DOJ Opinion No. 089, s. 1980

DOJ OPINION NO. 089 , s. 1980 June 4, 1980 The Acting Postmaster General Bureau of Posts Manila Sir : This refers to your request for opinion as to whether or not the Bureau of Posts "should pay taxes, levies and/or dues, imposed under revenue laws pursuant to Section 23 of P.D. No. 1177" which provides: "SEC. 23. All units of government, including government-owned or controlled corporations, shall pay income taxes and fees as are imposed under revenue laws: Provided ,That organizations otherwise exempted by laws from payment of such taxes/duties may ask for a subsidy from the general fund in the exact amount of the taxes/duties due. Provided , further ,that a procedure shall be established by the Secretary of Finance and Commissioner of Budget, whereby such subsidies shall be considered as both revenue and expenditure of the General Fund." dctai According to the information relayed to us by your Office, prior to the promulgation of P.D. No. 1177, the Bureau of Posts had been enjoying exemption from payment of all forms of taxes, duties, fees and other charges collectible under revenue laws, but that the Bureau had thenceforth been required to pay wharfage dues, storage fees, arrastre and stevedoring charges and hauling and handling fees on its foreign mails. We understand that you take exception to the imposition of the aforementioned charges and fees on the foreign mails of that Bureau on the ground that only importations by the government for its own use or by its subordinate branches or by instrumentalities owned or controlled by the government are subject to the Tariff and Customs Code, by virtue of Section 1205 of said which provides: "All importations by the government for its own use or that of its subordinate branches and instrumentalities owned or controlled by the government, shall be subject to the Tariff and Customs Code except as authorized by the Secretary of Finance. Importation, the immediate release of which is authorized by the Secretary of Finance without prepayment of Customs duties, taxes and other charges must secure a letter of guarantee or certificate from the chief of office concerned certifying that the amount of taxes, etc. collected on such importations will be included at the next fiscal year's budget of the Office concerned." You take the position that mails "are not importations of the Bureau of Posts" and are not "for [the Bureaus's] own use";that "the Bureau of Posts is only a custodian of the mails for delivery to the different addressees or consignees in the different provinces, cities and municipalities, after the lawful revenue accruing ...[thereon],if any, has been collected by customs personnel assigned at post office, or by the local postmaster, when no customs examiner is assigned thereat";and that "mails by their nature do not fall under the category of commercial cargoes or importations". The answer to the inquiry thus posed would call for not merely an interpretation of Section 23 of P.D. No. 1177, supra , but a ruling as to whether or not, under Section 1205 of the Tariff and Customs Code, wharfage dues, storage fees, arrastre and stevedoring charges and hauling and handling fees may be collected on the foreign mails handled by the Bureau of Posts, in order to determine the applicability of Section 23 of P.D. No. 1177 to said Bureau insofar as foreign mails handled by it are concerned. In view of the foregoing observations, this Ministry is constrained to refrain from rendering opinion on the matter, which opinion of the Minister of Justice, being advisory in nature, cannot prevail over the rulings promulgated or that may hereafter be promulgated by the agency primarily charged with the enforcement, implementation and administration of the law involved. (See Opinion of the Secretary of Justice, No. 145, series of 1973) In this particular case, that agency is the Bureau of Customs. Since the Bureau of Customs is not subject to the revisory authority of the Ministry of Justice, legal propriety demands that we refrain from rendering opinion on the matter in issue unless the same is specifically requested by said Bureau. Rulings of the Bureau of Customs on these and similar matters may, however, be elevated by those adversely affected for review by the Minister of Finance who has supervision over the Bureau of Customs. Please be guided accordingly. Very truly yours, For the Minister of Justice: (SGD.) RICARDO C. PUNO Minister of Justice