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ASIAN TERMINALS, INC., G.R. No. 166901 Petitioner,

Present: - versus -

PANGANIBAN, C.J.,Chairperson,

NARES-SANTIAG!,A"STRIA-MARTINE#,CALLE$!, SR., %n&

'!N. 'ELEN BA"TISTA- C'IC!-NA#ARI!, JJ.RICA(!RT, Presi&in) $u&)eo* RTC, Br%n+ 60, P%r%%/ue Prou)%te&:Cit23 SAM"EL R!SETE, inis 4erson% +%4%+it2 %n& %s %ttorne2- !+to5er , 006in-*%+t %n& in re4resent%tion o* N!ELTAB"EL!G, 4ro4rietor o* BEST

PART ENTERPRISES3 ERNEST!7E $ES"S, Presi&ent o* EASTERNMETR!P!LITAN B"S C!RP.3N!RMA P!N7E8I7A, 4ro4rietresso* NSP TRANSP!RTATI!N SER8ICES3RENAT! CLAR!S, Presi&ent o* PRINCEB"S AN7 TR"C PARTS, INC.3ERNEST! M. C'"A, Presi&ent o* EMCTRANSP!RTATI!N, INC.3 CECILIA T.SA"L!G, 4ro4rietress o* MANS!"RTRANSP!RT SER8ICES3 $ENELITA S.NAPARATE, 4ro4rietress o* SANEI

S!"G! TRA7ING3 R!7!L(! $.MAG!, 4ro4rietor o* 7NS S'"TTLESER8ICES3 %n& AMALIA C. E7AM"RA,Pro4rietress o* 7AMLAR TRA7ING, Res4on&ents.-----------------------------------------------------------------------------------------

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7 E C I S I ! NCALLE$!, SR., J.:

Be*ore us is % Petition *or Revie; on Certiorari*or te revers% o* te 7e+isionCA? in CA-G.R. SP No. 61@6, %**irin) te !r&ersRTC? o* P%r%%/ue Cit2, Br%n+ 60, in Civi C%se No. 9-0@ *or re4evin %n&

&%%)es.

Se+tion 1, Re4u5i+ A+t >RA? No. @06, ;i+ tooD e**e+t on (e5ru%r2 , 199, 4rovi&es

t%t it s% 5e un%;*u *or %n2 4erson to i4ort, +%use te i4ort%tion o*, re)ister, +%use te

re)istr%tion o*, use or o4er%te %n2 vei+e ;it its steerin) ;ee ri)t %n& si&e tereo* in %n2

i);%2, street or ro%&, ;eter 4riv%te or 4u5i+, or %t te n%tion% or o+% .F

Noe T%5ueo), Ernesto &e $esus, Nor% Pon&evi&%, Ren%to C%ros, Ernesto M. Cu%,

Ce+ii% T. S%uo), $eneit% S. N%4r%te, Ro&o*o (. M%)o, %n& A%i% C. E&%ur% %re &u2-i+ense& i4orters o* vei+es. Soetie in A4ri %n& M%2 199, te2 i4orte& se+on&%n&

ri)t-%n& &rive 5uses *ro $%4%n. Hen te si4ent %rrive& %t

teSout '%r5or, Port o* M%ni%, te 7istri+t Coe+tor o* Custos i4oun&e& te vei+es %n&

or&ere& te store& %t te ;%reouse o* te Asi%n Terin%s, In+. >ATI?, % +ustos-5on&e&

;%reouse un&er te +usto&2 o* te Avi%tion %n& C%r)o Re)ion% 7ivision. Con*or%52 ;it

Se+tion 60 o* te T%ri** %n& Custos Co&e, te 7istri+t Coe+tor o* Custos issue& H%rr%nts

o* 7istr%int

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A. PRI!R T! 'EARING:1. A Hrit o* Re4evin 5e issue& u4on te 4ostin) o* % 5on& o*

PP1,000,000.00 >&ou5e te v%ue o* te vei+es? ee+ute& in *%vor o*&e*en&%nts to %ns;er *or &%%)es, %n& %44rove& 52 tis Court, &ire+tin) teSeri** or is &e4uties to *ort;it t%De +usto&2 o* te s%i& vei+es ;i+ %re in

te 4ossession %n& +usto&2 o* te &e*en&%nts or teir %)ents %t te Bure%u o*Custos 'o&in) Are%, o+%te& %t Sout '%r5or, Port Are%, M%ni% Cit2, %n&ret%in it in its +usto&23

B. A(TER 'EARING:1. To 4%2 te su o* PP6,000,000.00 i* te Hrit o* Re4evin +%nnot 5e

i4eente& su++ess*u2 4us interest unti *u2 4%i&3. To 4%2 +o4ens%tor2 &%%)es o* not ess t%n PP0,000.00 *or

unre%iJe& 4ro*its, or% &%%)es o* not ess

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. Su+ oter reie*s ust %n& e/uit%5e un&er te 4reises.

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+? +osts o* suit.1? ATI *%ie& to %e)e %n&

4resent %n2 +ontr%+t +overin) te &e4ositstor%)e o* te vei+es in its ;%reouse3 >? ATI %s

no e)% interest over te %tter in iti)%tion3 %n& >? te %&u&i+%tion o* te ri)ts o* te 4%rties

%2 5e &e%2e& or 4reu&i+e& ;ie tose o* ATI %2 5e 4rote+te& in % se4%r%te 4ro+ee&in).

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P%inti** S%ue Rosete is ere52 or&ere& to return te 4ossession o* tesu5e+t 5uses to Pe&ro Men&oJ%, in is +%4%+it2 %s Custos Coissioner o*te Bure%u o* Custos.

S! !R7ERE7.

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uris&i+tion over te %in +%se, it ;%s %so 5ere*t o* %utorit2 to e%r te tir&-4%rt2 +%i or te

+o4%int-in-intervention *ie& 52 ATI. Citin)Saw v. Court of Appeals,

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tir&-4%rt2 +o4%int 5e*ore te RTC &isisse& res4on&entsK %+tion. Petitioner %int%ins t%t

te Metropolitan+%se is tus %44i+%5e, %n& 4oints out t%t te Court terein rue& t%t te

+o4%int-in-intervention sou& 5e 4reserve& re)%r&ess o* te out+oe o* te ori)in%

+o4%int.

(or teir 4%rt, res4on&ents %ssert t%t te CA &e+ision is in %++or& ;it te Rues o*Court.

He %re tus t%sDe& to resove te issue o* ;eter te CA erre& in &isissin) te

4etition *or certiorario* te 4etitioner.

Te 4etition is &enie& *or %+D o* erit.

He rue t%t te tri% +ourt %+te& in %++or&%n+e ;it te T%ri** %n& Custos Co&e >TCC?

%n& te ruin)s o* tis Court ;en it issue& te %ss%ie& !r&ers.

Se+tion 60 o* te TCC 4rovi&es t%t te Bure%u o* Custos s% eer+ise e+usive

uris&i+tion over seiJe& %n& *or*eite& +%rs. It is t%sDe& to en*or+e t%ri**, %n& su4ervise %n& +ontro

+ustos %; %n& % oter %;s, rues %n& re)u%tions re%tin) to te t%ri** %n& +ustos

%&inistr%tion3 %n& to su4ervise %n& +ontro % i4ort %n& e4ort +%r)oes, o%&e& or store& in

4iers, terin% *%+iities, in+u&in) +ont%iner 2%r&s %n& *rei)t st%tions, *or te 4rote+tion o*

)overnent revenues. "n&er Se+tion 01 o* te TCC, te Coe+tor o* Custos is e4o;ere&

to %De % seiJure o* +%r)oes %n& issue % re+ei4t *or te &etention tereo*:SEC. 01. *arrant for +etention of %ropert$Cash ond. "4on %Din)

%n2 seiJure, te Coe+tor s% issue % ;%rr%nt *or te &etention o* te4ro4ert23 and if the owner or i#porter desires to secure the release of the

propert$ for legiti#ate use, the Collector shall, with the approval of theCo##issioner of Custo#s, surrender it upon the filing of a cash bond, in %n%ount to 5e *ie& 52 i, +on&itione& u4on te 4%2ent o* te %44r%ise& v%ueo* te %rti+e %n&or %n2 *ine, e4enses %n& +osts ;i+ %2 5e %&u&)e& in te+%se: Provi&e&, T%t su+ i4ort%tion s% not 5e ree%se& un&er %n2 5on&;en tere is % 4ri% *%+ie evi&en+e o* *r%u& in te i4ort%tion o* te %rti+e:Provi&e& *urter, T%t %rti+es te i4ort%tion o* ;i+ is 4roi5ite& 52 %; s%not 5e ree%se& un&er %n2 +ir+ust%n+e ;osoever, Provi&e&, *in%2, T%tnotin) in tis se+tion s% 5e +onstrue& %s reievin) te o;ner or i4orter *ro%n2 +riin% i%5iit2 ;i+ %2 %rise *ro %n2 vio%tion o* %; +oitte& in+onne+tion ;it te i4ort%tion o* te %rti+e. >e4%sis su44ie&?

Se+tion @0 o* te TCC enuer%tes te 4ro4erties su5e+t o* seiJure %n& *or*eiture:

Se+tion @0. %ropert$ Sub-ect of orfeiture Under "ariff and Custo#s/aws.0An2 vei+e, vesse or %ir+r%*t, +%r)o, %rti+e %n& o5e+ts s%, un&er te*oo;in) +on&itions 5e su5e+t to *or*eiture:

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>*? An2 %rti+e te i4ort%tion or e4ort%tion o* ;i+ is e**e+te& or%tte4te& +ontr%r2 to %;, or %n2 %rti+e o* 4roi5ite& i4ort%tion or e4ort%tion,%n& % oter %rti+es ;i+, in te o4inion o* te Coe+tor, %ve 5een use&, %reor ;ere entere& to 5e use& %s instruents in te i4ort%tion or e4ort%tion o* te*orer.

As te Court rue& in Jao v. Court of Appeals,

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In *ine, te initi% or&ers o* te RTC )r%ntin)te issu%n+e o* te ;rit o* re4evin %n& its

i4eent%tion %re voi&.

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#!NE, Petitioners,vs.S"BIC INTEGRATE7 MACR! 8ENT"RES C!RP., re4resente& 52 its Presi&ent !LAN7A

AMBAR,Res4on&ent.

- - - - - - - - - - - - - - -

G.R. No. 161 (e5ru%r2 0, 006

'!N. EEC"TI8E SECRETAR, '!N. SECRETAR !( (INANCE, T'E C'IE( !( T'ELAN7 TRANSP!RTATI!N !((ICE, T'E C!MMISSI!NER !( C"ST!MS, %n& T'EC!LLECT!R !( C"ST!MS, S"BIC SPECIAL EC!N!MIC #!NE, Petitioners,vs.M!T!R 8E'ICLE IMP!RTERS ASS!CIATI!N !( S"BIC BA (REEP!RT, INC.,re4resente& 52 its Presi&ent AL(RE7! S. GALANG, Res4on&ent.

7 E C I S I ! N

NARES-SANTIAG!, J.3

Te inst%nt +onsoi&%te& 4etitions seeD to %nnu %n& set %si&e te 7e+isions o* te Re)ion%Tri% Court o* !on)%4o Cit2, Br%n+ , in Civi C%se No. 0-0-0 %n& Civi C%se No. -0-0,5ot &%te& M%2 , 003 %n& te (e5ru%r2 1, 00@ 7e+ision o* te Court o* A44e%s in CA-G.R. SP. No. , ;i+ &e+%re& Arti+e , Se+tion .1 o* Ee+utive !r&er No. 1@6 >E! 1@6?un+onstitution%. S%i& ee+utive issu%n+e 4roi5its te i4ort%tion into te +ountr2, in+usive o*te S4e+i% E+onoi+ %n& (ree4ort #one or te Su5i+ B%2 (ree4ort >SB( or (ree4ort?, o* use&otor vei+es, su5e+t to % *e; e+e4tions.

Te un&is4ute& *%+ts so; t%t on 7e+e5er 1, 00, Presi&ent Gori% M%+%4%)%-Arro2o,trou) Ee+utive Se+ret%r2 A5erto G. Rouo, issue& E! 1@6, entite& OProvi&in) *or %+o4reensive in&ustri% 4oi+2 %n& &ire+tions *or te otor vei+e &eveo4ent 4ro)r% %n&

its i4eentin) )ui&eines.O Te +%en)e& 4rovision st%tes:

.1 Te i4ort%tion into te +ountr2, in+usive o* te (ree4ort, o* % t24es o* use& otorvei+es is 4roi5ite&, e+e4t *or te *oo;in):

.1.1 A vei+e t%t is o;ne& %n& *or te 4erson% use o* % returnin) resi&ent orii)r%nt %n& +overe& 52 %n %utorit2 to i4ort issue& un&er te No-&o%rI4ort%tion Pro)r%. Su+ vei+es +%nnot 5e reso& *or %t e%st tree >? 2e%rs3

.1. A vei+e *or te use o* %n o**i+i% o* te 7i4o%ti+ Cor4s %n& %utoriJe& to5e i4orte& 52 te 7e4%rtent o* (orei)n A**%irs3

.1. Tru+Ds e+u&in) 4i+Du4 tru+Ds3

1. ;it G8H o* .@-6.0 tons +overe& 52 %n %utorit2 to i4ort issue& 52te 7TI.

. Hit G8H %5ove 6.0 tons.

.1. Buses:

1. ;it G8H o* 6-1 tons +overe& 52 %n %utorit2 to i4ort issue& 52 7TI3

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. ;it G8H %5ove 1 tons.

.1.@ S4e+i% 4ur4ose vei+es:

1. *ire tru+Ds

. %5u%n+es

. *uner% e%rse+o%+es

. +r%ne orries

@. tr%+tor e%&s %n& tru+D tr%+tors

6. 5oo tru+Ds

. t%nDer tru+Ds

. t%nD orries ;it i) 4ressure s4r%2 )un

9. ree*ers or re*ri)er%te& tru+Ds

10. o5ie &riin) &erri+Ds

11. tr%nsit+on+rete iers

1. o5ie r%&ioo)i+% units

1. ;re+Ders or to; tru+Ds

1. +on+rete 4u4 tru+Ds

1@. %eri%5u+Det *%t-*or tru+Ds

16. street s;ee4ers

1. v%+uu tru+Ds

1. )%r5%)e +o4%+tors

19. se* o%&er tru+Ds

0. %n i*t tru+Ds

1. i)tin) tru+Ds

. tru+Ds ounte& ;it s4e+i% 4ur4ose e/ui4ent

. % oter t24es o* vei+e &esi)ne& *or % s4e+i*i+ use.

Te issu%n+e o* E! 1@6 s4%;ne& tree se4%r%te %+tions *or &e+%r%tor2 reie* 5e*ore Br%n+ o* te Re)ion% Tri% Court o* !on)%4o Cit2, % seeDin) te &e+%r%tion o* te un+onstitution%it2o* Arti+e , Se+tion .1 o* s%i& ee+utive or&er. Te +%ses ;ere *ie& 52 erein res4on&ententities, ;o or ;ose e5ers, %re +%ssi*ie& %s Su5i+ B%2 (ree4ort Enter4rises %n& en)%)e&in te 5usiness o*, %on) oters, i4ortin) %n&or tr%&in) use& otor vei+es.

G.R. No. 1611:

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!n $%nu%r2 16, 00, res4on&ents Sout;in) 'e%v2 In&ustries, In+., >Sout;in)? "nite&Au+tioneers, In+. >"nite& Au+tioneers?, %n& Mi+rov%n, In+. >Mi+rov%n?, institute& % &e+%r%tor2reie* +%se &o+Dete& %s Civi C%se No. 0-0-0,1%)%inst te Ee+utive Se+ret%r2, Se+ret%r2 o*Tr%ns4ort%tion %n& Couni+%tion, Coissioner o* Custos, Assist%nt Se+ret%r2 %n& 'e%&o* te L%n& Tr%ns4ort%tion !**i+e, Su5i+ B%2 Metro4oit%n Autorit2 >SBMA?, Coe+tor o*

Custos *or te Port %t Su5i+ B%2 (ree4ort #one, %n& te Cie* o* te L%n& Tr%ns4ort%tion!**i+e %t Su5i+ B%2 (ree4ort #one.

Sout;in), "nite& Au+tioneers %n& Mi+rov%n 4r%2e& t%t u&)ent 5e ren&ere& >1? &e+%rin)Arti+e , Se+tion .1 o* E! 1@6 un+onstitution% %n& ie)%3 >? &ire+tin) te Se+ret%r2 o*(in%n+e, Coissioner o* Custos, Coe+tor o* Custos %n& te C%ir%n o* te SBMA to%o; te i4ort%tion o* use& otor vei+es3 >? or&erin) te L%n& Tr%ns4ort%tion !**i+e %n& itssu5or&in%tes insi&e te Su5i+ S4e+i% E+onoi+ #one to 4ro+ess te re)istr%tion o* tei4orte& use& otor vei+es3 %n& >? in )ener%, to %o; te uni4e&e& entr2 %n& i4ort%tiono* use& otor vei+es su5e+t on2 to te 4%2ent o* te re/uire& +ustos &uties.

"4on *iin) o* 4etitionersK %ns;er+oent, res4on&ents Sout;in) %n& Mi+rov%n *ie& % otion*or su%r2 u&)ent ;i+ ;%s )r%nte& 52 te tri% +ourt. !n M%2 , 00, % su%r2

u&)ent ;%s ren&ere& &e+%rin) t%t Arti+e , Se+tion .1 o* E! 1@6 +onstitutes %n un%;*uusur4%tion o* e)is%tive 4o;er veste& 52 te Constitution ;it Con)ress. Te tri% +ourt *urtere& t%t te 4roviso is +ontr%r2 to te %n&%te o* Re4u5i+ A+t No. >RA ? or teB%ses Conversion %n& 7eveo4ent A+t o* 199 ;i+ %o;s te *ree *o; o* )oo&s %n& +%4it%;itin te (ree4ort. Te &is4ositive 4ortion o* te s%i& &e+ision re%&s:

H'ERE(!RE, u&)ent is ere52 ren&ere& in *%vor o* 4etitioner &e+%rin) Ee+utive !r&er1@6 M%+ro8entures? *ie& ;it te s%e tri% +ourt, % sii%r %+tion *or &e+%r%tor2 reie* &o+Dete& %s CiviC%se No. -0-0,;it te s%e 4r%2er %n& %)%inst te s%e 4%rties%s tose in Civi C%se

No. 0-0-0.

In tis +%se, te tri% +ourt iDe;ise ren&ere& % su%r2 u&)ent on M%2 , 00, o&in) t%tArti+e , Se+tion .1 o* E! 1@6, is re4u)n%nt to te +onstitution.@Eev%te& to tis Court via%4etition *or revie; on +ertior%ri, Civi C%se No. -0-0 ;%s &o+Dete& %s G.R. No. 161.

G.R. No. 161

http://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/feb2006/gr_164171_2006.html

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!n $%nu%r2 , 00, res4on&ent Motor 8ei+e I4orters Asso+i%tion o* Su5i+ B%2 (ree4ort,In+. >Asso+i%tion?, *ie& %noter %+tion *or &e+%r%tor2 reie* ;it essenti%2 te s%e 4r%2er %stose in Civi C%se No. -0-0 %n& Civi C%se No. 0-0-0, %)%inst te Ee+utive Se+ret%r2,Se+ret%r2 o* (in%n+e, Cie* o* te L%n& Tr%ns4ort%tion !**i+e, Coissioner o* Custos,Coe+tor o* Custos %t SBMA %n& te C%ir%n o* SBMA. Tis ;%s &o+Dete& %s Civi C%se

No. 0-0-00,

6

5e*ore te s%e tri% +ourt.In % &e+ision &%te& M%r+ 10, 00, te +ourt % /uo )r%nte& te Asso+i%tionKs 4r%2er %n&&e+%re& te %ss%ie& 4roviso %s +ontr%r2 to te Constitution, to ;it:

H'ERE(!RE, u&)ent is ere52 ren&ere& in *%vor o* 4etitioner &e+%rin) Ee+utive !r&er1@6 CA-G.R. SP. No. ? ;i+ &enie& te 4etition on (e5ru%r2 1, 00@ %n&sust%ine& te *in&in) o* te tri% +ourt t%t Arti+e , Se+tion .1 o* E! 1@6, is voi& *or 5ein)re4u)n%nt to te +onstitution. Te &is4ositive 4ortion tereo*, re%&s:

H'ERE(!RE, te inst%nt 4etition *or +ertior%ri is ere52 7ENIE7. Te %ss%ie& &e+ision o* teRe)ion% Tri% Court, Tir& $u&i+i% Re)ion, Br%n+ , !on)%4o Cit2, in Civi C%se No. 0-0-00, %++or&in)2, STAN7S.

S! !R7ERE7.9

Te %*ore/uote& &e+ision o* te Court o* A44e%s ;%s eev%te& to tis Court %n& &o+Dete& %sG.R. No. 161. In % Resoution &%te& !+to5er , 00@,10s%i& +%se ;%s +onsoi&%te& ;itG.R. No. 1611 %n& G.R. No. 161.

Petitioners %re no; 5e*ore tis Court +onten&in) t%t Arti+e , Se+tion .1 o* E! 1@6 is v%i&%n& %44i+%5e to te entire +ountr2, in+u&in) te (reee4ort. In su44ort o* teir %r)uents, te2r%ise 4ro+e&ur% %n& su5st%ntive issues 5e%rin) on te +onstitution%it2 o* te %ss%ie& 4roviso.Te 4ro+e&ur% issues %re: te %+D o* res4on&entsK locus standi to /uestion te v%i&it2 o* E!1@6, te 4ro4riet2 o* +%en)in) E! 1@6 in % &e+%r%tor2 reie* 4ro+ee&in) %n& te %44i+%5iit2

o* % u&)ent on te 4e%&in)s in tis +%se.Petitioners %r)ue t%t res4on&ents ;i not 5e %**e+te& 52 te i4ort%tion 5%n +onsi&erin) t%tteir +erti*i+%te o* re)istr%tion %n& t% ee4tion &o not %utoriJe te to en)%)e in tei4ort%tion %n&or tr%&in) o* use& +%rs. Te2 %so %ver t%t te %+tions *ie& 52 res4on&ents &onot /u%i*2 %s &e+%r%tor2 reie* +%ses. Se+tion 1, Rue 6 o* te Rues o* Court 4rovi&es t%t %4etition *or &e+%r%tor2 reie* %2 5e *ie& 5e*ore tere is % 5re%+ or vio%tion o* ri)ts.Petitioners +%i t%t tere ;%s %re%&2 % 5re%+ o* res4on&entsK su44ose& ri)t 5e+%use te+%ses ;ere *ie& ore t%n % 2e%r %*ter te issu%n+e o* E! 1@6. In *%+t, in Civi C%se No. 0-0-

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00, nuerous ;%rr%nts o* seiJure %n& &etention ;ere issue& %)%inst i4orte& use& otorvei+es 5eon)in) to res4on&ent Asso+i%tionKs e5ers.

PetitionersK %r)uents %+D erit.

Te est%5ise& rue t%t te +onstitution%it2 o* % %; or %&inistr%tive issu%n+e +%n 5e

+%en)e& 52 one ;o ;i sust%in % &ire+t inur2 %s % resut o* its en*or+eent11

%s 5eens%tis*ie& in te inst%nt +%se. Te 5ro%& su5e+t o* te 4roi5ite& i4ort%tion is O% t24es o* use&otor vei+es.O Res4on&ents ;ou& &e*inite2 su**er % &ire+t inur2 *ro te i4eent%tion o*E! 1@6 5e+%use teir +erti*i+%te o* re)istr%tion %n& t% ee4tion %utoriJe te to tr%&e%n&or i4ort ne; %n& use& otor vei+es %n& s4%re 4%rts, e+e4t Ouse& +%rs.O1!ter t24eso* otor vei+es i4orte& %n&or tr%&e& 52 res4on&ents %n& not *%in) ;itin te +%te)or2o* use& +%rs ;ou& tus 5e su5e+te& to te 5%n to te 4reu&i+e o* teir 5usiness. "n&ou5te&2,res4on&ents %ve te e)% st%n&in) to %ss%i te v%i&it2 o* E! 1@6.

As to te 4ro4riet2 o* &e+%r%tor2 reie* %s % vei+e *or %ss%iin) te ee+utive issu%n+e, su**i+eit to st%te t%t %n2 5re%+ o* te ri)ts o* res4on&ents ;i not %**e+t te +%se. In Co##ission on

Audit of the %rovince of Cebu v. %rovince of Cebu,1te Court entert%ine& % suit *or &e+%r%tor2

reie* to *in%2 sette te &ou5t %s to te 4ro4er inter4ret%tion o* te +on*i+tin) %;s invove&,not;itst%n&in) % vio%tion o* te ri)t o* te 4%rt2 %**e+te&. He *in& no re%son to &evi%te *ros%i& ruin) in&*u o* te si)ni*i+%n+e o* te 4resent +%se to te n%tion% e+ono2.

So %so, su%r2 u&)ents ;ere 4ro4er2 ren&ere& 52 te tri% +ourt 5e+%use te issuesinvove& in te inst%nt +%se ;ere 4ure /uestions o* %;. A otion *or su%r2 u&)ent is4reise& on te %ssu4tion t%t te issues 4resente& nee& not 5e trie& eiter 5e+%use tese%re 4%tent2 &evoi& o* su5st%n+e or t%t tere is no )enuine issue %s to %n2 4ertinent *%+t. It is %eto& s%n+tione& 52 te Rues o* Court *or te 4ro4t &is4osition o* % +ivi %+tion in ;i+ te4e%&in)s r%ise on2 % e)% issue, not % )enuine issue %s to %n2 %teri% *%+t.1

At %n2 r%te, even %ssuin) te 4ro+e&ur% *%;s r%ise& 52 4etitioners tru2 eist, te Court is not

4re+u&e& *ro 5rusin) %si&e tese te+ni+%ities %n& t%Din) +o)niJ%n+e o* te %+tion *ie& 52res4on&ents +onsi&erin) its i4ort%n+e to te 4u5i+ %n& in Dee4in) ;it te &ut2 to &eterine;eter te oter 5r%n+es o* te )overnent %ve De4t teseves ;itin te iits o* teConstitution.1@

He no; +oe to te su5st%ntive issues, ;i+ %re: >1? ;eter tere is st%tutor2 5%sis *or teissu%n+e o* E! 1@63 %n& >? i* te %ns;er is in te %**ir%tive, ;eter te %44i+%tion o* Arti+e, Se+tion .1 o* E! 1@6, re%son%5e %n& ;itin te s+o4e 4rovi&e& 52 %;.

Te %in trust o* te 4etition is t%t E! 1@6 is +onstitution% 5e+%use it ;%s issue& 4ursu%nt toE! 6, te !ni5us Investent Co&e o* te Pii44ines %n& t%t its %44i+%tion sou& 5eeten&e& to te (ree4ort 5e+%use te )u%r%ntee o* RA on te *ree *o; o* )oo&s into te

s%i& Jone is ere2 %n ee4tion *ro +ustos &uties %n& t%es on ites 5rou)t into te(ree4ort %n& not %n o4en *oo&)%te *or % Din&s o* )oo&s %n& %teri%s ;itout restri+tion.

In G.R. No. 161, te Court o* A44e%s inv%i&%te& Arti+e , Se+tion .1 o* E! 1@6, on te)roun& o* %+D o* %n2 st%tutor2 5%sis *or te Presi&ent to issue te s%e. It e& t%t te4roi5ition on te i4ort%tion o* use& otor vei+es is %n eer+ise o* 4oi+e 4o;er veste& onte e)is%ture %n& %5sent %n2 en%5in) %;, te eer+ise tereo* 52 te Presi&ent trou) %nee+utive issu%n+e, is voi&.

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Poi+e 4o;er is inerent in % )overnent to en%+t %;s, ;itin +onstitution% iits, to 4rootete or&er, s%*et2, e%t, or%s, %n& )ener% ;e*%re o* so+iet2. It is o&)e& 4ri%ri2 ;it tee)is%ture. B2 virtue o* % v%i& &ee)%tion o* e)is%tive 4o;er, it %2 %so 5e eer+ise& 52 tePresi&ent %n& %&inistr%tive 5o%r&s, %s ;e %s te %;%Din) 5o&ies on % uni+i4% eves,in+u&in) te 5%r%n)%2.16Su+ &ee)%tion +on*ers u4on te Presi&ent/u%si-e)is%tive

4o;er ;i+ %2 5e &e*ine& %s te %utorit2 &ee)%te& 52 te %;-%Din) 5o&2 to te%&inistr%tive 5o&2 to %&o4t rues %n& re)u%tions inten&e& to +%rr2 out te 4rovisions o* te %;%n& i4eent e)is%tive 4oi+2.1To 5e v%i&, %n %&inistr%tive issu%n+e, su+ %s %n ee+utiveor&er, ust +o42 ;it te *oo;in) re/uisites:

>1? Its 4rou)%tion ust 5e %utoriJe& 52 te e)is%ture3

>? It ust 5e 4rou)%te& in %++or&%n+e ;it te 4res+ri5e& 4ro+e&ure3

>? It ust 5e ;itin te s+o4e o* te %utorit2 )iven 52 te e)is%ture3 %n&

>? It ust 5e re%son%5e.1

Contr%r2 to te +on+usion o* te Court o* A44e%s, E! 1@6 %+tu%2 s%tis*ie& te *irst re/uisite o*

% v%i& %&inistr%tive or&er. It %s 5ot +onstitution% %n& st%tutor2 5%ses.

7ee)%tion o* e)is%tive 4o;ers to te Presi&ent is 4eritte& in Se+tion >? o* Arti+e 8I o* teConstitution. It 4rovi&es:

>? Te Con)ress %2, 52 %;, %utoriJe te Presi&ent to *i ;itin s4e+i*ie& iits, %n& su5e+tto su+ iit%tions %n& restri+tions %s it %2 i4ose, t%ri** r%tes, i4ort %n& e4ort /uot%s,tonn%)e %n& ;%r*%)e &ues, %n& oter &uties or i4osts ;itin te *r%e;orD o* te n%tion%&eveo4ent 4ro)r% o* te Governent.19>E4%sis su44ie&?

Te reev%nt st%tutes to ee+ute tis 4rovision %re:

1? Te T%ri** %n& Custos Co&e ;i+ %utoriJes te Presi&ent, in te interest o* n%tion%e+ono2, )ener% ;e*%re %n&or n%tion% se+urit2, to, inter alia, 4roi5it te i4ort%tion o* %n2+oo&it2. Se+tion 01 tereo*, re%&s:

Se+. 01. (ei5e C%use.

%. In te interest o* n%tion% e+ono2, )ener% ;e*%re %n&or n%tion% se+urit2, %n& su5e+t tote iit%tions erein 4res+ri5e&, te Presi&ent, u4on re+oen&%tion o* te N%tion% E+onoi+%n& 7eveo4ent Autorit2 >erein%*ter re*erre& to %s NE7A?, is ere52 e4o;ere&: >? toest%5is i4ort /uot% or to 5%n i4orts o* %n2 +oo&it2, %s %2 5e ne+ess%r23 Provi&e&, T%t u4on 4erio&i+ investi)%tions 52 te T%ri** Coission %n& re+oen&%tion o*te NE7A, te Presi&ent %2 +%use % )r%&u% re&u+tion o* 4rote+tion eves )r%nte& in Se+tion!ne un&re& %n& *our o* tis Co&e, in+u&in) tose su5se/uent2 )r%nte& 4ursu%nt to tisse+tion. >E4%sis su44ie&?

? Ee+utive !r&er No. 6, te !ni5us Investent Co&e o* te Pii44ines ;i+ ;%s issue&on $u2 16, 19, 52 ten Presi&ent Cor%Jon C. A/uino, in te eer+ise o* e)is%tive 4o;erun&er te Provision% (ree&o Constitution,0e4o;ers te Presi&ent to %44rove or ree+t te4roi5ition on te i4ort%tion o* %n2 e/ui4ent or r%; %teri%s or *inise& 4ro&u+ts. Pertinent4rovisions tereo*, re%&:

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ART. . Co4osition o* te 5o%r&. Te Bo%r& o* Investents s% 5e +o4ose& o* seven >?)overnors: Te Se+ret%r2 o* Tr%&e %n& In&ustr2, tree >? "n&erse+ret%ries o* Tr%&e %n&In&ustr2 to 5e +osen 52 te Presi&ent3 %n& tree >? re4resent%tives *ro te )overnent%)en+ies %n& te 4riv%te se+tor .

ART. . Po;ers %n& &uties o* te Bo%r&.

>1? (oru%te %n& i4eent r%tion%iJ%tion 4ro)r%s *or +ert%in in&ustries ;ose o4er%tion%2 resut in &iso+%tion, over+ro;&in) or ine**i+ient use o* resour+es, tus i4e&in) e+onoi+)ro;t. (or tis 4ur4ose, te Bo%r& %2 *oru%te )ui&eines *or 4ro)ressive %nu*%+turin)4ro)r%s, o+% +ontent 4ro)r%s, %n&%tor2 sour+in) re/uireents %n& &is4ers% o*in&ustries. In %44ro4ri%te +%ses %n& u4on %44rov% o* te Presi&ent, te Bo%r& %2 restri+t,eiter tot%2 or 4%rti%2, te i4ort%tion o* %n2 e/ui4ent or r%; %teri%s or *inise& 4ro&u+tsinvove& in te r%tion%iJ%tion 4ro)r%3 >E4%sis su44ie&?

? Re4u5i+ A+t No. 00, oter;ise Dno;n %s te OS%*e)u%r& Me%sures A+tO >SMA?, %n&

entite& OAn A+t Prote+tin) Lo+% In&ustries B2 Provi&in) S%*e)u%r& Me%sures To Be "n&ert%DenIn Res4onse To In+re%se& I4orts An& Provi&in) Pen%ties (or 8io%tion Tereo*,O 1&esi)n%te&te Se+ret%rieso* te 7e4%rtent o* Tr%&e %n& In&ustr2 >7TI? %n& te 7e4%rtent o*

A)ri+uture, in teir +%4%+it2 %s alter egoso* te Presi&ent, %s te i4eentin) %utorities o*te s%*e)u%r& e%sures, ;i+ in+u&e, inter alia, o&i*i+%tion or i4osition o* %n2 /u%ntit%tiverestri+tion on te i4ort%tion o* % 4ro&u+t into te Pii44ines. Te 4ur4ose o* te SMA is st%te&in te &e+%r%tion o* 4oi+2, tus:

SEC. . 7e+%r%tion o* Poi+2. Te St%te s% 4roote +o4etitiveness o* &oesti+ in&ustries%n& 4ro&u+ers 5%se& on soun& in&ustri% %n& %)ri+utur% &eveo4ent 4oi+ies, %n& e**i+ientuse o* u%n, n%tur% %n& te+ni+% resour+es. In 4ursuit o* tis )o% %n& in te 4u5i+ interest,te St%te s% 4rovi&e s%*e)u%r& e%sures to 4rote+t &oesti+ in&ustries %n& 4ro&u+ers *ro

in+re%se& i4orts ;i+ +%use or tre%ten to +%use serious inur2 to tose &oesti+ in&ustries%n& 4ro&u+ers.

Tere %re tus e4i+it +onstitution% %n& st%tutor2 4erission %utoriJin) te Presi&ent to 5%nor re)u%te i4ort%tion o* %rti+es %n& +oo&ities into te +ountr2.

Anent te se+on& re/uisite, t%t is, t%t te or&er ust 5e issue& or 4rou)%te& in %++or&%n+e;it te 4res+ri5e& 4ro+e&ure, it is ne+ess%r2 t%t te n%ture o* te %&inistr%tive issu%n+e is4ro4er2 &eterine&. As in te en%+tent o* %;s, te )ener% rue is t%t, te 4rou)%tion o*%&inistr%tive issu%n+es re/uires 4revious noti+e %n& e%rin), te on2 e+e4tion 5ein) ;erete e)is%ture itse* re/uires it %n& %n&%tes t%t te re)u%tion s% 5e 5%se& on +ert%in *%+ts%s &eterine& %t %n %44ro4ri%te investi)%tion.Tis e+e4tion 4ert%ins to te issu%n+e

o* e)is%tive rues %s &istin)uise& *ro inter4ret%tive rues ;i+ )ive no re% +onse/uen+eore t%n ;%t te %; itse* %s %re%&2 4res+ri5e&3%n& %re &esi)ne& ere2 to 4rovi&e)ui&eines to te %; ;i+ te %&inistr%tive %)en+2 is in +%r)e o* en*or+in).@A e)is%tiverue, on te oter %n&, is in te n%ture o* su5or&in%te e)is%tion, +r%*te& to i4eent %4ri%r2 e)is%tion.

In Co##issioner of 2nternal &evenue v. Court of Appeals,6%n& Co##issioner of 2nternal&evenue v. Michel J. /huillier %awnshop, 2nc.,te Court enun+i%te& te &o+trine t%t ;en %n

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%&inistr%tive rue )oes 5e2on& ere2 4rovi&in) *or te e%ns t%t +%n *%+iit%te or ren&er ess+u5ersoe te i4eent%tion o* te %; %n& su5st%nti%2 in+re%ses te 5ur&en o* tose)overne&, it 5eooves te %)en+2 to %++or& %t e%st to tose &ire+t2 %**e+te& % +%n+e to 5ee%r& %n&, tere%*ter, to 5e &u2 in*ore&, 5e*ore te issu%n+e is )iven te *or+e %n& e**e+t o*%;.

In te inst%nt +%se, E! 1@6 is o5vious2 % e)is%tive rue %s it seeDs to i4eent or ee+ute4ri%r2 e)is%tive en%+tents inten&e& to 4rote+t te &oesti+ in&ustr2 52 i4osin) % 5%n onte i4ort%tion o* % s4e+i*ie& 4ro&u+t not 4revious2 su5e+t to su+ 4roi5ition. Te &ue4ro+ess re/uireents in te issu%n+e tereo* %re e5o&ie& in Se+tion 01o* te T%ri** %n&Custos Co&e %n& Se+tions @ %n& 9 o* te SMA9;i+ essenti%2 %n&%te te +on&u+t o*investi)%tion %n& 4u5i+ e%rin)s 5e*ore te re)u%tor2 e%sure or i4ort%tion 5%n %2 5eissue&.

In te 4resent +%se, res4on&ents neiter /uestione& 5e*ore tis Court nor ;it te +ourts 5eo;te 4ro+e&ure t%t 4%ve& te ;%2 *or te issu%n+e o* E! 1@6. H%t te2 +%en)e& in teir4etitions 5e*ore te tri% +ourt ;%s te %5sen+e o* Osu5st%ntive &ue 4ro+essO in te issu%n+e o*te E!.0Teir %in +ontention 5e*ore te +ourt a 4uois t%t te i4ort%tion 5%n is io)i+% %n&un*%ir 5e+%use it unre%son%52 &rives te out o* 5usiness to te 4reu&i+e o* te n%tion%e+ono2.

Consi&erin) te sette& 4rin+i4e t%t in te %5sen+e o* stron) evi&en+e to te +ontr%r2, %+ts o*te oter 5r%n+es o* te )overnent %re 4resue& to 5e v%i&,1%n& tere 5ein) no o5e+tion*ro te res4on&ents %s to te 4ro+e&ure in te 4rou)%tion o* E! 1@6, te 4resu4tion ist%t s%i& ee+utive issu%n+e &u2 +o4ie& ;it te 4ro+e&ures %n& iit%tions i4ose& 52 %;.

To &eterine ;eter E! 1@6 %s +o4ie& ;it te tir& %n& *ourt re/uisites o* % v%i&%&inistr%tive issu%n+e, to ;it, t%t it ;%s issue& ;itin te s+o4e o* %utorit2 )iven 52 tee)is%ture %n& t%t it is re%son%5e, %n e%in%tion o* te n%ture o* % (ree4ort un&er RA %n& te 4rior&i% 4ur4ose o* te i4ort%tion 5%n un&er te /uestione& E! is ne+ess%r2.

RA ;%s en%+te& 4rovi&in) *or, %on) oter tin)s, te soun& %n& 5%%n+e& +onversion o*te C%rD %n& Su5i+ iit%r2 reserv%tions %n& teir etensions into %tern%tive 4ro&u+tive uses inte *or o* S4e+i% E+onoi+ %n& (ree4ort #one, or te Su5i+ B%2 (ree4ort, in or&er to 4rootete e+onoi+ %n& so+i% &eveo4ent o* Centr% LuJon in 4%rti+u%r %n& te +ountr2 in )ener%.

Te Rues %n& Re)u%tions I4eentin) RA s4e+i*i+%2 &e*ines te territor2 +o4risin)te Su5i+ B%2 (ree4ort, re*erre& to %s te S4e+i% E+onoi+ %n& (ree4ort #one in Se+tion 1 o*RA %s O% se4%r%te +ustos territor2 +onsistin) o* te Cit2 o* !on)%4o %n& teMuni+i4%it2 o* Su5i+, Provin+e o* #%5%es, te %n&s o++u4ie& 52 te Su5i+ N%v% B%se %n&its +onti)uous etensions %s e5r%+e&, +overe& %n& &e*ine& 52 te 19 Pii44ine-".S.Miit%r2 B%se A)reeent %s %en&e& %n& ;itin te territori% uris&i+tion o* Moron) %n&'eros%, Provin+e o* B%t%%n, te etes %n& 5oun&s o* ;i+ s% 5e &eine%te& 52 tePresi&ent o* te Pii44ines3 4rovi&e& *urter t%t 4en&in) est%5isent o* se+ure 4erieters%roun& te entire SB(, te SB( s% re*er to te %re% &e%r+%te& 52 te SBMA 4ursu%nt toSe+tion 1ereo*.O

Aon) te s%ient 4rovisions o* RA %re %s *oo;s:

SECTI!N 1. Subic Special )cono#ic 5one.

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Te %5oveentione& Jone s% 5e su5e+t to te *oo;in) 4oi+ies:

>%? Hitin te *r%e;orD %n& su5e+t to te %n&%te %n& iit%tions o* te Constitution

%n& te 4ertinent 4rovisions o* te Lo+% Governent Co&e, te Su5i+ S4e+i% E+onoi+#one s% 5e &eveo4e& into % se*-sust%inin), in&ustri%, +oer+i%, *in%n+i% %n&investent +enter to )ener%te e4o2ent o44ortunities in %n& %roun& te Jone %n& to%ttr%+t %n& 4roote 4ro&u+tive *orei)n investents3

>5? Te Su5i+ S4e+i% E+onoi+ #one s% 5e o4er%te& %n& %n%)e& %s % se4%r%te+ustos territor2 ensurin) *ree *o; or oveent o* )oo&s %n& +%4it% ;itin, into %n&e4orte& out o* te Su5i+ S4e+i% E+onoi+ #one, %s ;e %s 4rovi&e in+entives su+ %st% %n& &ut2-*ree i4ort%tions o* r%; %teri%s, +%4it% %n& e/ui4ent. 'o;ever,e4ort%tion or reov% o* )oo&s *ro te territor2 o* te Su5i+ S4e+i% E+onoi+ #one tote oter 4%rts o* te Pii44ine territor2 s% 5e su5e+t to +ustos &uties %n& t%es

un&er te Custos %n& T%ri** Co&e %n& oter reev%nt t% %;s o* te Pii44ines3Te (ree4ort ;%s &esi)ne& to ensure *ree *o; or oveent o* )oo&s %n& +%4it% ;itin %4ortion o* te Pii44ine territor2 in or&er to %ttr%+t investors to invest teir +%4it% in % 5usiness+i%te ;it te e%st )overnent% intervention. Te +on+e4t o* tis Jone ;%s e4%ine& 52Sen%tor Guin)on% in tis ;ise:

Sen%tor Guin)on%. Mr. Presi&ent, te s4e+i% e+onoi+ Jone is su++ess*u in %n2 4%+es,4%rti+u%r2 'on) on), ;i+ is % *ree 4ort. Te &i**eren+e 5et;een % s4e+i% e+onoi+ Jone%n& %n in&ustri% est%te is si42 e4%nsive in te sense t%t te +oer+i% %+tivities, in+u&in)te est%5isent o* 5%nDs, servi+es, *in%n+i% institutions, %)ro-in&ustri% %+tivities, %25e%)ri+uture to % +ert%in etent.

Tis &eine%tes te %+tivities t%t ;ou& %ve te e%st o* )overnent intervention, %n& terunnin) o* te %**%irs o* te s4e+i% e+onoi+ Jone ;ou& 5e run 4rin+i4%2 52 te investorsteseves, sii%r to % ousin) su5&ivision, ;ere te su5&ivision o;ners ee+t teirre4resent%tives to run te %**%irs o* te su5&ivision, to set te 4oi+ies, to set te )ui&eines.

He ;ou& iDe to see Su5i+ %re% +onverte& into % itte 'on) on), Mr. Presi&ent, ;ere tere is% u5 o* *ree 4ort %n& *ree entr2, *ree &uties %n& %+tivities to % %iu s4ur )ener%tion o*investent %n& o5s.

Hie te investor is reu+t%nt to +oe in te Pii44ines, %s % rue, 5e+%use o* re& t%4e %n&4er+eive& &e%2s, ;e envision tis s4e+i% e+onoi+ Jone to 5e %n %re% ;ere tere ;i 5einiu )overnent inter*eren+e.

Te initi% out%2 %2 not on2 +oe *ro te Governent or te Autorit2 %s envisione& ere,5ut *ro te teseves, 5e+%use te2 ;ou& 5e en+our%)e& to invest not on2 *or te %n&5ut %so *or te 5ui&in)s %n& *%+tories. As on) %s te2 %re +onvin+e& t%t in su+ %n %re% te2+%n &o 5usiness %n& re%4 re%son%5e 4ro*its, ten %n2 *ro oter 4%rts, 5ot o+% %n&*orei)n, ;ou& invest, Mr. Presi&ent.>E4%sis, %&&e&?

Hit iniu inter*eren+e *ro te )overnent, investors +%n, in )ener%, en)%)e in %n2 Din&o* 5usiness %s ;e %s i4ort %n& e4ort %n2 %rti+e into %n& out o* te (ree4ort. Tese %re

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%on) te ri)ts %++or&e& to Su5i+ B%2 (ree4ort Enter4rises un&er Se+tion 9 o* te Rues %n&Re)u%tions I4eentin) RA , tus

SEC. 9. Ri)ts %n& !5i)%tions.- SB( Enter4rises s% %ve te *oo;in) ri)ts %n&o5i)%tions:

%. To *ree2 en)%)e in %n2 5usiness, tr%&e, %nu*%+turin), *in%n+i% or servi+e %+tivit2, %n& toi4ort %n& e4ort *ree2 % t24es o* )oo&s into %n& out o* te SB(, su5e+t to te 4rovisions o*te A+t, tese Rues %n& oter re)u%tions t%t %2 5e 4rou)%te& 52 te SBMA3

Citin), inter alia, te inter4e%tions o* Sen%tor Enrie, 4etitioners +%i t%t te O*ree *o; oroveent o* )oo&s %n& +%4it%O on2 e%ns t%t )oo&s %n& %teri% 5rou)t ;itin te(ree4ort s% not 5e su5e+t to +ustos &uties %n& oter t%es %n& sou& not 5e +onstrue& %s%n o4en *oo&)%te *or entr2 o* % Din&s o* )oo&s. Te2 tus surise t%t te i4ort%tion 5%n onotor vei+es is %44i+%5e ;itin te (ree4ort. Pertinent inter4e%tions o* Sen%tor Enrie onte +on+e4t o* (ree4ort is %s *oo;s:

Sen%tor Enrie: Mr. Presi&ent, I tinD ;e %re t%Din) ere o* soverei)n +on+e4ts, not territori%

+on+e4ts. Te +on+e4t t%t ;e %re su44ose& to +r%*t ere is to +%rve out % 4ortion o* ourterrestri% &o%in %s ;e %s our %&%+ent ;%ters %n& s%2 to te ;or&: OHe, 2ou +%n set u42our *%+tories in tis %re% t%t ;e %re +ir+us+ri5in), %n& 5rin)in) 2our e/ui4ent %n& 5rin)in)2our )oo&s, 2ou %re not su5e+t to %n2 t%es %n& &uties 5e+%use 2ou %re not ;itin te +ustos

uris&i+tion o* te Re4u5i+ o* te Pii44ines, ;eter 2ou store te )oo&s or on2 *or 4ur4oseso* tr%nssi4ent or ;eter 2ou %De te into *inise& 4ro&u+ts %)%in to 5e ree4orte& tooter %n&s.O

M2 un&erst%n&in) o* % O*ree 4ortO is, ;e %re in e**e+t +%rvin) out % 4%rt o* our territor2 %n& %Deit %s i* it ;ere *orei)n territor2 *or 4ur4oses o* our +ustos %;s, %n& t%t 4eo4e +%n +oe,

5rin) teir )oo&s, store te tere %n& 5rin) te out %)%in, %s on) %s te2 &o not +oe intote &oesti+ +oer+e o* te Re4u5i+.

He &o not re%2 +%re ;eter tese )oo&s %re store& ere. Te on2 tin) t%t ;e +%re is *orour 4eo4e to %ve %n e4o2ent 5e+%use o* te entr2 o* tese )oo&s t%t %re 5ein)&is+%r)e&, ;%reouse& %n& reo%&e& into te si4s so t%t te2 +%n 5e e4orte&. T%t ;i)ener%te e4o2ent *or us. (or %s on) %s t%t is &one, ;e %re s%2in), in e**e+t, t%t ;e %vete e%st +ont%+t ;it our t%ri** %n& +ustos %;s %n& our t% %;s. Tere*ore, ;e +onsi&er tese)oo&s %s outsi&e o* te +ustos uris&i+tion o* te Re4u5i+ o* te Pii44ines %s 2et, unti ;e&r%; te *ro tis territor2 %n& 5rin) te insi&e our &oesti+ +oer+e. In ;i+ +%se, te2%ve to 4%ss trou) our +ustos )%te. I tou)t ;e %re +%rvin) out tis entire %re% %n&+onvert it into tis Din& o* +on+e4t.

'o;ever, +ontr%r2 to te +%i o* 4etitioners, tere is notin) in te *ore)oin) e+er4ts ;i+%5soute2 iits te in+entive to (ree4ort investors on2 to ee4tion *ro +ustos &uties %n&t%es. Min&*u o* te e)is%tive intent to %ttr%+t investors, en%n+e investent %n& 5oost tee+ono2, te e)is%ture +ou& not %ve iite& te enti+eent on2 to ee4tion *ro t%es.Te iniu inter*eren+e 4oi+2 o* te )overnent on te (ree4ort eten&s to te Din& o*5usiness t%t investors %2 e5%rD on %n& te %rti+es ;i+ te2 %2 i4ort or e4ort into

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%n& out o* te Jone. A +ontr%r2 inter4ret%tion ;ou& &e*e%t te ver2 4ur4ose o* te (ree4ort %n&&rive %;%2 investors.

It &oes not e%n, o;ever, t%t te ri)t o* (ree4ort enter4rises to i4ort % t24es o* )oo&s %n&%rti+e is %5soute. Su+ ri)t is o* +ourse su5e+t to te iit%tion t%t %rti+es %5soute24roi5ite& 52 %; +%nnot 5e i4orte& into te (ree4ort.@Neverteess, in &eterinin) ;eter

te 4roi5ition ;ou& %442 to te (ree4ort, resort to te 4ur4ose o* te 4roi5ition is ne+ess%r2.

In issuin) E! 1@6, 4%rti+u%r2 te 4roi5ition on i4ort%tion un&er Arti+e , Se+tion .1, tePresi&ent envisione& to r%tion%iJe te i4ort%tion o* use& otor vei+es %n& to en%n+e te+%4%5iities o* te Pii44ine otor %nu*%+turin) *irs to 5e )o5%2 +o4etitive 4ro&u+ers o*+o4ete2 5ui&-u4 units %n& teir 4%rts %n& +o4onents *or te o+% %n& e4ort %rDets.6In

usti*2in) te issu%n+e o* E! 1@6, 4etitioners %e)e& t%t tere %s 5een % &e+ine in te s%eso* ne; vei+es %n& % re%rD%5e )ro;t o* te s%es o* i4orte& use& otor vei+es. To%&&ress te s%e, te Presi&ent issue& te /uestione& E! to 4revent *urter erosion o* te%re%&2 &e4resse& %rDet 5%se o* te o+% otor vei+e in&ustr2 %n& to +urt%i te %r*ue**e+ts o* te in+re%se in te i4ort%tion o* use& otor vei+es.

T%Din) our 5e%rin)s *ro te *ore)oin) &is+ussions, ;e o& t%t te i4ort%tion 5%n runs %*oute tir& re/uisite *or % v%i& %&inistr%tive or&er. To 5e v%i&, %n %&inistr%tive issu%n+e ustnot 5e ultra viresor 5e2on& te iits o* te %utorit2 +on*erre&. It ust not su44%nt or o&i*2te Constitution, its en%5in) st%tute %n& oter eistin) %;s, *or su+ is te soe *un+tion o* tee)is%ture ;i+ te oter 5r%n+es o* te )overnent +%nnot usur4. As e& in United 6o#eowner7s Association v. 6o#es, 2nc.:

Te rue-%Din) 4o;er o* % 4u5i+ %&inistr%tive 5o&2 is % &ee)%te& e)is%tive 4o;er, ;i+ it%2 not use eiter to %5ri&)e te %utorit2 )iven it 52 Con)ress or te Constitution or to en%r)eits 4o;er 5e2on& te s+o4e inten&e&. Constitution% %n& st%tutor2 4rovisions +ontro ;%t rues%n& re)u%tions %2 5e 4rou)%te& 52 su+ % 5o&2, %s ;e %s ;it res4e+t to ;%t *ie&s %resu5e+t to re)u%tion 52 it. It %2 not %De rues %n& re)u%tions ;i+ %re in+onsistent ;it te4rovisions o* te Constitution or % st%tute, 4%rti+u%r2 te st%tute it is %&inisterin) or ;i++re%te& it, or ;i+ %re in &ero)%tion o*, or &e*e%t, te 4ur4ose o* % st%tute.

In te inst%nt +%se, te su5e+t %tter o* te %;s %utoriJin) te Presi&ent to re)u%te or *or5i&i4ort%tion o* use& otor vei+es, is te &oesti+ in&ustr2. E! 1@6, o;ever, e+ee&e& tes+o4e o* its %44i+%tion 52 eten&in) te 4roi5ition on te i4ort%tion o* use& +%rs to te(ree4ort, ;i+ RA , +onsi&ers to soe etent, % *orei)n territor2.Te &oesti+ in&ustr2 ;i+ te E! seeDs to 4rote+t is %+tu%2 te O+ustos territor2O ;i+ is&e*ine& un&er te Rues %n& Re)u%tions I4eentin) RA , %s *oo;s:

Ote 4ortion o* te Pii44ines outsi&e te Su5i+ B%2 (ree4ort ;ere te T%ri** %n& CustosCo&e o* te Pii44ines %n& oter n%tion% t%ri** %n& +ustos %;s %re in *or+e %n& e**e+t.O9

Te 4ros+ri4tion in te i4ort%tion o* use& otor vei+es sou& 5e o4er%tive on2 outsi&e te(ree4ort %n& te in+usion o* s%i& Jone ;itin te %5it o* te 4roi5ition is %n inv%i&o&i*i+%tion o* RA . In&ee&, ;en te %44i+%tion o* %n %&inistr%tive issu%n+e o&i*ieseistin) %;s or e+ee&s te inten&e& s+o4e, %s in te inst%nt +%se, te issu%n+e 5e+oes voi&,not on2 *or 5ein) ultra vires, 5ut %so *or 5ein) unre%son%5e.

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Tis 5rin)s us to te *ourt re/uisite. It is %n %io in %&inistr%tive %; t%t %&inistr%tive%utorities sou& not %+t %r5itr%ri2 %n& +%4ri+ious2 in te issu%n+e o* rues %n& re)u%tions. To5e v%i&, su+ rues %n& re)u%tions ust 5e re%son%5e %n& *%ir2 %&%4te& to se+ure te en& invie;. I* so;n to 5e%r no re%son%5e re%tion to te 4ur4oses *or ;i+ te2 ;ere %utoriJe& to5e issue&, ten te2 ust 5e e& to 5e inv%i&.0

Tere is no &ou5t t%t te issu%n+e o* te 5%n to 4rote+t te &oesti+ in&ustr2 is % re%son%5eeer+ise o* 4oi+e 4o;er. Te &eterior%tion o* te o+% otor %nu*%+turin) *irs &ue to tein*u o* i4orte& use& otor vei+es is %n ur)ent n%tion% +on+ern t%t nee&s to 5e s;i*t2%&&resse& 52 te Presi&ent. In te eer+ise o* &ee)%te& 4oi+e 4o;er, te ee+utive +%ntere*ore v%i&2 4ros+ri5e te i4ort%tion o* tese vei+es. Tus, in"a1icab Operators of MetroManila, 2nc. v. oard of "ransportation,1te Court e& t%t % re)u%tion 4%sin) out t%i +%5sore t%n si 2e%rs o& is % v%i& eer+ise o* 4oi+e 4o;er. Te re)u%tion ;%s sust%ine& %sre%son%5e o&in) t%t te 4ur4ose tereo* ;%s to 4roote te +onvenien+e %n& +o*ort %n&4rote+t te s%*et2 o* te 4%ssen)ers.

Te 4ro5e, o;ever, ies ;it res4e+t to te %44i+%tion o* te i4ort%tion 5%n to te (ree4ort.Te Court *in&s no o)i+ in te % en+o4%ssin) %44i+%tion o* te %ss%ie& 4rovision to te(ree4ort ;i+ is outsi&e te +ustos territor2. As on) %s te use& otor vei+es &o not enterte +ustos territor2, te inur2 or %r sou)t to 5e 4revente& or ree&ie& ;i not %rise. Te%44i+%tion o* te %; sou& 5e +onsistent ;it te 4ur4ose o* %n& re%son *or te %;. &ationecessat le1, et cessat le1. Hen te re%son *or te %; +e%ses, te %; +e%ses. It is not te etter%one 5ut te s4irit o* te %; %so t%t )ives it i*e.To %442 te 4ros+ri4tion to te (ree4ort;ou& not serve te 4ur4ose o* te E!. Inste%& o* i4rovin) te )ener% e+ono2 o* te+ountr2, te %44i+%tion o* te i4ort%tion 5%n in te (ree4ort ;ou& su5vert te %vo;e&4ur4ose o* RA ;i+ is to +re%te % %rDet t%t ;ou& &r%; investors %n& uti%te2 5oostte n%tion% e+ono2.

In sii%r +%ses, ;e %so &e+%re& voi& te %&inistr%tive issu%n+e or or&in%n+es +on+erne& *or

5ein) unre%son%5e. To iustr%te, in +e la Cru8 v. %aras,

te Court e& %s unre%son%5e %n&un+onstitution% %n or&in%n+e +%r%+teriJe& 52 over5re%&t. In t%t +%se, te Muni+i4%it2 o*Bo+%ue, Bu%+%n, 4roi5ite& te o4er%tion o* % ni)t +u5s, +%5%rets %n& &%n+e %s ;itin its

uris&i+tion *or te 4rote+tion o* 4u5i+ or%s. As e4%ine& 52 te Court:

It +%nnot 5e s%i& t%t su+ % s;ee4in) eer+ise o* % %;%Din) 4o;er 52 Bo+%ue +ou&/u%i*2 un&er te ter re%son%5e. Te o5e+tive o* *osterin) 4u5i+ or%s, % ;ort2 %n&&esir%5e en& +%n 5e %tt%ine& 52 % e%sure t%t &oes not en+o4%ss too ;i&e % *ie&. Cert%in2te or&in%n+e on its *%+e is +%r%+teriJe& 52 over5re%&t. Te 4ur4ose sou)t to 5e %+ieve&+ou& %ve 5een %tt%ine& 52 re%son%5e restri+tions r%ter t%n 52 %n %5soute 4roi5ition. Te%&onition in S%%veri% sou& 5e ee&e&: OTe $u&i+i%r2 sou& not i)t2 set %si&e e)is%tive%+tion ;en tere is not % +e%r inv%sion o* 4erson% or 4ro4ert2 ri)ts un&er te )uise o* 4oi+e

re)u%tion.O It is +e%r t%t in te )uise o* % 4oi+e re)u%tion, tere ;%s in tis inst%n+e % +e%rinv%sion o* 4erson% or 4ro4ert2 ri)ts, 4erson% in te +%se o* tose in&ivi&u%s &esirous o*4%troniJin) tose ni)t +u5s %n& 4ro4ert2 in ters o* te investents %&e %n& s%%ries to 5ee%rne& 52 tose terein e4o2e&.

/upangco v. Court of Appeals,is % +%se invovin) % resoution issue& 52 te Pro*ession%Re)u%tion Coission ;i+ 4roi5ite& e%inees *ro %tten&in) revie; +%sses %n&re+eivin) %n&out %teri%s, ti4s, %n& te iDe tree &%2s 5e*ore te &%te o* e%in%tion in or&er

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to 4reserve te inte)rit2 %n& 4urit2 o* te i+ensure e%in%tions in %++ount%n+2. Besi&es 5ein)unre%son%5e on its *%+e %n& vio%tive o* %+%&ei+ *ree&o, te e%sure ;%s *oun& to 5e ores;ee4in) t%n ;%t ;%s ne+ess%r2, viJ:

Nee&ess to s%2, te en*or+eent o* Resoution No. 10@ is not % )u%r%ntee t%t te %e)e&e%D%)es in te i+ensure e%in%tions ;i 5e er%&i+%te& or %t e%st iniiJe&. M%Din) te

e%inees su**er 52 &e4rivin) te o* e)iti%te e%ns o* revie; or 4re4%r%tion on tose %sttree 4re+ious &%2s ;en te2 sou& 5e re*resin) teseves ;it % t%t te2 %vee%rne& in te revie; +%sses %n& 4re4%rin) teir ent% %n& 4s2+oo)i+% %De-u4 *or tee%in%tion &%2 itse* ;ou& 5e iDe u4rootin) te tree to )et ri& o* % rotten 5r%n+. H%t isnee&e& to 5e &one 52 te res4on&ent is to *in& out te sour+e o* su+ e%D%)es %n& sto4 it ri)ttere. I* +orru4t o**i+i%s or 4ersonne sou& 5e terin%te& *ro teir oss, ten so 5e it. (iersor s;in&ers sou& 5e *use& out. Stri+t )ui&eines to 5e o5serve& 52 e%iners sou& 5e setu4 %n& i* vio%tions %re +oitte&, ten i+enses sou& 5e sus4en&e& or revoDe&.

In /ucena Grand Central "er#inal, 2nc. v. JAC /iner, 2nc.,@te Court iDe;ise stru+D &o;n %sunre%son%5e %n& over5re%&t % +it2 or&in%n+e )r%ntin) %n e+usive *r%n+ise *or @ 2e%rs,rene;%5e *or %noter @ 2e%rs, to one entit2 *or te +onstru+tion %n& o4er%tion o* one +oon5us %n& ee4ne2 terin% *%+iit2 in Lu+en% Cit2. Hie 4ro*esse&2 %ie& to;%r&s %evi%tin) tetr%**i+ +on)estion %e)e& to %ve 5een +%use& 52 te eisten+e o* v%rious 5us %n& ee4ne2terin%s ;itin te +it2, te or&in%n+e ;%s e& to 5e 5e2on& ;%t is re%son%52 ne+ess%r2 tosove te tr%**i+ 4ro5e in te +it2.

B2 4%rit2 o* re%sonin), te i4ort%tion 5%n in tis +%se sou& %so 5e &e+%re& voi& *or its toos;ee4in) %n& unne+ess%r2 %44i+%tion to te (ree4ort ;i+ %s no 5e%rin) on te o5e+tive o*te 4roi5ition. I* te %i o* te E! is to 4revent te entr2 o* use& otor vei+es *ro te(ree4ort to te +ustos territor2, te soution is not to *or5i& entr2 o* tese vei+es into te(ree4ort, 5ut to intensi*2 )overnent% +%4%i)n %n& e%sures to t;%rt ie)% in)ress o* use&otor vei+es into te +ustos territor2.

At tis un+ture, it ust 5e entione& t%t on $une 19, 199, Presi&ent (i&e 8. R%os issue&Ee+utive !r&er No. 9-A, O(urter C%ri*2in) Te T% An& 7ut2-(ree Privie)e Hitin Te Su5i+S4e+i% E+onoi+ An& (ree Port #one,O Se+tion 1 o* ;i+ 4rovi&es:

SECTI!N 1. Te *oo;in) )ui&eines s% )overn te t% %n& &ut2-*ree 4rivie)e ;itin teSe+ure& Are% o* te Su5i+ S4e+i% E+onoi+ %n& (ree Port #one:

1.1. Te Se+ure& Are% +onsistin) o* te 4resent2 *en+e&-in *orer Su5i+ N%v% B%se s% 5ete on2 +o4ete2 t% %n& &ut2-*ree %re% in te SSE(P#. Business enter4rises %n& in&ivi&u%s>(ii4inos %n& *orei)ners? resi&in) ;itin te Se+ure& Are% %re *ree to i4ort r%; %teri%s,+%4it% )oo&s, e/ui4ent, %n& +onsuer ites t% %n& &utr2-*ree. Consu4tion ites, o;ever,ust 5e +onsue& ;itin te Se+ure& Are%. Reov% o* r%; %teri%s, +%4it% )oo&s,e/ui4ent %n& +onsuer ites out o* te Se+ure& Are% *or s%e to non-SSE(P# re)istere&enter4rises s% 5e su5e+t to te usu% t%es %n& &uties, e+e4t %s %2 5e 4rovi&e& erein.

In Tiu v. Court o* A44e%s6%s reiter%te& in Co+onut !i Re*iners Asso+i%tion, In+. v. Torres,tis4rovision iitin) te s4e+i% 4rivie)es on t% %n& &ut2-*ree i4ort%tion in te 4resent2 *en+e&-in *orer Su5i+ N%v% B%se %s 5een &e+%re& v%i& %n& +onstitution% %n& in %++or&%n+e ;itRA . Consistent ;it tese ruin)s %n& *or e%sier %n%)eent %n& onitorin) o* %+tivities

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%n& to 4revent *r%u&uent i4ort%tion o* er+%n&ise %n& su))in), te *ree *o; %n&i4ort%tion o* use& otor vei+es s% 5e o4er%tive on2 ;itin te Ose+ure& %re%.O

In su, te Court *in&s t%t Arti+e , Se+tion .1 o* E! 1@6 is voi& inso*%r %s it is %&e%44i+%5e to te 4resent2 se+ure& *en+e&-in *orer Su5i+ N%v% B%se %re% %s st%te& in Se+tion1.1 o* E! 9-A. Pursu%nt to te se4%r%5iit2 +%useo* E! 1@6, Se+tion .1 is &e+%re& v%i&

inso*%r %s it %44ies to te +ustos territor2 or te Pii44ine territor2 outsi&e te 4resent2se+ure& *en+e&-in *orer Su5i+ N%v% B%se %re% %s st%te& in Se+tion 1.1 o* E! 9-A. 'en+e,use& otor vei+es t%t +oe into te Pii44ine territor2 viate se+ure& *en+e&-in *orerSu5i+ N%v% B%se %re% %2 5e store&, use& or tr%&e& terein, or e4orte& out o* te Pii44ineterritor2, 5ut te2 +%nnot 5e i4orte& into te Pii44ine territor2 outsi&e o* te se+ure& *en+e&-in *orer Su5i+ N%v% B%se %re%.

H'ERE(!RE, te 4etitions %re PARTIALL GRANTE7 %n& te M%2 , 00 7e+isions o*Br%n+ , Re)ion% Tri% Court o* !on)%4o Cit2, in Civi C%se No. 0-0-0 %n& Civi C%se No.-0-03 %n& te (e5ru%r2 1, 00@ 7e+ision o* te Court o* A44e%s in CA-G.R. SP No. 6,%re M!7I(IE7 inso*%r %s te2 &e+%re& Arti+e , Se+tion .1 o* Ee+utive !r&er No. 1@6, voi&in its entiret2.

S%i& 4rovision is &e+%re& 8ALI7 inso*%r %s it %44ies to te Pii44ine territor2 outsi&e te4resent2 *en+e&-in *orer Su5i+ N%v% B%se %re% %n& 8!I7 ;it res4e+t to its %44i+%tion tote se+ure& *en+e&-in *orer Su5i+ N%v% B%se %re%.

S! !R7ERE7.

G.R. No. 111 $u2 6, 001

NESTLE P'ILIPPINES, INC., >(!RMERL (ILIPR!, INC.?, 4etitioner,vs.'!N!RABLE C!"RT !( APPEALS, C!"RT !( TA APPEALS %n& C!MMISSI!NER !(

C"ST!MS,res4on&ents.7ELE!N, $R., J.:

C%en)e& in tis 4etition *or revie; on +ertior%ri is te 7e+isio1in CA-G.R SP No.1&%te& Se4te5er , 199 o* te Court o* A44e%s ;i+ %**ire& te 7e+ision&%te&M%2 0, 199@ o* te Court o* T% A44e%s in C.T.A. C%se No. &isissin) 4etitionerQs4etition *or revie; to +o4e te Coissioner o* Custos to )r%nt it % re*un& o* %e)e&2over4%i& i4ort &uties, on its v%rious i4ort%tions o* iD %n& iD 4ro&u+ts, %ountin) to (iveMiion Ei)t Tous%n& %n& T;ent2-Nine Pesos >P@,00,09.00?.

PetitionerQs otion *or re+onsi&er%tion tereo* ;%s &enie& 52 te Court o* A44e%s in %Resoution@&%te& $une 9, 199.

Te %nte+e&ent *%+ts %re %s *oo;s.

Petitioner is % &u2 or)%niJe& &oesti+ +or4or%tion en)%)e& in te i4ort%tions o* iD %n& iD4ro&u+ts *or 4ro+essin), &istri5ution %n& s%e in te Pii44ines. Bet;een $u2 %n& Nove5er19, 4etitioner tr%ns%+te& siteen >16? se4%r%te i4ort%tions o* iD %n& iD 4ro&u+ts *ro&i**erent +ountries. Petitioner ;%s %ssesse& +ustos &uties %n& %&v%n+e s%es t%es 52 teCoe+tor o* Custos o* M%ni% *or e%+ o* tese se4%r%te i4ort%tions on te 5%sis o* te4u5ise& 'oe Consu4tion 8%ue >'C8? in&i+%te& in te Bure%u o* Custos Revision

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!r&ers. Petitioner 4%i& te s%e 5ut se%son%52 *ie& te +orres4on&in) 4rotests 5e*ore te s%i&Coe+tor o* Custos *ro !+to5er @ to 7e+e5er @, 19, uni*or2 %e)in) terein t%t te%tter erroneous2 %44ie& i)er oe +onsu4tion v%ues in &eterinin) te &uti%5e v%ue *ore%+ o* tese se4%r%te i4ort%tions. In te s%i& 4rotests, 4etitioner +%is *or re*un& o* 5ot te%e)e& over4%i& i4ort &uties %ountin) to (ive Miion Ei)t Tous%n& %n& T;ent2-Nine

Pesos >P@,00,09.00? %n& %&v%n+e s%es t%es %))re)%tin) to (our Miion (ive 'un&re&Sit2-(our Tous%n& !ne 'un&re& Sevent2-Nine Pesos %n& Tirt2 Cent%vos >P,@6,19.0?.

!n !+to5er 1, 196, 4etitioner *or%2 *ie& % +%i *or re*un& o* %e)e&2 over 4%i& %&v%n+es%es t%es ;it te Bure%u o* Intern% Revenue >BIR? %ountin) to (our Miion (ive 'un&re&Sit2-(our Tous%n& !ne 'un&re& Sevent2-Nine Pesos %n& Tirt2 Cent%vos >P,@6,19.0?+overin) te s%e siteen >16? i4ort%tions o* iD %n& iD 4ro&u+ts *ro &i**erent +ountries.Not on) %*ter, on !+to5er 1@, 196 %n& ;itin te t;o-2e%r 4res+ri4tive 4erio& 4rovi&e& *orun&er te N%tion% Intern% Revenue Co&e >NIRC? *or +%iin) % t% re*un&, 4etitioner *ie& te+orres4on&in) 4etition *or revie; ;it te Court o* T% A44e%s >CTA? ;i+ ;%s &o+Dete&terein %s C.T.A. C%se No. 11. !n $%nu%r2 , 199, te t% +ourt rue& in *%vor o* 4etitioner%n& *ort;it or&ere& te BIR to re*un& to te 4etitioner te su o* (our Miion (our 'un&re&

Ei)t2-Nine Tous%n& Si 'un&re& Sit2-!ne Pesos %n& Ninet2-(our Cent%vos>P,9,661.9? re4resentin) te over4%i& A&v%n+e S%es T%es on te %*ores%i& i4ort%tions.

!n te oter %n&, te siteen >16? 4rotest +%ses *or re*un& o* %e)e& over4%i& +ustos &uties%ountin) to (ive Miion Ei)t Tous%n& T;ent2-Nine Pesos >P@,00,09.00? ;ere e*t ;it teCoe+tor o* Custos o* M%ni%. 'o;ever, te s%i& Coe+tor o* Custos *%ie& to ren&er is&e+ision tereon %*ter %ost si >6? 2e%rs sin+e 4etitioner 4%i& un&er 4rotest te +ustos &utieson te s%i& siteen >16? i4ort%tions o* iD %n& iD 4ro&u+ts %n& *ie& te +orres4on&in)4rotests.

Conse/uent2, in or&er to 4revent tese +%is *ro 5e+oin) st%e on te )roun& o*4res+ri4tion, 4etitioner ie&i%te2 *ie& % 4etition *or revie; &o+Dete& %s C.T.A. C%se No. ,

;it te Court o* T% A44e%s on Au)ust , 1990 &es4ite te %5sen+e o* % ruin) on its 4rotests*ro 5ot te Coe+tor o* Custos o* M%ni% %n& te Coissioner o* Custos.

!n M%2 0, 199@, te CTA ren&ere& u&)ent &isissin) C.T.A. C%se No. *or ;%nt o*uris&i+tion.6Te su5se/uent otion or re+onsi&er%tion *ie& 4etitioner on $u2 11, 199@ ;%s&enie& *or %+D o* erit in % ResoutionQ &%te& $%nu%r2 6, 199.

A))rieve&, 4etitioner %44e%e& on (e5ru%r2 10, 1999 te s%i& u&)ent %n& resoution o* teCTA in C.T.A. C%se No. to te Court o* A44e%s 52 ;%2 o* 4etition *or revie; on +ertior%riun&er Rue @ o* te Rues o* Court. 'o;ever, tis %44e% ;%s %ter &isisse& 52 te %44e%te+ourt on Se4te5er , 199 *or %+D o* erit. Te Court o* A44e%s o4ine&, inter alia, t%t teCTAQs uris&i+tion is not +on+urrent ;it te %44e%te uris&i+tion o* te Coissioner o*

Custos sin+e tere ;%s no &e+ision or ruin) 2et o* te Coe+tor o* Custos o* M%ni% on te%tter3 t%t te 4etition &oes not *% un&er %n2 o* te re+o)niJe& e+e4tions on e%ustion o*%&inistr%tive ree&ies to usti*2 4etitionerQs ie&i%te resort to te CTA3 t%t te 4etitioner*%ie& to ove *or te e%r2 resoution o* its +%is *or re*un& nor ;%s tere %n2 noti+e )iven t%tte s%i& Coe+tor o* CustosQ +ontinue& in%+tion on its +%is ;ou& 5e &eee& % &eni% o* its+%is3 %n& t%t 4etitioner %so ne)e+te& to +ite %n2 %; or uris4ru&en+e ;i+ 4res+ri5es %4erio& *or *iin) %n %44e% in te CTA even i* tere ;%s no %+tion 2et 52 te Coissioner o*Custos.

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!n $une 9, 199, te %44e%te +ourt issue& % Resoution&en2in) 4etitionerQs otion *orre+onsi&er%tion *or %+D o* erit.

'en+e, tis 4etition.

Petitioner %ssi)ns te *oo;in) %s errors, to ;it:

1. RESP!N7ENT C!"RT !( APPEALS ACTE7 HIT' GRA8E AB"SE !(7ISCRETI!N IN '!L7ING T'AT T'E (ILING !( PR!TEST CASES BE(!RE T'EC!LLECT!R !( C"ST!MS 'A7 E((ECTI8EL INTERR"PTE7 T'E R"NNING !(T'E SI-EAR PRESCRIPTI8E PERI!73

RESP!N7ENT C!"RTS C!MMITE7 ("N7AMENTAL ERR!RS AN7 ACTE7 HIT'GRA8E AB"SE !( 7ISCRETI!NS IN '!L7ING T'AT PETITI!NER 'A7 (AILE7 T!E'A"ST A7MINISTRATI8E REME7IES, N!THIT'STAN7ING ALM!ST 6 EARS!( PR!TRACTE7 'EARINGS !( T'E 16 PR!TEST CASES HIT' T'E C"ST!MSC!LLECT!R AN7 (ILING !( T'E PETITI!N !NL H'EN T'E SI-EARPRESCRIPTI8E PERI!7 HAS AB!"T T! EPIRE T! A8!I7 N"LLI(ICATI!N !(

CLAIMS !N GR!"N7 !( PRESCRIPTI!N3. T'E RESP!N7ENT C!"RTS GRA8EL ERRE7 IN 7ISMISSING !N S'EERTEC'NICALITIES PETITI!NERQS CLAIMS (!R T'E RE("N7 !( P@,00,09.0>SIC? !8ERPAI7 7"TIES, H'EN T'E (ACTS !( !8ERPAMENTS 'A7 BEENEARLIER RES!L8E7 IN CTA CASE N!. 11, '!L7ING T'AT T'E HR!NG

APPLICATI!N !( T'E 'IG'ER '!ME C!NS"MPTI!N 8AL"ES RES"LTE7 IN T'E!8ERPAMENTS !( 7"TIES AN7 TAES, AN7 "P!N H'IC', IT !R7ERE7 T'ERE("N7 !( P,9,661.9 IN !8ERPAI7 TAES. T'ERE IS N! 8ALI7 REAS!NT'ERE(!RE H' T'E C!RRESP!N7ING !8ERPAMENTS IN C"ST!MS 7"TIESCAN N!T ALS! BE RE("N7E7 T! ITS RIG'T("L !HNER, T'E PETITI!NER'EREIN.

In tis 4etition, 4etitioner %sserts t%t t% re*un&s %re 5%se& on /u%si-+ontr%+t or solutionindebiti, ;i+ un&er Arti+e 11@9o* te Civi Co&e, 4res+ri5es in si >6? 2e%rs. Conse/uent2,te 4en&en+2 o* its 4rotest +%ses 5e*ore te o**i+e o* te Coe+tor o* Custos o* M%ni% &i& notinterru4t te runnin) o* te 4res+ri4tive 4erio& un&er te %*ores%i& 4rovision o* %; +onsi&erin)t%t it is on2 %n %&inistr%tive 5o&2 4er*orin) on2 /u%si-u&i+i% *un+tion %n& not % re)u%r+ourt o* usti+e.10Tus, in iDe %nner te tirt2-&%2 4erio& *or %44e%in) to te CTA ust 5e%&e ;itin te si-2e%r 4res+ri4tive 4erio&.

Petitioner *urter +onten&s t%t te *%+t o* over4%2ent o* +ustos &uties %s 5een &u2est%5ise& %n& resove& ;it *in%it2 52 te Court o* T% A44e% on $%nu%r2 , 199 in C.T.A.C%se No. 11.11In t%t +%se, te t% +ourt *oun& t%t te Bure%u o* Custos erroneous2 use&

te ;ron) oe +onsu4tion v%ue in %ssessin) te 4etitioner te A&v%n+e S%es T% on itssu5e+t siteen >16? i4ort%tions. Te t% +ourt ten or&ere& te Coissioner o* Intern%Revenue to re*un& to te 4etitioner te su o* (our Miion (our 'un&re& Ei)t2-Nine Tous%n&Si 'un&re& Sit2-!ne Pesos %n& Ninet2-(our Cent%vos >P,9,661.9?, re4resentin)over4%i& %&v%n+e s%es t% +overin) te s%e siteen >16? i4ort%tions. It is %so *ro tes%e siteen >16? se4%r%te i4ort%tions o* iD %n& iD 4ro&u+ts t%t 4etitioner 5%se& its+%is *or re*un& o* over4%2ent o* +ustos &uties. Tus, 4etitioner %vers t%t its +%is *orre*un& o* over4%i& +ustos &uties ust iDe;ise 5e )r%nte& %n& %;%r&e& in its *%vor.

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In ieu o* Coent,1te Soi+itor Gener% %ni*este& t%t tere is erit in 4etitionerQs %r)uent+onsi&erin) t%t 4etitionerQs +%use o* %+tion to re+over % t% erroneous2 4%i& is 5%se&on solutio indebiti ;i+ is e4ress2 +%ssi*ie& %s % /u%si-+ontr%+t un&er te Civi Co&e3 t%t4etitionerQs +%use o* %+tion ;ou& %ve 4res+ri5e& on Au)ust , 1990 i* it &i& not 5rin) te%tter 5e*ore te CTA3 %n& t%t te Coe+tor o* Custos %s not even %+te& or resove& te

4etitionerQs sever% 4rotests it %& *ie& 5e*ore is o**i+e ;itin si >6? 2e%rs %*ter it %&e tee%riest 4%2ent o* %&v%n+e +ustos &uties on its i4ort%tions.

Tere ;%s %so no vio%tion o* te 4rin+i4e o* e%ustion o* %&inistr%tive ree&ies in tis+%se. Tis &o+trine &oes not %442 to te +%se %t 5%r sin+e its o5serv%n+e ;ou& on2 resut inte nui*i+%tion o* te +%i *or re*un& 5ein) %sserte& nor ;ou& it 4rovi&e % 4%in, s4ee&2 %n&%&e/u%te ree&2 un&er te +ir+ust%n+es. Tis not;itst%n&in), o;ever, te Soi+itor Gener%*urter o4ine& t%t tis +%se sou& 5e re%n&e& to te CTA in or&er *or te t% +ourt to&eterine te ver%+it2 o* 4etitionerQs +%i.

!n te oter %n&, res4on&ent Coissioner o* Custos, in is Coent1&%te& Au)ust 1,000, %&itte& ;it re)ret, teir o**i+i% in%+tion %&verte& to 52 te 4etitioner. Res4on&entCoissioner e4resse& te vie; t%t 4etitionerQs +%i *or re*un& o* +ustos &uties sou& notoutri)t2 5e &enie& 52 virtue o* te stri+t %&eren+e to te rues to 4revent )r%ve inusti+e to%4ess t%4%2ers3 t%t tis &oes not usti*2, o;ever, %n outri)t %;%r& o* te re*un& o* %e)e&over4%2ent o* +ustos &uties in *%vor o* 4etitioner3 %n& t%t tere is no &e*inite *%+tu%&eterin%tion 2et t%t te +ustos &uties %n& t%es in /uestion ;ere over4%i& %n& re*un&%5e,%n& i* re*un&%5e o; u+ is te re*un&%5e %ount. Te *%+t t%t te Coe+tor o* Custos o*M%ni% *%ie& to %+t or &e+i&e on te 4etitionerQs 4rotest +%ses *ie& 5e*ore is !**i+e &oes notreieve te 4etitioner o* its 5ur&en to 4rove t%t it is entite& to te re*un& sou)t *or. Tus,res4on&ent Coissioner o* Custos, tru is s4e+i% +ounse, re+oen&e& t%t tis +%se 5ere%n&e& to te +ourt o* ori)in, n%e2, te CTA.

Te re+oen&%tions o* 5ot te Soi+itor Gener% %n& te res4on&ent Coissioner o*

Custos %re ;e t%Den. A*ter % eti+uous +onsi&er%tion o* tis +%se, ;e *in& t%t tere+oen&e& re%n& o* tis +%se to te CTA is ;%rr%nte& *or te 4ro4er veri*i+%tion %n&&eterin%tion o* te factual basis and #erits o* tis 4etition %n& in, or&er t%t te en&s o*su5st%nti% usti+e %n& *%ir 4%2 %2 5e su5serve&. He %re o* te vie; t%t te s%i&re+oen&%tion is in %++or& ;it te 4rovisions o* te T%ri** %n& Custos Co&e %s erein%*ter&is+usse&.

Te ri)t to +%i *or re*un& o* +ustos &uties is s4e+i*i+%2 )overne& 52 Se+tion 10 o* teT%ri** %n& Custos Co&e, ;i+ 4rovi&es t%t -

OSe+. 10. Clai# for &efund of +uties and "a1es and Mode of %a$#ent. - A +%is *orre*un& o* &uties s% 5e %&e in ;ritin) %n& *or;%r&e& to te Coe+tor to ;o su+

&uties %re 4%i&, ;o upon receipt o* su+ +%i, shall veri*2 te s%e 52 te re+or&s o*is !**i+e, %n& i* *oun& to 5e +orre+t %n& in %++or&%n+e ;it %;, s% +erti*2 te s%e tote Coissioner ;it is re+oen&%tion to)eter ;it % ne+ess%r2 4%4ers %n&&o+uents. "4on re+ei4t 52 te Coissioner o* su+ +erti*ie& +%i e s% +%use tes%e to 5e 4%i& i* *oun& +orre+t.O

It is +e%r *ro te *ore)oin) 4rovision o* te T%ri** %n& Custos Co&e t%t in all clai#s forrefund of custo#s duties, te Collector to ;o su+ +ustos &uties %re 4%i& %n& uponreceipt o* su+ +%i is %n&%te& to veri*2 te s%e 52 te re+or&s o* is !**i+e. I* su+ +%i is

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*oun& +orre+t %n& in %++or&%n+e ;it %;, te Coe+tor shall certif$ te s%e to teCoissioner with his reco##endation to)eter ;it %, te ne+ess%r2 4%4ers %n& &o+uents.Tis is 4re+ise2 one o* te re%sons ;2 te Court o* A44e%s u4e& te &isiss% o* te +%seon te )roun& t%t te CTAQs uris&i+tion1un&er te T%ri** %n& Custos Co&e is not +on+urrent;it t%t o* te res4on&ent Coissioner o* Custos &ue to te %5sen+e o* %n2 +erti*i+%tion

*ro te Coe+tor o* Custos o* M%ni=%. A++or&in)2, 4etitionerQs +ontention t%t its +%is *orre*un& o* %e)e& over4%2ent o* +ustos &uties %2 5e &eee& est%5ise& *ro te *in&in)so* te t% +ourt in C.T.A. C%se No. 11 on te A&v%n+e S%es T% is not ne+ess%ri2 +orru4t inte i)t o* te %5ove-+ite& 4rovision o* te T%ri** %n& Custos Co&e.

9Custo#s duties9 is Qte n%e )iven to ta1es on the i#portation and e1portation ofco##odities, te t%ri** or t% %ssesse& u4on er+%n&ise i4orte& *ro, or e4orte& to, %*orei)n +ountr2.1@An2 +%i, *or re*un& o* +ustos &uties, tere*ore, t%De te n%ture o* t%ee4tions t%t ust 5e +onstrue& strictissi#i -uris %)%inst te +%i%nts %n& i5er%=2 in *%voro* te t%in) %utorit2.16Tis 4o;er o* t%%tion 5ein) % i) 4rero)%tive o* soverei)nt2, itsrein/uisent is never 4resue&. An2 re&u+tion or &iinution tereo* ;it res4e+t to its o&eor its r%te ust 5e stri+t2 +onstrue&, %n& te s%e ust 5e +ou+e& in +e%r %n& unist%D%5e

ters in or&er t%t it %2 5e %44ie&.1

Tus, %n2 outri)t %;%r& *or te re*un& o* %e)e&2 over4%i& +ustos &uties in *%vor o*4etitioner on its su5e+t siteen >16? i4ort%tions is not *%vore& in tis uris&i+tion uness tere is% &ire+t %n& +e%r *in&in) tereon. Te *%+t %one t%t te t% +ourt, in C.T.A C%se No. 11, %s%;%r&e& in *%vor o* te 4etitioner te re*un& o* over4%i& A&v%n+e S%es T% invovin) te s%esiteen >16? i4ort%tions &oes not in %n2 ;%2 e+use te 4etitioner *ro 4rovin) its +%is *orre*un& o* %e)e& over 4%2ent o* +ustos &uties. He %ve s+rutuiJe& te &e+ision ren&ere&52 te t% +ourt C.T.A. C%se No. 11 %n& *oun& no +e%r in&i+%tion terein t%t te t% +ourt%s rue& on 4etitionerQs +%is *or %e)e& over4%2ent o* +ustos &uties.

Te 4etitioner is ist%Den in its +ontention t%t its +%is *or re*un& o* %e)e&2 over4%i&

+ustos &uties %re )overne& 52 Arti+e 1@1

o* te Ne; Civi Co&e on /u%si-+ontr%+t, or terue on solutio indebiti, ;i+ 4res+ri5es in si >6? 2e%rs 4ursu%nt to Arti+e 11@ o* te s%eCo&e.

Se+tions 0 %n& 09 o* te T%ri** %n& Custos Co&e 4rovi&e t%t:

OSe+. 0. %rotest and %a$#ent upon %rotest in Civil Matter3 Hen % ruin) or &e+isiono* te +oe+tor is %&e ;ere52 i%5iit2 *or &uties, t%es, *ees, or oter +%r)es%re &eterine&, e+e4t te *iin) o* *ines in seiJures +%ses, te 4%rt2 %&verse2 %**e+te&%2 4rotest su+ ruin) or &e+ision52 4resentin) to te Coe+tor %t te tie ;en4%2ent o* te %ount +%ie& to 5e &ue te )overnentis %&e, or ;itin *i*teen >1@?&%2s tere%*ter, % ;ritten 4rotest settin) *ort is o5e+tion to te ruin) or &e+ision in

/uestion, to)eter ;it te re%sons tere*or. No 4rotest s% 5e +onsi&ere& uness4%2ent o* te %ount &ue %*ter *in% i/ui&%tion %s *irst 5een %&e %n& te+orres4on&in) &o+Det *ee, %s 4rovi&e& *or in Se+tion 01.O

OSe+. 09. %rotest )1clusive &e#ed$ in %rotestable Case. In % +%ses su5e+t to4rotest, te intereste& 4%rt2 ;o &esires to %ve te %+tion o* te +oe+torrevie;e&, shall %De % 4rotest, oter;ise, te %+tion o* te +oe+tor s% 5e *in% %n&+on+usive %)%inst i, . O

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OSEC. 1. 7e+ision or A+tion 52 te +oe+tor in Protest %n& SeiJure C%ses. Hen %4rotest in % 4ro4er *or is 4resente& in % +%se ;ere 4rotest is re/uire&, te+oe+tor shall issue %n order for hearing within fifteen :;0? &%2s, %n& i* te 4rotest is sust%ine&, in

;oe or in 4%rt, e s% %De te %44ro4ri%te or&er, te entr2 rei/ui&%te& ne+ess%r2,,O

In te i)t o* te %5ove+ite& 4rovisions o* te T%ri** %n& Custos Co&e, it %44e%rs t%t in %+%ses su5e+t to 4rotest, te +%i *or re*un& o* +ustos &uties %2 5e *ore+ose& on2 ;ente intereste& 4%rt2 +%iin) re*un& *%is to *ie % ;ritten 4rotest 5e*ore te Coe+tor o* Custos.Tis ;ritten 4rotest ;i+ ust set *ort te +%i%ntQs o5e+tion to te ruin) or &e+ision in/uestion to)eter ;it te re%sons tere*or ust 5e %&e eiter %t te tie ;en 4%2ent o*te %ount +%ie& to 5e &ue te )overnent is %&e or ;itin *i*teen >1@? &%2s tere%*ter. In+onun+tion ;it tis ri)t o* te +%i%nt is te &ut2 o* te Coe+tor o* Custos to e%r %n&&e+i&e su+ 4rotest in %++or&%n+e %n& ;itin te 4erio& o* tie 4res+ri5e& 52 te %;.

A++or&in)2, on+e % ;ritten 4rotest is se%son%52 *ie& ;it te Coe+tor o* Custos te *%iureor in%+tion o* te %tter to 4ro4t2 4er*or is %n&%te& &ut2 un&er te T%ri** %n& CustosCo&e sou& not 5e %o;e& to 4reu&i+e te ri)t o* te 4%rt2 %&verse2 %**e+te& tere52.Te+ni+%ities %n& e)%iss, o;ever e%te&, sou& not 5e isuse& 52 te )overnent toDee4 one2 not 5eon)in) to it, if an$ is proven, %n& tere52 enri+ itse* %t te e4ense o* tet% 4%2ers. I* te St%te e4e+ts its t%4%2ers to o5serve *%irness %n& onest2 in 4%2in) teirt%es, so ust it %442 te s%e st%n&%r& %)%inst itse* in re*un&in) e+ess 4%2ents, if an$, o*su+ t%es. In&ee& te St%te ust e%& 52 its o;n e%4e o* onor, &i)nit2 %n& u4ri)tness.

'ere, it is un&is4ute& t%t te in%+tion o* te Coe+tor o* Custos o* M%ni% *or ne%r2 si >6?2e%rs on te 4rotests se%son%52 *ie& 52 te 4etitioner %s +%use& te %tter to ie&i%te2resort to te CTA. Te 4etitioner &i& so on te ist%Den 5eie* t%t its +%is %re )overne& 52

te rue on /u%si-+ontr%+t or solutio indebiti ;i+ 4res+ri5es in si >6? 2e%rs un&er Arti+e 11@o* te Ne; Civi Co&e.

Tis 5eie* or +ontention o* te 4etitioner is is4%+e&. In or&er *or te rue on solution indebiti to%442 it is %n essenti% +on&ition t%t 4etitioner ust *irst so; t%t its 4%2ent o* te +ustos&uties ;%s in Oe+ess o* ;%t ;%s re/uire& 52 te %; %t te tie ;en te su5e+t siteen >16?i4ort%tions o* iD %n& iD 4ro&u+ts ;ere %&e. "ness so;n oter;ise, te &is4ut%5e4resu4tion o* re)u%rit2 o* 4er*or%n+e o* &ut2 ies in *%vor o* te Coe+tor o* Custos.

In te 4resent +%se, tere is no *%+tu% so;in) t%t te +oe+tion o* te %e)e& over4%i&+ustos &uties ;%s ore t%n ;%t is re/uire& o* te 4etitioner ;en it %&e te %*ores%i&se4%r%te i4ort%tions. Tere is no *%+tu% *in&in) 2et 52 te )overnent %)en+2 +on+erne& t%t

4etitioner is in&ee& entite& to its +%i o* over4%2ent %n&, i* true, *or o; u+ it is entite&. It5e%rs stress t%t in &eterinin) ;eter or not 4etitioner is entite& to re*un& o* %e)e&over4%2ent o* +ustos &uties, it is ne+ess%r2 to &eterine e%+t2 o; u+ te Governentis entite& to +oe+t %s +ustos &uties on te i4ort%tions. Tus, it ;ou& on2 5e ust %n& *%irt%t te 4etitioner-t%4%2er %n& te Governent %iDe 5e )iven e/u% o44ortunities to %v%i o*te ree&ies un&er te %; to +ontest or &e*e%t e%+ oterQs +%i %n& to &eterine % %tterso* &is4ute 5et;een te in one sin)e +%se.19 I* te St%te e4e+ts its t%4%2ers to o5serve*%irness %n& onest2 in 4%2in) teir t%es, so ust it %442 te s%e st%n&%r& %)%inst itse* in

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re*un&in) e+ess 4%2ents, if trul$ proven, o* su+ t%es. In&ee&, te St%te ust e%& 52 itso;n e%4e o* onor, &i)nit2 %n& u4ri)tness.

Te r%tio+in%tion o* te Court o* A44e%s is in %++or& ;it % ruin) o* tis Court ;i+ is%44i+%5e to te +%se %t 5%r, to ;it:

OAs st%te& 52 te res4on&ent +ourt in its Resoution &%te& $%nu%r2 6, 199,te 4etitionerQs +%i +%nnot 5e &eee& to 4res+ri5e 5e+%use te Coe+tor o* Custos%s not %+te& on te 4rotest, %n& te 4erio& *or *iin) %n %44e% to te Coissioner o*Custos %s not +oen+e& to run. Moreover, &e%2 or in%+tion o* % su5or&in%teo**i+i%, &oes not +onstitute %n e+e4tion to te %*ore-+ite& 4rin+i4e %s te &e%2 sou&5e 5rou)t to te %ttention o* % su4erior %&inistr%tive o**i+er *or ie&i%te %&u&i+%tion>Coissioner o* Ii)r%tion vs. 8%ent%, $r., @ SCRA 3 B%rte vs. 7i+oso, SCRA ?.O

H'ERE(!RE, te %ss%ie& 7e+ision &%te& Se4te5er ,199 o* te Court o* A44e%s in CA-G.R S( No. 1 is ere52 SET ASI7E3 %n& C.T.A. C%se No. is REINSTATE7 %n& REMAN7E7 to te Court o* T% A44e%s *or e%rin) %n& re+e4tion o*

evi&en+e re%tive to 4etitionerQs +%is *or re*un& o* %e)e& over4%2ent o* +ustos &uties. TeCourt o* T% A44e%s is &ire+te& to &is4ose o* te s%i& +%se ;it &is4%t+.;>wphi;.n?t

S! !R7ERE7.

S"BIC BA METR!P!LITANA"T'!RIT,

G.R. No. 1600

Petitioner,

Present:

- versus -

CARPI!, J.,C%ir4erson, 8

ELASC!, $R.,

BRI!N,ABA7, %n&PERE#, JJ.

MERLIN! E. R!7RIG"E# %n&HIRA INTERNATI!NALTRA7ING C!RP., 5otre4resente& erein 52 'IL7A M.BACANI, %s teir %utoriJe&re4resent%tive, Res4on&ents.

Prou)%te&:

A4ri , 010

-----------------------------------------------------------------------------------------

7 E C I S I ! N

CARPI!, J.:

http://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htmhttp://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htm

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Te C%se

Tis is % 4etition *or revie;CA? 7e+ision RTC? o* !on)%4o Cit2, Br%n+ , %n& Merino E.

Ro&ri)ueJ %n& Hir% Intern%tion% Tr%&in) Cor4or%tion >HIRA?, 5ot re4resente& 52 'i&%

B%+%ni. Te CA %so %**ire& te !r&ers &%te& 1 Nove5er 00 %n& Nove5er 00

issue& 52 te RTC.

Te Ante+e&ent (%+ts

Te *%+tu% %n& 4ro+e&ur% %nte+e&ents o* tis +%se, %s +ue& *ro te re+or&s, %re %s

*oo;s:

!n 9 Se4te5er 001, % +%r)o si4ent &es+ri5e& %s %)ri+utur% 4ro&u+tF %n& v%ue&

%t "S6,000 %rrive& %t te Port o* Su5i+, Su5i+ B%2 (ree4ort #one.

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issi4entF o* +%r)o ;i+ %+tu%2 +ont%ine& ri+e, %n& t%t Metro St%r is %n %utoriJe&

i4orter o* ri+e %s 4rovi&e& in te 4erits issue& 52 te N%tion% (oo& Autorit2 >N(A?. B%+%ni

re/ueste& t%t te issi4entF 5e u4)r%&e& *ro %)ri+utur% 4ro&u+tF to % si4ent o* ri+e,

%n& %t te s%e tie %ni*este& ;iin)ness to 4%2 te %44ro4ri%te &uties %n& t%es.

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M%r+eo, !**i+er-in-C%r)e o* te C%s 7ivision o* B!C Su5i+ Port issue& % +erti*i+%tionetter

%&&resse& to Mr. Au)usto C%n%s, Gener% M%n%)er o* te Se%4ort 7e4%rtent, st%tin) tus:S)&. (or? Co. Bi2 C. Bi5it

7es4ite te %5ove +erti*i+%tionetter, 4etitioner SBMA, trou) Se%4ort 7e4%rtent

Gener% M%n%)er Au)usto C%n%s, re*use& to %o; te ree%se o* te ri+e si4ent. 'en+e, on

11 $une 00, res4on&ents *ie& ;it te RTC o* !on)%4o Cit2, % +o4%int *or Inun+tion %n&

7%%)es ;it 4r%2er *or issu%n+e o* Hrit o* Preiin%r2 Proi5itor2 %n& M%n&%tor2 Inun+tion

%n&or Te4or%r2 Restr%inin) !r&er %)%inst 4etitioner SBMA %n& Au)usto L. C%n%s, %n& te

+%se ;%s &o+Dete& %s Civi C%se No. 61-0-00.

Te su++ee&in) events ;ere su%riJe& 52 te tri% +ourt %n& re4ro&u+e& 52 te Court

o* A44e%s, %s *oo;s:SBMA? %n& Au)usto L. C%n%s, in is4erson% %n& o**i+i% +%4%+it2 %s Gener% M%n%)er o* te Se%4ort 7e4%rtent o*s%i& SBMA. Te +o4%int ;%s &o+Dete& %s Civi C%se No. 61-0-? ours, *ro inter*erin) ;it 4%inti**s4etitionersKri)t to enter te 4reises o* te CCA +o4oun& o+%te& ;itin te Bure%u o*Custos territor2 %n& %utorit2 ;itin te Su5i+ B%2 (ree4ort #one >SB(#?,!on)%4o Cit2, %n& to ;it&r%; %n& ree%se *ro s%i& CCA ;%reouse te ri+ei4ort%tion o* 4%inti**s %n& to t%De %n& 4ossess te s%i& i4orte& ri+e +onsistin)o* ,000 5%)s3 %n& *ro inter*erin) in %n2 %nner ;%tsoever ;it

http://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htmhttp://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htmhttp://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htmhttp://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htmhttp://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htmhttp://sc.judiciary.gov.ph/jurisprudence/2010/april2010/160270.htm

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4%inti**s4etitionersK ri)ts %n& 4ossession over te %*ores%i& i4orte& ri+e. !nte s%e &%2 %so, $une 1, 00, te r%**e o* te +%se ;%s set on $une 1,00 %t :0 in te ornin).

. Co42 o* te +o4%int ;it suons to)eter ;it %*ores%i&Te4or%r2 Restr%inin) !r&er >TR!? ;%s serve& 52 Seri** Leo4o&o R%5%nes

%n& Le%n&ro M%&%r%n) o* te !**i+e o* te CerD o* Court o* te Re)ion% Tri%Court, !on)%4o Cit2, u4on te &e*en&%ntsres4on&ents on te s%e &%2, $une1, 00, %t %roun& :0 in te %*ternoon %s so;n 52 te Seri**Qs return o*servi+e >E. A-F %n& E. B-1F? t24e& %n& *oun& in te s%e 4e%&in)s.

. Te *oo;in) &%2, on $une 1, 00, te s%e Seri**s ;ent 5%+D to&e*en&%ntsres4on&entsQ o**i+e to &eterine ;eter or not te TR! issue& 52Br%n+ %n& serve& 52 te ;%s *oo;e&. Te2 ;ere o;ever, et 52&e*en&%ntsres4on&ents Att2s. A5e% %n& %t%5%s, in te o**i+e o*&e*en&%ntres4on&ent C%n%s, ;o %*ter u+ &is+ussion, re*use& to onor teTR! issue& 52 Br%n+ %e)in) %on) oter

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9. !n t%t s%e e%rin) %so

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S! !R7ERE7.

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Te Issue

Te issue *or resoution in tis +%se is ;eter te CA erre& in %**irin) te RTC !r&ers

&%te& 1 Nove5er 00 %n& Nove5er 00.

Te CourtKs Ruin)

He *in& te %44e% eritorious.

As % rue, %+tions *or inun+tion %n& &%%)es ie ;itin te uris&i+tion o* te RTC

4ursu%nt to Se+tion 19 o* B%t%s P%5%ns% B). 19 >BP 19?, oter;ise Dno;n %s te$u&i+i%r2 Reor)%niJ%tion A+t o* 190,F %s %en&e& 52 Re4u5i+ A+t >RA? No. 691.

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Se+. 60. (un+tions o* te Bure%u.- Te )ener% &uties, 4o;ers %n&uris&i+tion o* te 5ure%u s% in+u&e:

). Eer+ise e+usive ori)in% uris&i+tion over seiJure %n& *or*eiture +%ses

un&er te t%ri** %n& +ustos %;s.

Petitioner +onten&s t%t te i4orte& ,000 5%)s o* ri+e ;ere in te %+tu% 42si+%

+ontro %n& 4ossession o* te B!C %s e%r2 %s @ !+to5er 001, 52 virtue o* te B!C Su5i+

Port 'o& !r&er o* even &%te, %n& o* te B!C H%rr%nt o* SeiJure %n& 7etention &%te& M%2

00. As su+, te B!C %& %+/uire& e+usive ori)in% uris&i+tion over te su5e+t si4ent,

to te e+usion o* te RTC.

He %)ree ;it 4etitioner.

It is ;e sette& t%t te Coe+tor o* Custos %s e+usive uris&i+tion over seiJure %n&

*or*eiture 4ro+ee&in)s, %n& re)u%r +ourts +%nnot inter*ere ;it is eer+ise tereo* or sti*e or

4ut it %t n%u)t.

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B%se& on te re+or&s o* tis +%se, te B!C Su5i+ Port issue& % 'o& !r&er %)%inst te

su5e+t ri+e si4ent on @ !+to5er 001. 'o;ever, on 0 !+to5er 001, B!C Coissioner

Titus 8i%nuev% issue& % &ire+tive to te B!C 7istri+t Coe+tor st%tin) t%t te si4ent %2

5e ree%se& su5e+t to 4%2ent o* &uties %n& t%es 5%se& on %n u4)r%&e& v%ue %n&

+o4i%n+e ;it % eistin) rues %n& re)u%tions.F A++or&in)2, res4on&ents %&e %&&ition%

4%2ents o* +ustos &uties %n& t%es *or te u4)r%&e& si4ent. Conse/uent2, on

7e+e5er 001, te !**i+er-in-C%r)e o* te B!C Su