By: Braynel Pural
By: Braynel Pural
By: Braynel Pural
The Congress may, by law, authorize the President to fix within specified limits, and subject to
such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage
and wharfage dues, and other duties or imposts within the framework of the national
development program of the Government.
Facts:
It sought the imposition of provisional remedies but the Tariff Commissioner did not grant such
imposition. DTI then imposed the provisional remedies in violation of the Safeguard Measures
(SMA). This was then alleged by South Cement that DTI cannot impose provisional remedies
since Tariff Commissioner did not approve such. It was contended by South Cement that the
power delegated by Congress to President in case of tariff and customs is absolute.
1.) Whether the power of the President delegated by the Congress in case of tariffs and customs
code is absolute and not subject to limitation.
2.) Whether or Not the DTI secretary could impose a general safeguard measure only upon a
positive final determination by the Tariff Commission?
Ruling:
1.) NO. Section 28(2), Article VI of the 1987 Constitution confirms the delegation of legislative
power, yet ensures that the prerogative of Congress to impose limitations and restrictions on the
executive exercise of this power:
The Congress may, by law, authorize the President to fix within specified limits, and subject to
such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage
and wharfage dues, and other duties or imposts within the framework of the national
development program of the Government.
This delegation of the taxation power by the legislative to the executive is authorized by the
Constitution itself. At the same time, the Constitution also grants the delegating authority
(Congress) the right to impose restrictions and limitations on the taxation power delegated to the
President. The restrictions and limitations imposed by Congress take on the mantle of a
constitutional command, which the executive branch is obliged to observe.
The SMA empowered the DTI Secretary, as alter ego of the President, to impose definitive
general safeguard measures, which basically are tariff imposts of the type spoken of in the
Constitution. However, the law did not grant him full, uninhibited discretion to impose such
measures. The DTI Secretary authority is derived from the SMA; it does not flow from any
inherent executive power. Thus, the limitations imposed by Section 5 are absolute, warranted as
they are by a constitutional fiat.
2.) YES, according to Sec 5 of SMA, procedure requires a positive determination from TC
before DTI can impose safeguard measures. The plain meaning of Section 5 was that only if the
Tariff Commission rendered a positive determination could the DTI secretary impose a safeguard
measure. The TC’s power to make a “positive final determination” must be distinguished from
the power to impose general safeguard measures, a power that is vested in the DTI secretary. The
legislative intent should be given full force and effect, as the executive power to impose
definitive safeguard measures is but a delegated power -- the power of taxation which is, by
nature and by command of the fundamental law, a preserve of the legislature. The SMA
empowered the DTI secretary, as alter ego of the President, to impose definitive safeguard
measures, which were basically tariff imposts of the type spoken of in the Constitution. The law,
however, did not grant the executive official full and uninhibited discretion to impose such
measures.