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191 Garcia v.

Executive Secretary, 211 SCRA 219 (1992) AUTHOR: Dador

PONENTE: Feliciano


Presidents power includes authority to modify the form of duty. This is pursuant to the Tariff Code, which is also pursuant to the
-Short facts. No need-


In 1990, the President issued Executive Order No. 438 which imposed, in addition to any other duties, taxes and charges imposed
by law on all articles imported into the Philippines, an additional duty of five percent (5%) ad valorem.
o This additional duty was imposed across the board on all imported articles, including crude oil and other oil products
imported into the Philippines.
o This additional duty was subsequently increased from five percent (5%) ad valorem to nine percent (9%) ad valorem
by the promulgation of Executive Order No. 443, issued in 1991.
Subsequently, the Dept of Finance requested the Tariff Commission to schedule a public hearing to give interested parties an
opportunity to be heard in support of their positions (pursuant to Sec 401) regarding the imposition of a specific levy on crude oil
and other petroleum products covered by HS Heading No. 27.09, 27.10 and 27.11 of Sec 104 Tariff and Customs Code.
The Tariff Commission submitted the corresponding report to the President.
In the meantime, Executive Order No. 475 was issued by the President, reducing the rate of additional duty on all imported
articles from nine percent (9%) to five percent (5%) ad valorem, except in the cases of crude oil and other oil products which
continued to be subject to the additional duty of nine percent (9%) ad valorem.
Upon completion of the public hearings, the Tariff Commission submitted to the President a "Report on Special Duty on Crude Oil
and Oil Products" dated 16 August 1991, for consideration and appropriate action. Seven (7) days later, the President issued
Executive Order No. 478, which levied (in addition to the aforementioned additional duty of nine percent (9%) ad valorem and
all other existing ad valorem duties) a special duty of P0.95 per liter or P151.05 per barrel of imported crude oil and P1.00 per
liter of imported oil products.
Garcia filed the present petition, questioning the constitutionality of EO 475 and 478. He claims that it violates Sec 24, Article VI
of 1987 Constitution which provides that tariff bills shall original exclusively in the Hrep but Senate my propose or concur with
amendments. He likewise argues that the EOs contravene Sec 401 of the Tariff and Customs Code in that the President is only
allowed to impose additional duties only when necessary to protect local industries. It must not be for revenue generation.

W/N EO 475 and 478 are unconstitutional

(1) No.


The President has the authority to do such and customs duties are imposed regardless if there are any competing local
industries to protect. Sec 28(2) Article VI provides that the President may be authorized to impose tariff rates and other
duties subject to limitation and limits imposed by Congress.


Pres. Aquino was authorized by the Tariff and Customs Code. (TCC)
Sec 104 TCC provides that the rates of duty shall be subject to periodic investigation by the Tariff Commission
and may be revised by the President upon recommendation of the Natl Economic and Developmental
Authority (NEDA)
Sec 401 provides that:
In the interest of national economy, general welfare and/or national security, the President, upon
NEDAs recommendation, is empowered: (1) To increase/reduce/remove existing protective rates of
import duty; (2) To establish import quota or ban of any commodity as necessary; (3) To impose an
additional duty on all imports not exceeding 10% ad valorem.
THEREFORE, Presidents power includes authority to modify the form of duty.
Moreover, there is nothing in the language of either section which suggests that the President is authorized only to protect local
industries and products. Customs duties refer to taxes on the importation and exportation of commodities. Like taxes, they are
imposed both for revenue-raising and regulatory purposes (regulation of social or economic activity). It can be difficult to pin
point which purpose is dominant.

Protection of industries is not the only interest when the TCC mentioned national economy, general welfare and/or national
security. It also includes the protection of consumers against high prices, shoddy quality, inefficient services, etc.

Customs duties may also be imposed to discourage importation of certain items.