The full Court of Tax Appeals (CTA) has affirmed the decision of one of its divisions sending to jail surplus auto parts importer for onions smuggling from China via the Port of Davao in 2011.
Sentenced up to 12 years imprisonment was Moises Bagan Rodriguez, sole proprietor of Yanzhen Enterprises of Digoz City, Davao del Sur.
He was also fined P10,000.
Court records showed Yanzhen brought in shipment of onions disguised as “pastries ingredients” and “dough” to avail of the lower tariff rate of 15 percent, instead of the higher 40 percent for onions.
As a result, Rodriguez evaded payment of some P1.4 million in duties and taxes.
In a 25-page resolution, the full court said “it finds no reversible error to disturb the resolution of its Third Division.”
Rodriguez argued that he had no hand in the importation of the onion as evidence by not having signed any document in relation to the shipment in question.
He pointed to a certain Mr. Min as the one who used his firm’s name to bring the commodity.
Citing Section 1203 of the Tariff and Customs Code of the Philippines, the court said “all articles imported into the Philippines shall be held to be the property of the person to whom the same is consigned,” adding that the waybill of the shipment indicated Yanzhen as the owner of the shipment. (Jun Ramirez)