Facts:

Avenue Arrastre and Stevedoring Corporation, Inc. (petitioner) filed this petition against The Honorable Commissioner of Customs and The Honorable Secretary of Finance, along with Prudential Customs Brokerage Services, Inc. (respondents). The case arose from events that unfolded in the Port of Puerto Princesa, Palawan, where the original operator of the arrastre and stevedoring service was the Puerto Princesa City Arrastre and Stevedores Union (PPCASU). PPCASU was granted a temporary permit by the Commissioner of Customs on December 20, 1974, valid for six months. Over time, despite facing significant operational inefficiencies and financial issues, PPCASU managed to renew its permit four additional times, extending from December 21, 1974, to March 19, 1976. However, due to continual poor performance and lack of investment, the Commissioner of Customs ultimately terminated PPCASU's permit on March 18, 1976, and authorized Prudential Brokerage Services Inc. to take over opera

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Facts:

Background of the Service Arrangement

• The Puerto Princesa City and Stevedores Union (PPCASU) was the original operator of the arrastre and stevedoring service in the Port of Puerto Princesa, Palawan.
• PPCASU operated under a temporary permit issued by the Commissioner of Customs, which commenced on December 20, 1974, for a six‑month period.
• Despite noted deficiencies in operations and resource insufficiencies, PPCASU’s temporary permit was renewed four times, extending its operations until March 19, 1976.

Findings Leading to the Revocation

• On March 18, 1976, the Commissioner of Customs terminated PPCASU’s permit.
• Simultaneously, the Commissioner authorized Prudential Customs Brokerage Services, Inc. to operate the arrastre and stevedoring service starting the following day.
• The decision was based on a report from the Collector of Customs in Puerto Princesa, which detailed several issues:
• PPCASU had virtually no capitalization, compounded by the withdrawal of key Chinese capitalists following a dispute with its president.
• The company possessed inadequate and poorly maintained equipment, including a non‑functional second-hand forklift, worn-out canvass sheets, and insufficient, defective pallets.
• The laborers were being paid under a “Pakway System,” which was contrary to the provisions of the labor law.
• There were no records indicating remittance contributions for employee social security (SSS), leaving workers without any protection.
• PPCASU failed to secure a valid Mayor’s Permit beyond the period from January to March 1975.
• A requisite bond had not been filed for the current year.

The Subsequent Petition

• Avenue Arrastre and Stevedoring Corporation, Inc. (the petitioner), claiming to be the successor of PPCASU through a merger, moved for reconsideration of the termination order.
• The motion for reconsideration was denied.
• An appeal to the Secretary (Minister) of Finance was likewise dismissed.
• Consequently, the petitioner elevated the issue to a petition for mandamus seeking to review and set aside the order.

Issue:

• Whether an order of the Commissioner of Customs, which involved the discretionary exercise of power and was affirmed by the Secretary (Minister) of Finance, may be reviewed and set aside by a petition for mandamus.
• Whether, as the successor of PPCASU, the petitioner had a clear and certain right to obtain the renewal of the permit despite the documented inefficiencies and violations committed by PPCASU.

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

• (Subscriber-Only)