(1) Intra-Strata Assurance Corporation and PhilHome issued warehousing bonds to the Bureau of Customs (BoC) guaranteeing payment of tariffs and charges for goods imported by Grand Textile that were stored in a bonded warehouse.
(2) Without paying the taxes and duties owed, Grand Textile withdrew the goods from storage for domestic consumption. When Grand Textile, Intra-Strata, and PhilHome failed to pay the amounts owed, the BoC filed a collection suit which it won in the RTC and Court of Appeals.
(3) The Supreme Court ruled that as sureties, Intra-Strata and PhilHome were not entitled to separate notice of Grand Textile's default
(1) Intra-Strata Assurance Corporation and PhilHome issued warehousing bonds to the Bureau of Customs (BoC) guaranteeing payment of tariffs and charges for goods imported by Grand Textile that were stored in a bonded warehouse.
(2) Without paying the taxes and duties owed, Grand Textile withdrew the goods from storage for domestic consumption. When Grand Textile, Intra-Strata, and PhilHome failed to pay the amounts owed, the BoC filed a collection suit which it won in the RTC and Court of Appeals.
(3) The Supreme Court ruled that as sureties, Intra-Strata and PhilHome were not entitled to separate notice of Grand Textile's default
(1) Intra-Strata Assurance Corporation and PhilHome issued warehousing bonds to the Bureau of Customs (BoC) guaranteeing payment of tariffs and charges for goods imported by Grand Textile that were stored in a bonded warehouse.
(2) Without paying the taxes and duties owed, Grand Textile withdrew the goods from storage for domestic consumption. When Grand Textile, Intra-Strata, and PhilHome failed to pay the amounts owed, the BoC filed a collection suit which it won in the RTC and Court of Appeals.
(3) The Supreme Court ruled that as sureties, Intra-Strata and PhilHome were not entitled to separate notice of Grand Textile's default
Intra-Strata Assurance Corporation v. Republic [G.R. No. 156571.
July 09, 2008]
FACTS: Grand textile is a local manufacturing corporation importing various articles su ch as dyestuffs, spare parts for warehouse machinery and filaments. Subsequent t o importation, the articles were transferred to Bureau of Customs (BoC) where it required payment of tariffs and other charges. Inter-Strata and PhilHome issued warehousing bonds in favor of BoC which provided that that the goods shall be w ithdrawn from the bonded warehouse on payment of the legal customs duties, intern al revenue, and other charges to which they shall then be subject. Without paymen t of the taxes, customs duties, and charges due and for purposes of domestic con sumption, Grand Textile withdrew the imported goods from storage. The Bureau of Customs demanded payment of the amounts due from Grand Textile as importer, and from Intra-Strata and PhilHome as sureties. All three failed to pay. The gover nment responded by filing a collection suit against the parties with the RTC of Manila. The RTC ruled in favor of the BoC which was later affirmed by the Court of Appeals. ISSUES: Civil Law (1) Whether or not the withdrawal of the stored goods, wares and merchandise wi thout notice to them as sureties released them from any liability for the duties , taxes, and charges they committed to pay under the bonds they issued. RULINGS: Civil Law (1) No. The surety does not, by reason of the surety agreement, earn the right to intervene in the principal creditor-debtor relationship; its role becomes ali ve only upon the debtor s default, at which time it can be directly held liable by the creditor for payment as a solidary obligor. A surety contract is made prin cipally for the benefit of the creditor-obligee and this is ensured by the solid ary nature of the sureties undertaking. Under these terms, the surety is not enti tled as a rule to a separate notice of default,nor to the benefit of excussion, and may be sued separately or together with the principal debtor.
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