Court of Tax Appeals - is a highly specialized body which review tax cases.

COMPOSITION:
2 Divisions of 6 Justices, composed of a Presiding Judge and 5 Associate
Justices.

POWER OF THE CTA: A R S - P P P

1. To administer Oaths
2. To receive evidence
3. To summon witnesses
4. To punish for contempt
5. To prescribe forms of writ
6. To promulgate rules and regulations

JURISDICTION OF THE CTA: exercise exclusive appellate jurisdiction to the ff:

1. Decision of CIR in cases involving disputed Assessment, refund of IR taxes
2. Decision of Commisioner of Customs in cases involving liability for
custom duties.
3. Decision of Secretary of Finances.

Automatic Review Cases:

In cases involving the assessment of customs duties, the decision of the
Commissioner is automatically elevated to, and reviewed by Sec. of Finance.
If the decision of the Sec. of Finance adverse to the taxpayer it is
appealable to the CTA within 30 days from receipt thereof. If decision of Sec.
of Finance is favorable to the taxpayer, it is no longer appealable.

Imported Articles subject to custom duties:

All imported Articles, where imported from foreign country into PH, are
subject to duty upon each importation.

When does importation begin and deemed terminated?

- Importation begins when the carrying vessel or aircraft enters the
jurisdiction of the PH with the intention to unload therein.

- Importation is deemed terminated upon payment of the duties, taxes

and other charges and the legal permit for withdrawal shall have been granted.

KINDS OF DUTIES:
1. Import Duties (Ordinary and Special Duties)
2. Export Duties

Duties, Powers and Jurisdiction of BOC :

- The assessment and collection of the lawful revenues from imported
articles and all other dues, fees, charges fine and penalties accruing
under Tariff and Customs Laws.

Pascual vs. Commissioner of Customs

- Proceedings in seizure cases are action in rem directed against
the property seized, not against the owner thereof.

Jurisdiction of Seizure and Forfeiture Cases:

- Exclusive jurisdiction in these cases are vested in Collector of Customs.
Without interference from CFI.

Smuggling - is commited by any person who:

1. fraudulently imports or brings into PH articles contrary to law.
2. assists in so doing any article contrary to law.
3. receive, conceals, buy and selld of goods knowing the same to have been
imported contrary to law.
BAR QUESTION:

On the basis of a warrant of seizure and detention issued by thr

COllector of Customs for the purposes of enforcing Tariff and Customs Law,
assorted brands of cigarettes said to have been illegally imported into the
PH were seized from a store where they openly offered for sale. Dissatisfied
with the decision rendered after hearing by the Collector of Customs on
the confiscation of the articles, the importer filed a petition for review
with the CTA. The Collector moved to dismiss the petition for lack of
jurisdiction, Rule on the motion.

Answer: The motion should be granted. The aggrieved party should have elevated
this matter to the Commisioner of Customs. The customs code provides that
supervisory authority exercised by the Commissioner while the case is pending
in the Office of the Collector of Customs and before the decision of the
Collector becomes final.

BAR QUESTION:

The Collector of Customs of the Port of Cebu issued warrants of seizure

and detention against the importation of machineries and equipment by LLD
Import and Export Co., for alleged non-payment of tax and customs duties
in violation of customs laws. LLD was notified of the seizure but before
it could be heard, the Collector of Customs issued a notice of sale of the
articles. In order to restrain the Collector from carrying out the order to
sell. LLD filed with the CTA a petition for review of the application for
the issuance of a writ of prohibition. It also filed with the CTA an appeal
for refund of overpaid taxes on its other importations of raw materials
which have been pending with the Collector of Customs.

The Bureau of Customs moved to dismiss the case for lack of juris of CTA:

1. Does the CTA have juris over the petition for review and writ of
prohibition?
Ans: No, The CTA have no jurisdiction over the petition for review and writ
of prohibition. The aggrieved party should have elevated the case to the
Commissioner of Customs.

2. Will an appeal to the CTA for tax refund be possible? Explain.

Ans: No, the appeal to the CTA for the tax refuns is not possible. The
aggrieved party should have made a request for tax refund from the Commissioner
of Customs. Any adverse decision of the Commissioner may be appealed to the
Sec. of Finance or CTA.

BAR QUESTION
Under the Tariff and Customs Code, abandoned imported articles becomes the
property of the GOVERNMENT whatever be the circumstances.