The Court of Tax Appeals (CTA) has modified the 2021 regional trial court (RTC) decision that convicted a businesswoman and a customs broker of unlawful importation of 12,000 bags of red onion valued at P16 million in 2013.
Modified was the ruling of the Manila City RTC which found guilty businesswoman Emelita T. Ramirez and customs broker Sheila T. Larracochea who were sentenced to a prison term ranging from eight to 12 years with a fine of P8.000 each.
The RTC found them guilty of unlawful importation as defined and penalized under Section 3601 in relation to Section 101(k) of the Tariff and Customs Code of the Philippines (TCCP), as amended, Section 3 of Presidential Decree No. 1433, Section 2 Rule II of the Bureau of Plant Industry (BPI) Quarantine Administrative Order No. 1, series of 1981, and Department of Agriculture (DA) Administrative Order No. 9, series of 2010.
Based on the trial court’s decision, the imported union contained in four 40-footer vans was consigned to ETR Trading which was registered in Ramirez’s name.
In charging them with unlawful importation, the prosecution said that they imported the onions without any import permit and quarantine clearance from the Bureau of Plant Industry (BPI) or the Department of Agriculture (DA), and the importation was made possible through the use of falsified Plant Quarantine Clearance.
When the RTC denied their motion to reconsider the judgment of conviction, they appealed their case to the CTA.
In a decision issued on July 27, 2023, the CTA’s second division affirmed the conviction of Larracochea but acquitted Ramirez based on “reasonable doubt.”
After reviewing the RTC's findings, the CTA said that material facts and circumstances had been overlooked or mis-appreciated, and therefore Ramirez must be acquitted.
The CTA pointed out that during Larracochea's cross-examination, she admitted that there is no contract or agreement between her and ETR Trading. She also said that a certain Jocelyn Young went to her office sometime in 2012 and told her about the shipment of the onions, but Young did not present her any document that would show her authority to represent ETR Trading and Ramirez.
Ramirez, on the other hand, claimed to have no knowledge of ETR Trading’s transactions since she merely gave her consent to use her name to put up the business.
"The above testimony of Larracochea substantiates Ramirez's assertion that she does not know Larracochea, that she had never talked to or entered any transaction with her, and that the only time she saw her is when this case was filed in court," the CTA said.
"In sum, and as correctly observed by the court a quo, the prosecution was able to establish that all the elements of the crime of smuggling under Section 3601 of the TCCP, as amended, were satisfied, in so far as accused-appellant Larracochea is concerned," the tax court said.
It said it is "undisputed" that Larracochea, as a licensed customs broker, assisted Young, who claimed to be a representative of ETR Trading, in processing and facilitating the importation of 12,000 bags of red onions.
While Larracochea rested her defense on good faith, the CTA said it was not convinced since her profession requires her to submit documents that are "true and correct."
The 55-page decision was written by Associate Justice Lanee S. Cui-David with the concurrence of Associate Justice Jean Marie A. Bacorro-Villena and attestation of Associate Justice Jean Marie A. Bacorro-Villena.