COMMISSIONER OF CUSTOMS V CAMPOS RUEDA & CTA

L – 55020 | August 20, 1990 | J. Medialdea

 

Facts:

Campos Rueda imported 46 cartons or 27,000 pieces of Tungsol flashers. Before the goods arrived at the port of Manila, Campos Rueda filed with the Collector of Customs of Manila a request for value information for the declaration of the imported flashers under Tariff Heading No. 85.09 of the Tariff and Customs Code at 30% ad valorem duty, for classification purpose. The Customs appraiser however, re-classified the goods under Tariff Heading No. 85.19 of the Tariff and Customs Code at 50% ad valorem.

When the goods arrived at the port of Manila, Campos Rueda immediately filed a Customs Import Entry and Internal Revenue Declaration under Tariff Heading No. 85.19 of the Tariff and Customs Code at 50% ad valorem but, under protest and paid duties and taxes on the goods, also under protest. It then filed a timely protest against the re-classification resulting in the payment of additional customs duty and advance sales tax and prayed for the refund of the said.

The Collector of Customs dismissed the protest. Campos Rueda appealed to the Commissioner but was denied, and then appealed to CTA which modified the Commissioner’s decision by ordering the refund to Campos Rueda of the sum of the additional customs duty but not the advance sales tax. The Commissioner now appeals via petition for review the said decision.

 

Issue: W/N Campos Rueda should pay 30% or 50% ad valorem duty

 

Held:

30%.  TH No 85.09 of the Tariff and Customs Code provides:

85.09. Electrical lighting and signalling equipment and electrical windscreen wipers, defrosters and demisters, for cycles or motor vehicles ad val. 30%.

On the other hand, the same Code provides under TH No. 85.19:

85.19. Electrical apparatus for making and breaking electrical circuits, for the protection of electrical circuits, or for making connections to or in electric circuits (for example, switches, relays, fuses, lighting arresters, surge suppressors, plugs, lamp-holders and junction boxes); resistors, fixed or variable (including potentiometers), other than heating resistors, printed circuits, switch boards (other than telephone switchboards) and control panels:

In finding for Campos Rueda, CTA found that it has adduced sufficient evidence to establish the general purpose or predominating use to which flashers are applied, and for which petitioner imported them, is precisely as electrical equipment for signalling purposes for motor vehicles; that is, to signal or indicate a right or left hand turn by means of electrical flashes in front and at the rear of motor vehicles and not merely as electrical apparatus as the Commissioner claims.

It is the predominating use to which articles are generally applied or used that determines their character for the purpose of fixing the duty, and not the specific or special use which any particular importer may make of the articles imported.

Parts of machines, apparatus of appliances which are suitable for use solely or principally with a particular kind of machine or with a number of machines falling within a specific heading, as a rule, are to be classified with the machines in the same heading. Also, the law does not provide that an article imported for electrical lighting and signalling equipment for motor vehicles falling under Tariff Heading No. 85.09, if imported alone, shall be classified under Tariff Heading No. 85.19 as ‘electrical apparatus for making and breaking electrical circuits that provision should not be read into the law per the circular of the former Acting Customs Collector. Petition denied. CTA decision affirmed.