pitc vs angeles

8/21/2019 Pitc vs Angeles

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READ CASE DIGEST HERE .

Republic of the Philippines

SUPREME COURT

Manila

SECOND DIVISION

G.R. No. 108461 October 21, 1996

PHILIPPINE INTERNATIONAL TRAING CORPORATION, petitioner,

vs.

HON. PRESIING !UGE "OSIMO ". ANGELES, #RANCH $8, RTC, MA%ATI& REMINGTON

INUSTRIAL SALES CORPORATION& AN 'IRESTONE CERAMIC, INC., respondents.

TORRES, !R., J.: p

he P!I"IPPINE INERN#ION#" R#DIN$ CORPOR#ION %PIC, for brevit&' filed this Petition for

Revie( on Certiorari , see)in* the reversal of the Decision dated +anuar& , -/ of public respondent

!on. 0osi1o 0. #n*eles, Presidin* +ud*e of the Re*ional rial Court of Ma)ati, 2ranch 34, in Civil Case

No. 56-34 entitled Re1in*ton Industrial Sales Corporation, et. al. vs. Philippine Industrial radin*

Corporation.

he said decision upheld the Petition for Prohibition and Mandamus of REMIN$ON IND7SRI#"

S#"ES CORPOR#ION %Re1in*ton, for brevit&' and 8IRESONE CER#MICS, INC. %8irestone, for

brevit&', and, in the process, declared as null and void and unconstitutional, PIC9s #d1inistrative Order No. SOCPEC 46:46:- and its appurtenant re*ulations. he dispositive portion of the decision reads;

and a*ainst the Respondent, as follo(s;

-' En=oinin* the further i1ple1entation b& the respondent of the follo(in* issuances relative to the

applications for i1portation of products fro1 the People9s Republic ofChina, to (it;

a' #d1inistrative Order No. SOCPEC 46:46:- dated #u*ust /:, -4 %#nne> #, #1ended Petition'?

b' Prescribed E>port 7nderta)in* 8or1 %#nne> 2, Id .'?

c' Prescribed I1porter6E>porter #*ree1ent 8or1 for non6e>porter6i1porter %#nne> C, Id .'?

d' Me1orandu1 dated #pril -@, -: relative to a1end1ents of #d1inistrative Order No. SOCPEC 46

:46:- %#nne> D, Id .'?

http://www.uberdigests.info/2010/11/philippine-international-trading-co-vs-angeles/http://www.uberdigests.info/2010/11/philippine-international-trading-co-vs-angeles/http://www.uberdigests.info/2010/11/philippine-international-trading-co-vs-angeles/


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e' Me1orandu1 dated Ma& @, -- relative to Revised Schedule of 8ees for theprocessin* of i1port

applications %#nne>es E, E6-., Ind.'?

f' Rules and Re*ulations relative to liAuidation of unfulfilled 7nderta)in*s and e>pired e>port credits

%#nne> 0, Supple1ental Petition',

the fore*oin* bein* all null and void and unconstitutional? and,

5' Co11andin* respondent to approve forth(ith all the pendin* applications of, and all those that 1a&

hereafter be filed b&, the petitioner and the Intervenor, free fro1 and (ithout the reAuire1ents prescribed

in the above61entioned issuances.

I IS SO ORDERED.

he controvers& sprin*s fro1 the issuance b& the PIC of #d1inistrative Order No. SOCPEC 46:46

:-, 1 under (hich, applications to the PIC for i1portation fro1 the People9s Republic of China %PROC, for

brevit&' 1ust be acco1panied b& a viable and confir1ed E>port Pro*ra1 of Philippine Products to PROC

carried out b& the i1proper hi1self or throu*h a tie6up (ith a le*iti1ate i1porter in an a1ount eAuivalent

to the value of the i1portation fro1 PROC bein* applied for, or, si1pl&, at one is to one ratio.

Pertinent provisions of the Auestioned ad1inistrative order read;

/. COUNTERPART EXPORTS TO PROC

In addition to e>istin* reAuire1ents for the processin* of i1port application for *oods and co11odities

ori*inatin* fro1 PROC, it is declared that;

/.- #ll applications covered b& these rules 1ust be acco1panied b& a viable and confir1ed EBPOR

PRO$R#M of Philippine products to PROC in an a1ount eAuivalent to the value of the i1portation fro1

PROC bein* applied for. Such e>port pro*ra1 1ust be carried out and co1pleted (ithin si> %@' 1onths

fro1 date of approval of the I1port #pplication b& PIC. PIC shall re=ectden& an& application for

i1portation fro1 PROC (ithout the acco1pan&in* e>port pro*ra1 1entioned above.

/.5 he EBPOR PRO$R#M 1a& be carried out b& an& of the follo(in*;

a. 2& the IMPORER hi1self if he has the capabilities and facilities to carr& out the e>port of Philippine

products to PROC in his o(n na1e? or

b. hrou*h a tie6up bet(een the IMPORER and a le*iti1ate e>porter %of Philippine products' (ho is

(illin* to carr& out the e>port co11it1ents of the IMPORER under these rules. he tie6up shall not

1a)e the IMPORER the e>porter of the *oods but shall 1erel& ensure that the i1portation sou*ht to be

approved is 1atched one6to6one %-;-' in value (ith a correspondin* e>port of Philippine products to

PROC. 2


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/./ EBPOR PRO$R#M DOC7MENS (hich are to be sub1itted b& the i1proper to*ether (ith his

I1port #pplication are as follo(s;

a' 8ir1 Contract, Sales Invoice or "etter of Credit.

b' E>port Perfor1ance $uarantee %See #rticle hereof'.

c' IMPORER6EBPORER #$REEMEN for non6e>porter IMPORER %PIC 8or1 No. M6-::@'. his

for1 should be used if IMPORER has tie6up (ith an e>porter for the e>port of Philippine Products to

PROC.

. EXPORT GUARANTEE

o ensure that the e>port co11it1ents of the IMPORER are carried out in accordance (ith these rules,

all IMPORERS concerned are reAuired to sub1it an EBPOR PER8ORM#NCE $7#R#NEE %the

$uarantee' at the ti1e of filin* of the I1port #pplication. he a1ount of the *uarantee shall be as

follo(s;

8or essential co11odities; -3F of the value of the i1ports applied for.

8or other co11odities; 3:F of the value of the i1ports applied for.

.- he *uarantee 1a& be in the for1 of %i' a non6interest bearin* cash deposit? %ii' 2an) hold6out in favor

of PIC %PIC 8or1 No. M6-::G' or %iii' a Do1estic "etter of Credit %(ith all ban) openin* char*es for

account of I1porter' opened in favor of PIC as beneficiar&.

.5 he *uarantee shall be 1ade in favor of PIC and (ill be auto1aticall& forfeited in favor of PIC, full&or partiall&, if the reAuired e>port pro*ra1 is not co1pleted b& the i1porter (ithin si> %@' 1onths fro1 date

of approval of the I1port #pplication.

./ %@' 1onths period above stated, the IMPORER is entitled to a %i' refund of the cash

deposited (ithout interest? %ii' cancellation of the 2an) holdout or %iii' Cancellation of the Do1estic "etter

of Credit upon sho(in* that he has co1pleted the e>port co11it1ent pertainin* to his i1portation and

provided further that the follo(in* docu1ents are sub1itted to PIC;

a' 8inal Sales Invoice

b' 2ill of ladin* or #ir(a& bill

c' 2an) Certificate of In(ard Re1ittance

d' PIC EBPOR #PP"IC#ION 8OR NO. M6-::3

3. MISCELLANEOUS

3.- #ll other reAuire1ents for i1portations of *oods and co11odities fro1 PROC 1ust be co1plied (ith

in addition to the above.


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3.5 PIC shall have the ri*ht to disapprove an& and all i1port applications not in accordance (ith the

rules and re*ulations herein prescribed.

3./ Should the IMPORER or an& of his dul& authoriHed representatives 1a)e an& false state1ents or

fraudulent 1isrepresentations in the I1portE>port #pplication, or falsif&, for*e or si1ulate an& docu1ent

reAuired under these rules and re*ulations, PIC is authoriHed to re=ect all pendin* and futurei1porte>port applications of said IMPORER andor disAualif& said IMPORER fro1 doin* an& business

(ith SOCPEC throu*h PIC.

Desirin* to 1a)e i1portations fro1 PROC, private respondents Re1in*ton and 8irestone, both do1estic

corporations, or*aniHed and e>istin* under Philippine la(s, individuall& applied for authorit& to i1port fro1

PROC (ith the petitioner. he& (ere *ranted such authorit& after satisf&in* the reAuire1ents for

i1porters, and after the& e>ecuted respective underta)in*s to balance their i1portations fro1 PROC (ith

correspondin* e>port of Philippine products to PROC.

Private respondent Re1in*ton (as allo(ed to i1port tools, 1achineries and other si1ilar *oods.

8irestone, on the other hand, i1ported Calcine Vauite, (hich it used for the 1anufacture of fire bric)s,

one of its products.

SubseAuentl&, for failin* to co1pl& (ith their underta)in*s to sub1it e>port credits eAuivalent to the value

of their i1portations, further i1port applications (ere (ithheld b& petitioner PIC fro1 private

respondents, such that the latter (ere both barred fro1 i1portin* *oods fro1 PROC. (

ConseAuentl&, Re1in*ton filed a Petition for Prohibition and Mandamus, (ith pra&er for issuance of

e1porar& Restrainin* Order andor ercisin* an& po(er to process applications of *oods fro1 PROC. $ !earin*on the application for (rit of preli1inar& in=unction ensued.

Private respondent 8irstone (as allo(ed to intervene in the petition on +ul& 5, -5, 6 thus =oinin*

Re1in*ton in the latter9s char*es a*ainst PIC. It specificall& asserts that the Auestioned #d1inistrative

Order is an undue restriction of trade, and hence, unconstitutional.

7pon trial, it (as a*reed that the evidence adduced upon the hearin* on the Preli1inar& In=unction (as

sufficient to co1pletel& ad=udicate the case, thus, the parties dee1ed it proper that the entire case be

sub1itted for decision upon the evidence so far presented.

he court rendered its Decision ) on +anuar& , -5. he court ruled that PIC9s authorit& to process and

approve applications for i1ports fro1 SOCPEC and to issue rules and re*ulations pursuant to "OI

and P.D. No. -:G-, has alread& been repealed b& EO No. -//, issued on 8ebruar& 5G, -4G b& President

#Auino.

he court observed;


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$iven such obliteration andor (ithdra(al of (hat used to be PIC9s re*ulator& authorit& under the

Special provisions e1bodied in "OI fro1 the enu1eration of po(er that it could e>ercise effective

8ebruar& 5G, -4G in virtue of Section -@ %d', EO No. -//, it 1a& no( be successfull& ar*ued that the

PIC can no lon*er e>ercise such specific re*ulator& po(er in Auestion confor1abl& (ith the le*al

precept epresio unius est eclusio alterius.

Moreover, the court continued, none of the rade protocols of -4, -: or --, has e1po(ered the

PIC, e>pressl& or i1pliedl& to for1ulate or pro1ul*ate the assailed #d1inistrative Order. his fact,

1a)es the continued e>ercise b& PIC of the re*ulator& po(ers in Auestion un(orth& of =udicial approval.

Other(ise, it (ould be sanctionin* an undue e>ercise of le*islative po(er vested solel& in the Con*ress

of the Philippines b& Section, -, #rticle VII of the -4G Philippine Constitution.

he lo(er court stated that the sub=ect #d1inistrative Order and other si1ilar issuances b& PIC suffer

fro1 serious constitutional infir1it&, havin* been pro1ul*ated in pursuance of an international a*ree1ent

%the Me1orandu1 of #*ree1ent bet(een the Philippines and PROC', (hich has not been concurred in

b& at least 5/ of all the 1e1bers of the Philippine Senate as reAuired b& #rticle VII, Section 5-, of the

-4G Constitution, and therefore, null and void.

Sec. 5-. No treat& or international a*ree1ent shall be valid and effective unless concurred in b& at least

t(o6thirds of all the Me1bers of the Senate.

8urther1ore, the sub=ect #d1inistrative Order (as issued in restraint of trade, in violation of Sections -

and -, #rticle BII of the -4G Constitution, (hich reads;

Sec. -. he *oals of the national econo1& are a 1ore eAuitable distribution of opportunities, inco1e and

(ealth? a sustained increase in the a1ount of *oods and services produced b& the nation for the benefit

of the people? and, an e>pandin* productivit& as the )e& to raisin* the eAualit& of life for all, especiall& theunderprivile*ed.

Sec. -. he State shall re*ulate or prohibit 1onopolies (hen the public interest so reAuires. No

co1bination in restraint of trade or unfair co1petition shall be allo(ed.

"astl&, the court declared the #d1inistrative Order to be null and void, since the sa1e (as not published,

contrar& to #rticle 5 of the Ne( Civil Code (hich provides, that;

#rt. 5. "a(s shall ta)e effect fifteen %-3' da&s follo(in* the co1pletion of their publication in the Official

$aHette, unless the la( other(ise provides. . . .

Petitioner no( co1es to use on a Petition for Revie( on Certiorari , 8 Auestionin* the court9s decision

particularl& on the propriet& of the lo(er court9s declarations on the validit& of #d1inistrative Order No. 46

:46:-. he Court directed the respondents to file their respective Co11ents.

SubseAuent events transpired, ho(ever, (hich affect to so1e e>tent, the sub1issions of the parties to the

present petition.


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8ollo(in* President 8idel V. Ra1os9 trip to 2ei=in*, People9s Republic of China %PROC', fro1 #pril 53 to

/:, -/, a ne( trade a*ree1ent (as entered into bet(een the Philippines and PROC, encoura*in*

liberaliHation of trade bet(een the t(o countries. In line there(ith, on #pril 5:, -/, the President,

throu*h Chief Presidential "e*al Counsel #ntonio . Carpio, directed the Depart1ent of rade and

Industr& and the PIC to cease i1ple1entin* #d1inistrative Order No. SOCPEC 46:46:-, as a1ended

b& PIC 2oard Resolution Nos. 56:-6:3 and 56:/6:4. 9

In the i1ple1entation of such order, PIC President +ose "uis 7. ulo, +r. issued a corporate

Me1orandu1 10 instructin* that all i1port applications for the PROC filed (ith the PIC as of #pril 5:,

-/ shall no lon*er be covered b& the trade balancin* pro*ra1 outlined in the #d1inistrative Order.

8orth(ith, the PIC allo(ed the private respondents to i1port ane( fro1 the PROC, (ithout bein*

reAuired to co1pl& an&1ore (ith the lifted reAuire1ent of balancin* its i1ports (ith e>ports of Philippine

products to PROC. 11 In its Constancia 12 filed (ith the Court on Nove1ber 55, -/, Re1in*ton e>pressed

its desire to have the present action declared 1oot and acade1ic considerin* the ne( supervenin*

develop1ents. 8or its part, respondent 8irestone 1ade a Manifestation 1( in lieu of its Me1orandu1,

infor1in* the court of the aforesaid develop1ents of the ne( trade pro*ra1 of the Philippines (ith China,

and pra&ed for the court9s earl& resolution of the action.

o support its sub1ission that the present action is no( 1oot and acade1ic, respondent Re1in*ton cites

E>ecutive Order No. 5, 14 issued b& President Ra1os on Ma& -5, -3. he E>ecutive Order states;

NO


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here is no Auestion that fro1 #pril 5:, -/, (hen tradin* balancin* 1easures (ith PROC (ere lifted b&

the President, #d1inistrative Order SOCPEC No. 46:46:- no lon*er has force and effect, and

respondents are thus entitled ane( to appl& for authorit& to i1port fro1 the PROC, (ithout the trade

balancin* reAuire1ents previousl& i1posed on proposed i1porters. Indeed, it appears that since the

liftin* of the trade balancin* 1easures, Re1in*ton had been allo(ed to i1port ane( fro1 PROC.

here re1ains, ho(ever, the 1atter of the outstandin* obli*ations of the respondent for the char*es

relatin* to the :.3F Counter E>port Develop1ent Service in favor of PIC, for the period (hen the

Auestioned #d1inistrative Order re1ained in effect. Is the obli*ation still subsistin*, or are the

respondents freed fro1 itJ

o resolve this issue, (e are tas)ed to consider the constitutionalit& of #d1inistrative Order No. SOCPEC

46:46:-, based on the ar*u1ents set up b& the parties in their Petition and Co11ent. In so doin*, (e

1ust inAuire into the nature of the functions of the PIC, in the li*ht of present realities.

he PIC is a *overn1ent o(ned or controlled corporation created under P.D. No. 535 1) dated #u*ust @,

-G/. P.D. No. -:G-, 18 issued on Ma& , -GG (hich revised the provisions of P.D. 535. he purposes and

po(ers of the said *overn1ental entit& (ere enu1erated under Section 3 and @ thereof. 19

On #u*ust , -G@, the late President 8erdinand Marcos issued "etter of Instruction %"OI' No.

, 20 directin*, inter alia, that trade %e>port or i1port of all co11odities', (hether direct or indirect,

bet(een the Philippines and an& of the Socialist and other Centrall& Planned Econo1& Countries

%SOCPEC', includin* the People9s Republic of China %PROC' shall be underta)en or coursed throu*h the

PIC. 7nder the "OI, PIC (as 1andated to; -' participate in all official trade and econo1ic discussions

bet(een the Philippines and SOCPEC? 5' adopt such 1easures and issue such rules and re*ulations as

1a& be necessar& for the effective dischar*e of its functions under its instructions? and, /' underta)e the

processin* and approval of all applications for e>port to or i1port fro1 the SOCPEC.

Pertinent provisions of the "etter of Instruction are herein reproduced;

LETTER O! INSTRUCTION """

>>> >>> >>>

II. C#ANNELS O! TRA$E

-. he trade, direct or indirect, bet(een the Philippines and an& of the Socialist and other centrall&6

planned econo1& countries shall upon issuance hereof, be underta)en b& or coursed throu*h the

Philippine International radin* Corporation. his shall appl& to the e>port and i1port of all co11odities

of products includin* those specified for e>port or i1port b& e>pressl& authoriHed *overn1ent a*encies.

>>> >>> >>>


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. he Philippine International radin* Corporation shall participate in all official trade and econo1ic

discussions bet(een the Philippines and other centrall&6planned econo1& countries.

>>> >>> >>>

V. SPECIAL PROVISIONS

T%e P%ilippine International Tradin& Corporation s%all adopt suc% measures and issue suc% rules and

re&ulations as ma' (e necessar' )or t%e e))ecti*e disc%ar&e o) its )unctions under t%ese instructions . In

t%is connection+ t%e processin& and appro*al o) applications )or eport to or import )rom t%e Socialist and

ot%er centrall',planned econom' countries s%all+ %ence)ort%+ (e per)ormed (' t%e said Corporation .

%E1phasis ours'

#fter the EDS# Revolution, or 1ore specificall& on 8ebruar& 5G, -4G, then President CoraHon C. #Auino

pro1ul*ated E>ecutive Order %EO' No.

-// 21 reor*aniHin* the Depart1ent of rade and Industr& %DI' e1po(erin* the said depart1ent to be the

pri1ar& coordinative, pro1otive, facilitative and re*ulator& ar1 of the *overn1ent for the countr&9s trade,

industr& and invest1ent activities %Sec. 5, EO -//'. he PIC (as 1ade one of DI9s line a*encies. 22

he E>ecutive Order reads in part;

EXECUTIVE OR$ER NO. -..

>>> >>> >>>

Sec. -@. "ine Corporate #*encies and $overn1ent Entities.

he follo(in* line corporate a*encies and *overn1ent entities defined in Section %c' of this E>ecutive

Order that (ill perfor1 their specific re*ulator& functions, particularl& develop1ental responsibilities and

specialiHed business activities in a 1anner consonant (ith the Depart1ent 1andate, ob=ectives, policies,

plans and pro*ra1s;

>>> >>> >>>

d' Philippine International radin* Corporation. K his corporation, (hich shall be supervised b& the

7ndersecretar& for International rade, shall onl& en*a*e in both e>port and tradin* on ne( or non6

traditional products and 1ar)ets not nor1all& pursued b& the private business sector? provide a (ide

ran*e of e>port oriented au>iliar& services to the private sector? arran*e for or establish co1prehensive

s&ste1 and ph&sical facilities for handlin* the collection, processin*, and distribution of car*oes and other

co11odities? 1onitor or coordinate ris) insurance services for e>istin* institutions? pro1ote and or*aniHe,

(henever (arranted, production enterprises and industrial establish1ents and collaborate or associate in

=oint venture (ith an& person, association, co1pan& or entit&, (hether do1estic or forei*n, in the fields of

production, 1ar)etin*, procure1ent, and other relate businesses? and provide technical advisor&,


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investi*ator&, consultanc& and 1ana*e1ent services (ith respect to an& and all of the functions,

activities, and operations of the corporation.

So1eti1e in #pril, -44, follo(in* the State visit of President #Auino to the PROC, the Philippines and

PROC entered into a Me1orandu1 of 7nderstandin* 2( %MO7' (herein the t(o countries a*reed to 1a)e

=oint efforts (ithin the ne>t five &ears to e>pand bilateral trade to 7S L@:: K 7S L4:: Million b& -5,and to strive for a stead& pro*ress to(ards achievin* a balance bet(een the value of their i1ports and

e>ports durin* the period, a*reein* for the purpose that upon the si*nin* of the Me1orandu1, both sides

shall underta)e to establish the necessar& steps and procedures to be adopted (ithin the fra1e(or) of

the annual 1id&ear revie( 1eetin* under the rade Protocol, in order to 1onitor and ensure the

i1ple1entation of the MO7.

Confor1abl& (ith the MO7, the Philippines and PROC entered into a rade Protocol for the &ears -4,

-: and --, 24 under (hich (as specified the co11odities to be traded bet(een the1. he protocols

affir1ed their a*ree1ent to =ointl& endeavor bet(een the1. he protocols affir1ed their a*ree1ent to

=ointl& endeavor to achieve 1ore or less a balance bet(een the values of their i1ports and e>ports in their

bilateral trade.

It is alle*edl& in line (ith its po(ers under "OI and in )eepin* (ith the MO7 and rade Protocols (ith

PROC that PIC issued its no( assailed #d1inistrative Order No. SOCPEC 46:46:- 2$ on #u*ust /:,

-4 %a1ended in March, -5'.

7ndoubtedl&, President #Auino, in issuin* EO -//, is e1po(ered to 1odif& and a1end the provisions of

"OI , (hich (as issued b& then President Marcos, both issuances bein* e>ecutive directives. #s

observed b& us in Philippine #ssociation of Services E>porters, Inc . *s. Torres, 26

there is no need for le*islative dele*ation of po(er to the President to revo)e the "etter of Instruction b&(a& of an E>ecutive Order. his is not(ithstandin* the fact that the sub=ect "OI --: (as issued b&

President Marcos, (hen he (as e>traordinaril& e1po(ered to e>ercise le*islative po(ers, (hereas EO

3: (as issued b& Pres. #Auino (hen her transitional le*islative po(ers have alread& ceased, since it

(as found that "OI --: (as a 1ere ad1inistrative directive, hence, 1a& be repealed, altered, or

1odified b& EO 3:.


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"i)e(ise, the *eneral repealin* clause in EO -// statin* that all la(s, ordinances, rules, and re*ulations,

or other parts thereof, (hich are inconsistent (ith the E>ecutive Order are hereb& repealed or 1odified

accordin*l&, cannot operate to abolish the *rant of re*ulator& po(ers to the PIC. here can be no repeal

of the said po(ers, absent an& co*enc& of irreconcilable inconsistenc& or repu*nanc& bet(een the

issuances, relatin* to the re*ulator& po(er of the PIC.

he President, in pro1ul*atin* EO -//, had not intended to overhaul the functions of the PIC. he DI

(as established, and (as *iven po(ers and duties includin* those previousl& held b& the PIC as an

independent *overn1ent entit&, under P.D. -:G- and "OI . he PIC (as thereb& attached to the DI

as an i1ple1entin* ar1 of the said depart1ent.

EO -// established the DI as the pri1ar& coordinative, pro1otive, facilitative and re*ulator& ar1 of

*overn1ent for the countr&9s trade, industr& and invest1ent activities, (hich shall act as a catal&st for

intensified private sector activit& in order to accelerate and sustain econo1ic *ro(th. 2) In furtherance of

this 1andate, the DI (as e1po(ered, a1on* others, to plan, i1ple1ent, and coordinate activities of the

*overn1ent related to trade industr& and invest1ents? to for1ulate and ad1inister policies and *uidelines

for the invest1ent priorities plan and the deliver& of invest1ent incentives? to for1ulate countr& and

product e>port strate*ies (hich (ill *uide the e>port pro1otion and develop1ent thrusts of the

*overn1ent. 28 Corollaril&, the Secretar& of rade and Industr& is *iven the po(er to pro1ul*ate rules and

re*ulations necessar& to carr& out the depart1ent9s ob=ectives, policies, plans, pro*ra1s and pro=ects.

he PIC, on the other hand, (as attached as an inte*ral part to the said depart1ent as one of its line

a*encies, 29 and *iven the focal tas) of i1ple1entin* the depart1ent9s pro*ra1s. (0 he absence of the

re*ulator& po(er for1erl& enshrined in the Special Provision of "OI , fro1 Section -@ of EO -//, and

the li1itation of its previousl& (ide ran*e of functions, is noted. his does not 1ean, ho(ever, that PIC

has lost the authorit& to issue the Auestioned #d1inistrative Order. It is our vie( that PIC still holds such

authorit&, and 1a& le*all& e>ercise it, as an i1ple1entin* ar1, and under the supervision of, theDepart1ent of rade and Industr&.

8urther1ore, the lo(er court9s rulin* to the effect that the PIC9s authorit& to process and approve

applications for i1ports fro1 SOCPEC and to issue rules and re*ulations pursuant to "OI and P.D.

-:G- has been repealed b& EO -//, is 1isplaced, and did not consider the i1port behind the issuance of

the later presidential edict.

he President could not have intended to deprive herself of the po(er to re*ulate the flo( of trade

bet(een the Philippines and PROC under the t(o countries9 Me1orandu1 of 7nderstandin*, a po(er

(hich necessaril& flo(s fro1 her office as Chief E>ecutive. In issuin* E>ecutive Order -//, the President

intended 1erel& to reor*aniHe the Depart1ent of rade and Industr& to cope (ith the need of a

strea1lined bureaucrac&. (1

hus, there is not real inconsistenc& bet(een "OI and EO -//. here is, ad1ittedl&, a rearran*in* of

the ad1inistrative functions a1on* the ad1inistrative bodies affective b& the edict, but not an abolition of

e>ecutive po(er. Consistenc& in statutes as in e>ecutive issuances, is of pri1e i1portance, and, in the

absence of a sho(in* to the contrar&, all la(s are presu1ed to be consistent (ith each other.


11/14

possible to do so, it is the dut& of courts, in the construction of statutes, to har1oniHe and reconcile the1,

and to adopt a construction of a statutor& provision (hich har1oniHes and reconciles it (ith other

statutor& provisions. (2 he fact that a later enact1ent 1a& relate to the sa1e sub=ect 1atter as that of an

earlier statute is not of itself sufficient to cause an i1plied repeal of the latter, since the la( 1a& be

cu1ulative or a continuation of the old one. ((

Si1ilarl&, the *rant of Auasi6le*islative po(ers in ad1inistrative bodies is not unconstitutional. hus, as a

result of the *ro(in* co1ple>it& of the 1odern societ&, it has beco1e necessar& to create 1ore and 1ore

ad1inistrative bodies to help in the re*ulation of its ra1ified activities. SpecialiHed in the particular field

assi*ned to the1, the& can deal (ithin the proble1s thereof (ith 1ore e>pertise and dispatch than can be

e>pected fro1 the le*islature or the courts of =ustice. his is the reason for the increasin* vesture of

Auasi6le*islative and Auasi6=udicial po(ers in (hat is no( not unreasonabl& called the fourth depart1ent

of the *overn1ent. (4 Evidentl&, in the e>ercise of such po(ers, the a*enc& concerned 1ust co11onl&

interpret and appl& contracts and deter1ine the ri*hts of private parties under such contracts. One thrust

of the 1ultiplication of ad1inistrative a*encies is that the interpretation of contracts and the deter1ination

of private ri*hts thereunder is no lon*er uniAuel& =udicial function, e>ercisable onl& b& our re*ular courts.

%#ntipolo Realt& Corporation vs. National !ousin* #uthorit&, $.R. No. "63:, #u*ust /-, -4G, -3/

SCR# /'.

ercised. hese included the po(er to issue re*ulations

havin* the force of la(, and the po(er to hear and decide cases K po(ers that had previousl& been

reserved to the le*islatures and the courts. %!ou*htelin*Pierce, "a(1a)in* b& #d1inistrative #*encies,

p. -@@'

he respondents li)e(ise ar*ue that PIC is not e1po(ered to issue the #d1inistrative Order because

no *rant of such po(er (as 1ade under the rade Protocols of -4, -: or --.


12/14

countries have a*reed to trade. he& do not besto( an& re*ulator& po(er, for e>ecutive po(er is vested

in the E>ecutive Depart1ent, ($ and it is for the latter to dele*ate the e>ercise of such po(er a1on* its

desi*nated a*encies.

In su1, the PIC (as le*all& e1po(ered to issue #d1inistrative Orders, as a valid e>ercise of a po(er

ancillar& to le*islation.

his does not i1pl& ho(ever, that the sub=ect #d1inistrative Order is a valid e>ercise of such Auasi6

le*islative po(er. he ori*inal #d1inistrative Order issued on #u*ust /:, -4, under (hich the

respondents filed their applications for i1portation, (as not published in the Official $aHette or in a

ne(spaper of *eneral circulation. he Auestioned #d1inistrative Order, le*all&, until it is published, is

invalid (ithin the conte>t of #rticle 5 of Civil Code, (hich reads;

#rt. 5. "a(s shall ta)e effect fifteen da&s follo(in* the co1pletion of their publication in the Official

$aHette %or in a ne(spaper of *eneral circulation in the Philippines', unless it is other(ise provided. . . .

he fact that the a1end1ents to #d1inistrative Order No. SOCPEC 46:46:- (ere filed (ith, and

published b& the 7P "a( Center in the National #d1inistrative Re*ister, does not cure the defect related

to the effectivit& of the #d1inistrative Order.

his court, in Tanada *s. Tu*era(6 stated, thus;

ed b& the le*islature.

Covered b& this rule are presidential decrees and e>ecutive orders pro1ul*ated b& the President in thee>ercise of le*islative po(ers or, at present, directl& conferred b& the Constitution. #d1inistrative Rules

and Re*ulations 1ust also be published if their purpose is to enforce or i1ple1ent e>istin* la( pursuant

also to a valid dele*ation.

Interpretative re*ulations and those 1erel& internal in nature, that is, re*ulatin* onl& the personnel of the

ad1inistrative a*enc& and not the public, need not be published. Neither is publication reAuired of the so6

called letters of instructions issued b& ad1inistrative superiors concernin* the rules or *uidelines to be

follo(ed b& their subordinates in the perfor1ance of their duties

>>> >>> >>>

istin* la( pursuant to a valid

dele*ation, i .e., P.D. -:G-, in relation to "OI and EO -//.


13/14

hus, even before the trade balancin* 1easures issued b& the petitioner (ere lifted b& President 8idel V.

Ra1os, the sa1e (ere never le*all& effective, and private respondents, therefore, cannot be 1ade

sub=ect to the1, because #d1inistrative Order 46:46:- e1bod&in* the sa1e (as never published, as

1andated b& la(, for its effectivit&. It (as onl& on March /:, -5 (hen the a1end1ents to the said

#d1inistrative Order (ere filed in the 7P "a( Center, and published in the National #d1inistrative

Re*ister as reAuired b& the #d1inistrative Code of -4G.

8inall&, it is the declared Polic& of the $overn1ent to develop and stren*then trade relations (ith the

People9s Republic of China. #s declared b& the President in EO 5 issued on Ma& -5, -3, continued

covera*e of the People9s Republic of China b& "etter of Instructions No. is no lon*er consistent (ith

the countr&9s national interest, as coursin* RP6PROC trade throu*h the PIC as provided for under "etter

of Instructions No. is beco1in* an unnecessar& barrier to trade. ()

Confor1abl& (ith such avo(ed polic&, an& re1nant of the restrained at1osphere of tradin* bet(een the

Philippines and PROC should be done a(a& (ith, so as to allo( econo1ic *ro(th and rene(ed trade

relations (ith our nei*hbors to flourish and 1a& be encoura*ed.

#CCORDIN$", the assailed decision of the lo(er court is hereb& #88IRMED, to the effect that =ud*1ent

is hereb& rendered in favor of the private respondents, sub=ect to the follo(in* MODI8IC#IONS;

-' En=oinin* the petitioner;

a' 8ro1 further char*in* the petitioners the Counter E>port Develop1ent Service fee of :.3F of the total

value of the unliAuidated or unfulfilled 7nderta)in*s of the private respondents?

b' 8ro1 further i1ple1entin* the provisions of #d1inistrative Order No. SOCPEC 46:46:- and its

appurtenant rules? and,

5' ReAuirin* petitioner to approve forth(ith all the pendin* applications of, and all those that 1a&

hereafter be filed b&, the petitioner and the Intervenor, free fro1 and (ithout co1pl&in* (ith the

reAuire1ents prescribed in the above6stated issuances.

SO ORDERED.

01. scra "02

Pu(lication 3 Administrati*e Orders


14/14

PIC issued #d1inistrative Order No. SOCPEC 46:46:- under (hich applications to the PIC for

i1portation fro1 the People9s Republic of China 1ust be acco1panied b& a viable and confir1ed e>port

pro*ra1 of Philippine products. PIC barred Re1in*ton and 8irestone fro1 i1portin* products fro1

China on the *round that the& (ere not able to co1pl& (ith the reAuire1ent of the said ad1inistrative

order. hereafter the& filed a petition for prohibition and 1anda1us a*ainst the said order of PIC in

(hich the trial court upheld and declared to be null and void for bein* unconstitutional. he courtcontends further authorit& to process and approve applications for i1ports SOCPEC and to issue rules

and re*ulations pursuant to "OI - has alread& been repealed b& EO -// issued on 8ebruar& 5G, -4G.

!ence, the PIC filed a certiorari see)in* the reversal of the said decision.

ISSUE* t of #rticle 5 of the Ne( Civil Code. he Court cited anada vs uvera (hich

states that all statues includin* those of local application and private la(s shall be published as condition

for their effectivit&, (hich shall be*in -3 da&s after publication in the Official $aHette or a ne(spaper of

*eneral circulation unless a different effectivit& date is fi>ed b& the le*islature. he #O under

consideration is one of those issuances (hich should be published for its effectivit& since it is punitive in

character.

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pitc vs angeles

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