G.R. No. 158150 - Agriex Co., Ltd. vs. Villanueva

On July 19, 2001, Agriex Co., Ltd. (Bangkok, Thailand) entered into two contracts of sale:

180,000 bags (9,000 MT) of Thai white rice with PT. Gloria Mitra Niagatama International (Surabaya, Indonesia)
20,000 bags of Thai white rice with R&C Agro Trade (Cebu City, Philippines)

On July 27, 2001, Agriex chartered MV Hung Yen to transport the total 200,000 bags to the Subic Freeport Zone (SBF) for transshipment:

MV Hung Yen arrived at SBF on August 20, 2001; Subic Bay Metropolitan Authority (SBMA) delayed berthing until September 11, 2001, advising amendment of the NFA import permit to change discharge port to Subic.
Agriex applied for vessel exit clearance to Labuan Free Port (Malaysia); Bureau of Customs (BOC) issued Clearance of Vessel to a Foreign Port on August 24, 2001, but the vessel did not depart on schedule.

On September 10, 2001, Agriex requested unloading of all 200,000 bags; on September 11, Commissioner Titus B. Villanueva indorsed issuance of a Warrant of Seizure and Detention (WSD) against the 20,000 bags for R&C Agro Trade.
Collector Billy C. Bibit issued WSD No. 2001-13 on September 12, 2001. After unloading and transfer to SBMA warehouse, amended WSDs were issued on September 27, 2001:

On October 4, 2001, Agriex filed an Urgent Motion to Quash all WSDs. On October 26, 2001, Collector Bibit quashed WSD No. 2001-13A (vessel) but maintained seizures on the rice.
Collector Bibit issued a Notice of Sale on October 18, 2001, scheduling the auction of 200,000 bags on November 22–23, 2001. Agriex filed a motion for reconsideration on October 19, 2001 (no action taken).

Agriex filed a petition for certiorari and prohibition in the Court of Appeals (CA) on November 12, 2001 and secured a Temporary Restraining Order (TRO) on November 22, 2001. Commissioner Villanueva’s November 19, 2001 memorandum countermanded the October 18 Notice of Sale for the 180,000 bags.
Collector Bibit denied the quash motion and ordered forfeiture on November 14, 2001. Agriex appealed to the Commissioner, who by Consolidated Order dated February 4, 2002:

Released 20,000 bags to R&C Agro Trade upon payment of P8,400,000
Affirmed forfeiture of 180,000 bags consigned to non-existent or non-importing consignees

Commissioner Antonio M. Bernardo’s endorsement on July 22, 2002 directed public auction of the 180,000 bags. The auction, held August 5–6, 2002, yielded proceeds of P116,640,000 deposited with Land Bank (BOC Trust Fund II).
The CA rendered judgment on November 18, 2002 (CA-G.R. CV No. 67593), dismissing Agriex’s petition as premature. Motion for reconsideration was denied May 8, 2003.

Whether the Bureau of Customs had jurisdiction to seize and sell the 180,000 bags of rice entering the Subic Bay Freeport.
Whether the respondents gravely abused their discretion in issuing the October 18, 2001 Notice of Sale.
Whether the proper remedy to challenge the seizure and forfeiture proceedings was a certiorari petition to the CA or an appeal to the Court of Tax Appeals (CTA).