Commissioner of Customs v. Court of Tax Appeals
ABANDONMENTFacts
The Antecedents: Vessels engaged in foreign trade, represented by Litonjua Shipping Company (Granexport Corporation as sub-agent), used the berthing facilities of Iligan Bay Express Corporation at Kiwalan, Iligan City. These facilities were constructed, operated, and maintained solely by Iligan Express Corporation at its own expense. Berthing fees were assessed by the Collector of Customs for the use of these facilities by various vessels on different dates. Litonjua Shipping Company paid these fees under protest. Procedural History: Private respondent filed cases for refund of the berthing fees with the Bureau of Customs. The Collector of Customs denied the protest, and the Commissioner of Customs affirmed this decision. Private respondent then appealed to the Court of Tax Appeals (CTA). The CTA consolidated the protests and rendered a decision reversing the decisions of the Commissioner of Customs and ordering the refund of the berthing fees amounting to P40,551.00. The Petition: The Commissioner of Customs filed a petition for review with the Supreme Court, seeking to reverse the decision of the CTA.
Issue(s)
Whether a vessel engaged in foreign trade, which berths at a privately owned wharf or pier, is liable to the payment of the berthing charge under Section 2901 of the Tariff and Customs Code, as amended by Presidential Decree No. 34. Whether the Port of Kiwalan is a national port.
Ruling
The petition is denied, and the decision of the Court of Tax Appeals is affirmed. The Commissioner of Customs is ordered to refund the berthing fees paid by the private respondent.
Ratio Decidendi
On the issue of whether a vessel engaged in foreign trade, which berths at a privately owned wharf or pier, is liable to the payment of the berthing charge under Section 2901 of the Tariff and Customs Code, as amended by Presidential Decree No. 34: The Supreme Court held that Section 2901 of the Tariff and Customs Code, as amended by Presidential Decree No. 34, explicitly states that berthing charges are assessed against vessels for mooring or berthing at "any NATIONAL PORT IN THE PHILIPPINES." The amendment introduced the word "national" before "port," signifying a legislative intent to limit the collection of berthing fees to national ports only. Prior to the amendment, the law did not specify the nature of the port, and a previous ruling in Luzon Stevedoring Corporation vs. Court of Tax Appeals (18 SCRA 436 [1966]) allowed collection regardless of ownership. However, this ruling is no longer applicable due to the amendment. The Court emphasized that the change in phraseology indicates a deliberate legislative intent to alter the meaning of the provision. Therefore, only vessels berthing at national ports are liable for berthing fees under the amended law. On the issue of whether the Port of Kiwalan is a national port: The Court affirmed the finding of the Court of Tax Appeals that the Port of Kiwalan is not a national port. Executive Order No. 72, Series of 1936, which classifies ports, does not list Kiwalan as a national port. Furthermore, the construction, operation, and maintenance of the Kiwalan facilities were solely by and at the expense of Iligan Express Corporation, a private entity, which is characteristic of a private or municipal port, not a national port financed and managed by the government. Customs Administrative Order No. 1-76, cited by the petitioner, was for administrative purposes defining jurisdictional limits and did not reclassify Kiwalan as a national port. Customs Memorandum Circular No. 33-73 also did not accord national port status to Kiwalan. The principle of expressio unius est exclusio alterius was applied, meaning the express mention of certain ports as national excludes others not mentioned. The Court also noted that Customs Memorandum Circular No. 47-73 treated a similar situation with Banago Wharf as a municipal port, disallowing berthing charges.
Main Doctrine
Under Section 2901 of the Tariff and Customs Code, as amended by Presidential Decree No. 34, berthing fees can only be collected from vessels berthing at national ports. Vessels berthing at privately owned wharves or piers, which are not classified as national ports, are not liable for such charges.