Title
Leuterio vs. Commissioner of Customs
Case
G.R. No. L-9810
Decision Date
Apr 27, 1957
Leuterio imported onions, undervaluing them to evade taxes. Customs seized the goods; forfeiture upheld due to gross undervaluation under customs laws, despite invalidated circulars.

Case Digest (G.R. No. L-9810)

Facts:

  • Importation and seizure
    • On September 19, 1954, 100 crates of onions shipped from Kobe, Japan, consigned to petitioner Estanislao Leuterio, arrived at the Port of Manila.
    • On December 20, 1954, the Collector of Customs seized and declared the shipment forfeited for alleged violation of Central Bank Circulars Nos. 44 and 45, section 1383(m)3-5 of the Revised Administrative Code, and Executive Order No. 328.
  • Secretary of Finance determination
    • On December 15, 1954, the Secretary of Finance found a violation of the Anti-Dumping Law, noting petitioner declared the price at $1.20 per crate instead of the actual $3.20, and ordered payment of the difference.
    • The Finance Secretary reserved any further action under customs laws or other regulations enforced by the Bureau of Customs.
  • Proceedings in the Court of Tax Appeals
    • Petitioner sought review for annulment of seizure and refund of ₱1,175.28 paid under section 1388, arguing (a) the Import Control Law had expired, (b) Central Bank Circulars and EO 328 were void, (c) no prohibition under the Barter Trade Agreement, and (d) EO 328 unlawfully delegated legislative power.
    • The Commissioner of Customs countered that (a) the Circulars and EO were valid and enforceable, (b) petitioner evaded no-dollar remittance and internal revenue tax, and (c) the onions were undervalued, violating section 1363(m)3-5.

Issues:

  • Validity of regulatory instruments
    • Do Central Bank Circulars Nos. 44 and 45 have the force of law?
    • Does Executive Order No. 328 unlawfully delegate legislative power to regulate imports?
  • Grounds for forfeiture
    • Did petitioner’s declaration of $1.20 per crate violate section 1363(m)3-5, rendering the onions subject to forfeiture?
    • Does evasion of internal revenue tax collected by customs officers fall within the definition of “customs law”?
  • Effect of the Anti-Dumping Law
    • Does the penal and self-contained nature of the Anti-Dumping Law preclude applying section 1363(m) of the Revised Administrative Code?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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