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    Mobil Expolaration V Customs Arrastre

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    Where Did Macky Gallego
    The petitioner filed suit against the Customs Arrastre Service to recover the value of a case of drill parts that went missing after being shipped. The respondents claimed state immunity from the suit as the Customs Arrastre Service is an agency of the Bureau of Customs, which performs governmental functions on behalf of the national government. The court ruled that state immunity applies because while the arrastre service provides a proprietary function, it is incidental to the Bureau of Customs' primary governmental role of assessing and collecting tariffs and duties. As such, the agency cannot be sued.

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    Mobil Expolaration V Customs Arrastre

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    Where Did Macky Gallego
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    The petitioner filed suit against the Customs Arrastre Service to recover the value of a case of drill parts that went missing after being shipped. The respondents claimed state immunity from the suit as the Customs Arrastre Service is an agency of the Bureau of Customs, which performs governmental functions on behalf of the national government. The court ruled that state immunity applies because while the arrastre service provides a proprietary function, it is incidental to the Bureau of Customs' primary governmental role of assessing and collecting tariffs and duties. As such, the agency cannot be sued.

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    Mobil Expolaration v Customs Arrastre

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    Mobil Expolaration v Customs Arrastre

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    The petitioner filed suit against the Customs Arrastre Service to recover the value of a case of drill parts that went missing after being shipped. The respondents claimed state immunity from the suit as the Customs Arrastre Service is an agency of the Bureau of Customs, which performs governmental functions on behalf of the national government. The court ruled that state immunity applies because while the arrastre service provides a proprietary function, it is incidental to the Bureau of Customs' primary governmental role of assessing and collecting tariffs and duties. As such, the agency cannot be sued.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    51 views1 page

    Mobil Expolaration V Customs Arrastre

    Uploaded by

    Where Did Macky Gallego
    The petitioner filed suit against the Customs Arrastre Service to recover the value of a case of drill parts that went missing after being shipped. The respondents claimed state immunity from the suit as the Customs Arrastre Service is an agency of the Bureau of Customs, which performs governmental functions on behalf of the national government. The court ruled that state immunity applies because while the arrastre service provides a proprietary function, it is incidental to the Bureau of Customs' primary governmental role of assessing and collecting tariffs and duties. As such, the agency cannot be sued.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 1

    Title: Mobil Philippines Exploration vs Customs Arrastre Service No.

    27

    Citation: G.R.No.L-23139December17, 1966 18 SCRA 1120

    Nature of the action:

    Facts:
    SometimeduringthemonthofNovember1962,four cases of rotary drill parts were shipped
    from abroad on S.S. ''Leoville'' consigned to Mobil Philippines Exploration, Inc., Manila. It was
    discharged to the custody of the Customs Arrastre Service, the unit of the Bureau of Customs
    then handling arrastre operations. The Customs Arrastre Service later delivered to the broker of
    the consignee three cases only. Petitioner then filed a suit in the Court of First Instance of
    Manila against the Customs to recover the value of undelivered case plus other damages
    thereof. The respondents filed a motion to dismiss on the ground that not being persons under
    the law, they cannot be sued.

    Issue:
    Whether or not the defendants can invoke state immunity.

    Ruling: YES.

    Ratio Decidendi:
    If an agency's function is deemed proprietary, if such is a necessary incident of the primary and
    government function of such agency, such agency is not suable. If an agency performs a non-
    governmental function and is undertaken as an incident to its governmental function, there is
    no waiver thereby of the state immunity from suit extended to such government entity. The
    Bureau of Customs is part of the Department of Finance with no personality of its own apart
    from that of the national government. Its primary function is governmental, such as assessing
    and collecting lawful revenues from imported articles and all other tariff and custom duties,
    fees, charges, fines and penalties. To this function, arrastre service is a necessary incident.

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