Case Digest (G.R. No. L-2839)
Facts:
In the case of Carder & Co. vs. The United States, G.R. No. 2839, decided on August 15, 1907, the plaintiff, Carder & Co., imported forty-three pieces or packages into the Philippine Islands, which they claimed constituted an "oil mill complete for working copras and other seeds into oil," along with a portable steam engine. In the declaration made by the plaintiff, the portable steam engine was not included as part of the "oil mill complete." The Collector of Customs classified the imported items as "other machinery" under subdivision (b) of paragraph 257 of Act No. 230, imposing a duty of $1 per 100 kilos with a minimum of 25% ad valorem. This classification was contested by the plaintiff, who argued that the machinery for extracting oil from coconuts should be classified under paragraph 245, which pertains to "agricultural machinery and apparatus for preparing vegetable products of the Islands for the markets," and thus sho...
Case Digest (G.R. No. L-2839)
Facts:
Importation of Machinery:
The plaintiff, Carder & Co., imported into the Philippine Islands forty-three pieces or packages, declared as an "oil mill complete for working copras and other seeds into oil" and a portable steam engine.Customs Declaration:
The portable steam engine was not declared as part of the "oil mill complete."Customs Classification:
The Collector of Customs classified the "oil mill complete" and the portable steam engine as "other machinery" under subdivision (b) of paragraph 257 of Act No. 230, at $1 per 100 kilos, not less than 25% ad valorem.Plaintiff's Argument:
The plaintiff protested, arguing that the machinery should be classified under paragraph 245 as "agricultural machinery and apparatus for preparing vegetable products of the Islands for the markets," which carries a lower duty of 25 cents per 100 kilos gross weight.Collector's Decision:
The Collector of Customs rejected the protest, stating that machinery for extracting oil from coconuts does not fall under paragraph 245, as it does not prepare vegetable products for the market but transforms them into a different product.Court of Customs Appeals Decision:
The Court of Customs Appeals reversed the Collector's decision, ruling that the machinery should be classified under paragraph 245.Appeal to the Supreme Court:
The defendant (the United States) appealed to the Supreme Court, raising two questions:- Whether the "oil mill complete" should be classified under paragraph 245.
- Whether the portable steam engine should be classified under paragraph 245 or paragraph 257.
Issue:
- Whether the "oil mill complete" for extracting oil from copra and other seeds should be classified as "machinery and apparatus for preparing vegetable products of the Islands for the markets" under paragraph 245 of Act No. 230.
- Whether the portable steam engine, not declared as part of the "oil mill complete," should be classified under paragraph 245 or paragraph 257 of Act No. 230.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)