REPUBLIC V PERALTA

150 SCRA 37

FACTS: The Republic of the Philippines seeks the review on certiorari of the Order of the CFI of Manila in its
Civil Case No. 108395 entitled "In the Matter of Voluntary Insolvency of Quality Tobacco Corporation, Quality
Tobacco. In its questioned Order, the trial court held that the enumerated claims of USTC and FOITAF
(hereafter collectively referred to as the "Unions") for separation pay of their respective members embodied in
final awards of the NLRC were to be preferred over the claims of the Bureau of Customs and the BIR. The
Bureau of Customs, as one of the creditors, claims from the insolvency proceedings of the Tobacco Corporation,
P276,161 representing customs duties and taxes payable on various importations by the Tobacco Corporation.
These obligations appear to be secured by surety bonds and some of these imported items are apparently still in
customs custody.

ISSUE: Can the claim of the Bureau of Customs be preferred over the claim of the Unions for separation pay?

RULING: NO. In the event of bankruptcy or liquidation of an employer's business, his workers shall enjoy first
preference as regards wages due them for services rendered during the period prior to the bankruptcy or
liquidation, any provision of law to the contrary notwithstanding. Union paid wages shall be paid in full before
other creditors may establish any claim to a share in the assets of the employer. Under Section 1204 of the Tariff
and Customs Code, 12 the liability of an importer for duties, taxes and fees and other charges attaching on
importation constitute a personal debt due from the importer to the government which can be discharged only
by payment in full of all duties, taxes, fees and other charges legally accruing. It also constitutes a lien upon the
articles imported which may be enforced while such articles are in the custody or subject to the control of the
government.

Clearly, the claim of the Bureau of Customs for unpaid customs duties and taxes enjoys the status of a specially
preferred credit under Article 2241, No. 1, of the Civil Code only in respect of the articles importation of which
by the Insolvent resulted in the assessment of the unpaid taxes and duties, and which are still in the custody or
subject to the control of the Bureau of Customs. The goods imported on one occasion are not subject to a lien
for customs duties and taxes assessed upon other importations though also effected by the Insolvent. Customs
duties and taxes which remain unsatisfied after levy upon the imported articles on which such duties and taxes
are due, would have to be paid out of the Insolvent's "free property" in accordance with the order of
preference embodied in Article 2244 of the Civil Code. Such unsatisfied customs duties and taxes would fall
within Article 2244, No. 9, of the Civil Code and hence would be ninth in priority.