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Garcia v.

Executive Secretary
July 3, 1992

Topic: Legislative Power > Proper Delegation

On November 1990- President issued EO No. 438 : additional duty of 5% ad valorem tax on all articles
imported in the Philippines
EO No. 443 - increased ad valorem tax from 5% to 9%
EO No. 475- Reduced the rate from 9% to 5% except in cases of crude oil and other oil products which
continued to be the subject to the additional duty of 9 % ad valorem tax
EO No. 478- in addition to the 9%, a special duty of P0.95 per litre of imported crude oil and P1.00 per litre
of imported oil products.
The petitioner argues that EOs No, 475 and 478 are violative of Section 24, Article VI of the 1987 Constitution
which reads:

Section 24. All appropriation, revenue or tariff bills, bills authorizing increase of the public debt, bills of local
application, and private bills, shall originate exclusively in the House of Representatives, but the Senate may
propose or concur with amendments.
He also contends that the EOs violate Section 401 of the Tariff and Customs Code which authorises the
President to increase, reduce or remove tariff duties only when necessary to protect local industries or
products but NOT for the purpose of raising additional revenues.
NOTE: Court notes that the recent promulgation of EO No. 507, which lifted the aforementioned ad valorem
taxes, did not render the instant petition moot and academic.
WON the President acted beyond his powers in ordering EO Nos. 475 and 478
NO. Although Section 24 of Article VI states that tariff bills must originate in the HoR, it does not follow that
such power is exclusive in the said body.
Section 28(2), Article VI of the Constitution provides:
The Congress may, by law, authorize the President to x within specied 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 is an explicit provision in the Constitution allowing Congress to authorise the President subject to such
limitations and restrictions as it may impose to x within specic limits tariff rates and other duties or
Relevant Statute: Tariff and Customs Code of the Philippines
Sec. 401 of the Code states that the President, upon recommendation of NEDA, is empowered to increase,
reduce, remove several kinds of tariffs.
The petitioner also contends that the power of the President to impose tariffs is limited in instances wherein
the aim is to protect local industries and products for the sake of the national economy, general welfare and/
or national security. He relied on the words protection and protective.
According to the court, customs duties serve the purposes of both raising revenue and for regulatory
purposes. Customs duties like internal revenue taxes are rarely, if ever, designed to achieve one policy
objective only.
Dispositive: Wherefore, premises considered, the Petition for Certiorari, Prohibition and Mandamus is hereby
DISMISSED for lack of merit.