The fundamental conception or nature of

a constitution is that of a supreme law to

which to which all other laws must
conform and in accordance with which all
private rights must be determined and all
public authority administered.[16 C.J.S.,
Note 3 p. 21; Phil. Political Law by Dean
Magsalin]

What is the government of the

Republic of the Philippines? The
Government of the Republic of the
Philippines refers to the corporate
government entity through which the
functions of the government are exercised
throughout the Philippines, including, save
as the contrary appears from the context,
the various arms through which political
authority is made effective in the
Philippines, whether pertaining to the
autonomous regions, the provincial, city,
municipal or barangay subdivisions or
other forms of local government.[ Section
2(1), Introductory Provisions, Executive
Order No. 292]

What is an Agency of the

Government? Agency of the Government
refers to any of the various units of the
Government, including department,
bureau, office, instrumentality, or
government-owned or controlled
corporation, or a local government or a
distinct unit therein. [Section 2(4),
Introductory Provisions, Executive Order
No. 292]

What is a Department? Department

refers to an executive department created
by law. For purposes of Book IV, this shall
include any instrumentality, as herein
defined, having or assigned the rank of a
Department, regardless of its name or
designation. [Section 2(7), Introductory
Provisions, Executive Order No. 292]

CHAPTER I

BUREAU OF CUSTOMS:
ADMINISTRATIVE AGENCY OF THE
GOVERNMENT

Administrative Law defined;

Administrative law is defined as a branch
of public law which fixes the organization
of government, determines competence of
the administrative authorities who execute
the law, and indicates the individual
remedies for violations of his rights.
[Nachura, Outline Reviewer in Political
Law].

The Bureau of Customs is one of the

administrative agencies under the
executive department of the Philippine
government. In the present set-up, it is the
Bureau of Customs which has exclusive
original jurisdiction over seizure and
forfeiture proceedings.
The word exclusive means that there is
no other agency of the government which
has original jurisdiction over seizure and
forfeiture proceedings.
Seizure and forfeiture cases not a shared
jurisdiction by two or more agencies.
However, the judicial branch of the
government has jurisdiction in case of
appeal which is not anymore original
jurisdiction but an appellate jurisdiction.

The Supremacy of the Philippine

Constitution; A constitution is the
Charter creating the government. It has
the status of supreme law, and when it
asserts a certain right or lays down a
certain principle of law or procedure, it
speaks for the entire people as their
supreme law and is full of authority for all
that is done in pursuance of its provisions.
[16 Am Jur. 2d Section 2, p. 180]

1. Quasi-legislative power or Power of

subordinate legislation (e.g. Sec. 608,
TCCP, as amended). This is the exercise of
delegated legislative power, involving no
discretion as to what the law shall be, but
merely the authority to fix the details in
the execution or enforcement of a policy
set out in the law itself. [Outline/Reviewer
in Political Law by Justice Nachura] Quasilegislative power is the power to make
rules and regulations which results in
delegated legislation that is within the
confines of the granting statute and the
doctrine of non-delegability and
separation of powers. [Holy Spirit
Homeowners Association vs. Defensor,
G.R. No. 163980, August 3, 2006]
The power to issue rules and regulations
shall be pursuant to a valid delegation of
power from Congress and intended merely
to implement the law and carry out the
legislative policy and NOT the discretion to
determine what the law shall be.
2. Quasi-judicial power or Power of
adjudication. Partake of the character of
judicial proceedings. [Outline/Reviewer in
Political Law by Justice Nachura]
3. Determinative Power. Illustrated by
the power of assessment of the Bureau of
Internal Revenue or the Bureau of
Customs. [Outline/Reviewer in Political
Law by Justice Nachura]

Classification of Powers of
administrative agencies:
Investigatory power; Investigations by
administrative agencies may be divided
into two classes: (1) quasi-judicial, and (2)
purely fact-finding.
Quasi-judicial inquiries are those in
which the governmental agency conducts
its proceedings for the purpose of
determining legal rights and duties under
existing laws, as where a hearing is
conducted on a complaint of a violation of

What is a Bureau? Bureau refers to any

principal subdivision or unit of any
department. For purposes of Book IV, this
shall include any principal subdivision or
unit of any instrumentality given or
assigned the rank of a Bureau, regardless
of actual name or designation, as in the
case of department-wide regional offices.
[Section 2(8), Introductory Provisions,
Executive Order No. 292]

What is an Office? Office refers, within

the framework of governmental
organization, to any major functional unit
of a department or bureau including
regional offices. It may also refer to any
position held or occupied by individual
persons, whose functions are defined by
law or regulation. [Section 2(9),
Introductory Provisions, Executive Order
No. 292]

Sources/kinds of administrative laws.

The sources/kinds of administrative
laws are:
a. Statutes setting up administrative
agencies.
b. Rules and regulations or orders of such
administrative authorities promulgated
pursuant to the purposes for which they
were created.
c. Determinations, decisions and orders of
such administrative authorities made in
the settlement of controversies arising in
their particular fields.
d. Body of doctrines and decisions dealing
with the creation, operation and effect of
determinations and regulations of such
administrative authorities.
[Outline/Reviewer in Political Law by
Justice Nachura]

Powers and functions of

Administrative agencies.
The powers and functions of
administrative agencies are:

performance of its quasi-judicial powers.

Rule-making/quasi-judicial power.
Administrative agencies promulgate three
types of rules: procedural, interpretative,
and legislative. Procedural rules identify
the agency's organization and methods of
operation. Interpretative rules are issued
to show how the agency intends to apply
the law. They range from informal policy
statements announced in a press release
to authoritative rules that bind the agency
in the future and are issued only after the
agency has given the public an
opportunity to be heard on the subject.
Legislative rules are like statutes enacted
by a legislature. Agencies can promulgate
legislative rules only if the legislature has
given them this authority. [The Free
Dictionary by Farlex]

Discretionary power.
The United States Supreme Court stated
that an administrative agency enjoys wide
discretion in ascertaining best way to
handle related, yet discrete issues in
terms of procedures and priorities.
Administrative agencies exercise wide
discretion in selecting the methods to
attain the legislatures goals.
Administrative agencies can adopt rules
and policies to carry out duties delegated
by legislature.
The rules and policies should be consistent
with statutory provisions. This discretion is
allowed to administrative agencies to
adapt their rules and policies to the
demands of changing circumstances.
Administrative agencies discretionary
power extends to deciding remedies for
infringement of agency policies.
Administrative agencies have specialized
knowledge and power to achieve
legislatures objectives. Hence, the
agencies have discretion to develop

law. [Washington University Law Quarterly,

Vol. 26, Pages 533 & 534]

The Bureau of Customs can issue a

subpoena.
The customs officials and other employees
of the Bureau of Customs can issue a
subpoena duces tecum ad testificandum
under the provisions of Section 3503 of
the Tariff and Customs Code, but they
cannot declare a defiant person in
contempt.

The power to declare contempt is

statutory in character. Since this is a
specific power not conferred by the tariff
and customs laws to the customs bureau,
it cannot therefore, declare the
disobedient person in contempt. However,
customs personnel under investigation is
advised not refuse to obey a subpoena
issued by the Bureau of Customs because
of a possible administrative liability he
may encounter. The compulsory process
can only be issued after a hearing by a
court of competent jurisdiction.

Customs officers should therefore take

note of Section 6, Rule 71 of the Revised
Rules of Court, with states that, to wit:
Section 6. When the contempt consists in
the refusal or omission to do an act which
is yet in the power of respondent to
perform, he may be imprisoned by order
of the court concerned until he
performs it.
A separate action or petition for indirect
contempt should be filed first in court by
the Bureau of Customs because as the
Supreme Court ruled in the case of
Dumarpa vs. Dimaporo, 177 SCRA 478,
that the power to punish contempt is
inherently judicial, it may be exercise only
if expressly conferred by law, and when
administrative body is engaged in the

1962]
Requisites for validity of
administrative rules and regulations;
1. Its promulgation must be authorized by
the legislature;
2. It must be promulgated in accordance
with the prescribed procedure;
3. It must be within the scope of the
authority given by the legislature; and
4. It must be reasonable.

The rule is that what has been delegated

cannot be delegated, or as expressed in
the Latin maxim: potestas delegate non
delegate potest. This rule is based upon
the ethical principle that such delegated
power constitutes not only a right but a
duty to be performed by the delegate by
the instrumentality of his own judgment
acting immediately upon the matter of
legislation and not through the intervening
mind of another.
This rule however admits of recognized
exception such as the grant of rule-making
power to administrative agencies. They
have been granted by Congress with the
authority to issue rules to regulate the
implementation of a law entrusted to
them. Delegated rule-making has become
a practical necessity in modern
governance due to the increasing
complexity and variety of public functions.
However, in every case of permissible
delegation, there must be a showing that
the delegation itself is valid. It is valid only
if the law (a) is complete in itself, setting
forth therein the policy to be executed,
carried out, or implemented by the
delegate; and (b) fixes a standardthe
limits of which are sufficiently determinate
and determinableto which the delegate
must conform in the performance of his
functions. A sufficient standard is one
which defines legislative policy, marks its

appropriate enforcement policy to attain

statutory obligations. Administrative
agencies can also decide on appropriation
of funds available, efficiently and
economically to accomplish its policies.
[Mobile Oil Exploration & Producing
Southeast vs. United Distrib. Cos., 498 U.S
211(U.S. 1991)]
Ministerial power.
Ministerial power is the name that is given
to the powers of a trustee or a minister
that are detailed and leave nothing to
discretion. [Blacks Law Dictionary]

Force and effect of administrative

rules and regulations.
When an administrative agency
promulgates rules and regulations, it
"makes" a new law with the force and
effect of a valid law, while when it renders
an opinion or gives a statement of policy,
it merely interprets a pre-existing law
(Parker, Administrative Law, p. 197; Davis,
Administrative Law, p. 194).
Rules and regulations when promulgated
in pursuance of the procedure or authority
conferred upon the administrative agency
by law, partake of the nature of a statute,
and compliance therewith may be
enforced by a penal sanction provided in
the law. This is so because statutes are
usually couched in general terms, after
expressing the policy, purposes,
objectives, remedies and sanctions
intended by the legislature. The details
and the manner of carrying out the law
are often times left to the administrative
agency entrusted with its enforcement. In
this sense, it has been said that rules and
regulations are the product of a delegated
power to create new or additional legal
provisions that have the effect of law.
(Davis,op. cit., p. 194.)[ Victorias Milling
Company, Inc. vs. Social Security
Commission, G.R. No. L-16704, 17 March

G.R. No. L-21026 December 29, 1965]

CASE:
Yaokasin vs. Commissioner of
Customs,
G.R. 84111, Dec. 22, 1989
The Facts
The Philippine Coast Guard seized 9,000
sacks of refined sugar owned by Yaokasin,
which were then being unloaded from M/V
Tacloban, turned them over to the custody
of the Bureau of Customs. On June 7,
1988, the District Collector of Customs
ordered the release of the cargo to the
petitioner but this order was subsequently
reversed on June 15, 1988. The reversal
was by virtue of Customs Memorandum
Order No. 20-87 in implementation of the
Integrated Reorganization Plan under PD
No. 1, which provides that in protest and
seizure cases where the decision is
adverse to the government, the
Commissioner of Customs has the power
of automatic review. Petitioner objected to
the enforcement of Section 12 of the Plan
and CMO No. 20-87 contending that these
were not published in the Official Gazette.
The Plan which was part of PD No.1 was
however published in the Official Gazette.
The Issue
Whether or not Circular Order such as
Customs Memorandum Order No. 20-87
needs to be published in the Official
Gazette to take effect.
The Courts Ruling
Article 2 of the Civil Code does not apply
to circulars like CMO No. 20-87 which is an
administrative order of the Commissioner
of Customs addressed to his subordinates,

limits, maps out its boundaries and

specifies the public agency to apply it. It
indicates the circumstances under which
the legislative command is to be effected.
[Willam C. Dagan, et al. vs. Philippine
Racing Commission, G.R. No. 175220, 12
February 2009]
Issued under authority of law;
In the Bureau of Customs, the
Commissioner of Customs is authorized to
promulgate rules and regulations. Section
608 of the Tariff and Customs Code of the
Philippines, as amended, provides, to wit:
Section 608. Commissioner to Make
Rules and Regulations. The
Commissioner shall, subject to the
approval of the Secretary of Finance,
promulgate all rules and regulations
necessary to enforce the provisions of this
Code. He shall also cause the preparation
and publication of a customs manual
covering up-to-date rules and regulations
and decisions of the Bureau of Customs.
The manual shall be published and made
available to the public at least once every
quarter within the first month after the
end of every quarter. The Secretary of
Finance and/or the Commissioner of
Customs shall furnish the Bangko Sentral
ng Pilipinas, Board of Investments, the
NEDA and the Tariff Commission with at
least three copies each of every
department order, administrative order,
memorandum circulars and such rules and
regulations which are promulgated from
time to time for the purpose of
implementing the provisions of this Code.
But, such administrative rules and
regulations should be filed of with the U.P.
Law Center Quarterly Bulletin [Adm.Code
of 1987, Bk.VII, Ch.2 Sec.3]. It has been
held that Rules and Regulations of the
Board of Examiners not published in the
Official Gazette is invalid.[The
Commissioner of Civil Service and the
Collector of Customs, Port of Manila vs.
Angel C. Cruz and the Court of Appeals,

was 3%, for feed grade, 7%.

CMO 27-2003 further provided for the
proper procedure for protest or Valuation
and Classification Review Committee
(VCRC) cases. Under this procedure, the
release of the articles that were the
subject of protest required the importer to
post a cash bond to cover the tariff
differential.

Respondent contended that CMO 27-2003

was issued without following the mandate
of the Revised Administrative Code on
public participation, prior notice, and
publication or registration with the
University of the Philippines Law Center.
Respondent also alleged that the
regulation summarily adjudged it to be a
feed grade supplier without the benefit of
prior assessment and examination; thus,
despite having imported food grade
wheat, it would be subjected to the 7%
tariff upon the arrival of the shipment,
forcing them to pay 133% more than was
proper.

Petitioners alleged that CMO 27-2003 was

an internal administrative rule and not
legislative in nature and the claims of
respondent were speculative and
premature, because the Bureau of
Customs (BOC) had yet to examine
respondents products. They likewise
opposed the application for a writ of
preliminary injunction on the ground that
they had not inflicted any injury through
the issuance of the regulation; and that
the action would be contrary to the rule
that administrative issuances are assumed
valid until declared otherwise.

Respondent has adequately shown that,

as a regular importer of wheat, on 14
August 2003, it has actually made
shipments of wheat from China to Subic.
The shipment was set to arrive in

the Customs Collectors. Said issuance

requiring Collectors of Customs to comply
strictly with Section 12 of the Plan, is
addressed only to particular persons or
class of persons (the Customs Collectors),
hence no general applicability. As held in
Tanada vs. Tuvera, it need not be
published, on the assumption that it has
been circularized to all concerned.
Moreover, Commonwealth Act No. 638
provides an enumeration of what shall be
published in the Official Gazette. It
provides that besides legislative acts,
resolutions of public nature of Congress,
Executive, Administrative Orders and
Proclamations shall be published except
when these have no general applicability.
However, Customs Memorandum Order
should be published if it would affect
substantive rights in accordance with the
provisions of Book VII, Chapter 2 of the
Revised Administrative Code.
CASE:

Commissioner of Customs vs.

Hypermix Feeds Corp.
G.R. No.179579, Feb. 1, 2012

The facts

On 7 November 2003, petitioner

Commissioner of Customs issued CMO 272003. Under the Memorandum, for tariff
purposes, wheat was classified according
to the following: (1) importer or consignee;
(2) country of origin; and (3) port of
discharge. The regulation provided an
exclusive list of corporations, ports of
discharge, commodity descriptions and
countries of origin. Depending on these
factors, wheat would be classified either
as food grade or feed grade. The
corresponding tariff for food grade wheat

When an administrative rule is merely

interpretative in nature, its applicability
needs nothing further than its bare
issuance, for it gives no real consequence
more than what the law itself has already
prescribed. When, on the other hand, the
administrative rule goes beyond merely
providing for the means that can facilitate
or render least cumbersome the
implementation of the law but
substantially increases the burden of
those governed, it behooves the agency to
accord at least to those directly affected a
chance to be heard, and thereafter to be
duly informed, before that new issuance is
given the force and effect of law.
In Taada v. Tuvera, we held: The clear
object of the above-quoted provision is to
give the general public adequate notice of
the various laws which are to regulate
their actions and conduct as citizens.
Without such notice and publication, there
would be no basis for the application of
the maxim ignorantia legis non excusat.
It would be the height of injustice to
punish or otherwise burden a citizen for
the transgression of a law of which he had
no notice whatsoever, not even a
constructive one.
Perhaps at no time since the
establishment of the Philippine Republic
has the publication of laws taken so vital
significance that at this time when the
people have bestowed upon the President
a power heretofore enjoyed solely by the
legislature.
While the people are kept abreast by the
mass media of the debates and
deliberations in the Batasan Pambansa
and for the diligent ones, ready access to
the legislative records no such publicity
accompanies the law-making process of
the President.Thus, without publication,
the people have no means of knowing
what presidential decrees have actually

December 2003. Upon its arrival, it would

be subjected to the conditions of CMO 272003. The regulation calls for the
imposition of different tariff rates,
depending on the factors enumerated
therein. Thus, respondent alleged that it
would be made to pay the 7% tariff
applied to feed grade wheat, instead of
the 3% tariff on food grade wheat. In
addition, respondent would have to go
through the procedure under CMO 272003, which would undoubtedly toll its
time and resources.
The Courts Ruling

Considering that the questioned regulation

would affect the substantive rights of
respondent, it therefore follows that
petitioners should have applied the
pertinent provisions of Book VII, Chapter 2
of the Revised Administrative Code, to wit:
Section 3. Filing. (1) Every agency shall
file with the University of the Philippines
Law Center three (3) certified copies of
every rule adopted by it. Rules in force on
the date of effectivity of this Code which
are not filed within three (3) months from
that date shall not thereafter be the bases
of any sanction against any party of
persons.
Section 9. Public Participation. - (1) If not
otherwise required by law, an agency
shall, as far as practicable, publish or
circulate notices of proposed rules and
afford interested parties the opportunity to
submit their views prior to the adoption of
any rule.
(2) In the fixing of rates, no rule or final
order shall be valid unless the proposed
rates shall have been published in a
newspaper of general circulation at least
two (2) weeks before the first hearing
thereon.
(3) In case of opposition, the rules on
contested cases shall be observed.

It is also not clear how the regulation

intends to monitor more closely wheat
importations and thus prevent their
misclassification. A careful study of CMO
27-2003 shows that it not only fails to
achieve this end, but results in the
opposite. The application of the regulation
forecloses the possibility that other
corporations that are excluded from the
list import food grade wheat; at the same
time, it creates an assumption that those
who meet the criteria do not import feed
grade wheat. In the first case, importers
are unnecessarily burdened to prove the
classification of their wheat imports; while
in the second, the state carries that
burden.
Petitioner Commissioner of Customs also
went beyond his powers when the
regulation limited the customs officers
duties mandated by Section 1403 of the
Tariff and Customs Law, as amended. The
law provides:

Section 1403. Duties of Customs Officer

Tasked to Examine, Classify, and Appraise
Imported Articles. The customs officer
tasked to examine, classify, and appraise
imported articles shall determine whether
the packages designated for examination
and their contents are in accordance with
the declaration in the entry, invoice and
other pertinent documents and shall make
return in such a manner as to indicate
whether the articles have been truly and
correctly declared in the entry as regard
their quantity, measurement, weight, and
tariff classification and not imported
contrary to law. He shall submit samples
to the laboratory for analysis when
feasible to do so and when such analysis is
necessary for the proper classification,
appraisal, and/or admission into the
Philippines of imported articles.

been promulgated, much less a definite

way of informing themselves of the
specific contents and texts of such
decrees. (Emphasis supplied)
Because petitioners failed to follow the
requirements enumerated by the Revised
Administrative Code, the assailed
regulation must be struck down.
Going now to the content of CMO 27-3003,
we likewise hold that it is unconstitutional
for being violative of the equal protection
clause of the Constitution.

The equal protection clause means that no

person or class of persons shall be
deprived of the same protection of laws
enjoyed by other persons or other classes
in the same place in like circumstances.
Thus, the guarantee of the equal
protection of laws is not violated if there is
a reasonable classification. For a
classification to be reasonable, it must be
shown that (1) it rests on substantial
distinctions; (2) it is germane to the
purpose of the law; (3) it is not limited to
existing conditions only; and (4) it applies
equally to all members of the same class.
Unfortunately, CMO 27-2003 does not
meet these requirements. We do not see
how the quality of wheat is affected by
who imports it, where it is discharged, or
which country it came from.
Thus, on the one hand, even if other
millers excluded from CMO 27-2003 have
imported food grade wheat, the product
would still be declared as feed grade
wheat, a classification subjecting them to
7% tariff. On the other hand, even if the
importers listed under CMO 27-2003 have
imported feed grade wheat, they would
only be made to pay 3% tariff, thus
depriving the state of the taxes due. The
regulation, therefore, does not become
disadvantageous to respondent only, but
even to the state.

beyond his powers of delegated authority

when the regulation limited the powers of
the customs officer to examine and assess
imported articles.

Repeal of administrative rules and

regulations.

Laws are repealed only by subsequent

ones, and their violation or nonobservance shall not be excused by
disused, or custom or practice to the
contrary. [Article 7, Civil Code of the
Philippines].
Laws are repealed in two ways: (1)
express, or (2) implied. An express repeal
is that contained in a special provision of a
subsequent law. Implied repeal, on the
other hand, takes place when the
provisions of the subsequent law are
incompatible with those of an earlier law
and there is no express repeal. [The Law
on Persons and Family Relation by Rabuya]

Rules subject to Supreme Court

modification (refer to Chapter--)
Bureau of Customs an administrative
agency of the government.
The Bureau of Customs is an authority or
body of one or more officials, which is
design to carry on certain services or
privileges accorded by the government, to
promote general welfare through policy
regulations, and to determine the rights of
individuals. The Bureau of Customs is an
attached agency of the Department of
Finance. Executive Order No. 127
[effective 30 January 1987] reorganized
the Ministry of Finance (now Department
of Finance).
Functions of the BOC; (Sec. 602,
TCCP, as amended)

Likewise, the customs officer shall

determine the unit of quantity in which
they are usually bought and sold, and
appraise the imported articles in
accordance with Section 201 of this Code.

Failure on the part of the customs officer

to comply with his duties shall subject him
to the penalties prescribed under Section
3604 of this Code.
The provision mandates that the customs
officer must first assess and determine the
classification of the imported article before
tariff may be imposed. Unfortunately, CMO
23-2007 has already classified the article
even before the customs officer had the
chance to examine it. In effect, petitioner
Commissioner of Customs diminished the
powers granted by the Tariff and Customs
Code with regard to wheat importation
when it no longer required the customs
officers prior examination and
assessment of the proper classification of
the wheat.

It is well-settled that rules and regulations,

which are the product of a delegated
power to create new and additional legal
provisions that have the effect of law,
should be within the scope of the statutory
authority granted by the legislature to the
administrative agency. It is required that
the regulation be germane to the objects
and purposes of the law; and that it be not
in contradiction to, but in conformity with,
the standards prescribed by law.
In summary, petitioners violated
respondents right to due process in the
issuance of CMO 27-2003 when they failed
to observe the requirements under the
Revised Administrative Code. Petitioners
likewise violated respondents right to
equal protection of laws when they
provided for an unreasonable classification
in the application of the regulation. Finally,
petitioner Commissioner of Customs went

enforcement of tariff and customs laws;

c. Prosecuting smuggling and other illegal
activities in all ports under its jurisdiction;
d. Exercising supervision and control over
its constituent units; and
e. Performing other functions as may be
provided by law (Section 33, Executive
Order No. 127)

To Decide cases. (See Section 2301-2317,

Title IV Administrative Proceedings);
The cases arising under the Tariff and
Customs Law are the following:
1. Seizure Case
2. Protest Case
3. Cases involving assessment of duties
4. Criminal Case
5. Civil Case
6. Administrative Case

To conduct administrative searches,

seizures and arrests. (See Section 22012212, Title VI Administrative Proceedings).

To impose administrative fines (See 25012529, Title VI Part 4 Surcharges, Fines and
Forfeitures);
Proceedings in the Bureau of Customs
partake of the nature of judicial
proceedings.

In Daud vs. Commissioner G.R. No. L24003 November 28, 1975 the Supreme
Court held that the Collector of Customs
acts as tribunal when sitting in forfeiture
proceedings. A tribunal is an agency with
the power to adjudicate cases arising
within the scope of its activities.

Executive Order No. 57 series of

1999;
Executive Order No. 57 created a Special
Hearing Division and a Team of

The functions of the Bureau of Customs

include the assessment and collection of
the lawful revenues from imported articles
and all other dues, fees, charges, fines
and penalties accruing under the tariff and
customs laws; and the prevention and
suppression of smuggling and other frauds
upon the customs. It is the duty of the
Collector of Customs to cause all articles
entering the jurisdiction of his district and
destined for importation through his port
to be entered at the customs house to
have all such articles appraised and
classified, and to assess and collect the
duties, taxes and other charges thereon,
and have possession of all imported
articles upon which duties, taxes, and
other charges have not been paid or
received to be paid, disposing of the same
according to law. For the enforcement of
the customs and tariff laws, he is
authorized to effect searches and seizures
conformably with the provisions of said
laws. It shall be his duty to make seizure
of any article when the same is subject to
forfeiture. A package or article is subject
to forfeiture if it is found by the examining
official to contain any article not specified
in the invoice or entry, provided the
Collector is of the opinion that the
misdirection was caused with fraudulent
intent; or if it was sought to be imported
on the strength of a false declaration or
affidavit, or a false invoice or other
document, executed by the owner,
importer, exporter or consignee
concerning the importation.[General Travel
Service, Ltd. Vs. David, G.R. No. L-19259,
September 23, 1966]
Other functions of the Bureau of
Customs.
The Bureau, through the Commissioner,
has the following functions; to wit:
a. Accounting for all customs revenues
collected;
b. Exercising police authority for the

the following powers and functions:

1. To call the parties to a pre-trial
conference to enter into stipulations of
facts and determine the issues involve in
the controversy;
2. To rule on motions made by either or
both parties in the proceedings;
3. To issue interlocutory orders and
subpoena duces tecun and subpoena ad
testificandum;
4. To conduct expeditious, and if
warranted, marathon hearings, the period
of which shall not exceed thirty (30) days;
5. To recommend to the Collector of
Customs a decision within ten (10) days
from the completion or termination of the
formal hearing, which decision shall be
submitted to the Collector of Customs
concerned for his signature;
6. If the Hearing Officer deems it
unnecessary to conduct a full trial on the
controversy, he may require the parties to
submit their memoranda with a period of
five (5) days and he shall recommend a
decision to the Collector of Customs within
ten (10) days from the submission of the
pleadings. Motion for Extension of time to
submit memoranda shall not be allowed
and shall be considered a prohibited
motion.

The Special Team of Prosecutors shall

likewise have the following powers and
functions:
1. To conduct preliminary investigation
and issue the necessary subpoenas to
concerned persons who may be potential
witnesses in the seizure proceedings to be
instituted against the articles or goods
involved in the unlawful importation or
exportation;
2. To consult with the Legal Service,
Bureau of Customs on matters involving
appreciation and evaluation of evidences

Prosecutors in the Bureau of Customs to

expedite seizure proceedings and
prosecute offenders.

Special Hearing Division and Special

Team of Prosecutors;
In order to carry-out the policy
enumerated under Executive Order No.
57, a Special Hearing Division under the
Deputy Commissioner, Revenue
Collection Monitoring Group was
created with the following objectives:
To institute an orderly, fair and speedy
conduct of seizure proceedings,
particularly, when they involve sensitive
articles, or when the appraised value of
the seized articles exceeds Two Million
Pesos (Php2,000,000.00)
To establish and maintain the legality
and integrity of the seizure proceedings.

A Special Team of Prosecutors under the

Deputy Commissioner, Intelligence and
Enforcement Group, is likewise
created with the following objectives:
To act as legal consultants to the
Presidential Task Force Against Smuggling;
To evaluate evidence gathered by the
task force and make a determination of
whether or not an infringement of the
Tariff and Customs Code or related laws
and regulation has been committed;
To recommend for the issuance of
Warrant of Seizure Detention in
appropriate cases and coordinate with
other prosecuting arms of the government
in filling the appropriate administrative
and criminal charges against persons
responsible for the violation of the Tariff
and Customs Code or other laws
implemented/enforced by the Bureau of
Customs.

Powers, Functions and

responsibilities;
The Special Hearing Division shall have

After the Philippine Independence, the

Tariff and Customs Code of the Philippines
known as, Republic Act. No. 1937 was
enacted. This Act has been amended by
several Presidential Decrees dating back
to the year 1972. On June 12, 1978,
Former President Ferdinand Marcos
ordered and decreed for consolidation and
codification of the Tariff and Customs Laws
of the Philippines (PD 1464). Presidential
Decree No. 1464 has also been amended
by several Republic Acts.
2011 Bar Examination
A violation of the tariff and customs laws
is the failure to
a. Pay the customs duties and taxes and
to comply with the rules on customs
procedures.
b. Pay the customs duties and taxes or to
comply with the rules on customs
procedures.
c. Pay the customs duties and taxes.
d. Comply with the rules on customs
procedures.

Answer: Letter B.

The prevention and suppression of

smuggling and other frauds upon customs.
[Section 602 b TCCP, as amended]

The supervision and control over the

entrance and clearance of vessels and
aircraft engaged in foreign commerce.
[Section 602 c, TCCP, as amended]
CHAPTER--The enforcement of the tariff and customs
laws and all other laws, rules and
regulations relating to the tariff and
customs administration;

as well as in the formulation of legal

strategies to be used during the actual
hearing;
3. To recommend for the filing of
appropriate administrative and criminal
charges against those individuals involved
in the unlawful importation.
Special Hearing Division can issue
subpoenas.
The Special Hearing Division can issue
subpoenas only in regard to its
adjudicatory and not in its administrative
functions.

Jurisdiction of the Bureau Of

Customs;
Jurisdiction on Cases (Sec. 602 (g)
TCCP, as amended)
The general duties, powers and
jurisdiction of the bureau shall include:
The assessment and collection of the
lawful revenue from imported articles and
all other dues, fees, charges, fines and
penalties accruing under tariff and
customs laws [Section 602 a TCCP, as
amended]

Agent of the BIR Commissioner;

The Commissioner of Customs and his
subordinates constituted agents of the
Commissioner of Internal Revenue with
respect to the collection of national
internal revenue taxes on imported goods.
[Section 12 (a) NIRC]

Tariff and Customs laws.

Tariff and Customs laws refers to the
provisions of the Tariff and Customs Code
and the regulations promulgated pursuant
thereto as well as other laws and
regulations which are subject to the
enforcement by the Bureau of Customs or
otherwise within its jurisdiction [Section
3519, TCCP, as amended]

maritime law and its proper surveillance of

vessels entering and/or leaving the
Philippine territory as provided in Section
3 (a) of Republic Act Numbered Fifty-one
hundred and seventy-three shall continue
to be in force and effect.(Section 2202,
TCCP as amended)

Persons having police authority;

For the enforcement of the tariff and
customs laws, the following persons are
authorized to effect searches, seizures and
arrests conformably with the provisions of
said laws.
1. Officials of the Bureau of Customs,
district collectors, deputy collectors, police
officers, agents, inspectors and guards of
the Bureau of Customs;
2. Officers of the Philippine Navy and
other members of the Armed Forces of the
Philippines and national law enforcement
agencies when authorized by the
Commissioner;
3. Officials of the Bureau of Internal
Revenue on all cases falling within the
regular performance of their duties, when
the payment of internal revenue 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.

In order to avoid conflicts, and insure

coordination among these persons having
authority to effect searches, seizures and
arrests for the effective enforcement of,
and conformably with tariff and customs
laws, the Secretary of Finance, shall,
subject to the approval of the President of
the Philippines, define the scope, areas
covered, procedures and conditions
governing the exercise of such police
authority including custody and

Search, Seizure and Arrest;

No trespass rule;
No person other than those with legitimate
business with, or employees of, the port or
the Bureau of Customs shall be allowed to
enter the customs premises without a
written permission of the Collector.
[Section 2201, TCCP as amended]

No obstruction rule;
No person shall obstruct a customhouse,
warehouse, office, wharf, street or other
premises under the control of the Bureau
of Customs, or in any approaches to that
house or premises. [Section 2201, TCCP as
amended]

An obstruction of a street or highway is

anything set in a way, whether it totally
closes the passage or only hinders or
retards progress, and it has been held that
to obstruct a highway, it is not necessary
that it shall be rendered impassable.
(Unites States vs. Alexander, 8 Phil. 38).

Special surveillance;
Special surveillance is defined as a close
observation or supervision of a person or
group, especially one under suspicion. In
order to prevent smuggling and to secure
the collection of the legal duties, taxes
and other charges, the customs service
shall exercise surveillance over the coast,
beginning when a vessel or aircraft enters
Philippine territory and concluding when
the article imported therein has been
legally passed through the customhouse:
Provided, That the function of the
Philippine Coast Guard to prevent and
supress illegal entry, smuggling and other
customs frauds and violations of the

seizure and arrest;

In Papa vs. Mago, 22 SCRA 857,
respondents averred that petitioner Martin
Alagao, an officer of the Manila Police
Department, could not seize the goods in
question without a search warrant. This
contention cannot be sustained. The Chief
of the Manila Police Department, Ricardo
G. Papa, having been deputized in writing
by the Commissioner of Customs, could,
for the purposes of the enforcement of the
customs and tariff laws, effect searches,
seizures, and arrests, and it was his duty
to make seizure, among others, of any
cargo, articles or other movable property
when the same may be subject to
forfeiture or liable for any fine imposed
under customs and tariff laws. He could
lawfully open and examine any box, trunk,
envelope or other container wherever
found when he had reasonable cause to
suspect the presence therein of dutiable
articles introduced into the Philippines
contrary to law; and likewise to stop,
search and examine any vehicle, beast or
person reasonably suspected of holding or
conveying such article as aforesaid. It
cannot be doubted, therefore, that
petitioner Ricardo G. Papa, Chief of Police
of Manila, could lawfully effect the search
and seizure of the goods in question. The
Tariff and Customs Code authorizes him to
demand assistance of any police officer to
effect said search and seizure, and the
latter has the legal duty to render said
assistance. This was what happened
precisely in the case of Lt. Martin Alagao
who, with his unit, made the search and
seizure of the two trucks loaded with the
nine bales of goods in question at the
Agrifina Circle. He was given authority by
the Chief of Police to make the
interception of the cargo.

Place where authority may be

exercised;
All persons conferred with powers in the

responsibility for the goods seized. The

rules and regulations to this effect shall be
furnished to all the government agencies
and personnel concerned for their
guidance and compliance, and shall be
published in a newspaper of general
circulation. (Section 2203, TCCP as
amended)

The jurisdiction of the Commissioner of

Customs is clearly with regard to customs
duties. Should the PNP suspect anything, it
should coordinate with the BOC and obtain
the written authority from the Collector of
Customs in order to conduct searches,
seizures, or arrests. Coordination is
emphasized in the laws. While it is an
admitted fact that there was no such
coordination initiated by the PNP-CIDG in
this instance, nevertheless, petitioners
cannot be convicted under the Tariff and
Customs Code since there is no evidence
that they did actually search the container
vans. [Boac et al. vs. People, G.R. No.
180597 November 7, 2008]

Flagging down of the container vans

is not punishable under Section 2203.
The information charged petitioners for
illegally flagging down, searching, and
seizing the three container vans on July
27, 2004. Petitioners, however, could not
also be held liable for these acts. It is a
fact that no search and seizure of the vans
was done on the night of July 27, 2004.
The act of flagging down the vehicles is
not among those proscribed by Sec. 2203
of the Tariff and Customs Code. Mere
flagging down of the container vans is not
punishable under the said law.[Boac et al.
vs. People, G.R. No. 180597 November 7,
2008]

Officer of National law enforcement

agencies deputized by the
Commissioner could effect searches,

Bureau of Customs. (Section 2204, TCCP

as amended)

preceding section may exercise the same

at any place within the jurisdiction of the