Llamado v. Commissioner of Customs
REITERATIONFacts
1. The Antecedents: On April 9, 1966, a Cessna plane (P.I. C-494) landed at Alabat airstrip, Quezon Province, with four individuals. Later that day, a DC-3 plane (P.I. C-718) landed, followed by the Cessna which unloaded "de gaza" lamps. That night, a motorized banca unloaded cases of "FORTUNE" blue seal cigarettes at the airstrip, which were then loaded onto the DC-3 plane, guided by the lamps from the Cessna. The DC-3 returned the next day to load the remaining cigarettes and departed for Porac, Pampanga. The pilots of the planes refused to log their landings and takeoffs. 2. Procedural History: A warrant of seizure and detention was issued for the Cessna plane by the Collector of Customs of the Port of Siain for violating Section 2530 of the Tariff and Customs Code. The Collector of Customs ordered the forfeiture of the plane, a decision affirmed by the Commissioner of Customs. The Cessna was released to petitioner Julio Llamado upon his filing of a P30,000.00 surety bond. The Court of Tax Appeals sustained the Commissioner's decision, ordering the forfeiture of the surety bond in favor of the Government and holding petitioner and the surety company jointly and severally liable for P30,000.00. 3. The Petition: Petitioner-owner Julio Llamado appeals to the Supreme Court, arguing that the Cessna plane should not be forfeited under Section 2530 (a) of the Tariff and Customs Code because it did not originate from a foreign country nor did it directly transport the contraband cigarettes. He contends the plane was merely used to deliver lamps that facilitated the DC-3's takeoff, and that vehicles merely aiding or facilitating unlawful importation are not subject to forfeiture. The core issue is whether the Cessna's use in facilitating the smuggling operation constitutes unlawful use within the meaning of the cited code provision.
Issue(s)
Whether the Cessna plane was used in the unlawful importation of cigarettes within the meaning of Section 2530 (a) of the Tariff and Customs Code. Whether the Cessna plane, by merely bringing "de gaza" lamps to light the airstrip for the DC-3 to take off with smuggled cigarettes, can be deemed to have been used unlawfully in importation.
Ruling
The decision of the Court of Tax Appeals is affirmed. The forfeited Cessna plane's bond is forfeited in favor of the Government, and the petitioner and the surety company are ordered to pay P30,000.00 jointly and severally.
Ratio Decidendi
On the issue of whether the Cessna plane was used in unlawful importation: The Court held that Section 2530 (a) of the Tariff and Customs Code does not require the vessel or aircraft to directly carry the contraband or to come from a foreign country to warrant forfeiture. The law subjects to forfeiture any vessel or aircraft "used unlawfully in the importation" of articles into the Philippines, except at a port of entry. The participation of the Cessna plane in the smuggling operation, by delivering lighting paraphernalia to facilitate the takeoff of the DC-3 carrying smuggled cigarettes, constituted an unlawful use for smuggling or illegal importation. The Court emphasized that importation, by law, commences upon entry into Philippine jurisdiction with intent to unload and is deemed terminated only upon payment of duties or securing payment and obtaining a withdrawal permit. The Cessna's role was an active involvement in this process. On the issue of whether the Cessna's use to bring lamps constituted unlawful use: The Court found that the Cessna plane was deliberately used to ensure the successful prosecution of the smuggling operation. It brought the smugglers to Alabat and delivered the necessary lighting equipment to enable the cargo plane (DC-3) to take off without peril and transport the smuggled cigarettes. This complementary, if collateral, use of the Cessna for the smuggling operation was deemed sufficient to classify it as having been used unlawfully in the importation. The Court rejected the petitioner's argument that the Cessna's purpose was solely to bring lamps and that this did not constitute direct involvement in the importation of cigarettes.
Main Doctrine
An aircraft used to facilitate or aid in the unlawful importation of articles into the Philippines is subject to forfeiture under Section 2530 (a) of the Tariff and Customs Code, even if it does not directly carry the contraband or originate from a foreign country.