendered -% him0 Commi ioner7Co##ectorF deci $nder a!!ea# ha## -e "ina# and e6ec$tor% .Sec11/ deci o" Co##ector on the merit 2hich "$##% or !artia##% re#ea e the hi!ment $nder eiz$re T adver e deci ion $-9ect to a$tomatic revie2 .Sec12/ eiz$re !roceedin,0 re#ea e o" im!orted artic#e ha## not -e a##o2ed $n#e and $nti# a deci ion o" the Co##ector ha -een a""irmed in 2ritin, -% the commi ioner >
$a"is v. $amaran 7a"ts *aci i the Actin, Co##ector o" C$ tom "or the *ort o" Mani#a. The ca e i !rohi-ition !roceedin, a,ain t A i tant Cit% Fi ca# o" Mani#a) Man$e# R. *amaran. Re !ondent Ricardo Santo i the o2ner o" a Merc$r% a$tomo-i#e) mode# 1B?@. It 2a -ro$,ht into thi co$ntr% 2itho$t the !a%ment o" c$ tom d$t% and ta6e ) it o2ner Dona#d Lame Hatch -ein, ta6:e6em!t. It 2a "rom him that re !ondent Santo ac5$ired aid car. He !aid *311.(( "or c$ tom d$t% and ta6e . 1and Tran !ortation Commi ion re!orted that $ch a$tomo-i#e 2a a Nhot car.N H% virt$e thereo") !etitioner *aci ) a certained that a#tho$,h the amo$nt o" *311.(( 2a a#read% !aid "or c$ tom d$t%) the amo$nt co##ecti-#e on aid car ho$#d -e *2)?((.(() more or #e . *aci in tit$ted eiz$re !roceedin, and i $ed a 2arrant o" eiz$re and detention. Ricardo Santo "i#ed a crimina# com!#aint "or $ $r!ation o" 9$dicia# "$nction 2ith the Cit% Fi ca# o" Mani#a hand#ed -% *amaran. (ssue MON the Co##ector o" C$ tom ha the a$thorit% to i 2arrant o" eiz$re $e the

=eld Ie ) a Actin, Co##ector o" C$ tom "or the *ort o" Mani#a) he had the re5$i ite a$thorit% "or the i $ance o" the conte ted 2arrant o" eiz$re and detention "or the a$tomo-i#e o2ned -% re !ondent Ricardo Santo . It i to -e admitted that the con tit$tiona# ri,ht to -e "ree "rom $nrea ona-#e earch and eiz$re m$ t not -e eroded or ema c$#ated. The ri,ht to !rivac% o hi,h#% va#$ed in civi#ized ociet% m$ t not -e di#$ted. On#% $!on com!#iance then 2ith the !ro!er re5$i ite mandated -% #a2 ho$#d oneO !o e ion -e $-9ect to eiz$re. That m$ch i c#ear. Under the 1B3? Con tit$tion the intervention o" a 9$d,e 2a 2e##:ni,h indi !en a-#e. So it 2a $nder the *hi#i!!ine Hi## o" 1B(2 and the *hi#i!!ine A$tonom% Act o" 1B1'. Even then) ho2ever) a ho2n -% the #eadin, ca e o" U% Qhe%tin v. ;i##area#) a 1B2( deci ion) it 2a the acce!ted !rinci!#e "o##o2in, the #andmar4 ca e o" Ho%d v. United State t!at t!e sei9ure o# oods "on"ealed to avoid t!e duties on t!em is not embra"ed 3it!in t!e )ro!ibition o# t!is "onstitutional uarantee. More to the !oint. In a recent deci ion o" thi Co$rt) *a!a v. Ma,o) 2here the eiz$re o" a##e,ed m$,,#ed ,ood 2a e""ected -% a !o#ice o""icer 2itho$t a earch 2arrant) thi Co$rt) thro$,h L$ tice Ra#divar) tated0 N*etitioner Martin A#a,ao and hi com!anion !o#icemen had a$thorit% to e""ect the eiz$re 2itho$t an% earch 2arrant i $ed -% a com!onent co$rt. The Tari"" and C$ tom Code doe not re5$ire aid 2arrant in the in tant ca e. 8!e Code aut!ori9es )ersons !avin )oli"e aut!orit+ under %e"tion 220@ o# t!e 8ari## and Customs Code to enter, )ass t!rou ! or sear"! an+ land, in"losure, 3are!ouse, store or buildin , not bein a d3ellin !ouseD and also to ins)e"t, sear"! and e;amine an+ vessel or air"ra#t and an+ trun2, )a"2a e, bo; or envelo)e or an+ )erson on board, or sto) and sear"! and e;amine an+ ve!i"le, beast or )erson sus)e"ted o# !oldin or "onve+in an+ dutiable or )ro!ibited arti"le introdu"ed into t!e $!ili))ines "ontrar+ to la3, 3it!out mentionin t!e need o# a sear"! 3arrant in said "ases. .ut in t!e sear"! o# a d3ellin !ouse, t!e Code )rovides t!at said Ed3ellin !ouse ma+ be entered and sear"!ed onl+ u)on 3arrant issued b+ a :ud e or :usti"e o# t!e )ea"e . . . .E (t is our "onsidered vie3, t!ere#ore, t!at e;"e)t in t!e "ase o# t!e sear"! o# a d3ellin !ouse, )ersons e;er"isin )oli"e aut!orit+ under t!e "ustoms la3
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ma+ e##e"t sear"! and sei9ure 3it!out a sear"! 3arrant in t!e en#or"ement o# "ustoms la3s.F The !#enit$de o" the com!etence ve ted in c$ tom o""icia# i th$ $ndenia-#e. No $ch con tit$tiona# 5$e tion then can !o i-#% ari e. So m$ch i im!#icit "rom the ver% #an,$a,e o" Section 22(? o" the Tari"" and C$ tom Code. It !ea4 "or it e#". It i not $ ce!ti-#e o" an% mi inter!retation. The !o2er o" !etitioner i th$ mani"e t. It -ein, $ndenia-#e then that the o#e -a i "or an a##e,ed crimina# act !er"ormed -% him 2a the !er"ormance o" a d$t% accordin, to #a2) there i not the #i,hte t 9$ ti"ication "or re !ondent A i tant Cit% Fi ca# to contin$e 2ith the !re#iminar% inve ti,ation a"ter hi attention 2a d$#% ca##ed to the !#ain and e6!#icit #e,a# !rovi ion that did not $""er at a## "rom an% con tit$tiona# in"irmit%. The remed% o" !rohi-ition #ie . Mhat 2a done -% !etitioner 2a trict#% in accordance 2ith ett#ed !rinci!#e o" #a2. No do$-t need -e entertained then a to the va#idit% o" the i $ance o" the 2arrant o" eiz$re and detention. Hi #ia-i#it% "or an% a##e,ed $ $r!ation o" 9$dicia# "$nction i non: e6i tent. S$ch im!$tation 2a de"inite#% $n"o$nded. Even i" ho2ever the matter 2ere #e c#ear) the c#aim that the earch and eiz$re c#a$ e 2a in e""ect n$##i"ied i hard#% im!re ed 2ith merit. Con iderin, that 2hat i invo#ved i an a##e,ed eva ion o" the !a%ment o" c$ tom d$tie . 5is)osition MHEREFORE) the 2rit o" !rohi-ition !ra%ed "or i ,ranted and the $cce or o" re !ondent Man$e# R. *amaran) no2 a crimina# circ$it co$rt 9$d,e) or an% one in the Cit% Fi ca#O O""ice o" the Cit% o" Mani#a to 2hom the com!#aint a,ain t !etitioner "or $ $r!ation o" 9$dicia# "$nction ari in, o$t o" the i $ance o" the 2arrant o" eiz$re and detention) $-9ect:matter o" thi #iti,ation) ha -een a i,ned) i !er!et$a##% re trained "rom actin, thereon e6ce!t to di mi the ame. No co t . *. RE9IE1 OF #ROTESTHSEIZURE CASES -< COMMISSIONER OF CUSTOMSHSECRETAR< OF FINANCE A. RE9IE1 U#ON RE=UEST OF TAE#A<ER
SEC. 2*08. #rotest E2c&usi'e Re"e(, i #rotest%b&e, C%se. > In all cases sub%ect to pr interested party who desires to have the action of the Collector reviewed, shall ma)e a protest, other action of the Collector shall be final and conclusive against him, except as to matters collectible for error in the manner prescribed in section one thousand seven hundred and seven hereof.

SEC. 2*10. For" % ( Sco$e o! #rotest. " 3very protest shall be filed in accordance prescribed rules and regulations promulgated under this section and shall point out the particular de ruling, of the Collector to which exception is ta)en or ob%ection made, and shall indicate with re precision the particular ground or grounds upon which the protesting party bases his claim for relief. -he scope of a protest shall be limited to the sub%ect matter of a single ad%ustment independent transaction, but any number of issue may be raised in a protest with reference to the particular item or items constituting the sub%ect matter of the protest. SEC. 2*11. S%"$&es to be Fur is+e( b, #rotesti ) #%rties. " If the nature of the articles permit, importers filing protests involving +uestions of fact must, upon demand, supply the Collector with samples of the articles which are the sub%ect matter of the protest. 4uch samples shall be verified by the customs official who made the classification against which the protest are filed. SEC. 2*12. Decisio or Actio o! Co&&ector i #rotest % ( Sei.ure C%ses. " 0hen a protest in proper form is presented in a case where protest is re+uired, the Collector shall issue an order for hearing within fifteen &7C' days from receipt of the protest and hear the matter thus presented. .pon the termination of the hearing, the Collector shall render a decision within thirty &6J' days, and if the protest is sustained, in whole or in part, he shall ma)e the appropriate order, the entry reli+uidated necessary. In sei ure cases, the Collector, after a hearing shall in writing ma)e a declaration of forfeiture amount of the fine or ta)e such other action as may be proper. SEC. 2*1*. Re'ie/ o! Co""issio er. " -he person aggrieved by the decision or Collector in any matter presented upon protest or by his action in any case of sei ure may, within days after notification on writing by the Collector of his actions or decisions, file a written notice to the Collector with a copy furnished to the Commissioner of his intention to appeal the action or decision of the Collector to the Commissioner. -hereupon the Collector shall forthwith transmit all the recc, proceedings to the Commissioner, who shall approve, modify or reverse the action or decision of tOO and ta)e such steps and ma)e such orders as may be necessary to give effect to his decision! Provided, -hat when an appeal is filed beyond the period herein prescribed, the same shag be deemed dismissed. If in any sei ure proceedings, the Collector renders a decision adverse to the *overnment, such decision shall be automatically reviewed by the Commissioner and the records of the case elevated &C' days from the promulgation of the decision of the Collector. -he Commissioner shall render a decision on the automatic appeal within thirty &6J' days from receipts of the records of the case. If the Collector8O is reversed by the Commissioner, the decision of the Commissioner shall be final and executory! < the Collector8s decision is affirmed, or if within thirty &6J' days from receipt of the record of the caO Commissioner no decision is rendered or the decision involves imported articles whose published value is five million pesos &P C,JJJ,JJJ.JJ' or more, such decision shall be deemed automatically appealed to the 4ecretary of Finance and the records of the proceedings shall be elevated within five &C' days promulgation of the decision of the Commissioner or of the Collector under appeal, as the case may be, is affirmed by the 4ecretary of Finance, or within thirty &6J' days from receipt of the proceedings by the 4ecretary of Finance, no decision is rendered, the decision of the 4ecretary of Finance, or of the Commissioner, or of the Collector under appeal, as the case may be, shall become final and executory. In any sei ure proceeding, the release of imported articles shall not be allowed unless apd until a decision of the Collector has been confirmed in writing by the Commissioner of Customs &2.#. IEC7, Pune JG, 7DD6'.
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the Commissioner, and if the Collector8s decision would be affirmed by the Commissioner, such decision shall he automatically elevated to, and be finally reviewed by, the 4ecretary of Finance! Provided, however, -hat if within thirty &6J' days from receipt of the record of the case by the Commissioner or by. the 4ecretary of Finance, as the case may be, no decision is rendered by either of them, the decision under review shall be final and executory! Provided, further, -hat any party aggrieved by either the decision of the Commission or of the 4ecretary of Finance may appeal to the Court of -ax #ppeals within thirty &6J' days from receipt of a copy of such decision. For this purpose, 2epublic #ct numbered eleven hundred and twenty "five is hereby amended accordingly. 3xcept as provided in the preceding paragraph, the supervisory authority of the 4ecretary of Finance over the Bureau of Customs shall not extend to the administrative review of the ruling or decision of the Commissioner in matters appealed to the Court of -ax #ppeals.
-. Du(ici%& Re"e(ies 1. SU#ER9ISION AND CONTRO; O9ER DUDICIA; #ROCEEDINGS

SEC. 2001. Su$er'isio % ( Co tro& O'er Cri"i %& % ( Ci'i& #rocee(i )s. " Civil and criminal actions and proceedings instituted in behalf of the government under the authority of this Code or other law enforced by the Bureau shall be brought in the name of the government of the Philippines and shall be conducted by customs officers but no civil or criminal action for the recovery of duties or the enforcement of any fine, penalty or forfeiture under this Code shall be filed in court without the approval of the Commissioner.1 &2.#. D76C, #pril 9I, 9JJ7'
2. RE9IE1 -< CTA

SEC. 2002. Re'ie/ b, Court o! T%2 A$$e%&s. " -he party aggrieved by the ruling of the Commissioner in any matter brought before him upon protest or by his action or ruling in any case of sei ure may appeal to the Court of -ax #ppeals, in the manner and within the period prescribed by law and regulations. .nless an appeal is made to the Court of -ax #ppeals in the manner and within the period prescribe by laws and regulations, the action or ruling of the Commissioner shall be final and conclusive. 5 43C. 967C. supra 2# D9K9! #N #C- 3NP#N;IN* -A3 P.2I4;IC-I$N $F -A3 C$.2- $F -#N #PP3#B4 &C-#', 3B3?#-IN* I-4 2#N< -$ -A3 B3?3B $F # C$BB3*I#-3 C$.2- 0I-A 4P3CI#B P.2I4;IC-I$N #N; 3NB#2*IN* I-4 @3@B324AIP, #@3N;IN* F$2 -A3 P.2P$43 C32-#IN 43C-I$N4 $2 23P.BBIC #C- N$. 779C, #4 #@3N;3;, $-A320I43 <N$0N #4 -A3 B#0 C23#-IN* -A3 C$.2- $F -#N #PP3#B4, #N; F$2 $-A32 P.2P$434 4ec. I. Purisdiction. : -he C-# shall exercise! a. 3xclusive appellate %urisdiction to review by appeal, as herein provided! 7. ;ecisions of the Commissioner of Internal 2evenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal 2evenue or other laws administered by the Bureau of Internal 2evenue, 9. Inaction by the Commissioner of Internal 2evenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relations thereto, or other matters arising under the National Internal 2evenue Code or other laws administered by the Bureau of Internal 2evenue, where the National Internal 2evenue Code provides a specific period of action, in which case the inaction shall be deemed a denial, 6. ;ecisions, orders or resolutions of the 2egional -rial Courts in local tax cases originally decided or resolved by them in the exercise of their original or appellate %urisdiction, G. ;ecisions of the Commissioner of Customs in cases involving liability for customs duties, fees or other money charges, sei ure, detention or release of property affected, fines, forfeitures or
AUTOMATIC RE9IE1 -< THE COMMISSIONER AND THE SECRETAR< OF FINANCE
SEC. 2*1*. Re'ie/ o! Co""issio er. upra SEC. 2*13. Su$er'isor, Aut+orit, o! Co""issio er % ( Secret%r, o! Fi % ce i Cert%i C%ses. " If any case involving the assessment of duties, the Collector renders a decision adverse to the *overnment, such decision shall be automatically elevated to, and reviewed by,

other penalties in relation thereto, or other matters arising under the Customs Baw or other laws administered by the Bureau of Customs, C. ;ecisions of the Central Board of #ssessment #ppeals in the exercise of its appellate %urisdiction over cases involving the assessment and taxation of real property originally decided by the provincial or city board of assessment appeals, E. ;ecisions of the 4ecretary of Finance on customs cases elevated to him automatically for review from decisions of the Commissioner of Customs which are adverse to the *overnment under 4ection 967C of the -ariff and Customs Code, I. ;ecisions of the 4ecretary of -rade and Industry, in the case of nonagricultural product, commodity or article, and the 4ecretary of #griculture in the case of agricultural product, commodity or article, involving dumping and countervailing duties under 4ection 6J7 and 6J9, respectively, of the -ariff and Customs Code, and safeguard measures under 2epublic #ct No. KKJJ, where either party may appeal the decision to impose or not to impose said duties. b. Purisdiction over cases involving criminal offenses as herein provided! 7. 3xclusive original %urisdiction over all criminal offenses arising from violations of the National Internal 2evenue Code or -ariff and Customs Code and other laws administered by the Bureau of Internal 2evenue or the Bureau of Customs! Provided, however, -hat offenses or felonies mentioned in this paragraph where the principal amount o taxes and fees, exclusive of charges and penalties, claimed is less than $ne million pesos &P7,JJJ,JJJ.JJ' or where there is no specified amount claimed shall be tried by the regular Courts and the %urisdiction of the C-# shall be appellate. #ny provision of law or the 2ules of Court to the contrary notwithstanding, the criminal action and the corresponding civil action for the recovery of civil liability for taxes and penalties shall at all times be simultaneously instituted with, and %ointly determined in the same proceeding by the C-#, the filing of the criminal action being deemed to necessarily carry with it the filing of the civil action, and no right to reserve the filling of such civil action separately from the criminal action will be recogni ed. 9. 3xclusive appellate %urisdiction in criminal offenses! a. $ver appeals from the %udgments, resolutions or orders of the 2egional -rial Courts in tax cases originally decided by them, in their respected territorial %urisdiction. b. $ver petitions for review of the %udgments, resolutions or orders of the 2egional -rial Courts in the exercise of their appellate %urisdiction over tax cases originally decided by the @etropolitan -rial Courts, @unicipal -rial Courts and @unicipal Circuit -rial Courts in their respective %urisdiction. c. Purisdiction over tax collection cases as herein provided! 7. 3xclusive original %urisdiction in tax collection cases involving final and executory assessments for taxes, fees, charges and penalties! Provided, however, -hat collection cases where the principal amount of taxes and fees, exclusive of charges and penalties, claimed is less than $ne million pesos &P7,JJJ,JJJ.JJ' shall be tried by the proper @unicipal -rial Court, @etropolitan -rial Court and 2egional -rial Court. 9. 3xclusive appellate %urisdiction in tax collection cases! a. $ver appeals from the %udgments, resolutions or orders of the 2egional -rial Courts in tax collection cases originally decided by them, in their respective territorial %urisdiction. b. $ver petitions for review of the %udgments, resolutions or orders of the 2egional -rial Courts in the 3xercise of their appellate %urisdiction over tax collection cases originally decided by the @etropolitan -rial Courts, @unicipal -rial Courts and @unicipal Circuit -rial Courts, in their respective %urisdiction.1
1'
III. C;AIM FOR REFUND
SEC. 1505. Correctio o! Errors. " 2efund of 3xcess Payments. " @anifest clerical errors made in an invoice or entry, errors in return of weight, measure and gauge, when duly certified to, under penalties of falsification or per%ury, by the surveyor or examining official &when there are such officials at the port', and errors in the distribution of charges on invoices not involving any +uestion of law and certified to, under penalties of falsification or per%ury, by the examining official, may be corrected in the computation of duties, if such errors be discovered before the payments of duties, or if discovered within one year after the final li+uidation, upon written re+uest and notice of error from the importer, or upon statement of error certified by the Collector. For the purpose of correcting errors specified in the next preceding paragraph the Collector is authori ed to reli+uidate entries and collect additional charges, or to ma)e refunds on statement of errors within the statutory time limit. SEC. 1507. C&%i" !or Re!u ( o! Duties % ( T%2es % ( Mo(e o! #%,"e t. " #ll claims for refund of duties shall be made in writing and forwarded to the Collector to whom such duties are paid, who upon receipt of such claim, shall verify the same by the records of his $ffice, and if found to be correct and in accordance with law, shall certify the same to the Commissioner with his recommendation together with all necessary papers and documents. .pon receipt by the Commissioner of such certified claim he shall cause the same to be paid if found correct. If a result of the refund of customs duties there would necessarily result a corresponding refund of internal revenue taxes on the same importation, the Collector shall li)ewise certify the same to the Commissioner who shall cause the said taxes to be paid, refunded, or tax credited in favor of the importer, with advice to the Commissioner of Internal 2evenue.
*. A##EA; FROM THE CTA DI9ISION TO CTA EN -ANC 0. A##EA; TO SC

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REMEDIES UNDER THE TARIFF AND CUSTOMS CODE