Case no.

345

BUREAU OF CUSTOMS EMPLOYEES ASSOC. V. TEVES

G.R. No. 181704
December 6, 2011
Villarama, Jr., J.
FACTS OF THE CASE
Republic Act No. 9335, also known as the Attrition Act 2005 was enacted by Congress and
signed by GMA. It aims to optimize revenue-generation capability and collection of the Bureau
of Customs. Also, it encourages employees to increase their revenues through a reward system
via the Rewards and Incentives Fund and Revenue Performance Board. The Implementing Rules
and Regulations (IRR) was then enacted by Congress through its Joint Congress Oversight
Committee. Petitioner BOC Employees Association (BOCEA) is composed of rank-and-file
employees of the Bureau of Customs.
In fulfillment of the mandate of R.A. 9335, high officials of BOC started to disseminate
Collection District Performance Contracts (Performance Contracts) to lower ranking officials
and rank-and-file employees. These contracts contain the following: (a) failure to meet the quota
would hold the employee liable under the Act, and (b) the employees are required to execute the
contract and they are directed to accept their individual targets.
Petitioners assail the Act on the ground that the means employed are unreasonable to achieve its
objectives. They argue that, the government, in shifting the burden of revenue generation to its
employees, is unduly oppressive. On the other hand, respondents argue that there is a valid and
substantial distinction when it classified BOC (and BIR) employees as public officers. Primarily
tasked with revenue-generation, it is essentially involved with the inherent government power of
taxation. Further, the performance contracts serve as a notice for the required target the
employees are required to meet. With regard to the decisions with regard to the results of the
performance evaluations and its consequences, respondents argue that there is nothing in the law
that prevents them to question or appeal the said decision.
ISSUE/S
W/N the R.A. 9335 violates the due process clause and the equal protection clause
HELD/RATIO
R.A. 9335 lays down reasonable guidelines for the removal of employees in full consideration of
all the relevant factors that affect individual collection. Further, the action for removal is subject
to existing civil service laws, rules, and regulations. Therefore, it is compliant of the essential
requirements of due process. On the other hand, the law concerns the BIR and the BOC only
because they have the common function of generating revenue for the national government
through the collection of taxes, customs, duties, fees, and charges. As part of the
instrumentalities under the Department of Finance, they perform one of the most important
functions of government: taxation. Therefore, there exists substantial distinctions and that the
distinctions are germane and related to the purpose of the law.
Prepared by: Antonio Dominic G. Salvador