DOJ Opinion No. 125, s. 1985

DOJ OPINION NO. 125 , s. 1985 October 2, 1985 Brig. Gen. Ramon J. Farolan Acting Commissioner of Customs Manila Sir : This refers to your letter requesting this Office to take cognizance of your complaint against the Ministry of Public Works and Highways (MPWH) for its failure, notwithstanding repeated demands, to settle its outstanding account with the Bureau of Customs in the total sum of P3,018,611.00 representing assessments on its importations. LLpr We gather from the attached enclosures that the MPWH made importations of heavy equipment and other articles which are covered by Project Loan Agreement (No. PH-P4 and No. PH-P21) between the Government of the Republic of the Philippines and the Overseas Economic Cooperation Fund of Japan, that said importations were released to the consignees, the then Department of Public Highways, without payment of duties and taxes required to be paid under the Tariff and Customs Code on the representation and undertaking made by the Regional Equipment Engineer of the said Department that all necessary documents together with the exemption certificate from the Department (now Ministry) of Finance for free importation will be submitted, and that upon failure to secure said exemption certification the necessary amount will be included in it s ensuing budget to liquidate the same (see letter dated January 6, 1977 of the Regional Equipment Engineer, Region V, Naga City to the Collector of Customs, Legaspi City). It is stated that neither the "exemption certification" adverted to above, nor the "Payment Compliance Certificate (see Letter dated January 19, 1981 of the District Collector of Customs to the Regional Highway District Engineer, Legaspi City), has been submitted to the Bureau of Customs despite repeated requests. Neither has it been certified that the necessary amount covering said liabilities will be included in the ensuing calendar year budget of the MPWH (see 1st Indorsement dated April 27, 1982 of the OIC, Finance Revenue Service, Ministry of Finance to the Commissioner of Customs), nor has the requested copy of sub-allotment advice and/or journal voucher (see Letter dated March 22, 1984 of the District Collector of Customs, Collection District No. V, Legaspi City, to the MPWH) been submitted to the Bureau of Customs to liquidate the said liability. We note that the Bureau of Customs does not dispute MPWH's claim that the said importations are tax-exempt. There is no question of law and/or fact involved in the matter presented here which would require the intervention of the Ministry of Justice pursuant to Presidential Decree No. 242. prcd As we see it, the only problem posed has to do with securing compliance by MPWH officials of the administrative requirements for the liquidations of the import entries in the books of the Bureau of Customs covering the tax-free importations of the DPWH. It is accordingly suggested that you bring the matter to the attention of the Minister of Finance, who issues the certificates of exemption for tax and free importations under P.D. No. 882, and who, together with the Ministry of Budget, established the procedure for automatically considering subsidies from the General Fund equivalent to taxes/duties of tax-exempt entities, as both revenue and expenditures of the said Fund. Very truly yours, (SGD.) ESTELITO P. MENDOZA Minister of Justice