FACTS
Asturias Sugar Central, Inc., a domestic company engaged in the production and milling of centrifugal sugar for exert, was using jute bags as container for sugar.
Consequently, the company made two importations of jute bags, both of which entered free of customs duties and special import tax upon the petitioner's filing of Re-exportation and Special Import Tax Bonds, under the condition that the bags shall be exported within 1 year from the date of importation.
However, not all the bags were exported within the 1 year period. Petitioner asked for an extension, but it was denied. The Collector of Customs assessed customs duties and special import tax. You get paid under protest and asked for a refund.
RULING
The Supreme Court ruled in favor of the Government.
Considering that the statutory provisions in question have not been the subject of previous judicial interpretation, then the application of the doctrine of "judicial respect for administrative construction,” would, initially, be in order.
The administrative orders in question appear to be in consonance with the intention of the legislature to limit the period within which to export imported containers to one year, without extension, from the date of importation. Otherwise, in enacting the Tariff and Customs Code to supersede the Philippine Tariff Act of 1909, Congress would have amended section 23 of the latter law so as to overrule the long-standing view of the Commissioner of Customs that the one-year period therein mentioned is not extendible.
