#3. In 1966, Congress passed Republic Act No. (RA) 4653 prohibiting the commercial importation of textile articles commonly known as used clothing or rags. In 1992, Congress passed RA 7227 creating the Subic Special Economic Zone (Freeport Zone) as a separate customs territory and providing incentives to investors. 1 Interlink Recyclers Philippines, Inc. (Interlink) entered into a lease agreement with the Subic Bay Metropolitan Authority (SBMA) pursuant to RA 7227. It acquired a certificate of registration to bring in remnant garments, used clothes, and rags to the Freeport Zone for segregation, grading, classification, sorting, baling, arid 100% exportation to other countries. On July 1, 2015, the Bureau of Customs (BOC) Commissioner2 issued Customs Tariff Decision Circular No. 01-2015 (Circular No. 01-2015) to enforce RA 4653. The BOC argued that the circular applies to Interlink even though its business is located within the Freeport Zone. Interlink filed a complaint for declaratory relief3 assailing the validity or applicability of Circular No. 01-2015 within the Freeport Zone. Interlink argues that the BOC has no jurisdiction to restrict the free flow of goods because the Freeport Zone is not part of its customs territory. In its petition, the BOC argues that Interlink's business of importing used clothing is outlawed by RA 4653. RA 7227 did not amend or create an exception to the express prohibition under RA 4653. Thus, the prohibition still applies within the Freeport Zone, even if it is declared as a separate customs territory. The BOC also argues that Circular No. 01-2015 only strictly enforces RA 4653 within the country. Importation takes place when merchandise is brought into the Philippines' customs territory with the intention of unloading it at port.5 The bringing in of prohibited articles into the Freeport Zone is still importation into the country regardless of Freeport Zone's designation as a separate customs territory.

- Your Conclusion/Rulings on the case.