UNIVERSITY OF THE PHILIPPINES COLLEGE OF LAW Tax 1

E2024 Professor Cabreros

Com. Of Customs v. CTA & Campos Rueda Co.
G.R. No. 70648 – July 31, 1987
Second division | Melencio-Herrera, J.
Topic: Constitutional Limitations; Due Process Clause

Doctrine:
Administrative proceedings are not exempt from the operation of due process requirements one of which is that a
finding by an administrative tribunal should be supported by substantial evidence presented at the hearing or at
least contained in the records or disclosed to the parties affected.

FACTS OF THE CASE

Campos Rueda Co. ordered two shipments of tungsol flashers and one shipment of sealed beams from the US.
Whenever a shipment arrived in Manila, the Bureau of Customs would re-appraise it based on an “Alert Notice”
sent by Finance Attachés abroad, causing Campos to pay increased duties and taxes. Campos filed three protests
claiming a refund of the excess amounts each time. After the Collector of Customs denied the protests, Campos
appealed to the Com. Of Customs which affirmed the decision on the ground that the Alert Notices are sent by
Finance Attachés in their official capacity in accordance with their duty to keep the Department of Finance abreast
with the current prices of commodities for the imposition of correct amount of duties and taxes on taxable
importations.

Campos elevated the case to the CTA, which rendered judgment finding that the Com. Of Customs violated Section
201 of the Tariff and Customs Code. The CTA ordered the Com. Of Customs to refund to Campos the customs
duties the latter had overpaid on three of its importations; hence, the Com. Of Customs sought the reversal of the
CTA’s decision via a petition for review on certiorari.

ISSUE/S
W/N the re-appraisal made by the Com. Of Customs was in accordance with Sec. 201 of the Tariff and
Customs Code—NO.
• The dutiable value of an imported article is based on the home consumption value or price as declared in
the consular, commercial, trade or sales invoice. But when there is a reasonable doubt, the correct dutiable
value shall be ascertained from the revenues of the Revenue Attach or Commercial Attach and from such
any other information available to the Bureau of Customs; also required by the statute is the publication
from time to time of the lists of the home consumption values.
o In this case, Campos quoted the prices of the imported merchandise as declared in the consular
invoices and as required by Section 201. Reasonable doubt regarding the declarations was shown
to not have existed to necessitate recourse to reports from commercial attachés; neither was there
compliance with the requirement in the provision regarding publication of the lists of dutiable
values of imported articles from time to time.
o The re-appraisal was made based on Alert Notices received from Finance Attachés abroad, which,
however, were not disclosed, either to Campos or to the CTA.
• While appraisers of the Bureau of Customs are given ample leeway in determining the correct customs
duties under Section 1405 of the Tariff and Customs Code, Section 201—which prescribes the criteria for
the determination of the dutiable values of imported articles—has not been complied with.
o Administrative proceedings are not exempt from the operation of due process requirements one of
which is that a finding by an administrative tribunal should be supported by substantial evidence
presented at the hearing or at least contained in the records or disclosed to the parties affected.
o In this case, the Alert Notices on which the Com. Of Customs based its re-appraisal were not
disclosed during the proceedings before the Bureau of Customs nor presented in evidence before
the CTA. The re-appraisal made, therefore, can be faulted with arbitrariness in disregard of the
standard of due process to which all governmental action should conform to impress upon it the
stamp of validity.

HELD
Petition for review on certiorari is denied; CTA decision affirmed.