Title
Illuh Asaali vs. Commissioner of Customs
Case
G.R. No. L-24170
Decision Date
Feb 28, 1969
Philippine-registered vessels intercepted on high seas for smuggling cigarettes and rattan chairs without import permits; seizure upheld under customs laws and international law principles.
A

Case Summary (G.R. No. L-24170)

Factual Background

On September 10, 1950, a customs patrol on board Patrol Boat ST-23 intercepted five sailing vessels on the high seas between British North Borneo and Sulu. The vessels were of Philippine registry, owned and manned by Filipino residents of Sulu, each under thirty tons. They had come from Sandakan, British North Borneo, and were proceeding toward Tawi-tawi in the Sulu Sea. Customs officers boarded and found 181 cases of “Herald” cigarettes, nine cases of “Camel” cigarettes, and pieces of rattan chairs. The vessels did not carry a permit from the Commissioner of Customs to engage in importation into any port of the Sulu Sea as required by Section 1363(a), Revised Administrative Code, nor did their cargoes have the import license required by Republic Act No. 426.

Procedural History

The Commissioner of Customs declared the five vessels and their cargo forfeited for smuggling. The owners litigated the seizure before the Court of Tax Appeals, which issued an opinion on November 19, 1964, upholding the forfeiture; that opinion was penned by Associate Judge Augusto M. Luciano. The matter was brought to the Supreme Court. On December 16, 1968, the Supreme Court affirmed the Court of Tax Appeals. Petitioners filed a printed motion for reconsideration dated January 14, 1969. The present Resolution, authored by Justice Fernando, denied the motion on February 28, 1969.

Issues Presented

The case raised primarily whether customs officials had jurisdiction to intercept and seize the five Philippine vessels on the high seas where the vessels had not yet entered Philippine territorial waters. Petitioners also contended that the seizure violated due process and constituted an illegal use of government power under Section 1141, Revised Administrative Code.

Parties’ Contentions

Petitioners argued that the seizure occurred outside Philippine territorial waters and that customs lacked authority to act on the high seas, invoking Section 1141, Revised Administrative Code, to condemn the interception as a misuse of government power and a violation of constitutional rights. Respondent maintained that the vessels were Philippine ships bound for a domestic port, that they lacked required permits and import licenses, and that the forfeiture was authorized by the relevant customs and penal provisions.

Ruling of the Supreme Court

The Supreme Court denied the motion for reconsideration and reaffirmed its earlier decision sustaining the Court of Tax Appeals and the action of the Commissioner of Customs. The Court held that the seizure and forfeiture were within the legal competence of the government and did not violate petitioners’ constitutional rights. The resolution was concurred in by Concepcion, C.J., Reyes, Dizon, Makalintal, Zaldivar, Castro, Capistrano, Teehankee, and Barredo, JJ.; Sanchez, J., took no part.

Legal Basis and Reasoning

The Court explained that it was bound by the uncontroverted findings of fact by the Court of Tax Appeals that the vessels were Philippine-registered, had come from a foreign port, and were proceeding toward Tawi-tawi without the permits and licenses mandated by law. The Court observed that the Revised Penal Code applied to offenses committed on Philippine ships outside territorial waters, and that the same principle supported customs enforcement against Philippine vessels on the high seas when smuggling was evident. The Court relied on the longstanding international-law doctrine, exemplified in Church v. Hubbart, 2 Cranch 187 (1804), that a state’s power to protect itself and its revenues may be exercised beyond its territorial limits. The Court held that reading Section 1141, Revised Administrative Code in a restrictive manner that would bar interception under the circumstances would render nugatory the government’s power to combat smuggling and conflict with the constitutional adoption of generally accepted principles of international law, as reflected in Article II, Section 3, Constitution of the Philippines.

Application of Facts to Law

Applying the statutory and international-law principles to the established facts, the Court found more than sufficient justification for the seizure. The vessels’ course, origin, and cargo demonstrated an intent to import into the Philippines and to evade customs controls. The Court reasoned that, given these peculiar circumstances, it was permissible to indulge in a legal fiction that treated the seizure as effectively occurring within Philippine waters to prevent frustration of governmental authority. The Court cited its recent decision in Tayag v

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