Facts:

The case of Alemars (Sibal & Sons), Inc. vs. The Honorable Court of Appeals involves a dispute regarding the abandonment of imported goods. Alemars, the petitioner, imported books, office supplies, and equipment from World International Publishing Ltd. and arrived in Manila on November 29, 1983. The shipment was consigned to Republic Planters Bank (RPBank) and was later endorsed to Alemars, which led to a Deed of Consignment on November 12, 1984. Despite Alemars submitting an application for an Import Entry and Permit to Deliver Goods on November 27, 1984, the Bureau of Customs denied the request, citing the goods had been declared abandoned under the Omnibus Notice and Declaration of Abandonment No. 84-1643.

Notably, a separate Notice of Declaration of Abandonment No. 84-854, which included Alemars' shipment, was issued on December 4, 1984. Alemars and RPBank were never notified about this notice as mandated by the Tariff and Customs Code. On December 12, Alemars stated

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Facts:

Importation and Shipment

• In September 1983, petitioner Alemars imported various books, office supplies, and equipment from World International Publishing Ltd., Manchester, England.
• The transaction was secured by a letter of credit issued in favor of Alemars by Republic Planters Bank (RPBank).
• On November 29, 1983, the shipment arrived in Manila via S/S Nikolai Tikhonov with a Bill of Lading (No. MN 004) initially addressed to RPBank as consignee.
• LBP International Philippines, Inc., acting as the local agent of the carrier, filed an Inward Manifest with the Bureau of Customs, after which the goods were unloaded and placed under its custody.

Consignment and Customs Documentation

• To facilitate the release of the goods, RPBank endorsed the Bill of Lading to Alemars.
• On November 12, 1984, RPBank executed a Deed of Consignment with Alemars, designating the petitioner as its agent to sell the imported articles on a commission basis.
• On November 27, 1984, Alemars applied for an Import Entry and Permit to Deliver Goods, which was later denied because the goods were declared abandoned under a specific customs proceeding.

Abandonment Proceedings and Notice Issues

• On December 4, 1984, Customs Collector Senen S. Dimaguila issued a Notice and Declaration of Abandonment (Abandonment Proceedings No. 84-854) for imported articles from 1982-1983 that had remained unclaimed.
• The subject shipment (listed as Reg. #345 containing 1 lot of assorted books, approximately 9 tons distributed in 2,033 packages) was included in this notice.
• The Notice of Declaration of Abandonment was not sent to either Alemars or RPBank as required by the provisions of the Tariff and Customs Code.
• Acting under a mistaken belief that its shipment was covered by another proceeding (No. 84-1643), Alemars filed a letter with the Law Division on December 12, 1984, stating that it had no intention of abandoning the shipment.

Auction Sale and Administrative Actions

• Despite a memorandum issued by Manuel Ll. Dionaldo, Chief of the Law Division, on December 20, 1984, directing the postponement of the auction, the Auction and Cargo Disposal Division, led by Cosme B. Sekito, Jr., proceeded with the sale.
• Luis Cua emerged as the highest bidder and, on January 7, 1985, a Delivery Permit was issued in his favor by the Chief of the Auction and Cargo Disposal Division.
• In response, on January 22, 1985, RPBank filed a petition for prohibition with a preliminary restraining injunction in the Regional Trial Court, Manila—to enjoin the delivery of the subject importation and to nullify the abandonment declaration and subsequent auction sale.
• The petition was amended to include Alemars and also challenged the procedural deficit in notifying petitioners as mandated by the Customs Code provisions.

Judicial Proceedings and Appeals

• The Regional Trial Court dismissed the petition for want of jurisdiction on February 11, 1985, ruling that matters involving customs abandonment and auction sales fall under the exclusive competence of the Commissioner of Customs and the Court of Tax Appeals.
• A temporary restraining order previously issued was withdrawn, and the petitioners were advised to pursue their remedy in the proper forum.
• Subsequently, on February 12, 1985, RPBank and Alemars filed a petition for certiorari with injunction before the Court of Appeals, arguing grave abuse of discretion.
• On August 20, 1990, the Court of Appeals dismissed the petition, prompting the present recourse before the Supreme Court.

Issue:

Jurisdiction

• Whether the Regional Trial Court, Manila, had jurisdiction over the petition seeking to enjoin the auction sale of imported goods declared abandoned by customs officials.
• Whether the petition, which also sought annulment of a Notice and Declaration of Abandonment, fell within the exclusive competence of customs and tax administrative bodies rather than the trial courts.

Procedural Due Process and Administrative Remedies

• Whether the failure to issue a written notice of abandonment to petitioner Alemars and RPBank violated procedural due process under the Tariff and Customs Code.
• Whether the petitioner’s decision to pursue relief in the trial court, as opposed to seeking administrative remedies, prejudiced its claims.

Grave and Irreparable Injury

• Whether the delivery of the subject importation to Luis Cua would result in grave and irreparable injury to the petitioners' rights and property interests.

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

• (Subscriber-Only)