IF DECISION IS ADVERSE TO THE

PROTESTANT IF DECISION IS ADVERSE TO THE GOVERNMENT Appeal with the

Commissioner within 15 days from notice

Automatic review by Commissioner Appeal with CTA division

within 30 days from notice

Automatic review by Sec. of Finance

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banc Commissioner or Sec. is adverse to the protestant, he may appeal to the CTA and SC under the same procedure on the left.

Appeal by certiorari to the SC within 15 days from notice

B. Seizure and Forfeiture Cases

Definition: These refer to matters involving smuggling. It is administrative and civil in nature and is directed against the res or imported articles and entails a determination of the legality of their importation. These actions are in rem.

• Thus, it is of no defense that the owner of the vessel sought to be forfeited had no actual knowledge that his property was used illegally. The absence or lack of actual knowledge of such use is a defense personal to the owner himself which cannot in any way absolve the vessel from the liability of forfeiture. (Comm. Of Customs v. Manila Starr Ferry, Inc., 227 SCRA 317)

Smuggling

A. An act of any person who shall:

• Fraudulently import any article contrary to law, or

• Assist in so doing, or

• Receive, conceal, buy, sell, facilitate or transport such article knowing its illegal importation (sec. 3601 TCC)

• Export contrary to law (Sec. 3514 TCC) B. The Philippines is divided into various ports of entry - entry other than port of entry will be SMUGGLING.

• ALL articles imported into the Philippines whether subject to duty or not shall be entered through a customs house at a port of entry.

ENTRY in Customs law means -

• The documents filed at the Customs house • The submission and acceptance of the

documents

• The procedure of passing goods through the customs house (Rodriguez v. CA, Set. 18, 1995)

Evidence for Conviction in Smuggling Cases • Mere possession of the article in question

UNLESS the defendant could explain that his possession is lawful to the satisfaction of the court (Sec. 3601 TCC).

• Payment of the tax due after apprehension is not a valid defense (Rodriguez v. CA, 248 SCRA 288)

Things Subject to Confiscation in Smuggling Cases

• Anything that was used for smuggling is subject to confiscation, like the vessel, plane, etc. (Llamado v. Comm. of Customs, 1983). Exception: Common carriers that are not privately chartered cannot be confiscated.

Right of Customs Officers to Effect Seizure & Arrest

• May seize any vessel. Aircraft, cargo, article, animal or other movable property when the same is subject to forfeiture or liable for any time as imposed under tariff and customs laws, rules and regulations. • May exercise such powers only in

conformity with the laws and provisions of the TCC (Sec. 2205)

Common Carriers, Forfeiture

• Common carriers are generally not subject to forfeiture although if the owner has knowledge of its use in smuggling and was a consenting party, it may also be forfeited. • If a motor vehicle is hired to carry smuggled

goods but it has no Certificate of Public Convenience (CPC), It is not a common carrier. It is thus subject to forfeiture and lack of personal knowledge of the owner or carrier is not a defense to forfeiture.

Properties Not Subject to Forfeiture In The Absence of Prima Facie Evidence -

• The forfeiture of the vehicle, vessel or aircraft shall not be effected if it is established that the owner thereof or his agent in charge of Contraband: Articles of prohibited importations or exportations. (Sec. 3514 TCC)

Port of Entry: A domestic port open to both foreign and coastwise trade including “airport of entry”. (Sec. 3514 TCC)

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the means of conveyance used as aforesaid has no

knowledge of or participation in the unlawful act: Provided, however, that a prima facie presumption shall exist against the vessel, vehicle or aircraft under any of the following circumstances:

1. If the conveyance has been used for smuggling at least twice before; 2. If the owner is not in the business for

which the conveyance is generally used; and

3. If the owner is financially not in the position to own such conveyance. DOCTRINE OF HOT PURSUIT

Requisites

1. Over Vessels

a. An act is done in Phil. Waters which constitutes a violation of the tariff and custom laws.

b. A pursuit of such vessel began within the jurisdictional waters which

i. may continue beyond the maritime zone, and

ii. the vessel may be seized on the high seas.

2. Over Imported Articles

a. There is a violation of the tariff and customs laws.

b. As a consequence, they may be pursued in the Phils

c. With jurisdiction over them at any place therein for the enforcement of the law. (2nd _{par. Sec. 603 TCC)} RTC v. BOC

• The RTCs do not have jurisdiction over seizure and forfeiture proceedings conducted by the BOC and to interfere with these proceedings. The Collector of Customs has exclusive jurisdiction over all questions touching on the seizure and forfeiture of dutiable goods.

• No petitions for certiorari, prohibition or mandamus filed with the RTC will lie because these are in reality attempt to review the Commissioner’s actuations. Neither replevin filed with the RTC will issue.

• Rationale: Doctrine of Primary Jurisdiction. Even if a Customs seizure is illegal, exclusive jurisdiction (to the exclusion of regular courts) still belongs to the Bureau of Customs. (Jao v. CA, Oct. 6, 1995)

Goods in Customs Custody Beyond Reach of Attachment

• Goods in the customs custody pending payments of customs duties are beyond the reach of attachment. As long as the importation has not been terminated, the imported goods remain under the jurisdiction of the Bureau of Customs. (Viduya v. Berdiago, 73 SCRA 553)

Persons Having Police Authority To Enforce The Tariff and Customs Laws and Effect Searches, Seizures and Arrests

1. Officials of the BOC, district collectors, police officers, agents, inspectors and guests of the BOC;

2. Officers of the Phil. Navy and other members of the AFP and national law enforcement agencies when authorized by the Comm. Of Customs;

3. Officials of the BIR on all cases falling within the regular performances of their duties, when the payment of internal taxes are involved

4. Officers generally empowered by law to effect arrests and execute processes of courts, when acting under the direction of the Collector. (Sec. 2203 TCC)

Administrative and Judicial Procedures Relative to Customs Seizures and Forfeitures

1. Determination of probable cause and issuance of warrant.

2. Actual seizure of the articles.

3. Listing of description, appraisal and classification of seized property.

4. Report of seizure to Comm. Of Customs and the Chairman, Comm. On Audit.

5. Issuance by the Collector of warrant of detention.

6. Notification to owner or importer. 7. Formal hearing.

8. District collector renders his decisions.

If decision is not favorable to the aggrieved owner or importer If decision is not favorable to the government Appeal by aggrieved

owner or importer Automatic review by Comm.

REQUIREMENTS FOR CUSTOMS FORFEITURE