Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. L-23139 December 17, 1966
MOBIL PHILIPPINES EXPLORATION, INC., plaintiff-appellant,
vs.
CUSTOMS ARRASTRE SERVICE and BUREAU of CUSTOMS, defendants-appellees.
Alejandro Basin, Jr. and Associates for plaintiff-appellant.
Felipe T. Cuison for defendants-appellees.

FACTS:
1. 4 cases of rotary drill parts were shipped from abroad to the Philippines consigned to
Mobil Philippines Exploration, Inc., Manila.
2. The shipment arrived at the Port of Manila and was discharged to the custody of the
Customs Arrastre Service.
a. unit of the Bureau of Customs that handled the arrastre operations.
2. However, the Customs Arrastre Service was only able to deliver three cases of the
shipment to the broker of the plaintiff.
3. The plaintiff filed suit against the Customs Arrastre Service and the Bureau of Customs to
recover the value of the undelivered case.
4. The defendants filed a motion to dismiss the complaint on the ground that they cannot be
sued as government entities.

ISSUE:
W/N the Customs Arrastre Service and Bureau of Customs, as an arrastre service provider, are
immune from suit.

RULING:
YES

RATIO:

1. Even though that the law impliedly authorized The Customs Arrastre Service and Bureau
of Customs to be sued since the nature of function is proprietary and not governmental,
the court ruled that it is a necessary incident of the primary and governmental function of
the Bureau of Customs, so that engaging in the same does not necessarily render said
Bureau liable to suit.
2. "For otherwise, it could not perform its governmental function without necessarily exposing
itself to suit. Sovereign immunity, granted as to the end, should not be denied as to the
necessary means to that end"