Case Summary (G.R. No. 7987)

Case Background

This case involves an appeal by Behn, Meyer & Co., Ltd. against the decision of the Insular Collector of Customs regarding the appraisal and liquidation of duties on imported merchandise consisting of fifty cases of faience plates.

• Date of Import: October 27, 1907
• Appraised Value: $1,291.15 (U.S. currency)
• Initial Invoice Date: August 29, 1907
• Origin of Goods: Purchased from Arnold Otto Meyer, Hamburg, and shipped from Antwerp, Belgium.

Grounds for Protest

The plaintiff filed a protest against the liquidation asserting a clerical error in the consular invoice regarding currency conversion.

• Error: Conversion of Dutch florins to marks instead of the correct currency (francs).
• Offer: Willingness to produce a corrected consular invoice if necessary.

Consular Invoice Issues

The Bureau of Customs rejected subsequent attempts to correct the invoice citing several deficiencies:

• Second Invoice: Not accepted as it was consulated in Antwerp, not Hamburg.
• Third Invoice: Also rejected due to being in conflict regarding the role of Arnold Otto Meyer as both seller and agent.

Legal Provisions Cited

The decision references several legal provisions from U.S. customs law, particularly the Customs Administrative Act of June 10, 1890, which outlines requirements for invoices of imported merchandise.

• Requirements:
  • Invoices must be in the currency of the place of manufacture or purchase.
  • Must include a correct description of merchandise.
  • Invoices should be certified by an authorized consul.

Burden of Proof

The court emphasizes that the burden lies with the importer to provide correct documentation.

• Consequences of Incorrect Filing: The initial appraised value stands unless the importer presents a valid corrected consular invoice.
• Failure to Comply: Results in acceptance of the original invoice and duties based on that value.

Court's Findings

The Court of First Instance initially reversed the Collector's decision but the higher court found that the Collector acted correctly.

• Key Rulings:
  • The market value for duty purposes is based on the original sale location (Hamburg).
  • The importer failed to provide sufficient evidence to dispute the collector’s valuation.

Conclusion of the Case

The higher court reversed the lower court's decision and upheld the Insular Collector's original determination, affirming that:

• Judgment: The protest was overruled as no valid corrected consular invoice was presented.
• Final Decision: The Collector's decision is affirmed.

Key Takeaways

• Importers must strictly adhere to customs regulations regarding consu...continue reading

Case Syllabus (G.R. No. 7987)

Case Background

• On October 27, 1907, Behn, Meyer & Co., Limited (the plaintiff) imported fifty cases of faience plates into the Philippine Islands.
• The merchandise was appraised for duty at $1,291.15 in U.S. currency, as stated in the consular invoice dated August 29, 1907, from Hamburg, Germany.
• The invoice indicated that the plates were purchased from Arnold Otto Meyer, who acted as the agent for the importer.
• The plates were shipped from Antwerp, Belgium, but the invoice did not accurately reflect the currency used in the transaction.

Importer's Protest

• After the liquidation of the entry, the importer protested, claiming a clerical error had occurred in the consular invoice regarding currency conversion.
• The importer offered to produce a corrected consular invoice but did not file a bond as required by law for the corrected invoice production.
• A second consular invoice was later presented, issued in Antwerp, but was rejected by the Bureau of Customs, as it was consulated in a different country and by a different consul.

Subsequent Invoices and Bureau of Customs Decision

• A third consular invoice from Hamburg was submitted as a correction, but it also was rejected.
• The Bureau of Customs asserted that the invoices were irregular due to Arnold Otto Meyer acting as bot...continue reading