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  • Commisioner of Customs V Cap Digest

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    Mitzi Caryl Encarnacion
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    The Court of Tax Appeals ruled that the Central Bank circulars did not authorize the seizure and forfeiture of Philippine peso bills that Caridad Capistrano was carrying when she was stopped during an outbound search. However, the Supreme Court reversed this decision, finding that (1) Section 1363(f) of the Revised Administrative Code, which allows for seizure of "merchandise of prohibited importation or exportation", applies because Philippine peso bills taken out of domestic circulation can be considered a commodity or merchandise; and (2) the peso bills were therefore subject to forfeiture under the relevant Central Bank circular. The Supreme Court's decision reinstated the order forfeiting the Philippine peso bills.

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    COMMISIONER-OF-CUSTOMS-V-CAP-DIGEST

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    The Court of Tax Appeals ruled that the Central Bank circulars did not authorize the seizure and forfeiture of Philippine peso bills that Caridad Capistrano was carrying when she was stopped during an outbound search. However, the Supreme Court reversed this decision, finding that (1) Section 1363(f) of the Revised Administrative Code, which allows for seizure of "merchandise of prohibited importation or exportation", applies because Philippine peso bills taken out of domestic circulation can be considered a commodity or merchandise; and (2) the peso bills were therefore subject to forfeiture under the relevant Central Bank circular. The Supreme Court's decision reinstated the order forfeiting the Philippine peso bills.

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    © All Rights Reserved
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    186 views2 pages

    Commisioner of Customs V Cap Digest

    Uploaded by

    Mitzi Caryl Encarnacion
    The Court of Tax Appeals ruled that the Central Bank circulars did not authorize the seizure and forfeiture of Philippine peso bills that Caridad Capistrano was carrying when she was stopped during an outbound search. However, the Supreme Court reversed this decision, finding that (1) Section 1363(f) of the Revised Administrative Code, which allows for seizure of "merchandise of prohibited importation or exportation", applies because Philippine peso bills taken out of domestic circulation can be considered a commodity or merchandise; and (2) the peso bills were therefore subject to forfeiture under the relevant Central Bank circular. The Supreme Court's decision reinstated the order forfeiting the Philippine peso bills.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    PROPERTY 1

    COMMISIONER OF CUSTOMS V. CARIDAD CAPISTRANO (G.R. No. L-11075. June 30, 1960)

    Classifications of Property
    FACTS:
    Caridad Capistrano was booked as an outgoing passenger on March 31, 1995. When she was subjected to
    the customary search, there were found in her person 156 pieces of Philippine 50-peso bills, 17 pieces of
    US 20-dollar bills and 1 piece of US 10-dollar bill, although her license from the Central Bank allowed her to
    carry only $200, broken down into $50.00 in cash and $150.00 in traveller's check. Subsequently, the bills were
    seized for alleged violation of Central Bank Circulars Nos. 42 and 55, in relation to Section 1363 (f) of the Revised
    Administrative Code.
    The Collector of Customs rendered a decision ordering the forfeiture in favor of the Government of the bills in
    question. This decision was affirmed by the Commissioner of Customs. Caridad Capistrano then brought the matter
    to the Court of Tax Appeals (CTA Case No. 174).
    The Court of Tax Appeals ruled that the violated Central Bank Circulars did not authorize the seizure and forfeiture of
    the Philippine Peso bills carried by Capistrano. It further added that Section 1363 (f) of the Revised Administrative
    Code could not be invoked because section referred merely to "merchandise or prohibited importation or
    exportation." Noting the fact that the US dollar has already ceased to be legal tender in the Philippines and that it
    could be bought and sold in the country, the Tax Court held that the US dollar falls within the purview of
    “merchandise”. With regard to the Philippine peso bill, however, the same thing was not said of. Thus, the decision of
    the Commissioner of Customs was reversed, and the bills were ordered to be returned to Capistrano.
    The Commissioner of Customs has appealed to this Court. Thus, the herein petition.

    ISSUE:
    1. Whether or not the Court of Tax Appeals erred in revoking the order of forfeiture of the Philippine peso
    bills and ordering their release to Capistrano.

    RULING:
    1. YES, since the Philippine peso bills come within the concept of “merchandise” as this term is understood in
    Section 1363(f) of the Revised Administrative Code.

    RATIO:
    1. Section 1363 (f) of the Revised Administrative Code relied upon by the appellant reads as follows:
    "Any merchandise of prohibited importation or exportation, the importation or exportation of which is effected
    or attempted contrary to law, and all other merchandise which, in the opinion of the collector, have been used, are or
    were intended to be used as instrument in the importation or exportation of the former.”

    The Code provides further that “merchandise, when used with reference to importations or exportations, includes
    goods, wares, and in general anything that may be the subject of importation or exportation.”
    In the present case, the Philippine peso bills, when attempted to be exported, may be deemed to have been taken
    out of domestic circulation as legal tender and treated as commodity. Hence, they may be forfeited pursuant to
    Central Bank Circular No. 37 in relation to Section 1363 (f) of the Revised Administrative Code. Wherefore, the
    decision appealed from is reversed.
    PROPERTY 2

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