Southern Cross Cement Corp. v. PHILCEMCOR

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11/27/2016

SouthernCrossCementCorpvsCementManufacturersAssnofthePhils:158540:August3,2005:J.Tinga:EnBanc:Resolution

ENBANC

[G.R.No.158540.August3,2005]

SOUTHERN CROSS CEMENT CORPORATION, petitioner, vs. CEMENT


MANUFACTURERS ASSOCIATION OF THE PHILIPPINES, THE
SECRETARY OF THE DEPARTMENT OF TRADE AND INDUSTRY, THE
SECRETARY OF THE DEPARTMENT OF FINANCE and THE
COMMISSIONEROFTHEBUREAUOFCUSTOMS,respondents.
RESOLUTION
TINGA,J.:

Cementishardlyanexcitingsubjectforlitigation.Still,thepartiesinthiscasehavedonetheir
besttoputupaspiritedadvocacyoftheirrespectivepositions,throwingineverythingincludingthe
proverbial kitchen sink. At present, the burden of passion, if not proof, has shifted to public
respondents Department of Trade and Industry (DTI) and private respondent Philippine Cement
[1]
ManufacturersCorporation(Philcemcor), whonowseekreconsiderationofourDecisiondated8
July2004(Decision),whichgrantedthepetitionofpetitionerSouthernCrossCementCorporation
(SouthernCross).
Thiscase,ofcourse,isultimatelynotjustaboutcement.Forrespondents,itisaboutloveof
countryandthefutureofthedomesticindustryinthefaceofforeigncompetition.ForthisCourt,it
is about elementary statutory construction, constitutional limitations on the executive power to
imposetariffsandsimilarmeasures,andobediencetothelaw.Justasmuchwasassertedinthe
Decision,andthesameholdstruewiththispresentResolution.
[2]
An extensive narration of facts can be found in the Decision. As can well be recalled, the
casecentersontheinterpretationofprovisionsofRepublicActNo.8800,theSafeguardMeasures
Act(SMA),whichwasoneofthelawsenactedbyCongresssoonafterthePhilippinesratifiedthe
General Agreement on Tariff and Trade (GATT) and the World Trade Organization (WTO)
[3]
Agreement. The SMA provides the structure and mechanics for the imposition of emergency
measures, including tariffs, to protect domestic industries and producers from increased imports
[4]
whichinflictorcouldinflictseriousinjuryonthem.
A brief summary as to how the present petition came to be filed by Southern Cross.
Philcemcor,anassociationofatleasteighteen(18)domesticcementmanufacturersfiledwiththe
[5]
DTI a petition seeking the imposition of safeguard measures on gray Portland cement, in
[6]
accordancewiththeSMA.AftertheDTIissuedaprovisionalsafeguardmeasure, theapplication
wasreferredtotheTariffCommissionforaformalinvestigationpursuanttoSection9oftheSMA
and its Implementing Rules and Regulations, in order to determine whether or not to impose a
definitive safeguard measure on imports of gray Portland cement. The Tariff Commission held
public hearings and conducted its own investigation, then on 13 March 2002, issued its Formal
InvestigationReport(Report).TheReportdeterminedasfollows:
Theelementsofseriousinjuryandimminentthreatofseriousinjurynothavingbeenestablished,itishereby
recommendedthatnodefinitivegeneralsafeguardmeasurebeimposedontheimportationofgrayPortland
[7]

cement.

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TheDTIsoughttheopinionoftheSecretaryofJusticewhetheritcouldstillimposeadefinitive
safeguard measure notwithstanding the negative finding of the Tariff Commission. After the
[8]
SecretaryofJusticeopinedthattheDTIcouldnotdosoundertheSMA, theDTISecretarythen
[9]
promulgatedaDecision wherein he expressed the DTIs disagreement with the conclusions of
the Tariff Commission, but at the same time, ultimately denying Philcemcors application for
safeguard measures on the ground that the he was bound to do so in light of the Tariff
[10]
Commissionsnegativefindings.
PhilcemcorchallengedthisDecisionoftheDTISecretarybyfilingwiththeCourtofAppealsa
[11]
PetitionforCertiorari,ProhibitionandMandamus
seekingtosetasidetheDTIDecision,aswell
astheTariffCommissionsReport.ItprayedthattheCourtofAppealsdirecttheDTISecretaryto
disregardtheReportandtorenderjudgmentindependentlyoftheReport.Philcemcorarguedthat
theDTISecretary,vestedasheisunderthelawwiththepowerofreview,isnotboundtoadoptthe
recommendations of theTariff Commission and, that the Report is void, as it is predicated on a
[12]
flawedframework,inconsistentinferencesanderroneousmethodology.
[13]
TheCourtofAppealsTwelfthDivision,inaDecision
pennedbyCourtofAppealsAssociate
[14]
Justice Elvi John Asuncion,
partially granted Philcemcors petition. The appellate court ruled
thatithadjurisdictionoverthepetitionforcertiorarisinceitallegedgraveabuseofdiscretion.While
[15]
itrefusedtoannulthefindingsoftheTariffCommission,
italsoheldthattheDTISecretarywas
not bound by the factual findings of the Tariff Commission since such findings are merely
recommendatoryandtheyfallwithintheambitoftheSecretarysdiscretionaryreview.Itdetermined
that the legislative intent is to grant the DTI Secretary the power to make a final decision on the
[16]
TariffCommissionsrecommendation.
On23June2003,SouthernCrossfiledthepresentpetition,arguingthattheCourtofAppeals
hasnojurisdictionoverPhilcemcorspetition,astheproperremedyisapetitionforreviewwiththe
CTA conformably with the SMA, and that the factual findings of the Tariff Commission on the
existenceornonexistenceofconditionswarrantingtheimpositionofgeneralsafeguardmeasures
arebindingupontheDTISecretary.
DespitethefactthattheCourtofAppealsDecisionhadnotyetbecomefinal,itsbindingforce
wascitedbytheDTISecretarywhenheissuedanewDecisionon25June2003,whereinheruled
thatthatinlightoftheappellatecourtsDecision,therewasnolongeranylegalimpedimenttohis
[17]
decidingPhilcemcorsapplicationfordefinitivesafeguardmeasures.
Hemadeadetermination
that, contrary to the findings of the Tariff Commission, the local cement industry had suffered
[18]
seriousinjuryasaresultoftheimportsurges.
Accordingly,heimposedadefinitivesafeguard
measureontheimportationofgrayPortlandcement,intheformofadefinitivesafeguarddutyin
[19]
theamountofP20.60/40kg.bagforthreeyearsonimportedgrayPortlandCement.
On7July2003,SouthernCrossfiledwiththeCourtaVeryUrgentApplicationforaTemporary
RestrainingOrderand/orAWritofPreliminaryInjunction(TROApplication),seekingtoenjointhe
DTISecretaryfromenforcinghisDecisionof25June2003inviewofthependingpetitionbefore
thisCourt.Philcemcorfiledanopposition,claiming,amongothers,thatitisnotthisCourtbutthe
CTAthathasjurisdictionovertheapplicationunderthelaw.
On1August2003,SouthernCrossfiledwiththeCTAaPetitionforReview,assailingtheDTI
Secretarys 25 June 2003 Decision which imposed the definite safeguard measure. Yet Southern
CrossdidnotpromptlyinformthisCourtaboutthisfiling.ThefirsttimetheCourtwouldlearnabout
thisPetitionwiththeCTAwaswhenSouthernCrossmentionedsuchfactinapleadingdated11
[20]
August2003andfiledthenextdaywiththisCourt.
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PhilcemcorarguedbeforethisCourtthatSouthernCrosshaddeliberatelyandwillfullyresorted
toforumshoppingthattheCTA,beingaspecialcourtoflimitedjurisdiction,couldonlyreviewthe
rulingoftheDTISecretarywhenasafeguardmeasureisimposedandthatthefactualfindingsof
[21]
theTariffCommissionarenotbindingontheDTISecretary.
After giving due course to Southern Crosss Petition, the Court called the case for oral
[22]
argumenton18February2004.
Attheoralargument,attendedbythecounselforPhilcemcor
andSouthernCrossandtheOfficeoftheSolicitorGeneral,theCourtsimplifiedtheissuesinthis
wise: (i) whether the Decision of the DTI Secretary is appealable to the CTA or the Court of
Appeals (ii) assuming that the Court of Appeals has jurisdiction, whether its Decision is in
[23]
accordancewithlawand,whetheraTemporaryRestrainingOrderiswarranted.
After the parties had filed their respective memoranda, the Courts Second Division, to which
[24]
thecasehadbeenassigned,promulgateditsDecisiongrantingSouthernCrosssPetition.
The
Decisionwasunanimous,withoutanyseparateorconcurringopinion.
The Court ruled that the Court of Appeals had no jurisdiction over Philcemcors Petition, the
properremedyunderSection29oftheSMAbeingapetitionforreviewwiththeCTAandthatthe
Court of Appeals erred in ruling that the DTI Secretary was not bound by the negative
determination of the Tariff Commission and could therefore impose the general safeguard
measures, since Section 5 of the SMA precisely required that the Tariff Commission make a
positive final determination before the DTI Secretary could impose these measures. Anent the
argumentthatSouthernCrosshadcommittedforumshopping,theCourtconcludedthattherewas
noevidentmaliciousintenttosubvertproceduralrulessoastomatchthestandardunderSection
5,Rule7oftheRulesofCourtofwillfulanddeliberateforumshopping.Accordingly,theDecision
oftheCourtofAppealsdated5June2003wasdeclarednullandvoid.
The Court likewise found it necessary to nullify the Decision of the DTI Secretary dated 25
June2003,renderedafterthefilingofthispresentPetition.ThisDecisionbytheDTISecretaryhad
citedtheobligatoryforceofthenullandvoidCourtofAppealsDecision,notwithstandingthefact
that the decision of the appellate court was not yet final and executory. Considering that the
decisionoftheCourtofAppealswasanullitytobeginwith,theinescapableconclusionwasthat
thenewdecisionoftheDTISecretary,prescindingasitdidfromtheimprimaturofthedecisionof
theCourtofAppeals,wasanullityaswell.
AftertheDecision was reported in the media, there was a flurry of newspaper articles citing
alleged negative reactions to the ruling by the counsel for Philcemcor, the DTI Secretary, and
[25]
others.
Bothrespondentspromptlyfiledtheirrespectivemotionsforreconsideration.
On21September2004,theCourtEnBancresolved,uponmotionofrespondents,toaccept
[26]
[27]
the petition and resolve the Motions for Reconsideration.
The case was then reheard
on
oral argument on 1 March 2005. During the hearing, the Court elicited from the parties their
arguments on the two central issues as discussed in the assailed Decision, pertaining to the
jurisdictional aspect and to the substantive aspect of whether the DTI Secretary may impose a
generalsafeguardmeasuredespiteanegativedeterminationbytheTariffCommission.TheCourt
[28]
chose not to hear argumentation on the peripheral issue of forumshopping,
although this
questionshallbetackledhereinshortly.Anotherpointofconcernemergedduringoralarguments
ontheexerciseofquasijudicialpowersbytheTariffCommission,andthepartieswererequiredby
the Court to discuss in their respective memoranda whether the Tariff Commission could validly
exercisequasijudicialpowersintheexerciseofitsmandateundertheSMA.
TheCourthaslikewisebeennotifiedthatsubsequenttotherenditionoftheCourtsDecision,
PhilcemcorfiledaPetitionforExtensionoftheSafeguardMeasurewiththeDTI,whichhasbeen
[29]
referred to the Tariff Commission.
In an Urgent Motion dated 21 December 2004, Southern
Cross prayed that Philcemcor, the DTI, the Bureau of Customs, and the Tariff Commission be
directedtoceaseanddesistfromtakinganyandallactionspursuanttoorunderthenullandvoid
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[30]
CADecisionandDTIDecision,includingproceedingstoextendthesafeguardmeasure.
Ina
ManifestationandMotiondated23June2004,theTariffCommissioninformedtheCourtthatsince
no prohibitory injunction or order of such nature had been issued by any court against the Tariff
Commission,theCommissionproceededtocompleteitsinvestigationonthepetitionforextension,
pursuanttoSection9oftheSMA,butoptedtodefertransmittalofitsreporttotheDTISecretary
pendingguidancefromthisCourtontheproprietyofsuchastepconsideringthispendingMotion
forReconsideration.InaResolutiondated5July2005,theCourtdirectedthepartiestomaintain
the status quo effective of even date, and until further orders from this Court. The denial of the
pending motions for reconsideration will obviously render the pending petition for extension
academic.
I.JurisdictionoftheCourtofTaxAppeals
UnderSection29oftheSMA
ThefirstcoreissueresolvedintheassailedDecisionwaswhethertheCourtofAppealshad
jurisdictionoverthespecialcivilactionforcertiorarifiledbyPhilcemcorassailingthe5April2002
Decision of the DTI Secretary. The general jurisdiction of the Court of Appeals over special civil
actionsforcertiorariisbeyonddoubt.TheConstitutionitselfassuresthatjudicialreviewavailsto
determinewhetherornottherehasbeenagraveabuseofdiscretionamountingtolackorexcess
ofjurisdictiononthepartofanybranchorinstrumentalityoftheGovernment.Atthesametime,the
special civil action of certiorari is available only when there is no plain, speedy and adequate
[31]
remedy in the ordinary course of law.
Philcemcors recourse of special civil action before the
Court of Appeals to challenge the Decision of the DTI Secretary not to impose the general
safeguard measures is not based on the SMA, but on the general rule on certiorari. Thus, the
Courtproceededtoinquirewhetherindeedtherewasnootherplain,speedyandadequateremedy
intheordinarycourseoflawthatwouldwarranttheallowanceofPhilcemcorsspecialcivilaction.
TheanswerhingedontheproperinterpretationofSection29oftheSMA,whichreads:
Section29.JudicialReview.AnyinterestedpartywhoisadverselyaffectedbytherulingoftheSecretaryin
connectionwiththeimpositionofasafeguardmeasuremayfilewiththeCTA,apetitionforreviewof
suchrulingwithinthirty(30)daysfromreceiptthereof.Provided,however,thatthefilingofsuchpetitionfor
reviewshallnotinanywaystop,suspendorotherwisetolltheimpositionorcollectionoftheappropriate
tariffdutiesortheadoptionofotherappropriatesafeguardmeasures,asthecasemaybe.
Thepetitionforreviewshallcomplywiththesamerequirementsandshallfollowthesamerulesof
procedureandshallbesubjecttothesamedispositionasinappealsinconnectionwithadverserulingsontax
[32]

matterstotheCourtofAppeals.

(Emphasissupplied)

The matter is crucial for if the CTA properly had jurisdiction over the petition challenging the
DTISecretarysrulingnottoimposeasafeguardmeasure,thenthespecialcivilactionofcertiorari
resortedtoinsteadbyPhilcemcorwouldnotavail,owingtotheexistenceofaplain,speedyand
[33]
adequateremedyintheordinarycourseoflaw.
TheCourtofAppeals,inassertingthatithad
jurisdiction, merely cited the general rule on certiorari jurisdiction without bothering to refer to, or
possiblyevenstudy,theimportofSection29.Incontrast,thisCourtdulyconsideredthemeaning
and ramifications of Section 29, concluding that it provided for a plain, speedy and adequate
remedythatPhilcemcorcouldhaveresortedtoinsteadoffilingthespecialcivilactionbeforethe
CourtofAppeals.
PhilcemcorstillholdsontoitshypothesisthatthepetitionforreviewallowedunderSection29
liesonlyiftheDTISecretarysrulingimposesasafeguardmeasure.If,ontheotherhand,theDTI
Secretarysrulingisnottoimposeasafeguardmeasure,judicialreviewunderSection29couldnot
be resorted to since the provision refers to rulings in connection with the imposition of the
safeguard measure, as opposed to the nonimposition. Since the Decision dated 5 April 2002
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resolved against imposing a safeguard measure, Philcemcor claims that the proper remedial
recourseisapetitionforcertiorariwiththeCourtofAppeals.
Interestingly,RepublicActNo.9282,promulgatedon30March2004,expresslyvestsuntothe
CTAjurisdictionover[d]ecisionsoftheSecretaryofTradeandIndustry,incaseofnonagricultural
product, commodity or article . . . involving . . . safeguard measures under Republic Act No.
[34]
8800,whereeitherpartymayappealthedecisiontoimposeornottoimposesaidduties.
It is clear that any future attempts to advance the literalist position of the respondents would
consequentlyfail.However,sinceRepublicActNo.9282hasnoretroactiveeffect,thisCourthad
todecidewhetherSection29vestsjurisdictionontheCTAoverrulingsoftheDTISecretarynotto
impose a safeguard measure. And the Court, in its assailed Decision, ruled that the CTA is
endowedwithsuchjurisdiction.
BothrespondentsreiteratetheirfundamentalistreadingthatSection29authorizesthepetition
forreviewbeforetheCTAonlywhentheDTISecretarydecidestoimposeasafeguardmeasure,
butnotwhenhedecidesnotto.Indoingso,theyfailtoaddresswhattheCourtearlierpointedout
would be the absurd consequences if their interpretation is followed to its logical end. But in
affirming,astheCourtnowdoes,itspreviousholdingthattheCTAhasjurisdictionoverpetitions
forreviewquestioningthenonimpositionofsafeguardmeasuresbytheDTISecretary,theCourt
relies on the plain reading that Section 29 explicitly vests jurisdiction over such petitions on the
CTA.
UnderSection29,therearethreerequisitestoenabletheCTAtoacquirejurisdictionoverthe
petition for review contemplated therein: (i) there must be a ruling by the DTI Secretary (ii) the
petition must be filed by an interested party adversely affected by the ruling and (iii) such ruling
mustbeinconnectionwiththeimpositionofasafeguardmeasure.Obviously,therearedifferences
betweenarulingfortheimpositionofasafeguardmeasure,andoneissuedinconnectionwiththe
impositionofasafeguardmeasure.Thefirstadvertstoasingulartypeofruling,namelyonethat
imposes a safeguard measure. The second does not contemplate only one kind of ruling, but a
myriadofrulingsissuedinconnectionwiththeimpositionofasafeguardmeasure.
Respondents argue that the Court has given an expansive interpretation to Section 29,
contrarytotheestablishedrulerequiringstrictconstructionagainsttheexistenceofjurisdictionin
[35]
specializedcourts.
ButitistheexpressprovisionofSection29,andnotthisCourt,that
mandates CTA jurisdiction to be broad enough to encompass more than just a ruling
imposingthesafeguardmeasure.
Thekeyphraseremainsinconnectionwith.Ithasconnotationsthatareobviouseventothe
layman. A ruling issued in connection with the imposition of a safeguard measure would be one
thatbearssomerelationtotheimpositionofasafeguardmeasure.Obviously,arulingimposinga
safeguard measure is covered by the phrase in connection with, but such ruling is by no means
exclusive. Rulings which modify, suspend or terminate a safeguard measure are necessarily in
connectionwiththeimpositionofasafeguardmeasure.Sodoesarulingallowingforaprovisional
safeguard measure. So too, a ruling by the DTI Secretary refusing to refer the application for a
safeguardmeasuretotheTariffCommission.Itisclearthatthereisanentiresubsetofrulingsthat
theDTISecretarymayissueinconnectionwiththeimpositionofasafeguardmeasure,including
[36]
thosethatareprovisional,interlocutory,ordispositiveincharacter.
Bythesametoken,aruling
nottoimposeasafeguardmeasureisalsoissuedinconnectionwiththeimpositionofasafeguard
measure.
In arriving at the proper interpretation of in connection with, the Court referred to the U.S.
[37]
SupremeCourtcasesofShawv.DeltaAirLines,Inc.
andNewYorkStateBlueCrossPlansv.
[38]
TravelersIns.
Both cases considered the interpretation of the phrase relates to as used in a
federalstatute,theEmployeeRetirementSecurityActof1974.Respondentscriticizethecitations
on the premise that the cases are not binding in our jurisdiction and do not involve safeguard
measures.Thecriticismsareofftangentconsideringthatourrulingdidnotcallfortheapplication
oftheEmployeeRetirementSecurityActof1974inthePhilippinemilieu.TheAmericancasesare
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notrelieduponasprecedents,butasguidesofinterpretation.Certainly,ifthereareapplicablelocal
precedents pertaining to the interpretation of the phrase in connection with, then these certainly
would have some binding force. But none avail, and neither do the respondents demonstrate a
countervailingholdinginPhilippinejurisprudence.
Yet we should consider the claim that an expansive interpretation was favored in Shaw
becausethelawinquestionwasanemployeesbenefitlawthathadtobegivenaninterpretation
[39]
favorable to its intended beneficiaries.
In the next breath, Philcemcor notes that the U.S.
SupremeCourtitselfwasalarmedbytheexpansiveinterpretationinShawandthusinBlueCross,
the Shaw ruling was reversed and a more restrictive interpretation was applied based on
[40]
congressionalintent.
RespondentswouldliketomakeitappearthattheCourtactedrashlyinapplyingadiscarded
precedent in Shaw, a nonbinding foreign precedent nonetheless. But the Court did make the
followingobservationinitsDecisionpertainingtoBlueCross:
Now,letusdeterminethemaximumscopeandreachofthephraseinconnectionwithasusedinSection29
oftheSMA.Aliteralistreadingorlinguisticsurveymaynotsatisfy.EventheU.S.SupremeCourtinNew
[41]

YorkStateBlueCrossPlansv.TravelersIns. concededthatthephrasesrelatetoorinconnectionwith
maybeextendedtothefartheststretchofindeterminacyfor,universally,relationsorconnectionsareinfinite
[42]

andstopnowhere. Thus,inthecasetheU.S.HighCourt,examiningthesamephraseofthesame
provisionoflawinvolvedinShaw,resortedtolookingatthestatuteanditsobjectivesasthealternative
toanuncriticalliteralism.AsimilarinquiryintotheotherprovisionsoftheSMAisinorderto
[43]

determinethescopeofreviewaccordedthereintotheCTA.

InthenextfourparagraphsoftheDecision,encompassingfourpages,theCourtproceededto
inquireintotheSMAanditsobjectivesasameanstodeterminethescopeofrulingstobedeemed
asinconnectionwiththeimpositionofasafeguardmeasure.Certainly,thisCourtdidnotresortto
thebroadestinterpretationpossibleofthephraseinconnectionwith,butinsteadsoughttobringit
intothecontextofthescopeandobjectivesoftheSMA.TheultimateconclusionoftheCourtwas
thatthephraseincludesallrulingsoftheDTISecretarywhicharisefromthetimeanapplicationor
[44]
motuproprioinitiationfortheimpositionofasafeguardmeasureistaken.
Thisconclusionwas
derived from the observation that the imposition of a general safeguard measure is a process,
initiatedmotuproprioorthroughapplication,whichundergoesseveralstagesuponwhichtheDTI
Secretaryisobligedormaybecalledupontoissuearuling.
Itshouldbeemphasizedagainthatbyutilizingthephraseinconnectionwith,itistheSMAthat
expressly vests jurisdiction on the CTA over petitions questioning the nonimposition by the DTI
Secretaryofsafeguardmeasures.TheCourtissimplyasserting,asitshould,theclearintentofthe
legislature in enacting the SMA. Without in connection with or a synonymous phrase, the Court
would be compelled to favor the respondents position that only rulings imposing safeguard
measuresmaybeelevatedonappealtotheCTA.Butconsideringthatthestatutedoesmakeuse
ofthephrase,thereislittlesenseindelvingintoalternatescenarios.
Respondents fail to convincingly address the absurd consequences pointed out by the
Decision had their proposed interpretation been adopted. Indeed, suffocated beneath the
respondentslegalistictinselistheelementalquestionwhatsenseisthereinvestingjurisdictionon
theCTAoveradecisiontoimposeasafeguardmeasure,butnotononechoosingnottoimpose.
Ofcourse,itisnotfortheCourttoinquireintothewisdomoflegislativeacts,hencetherulethat
jurisdiction must be expressly vested and not presumed. Yet ultimately, respondents muddle the
issuebymakingitappearthattheDecisionhasuniquelyexpandedthejurisdictionalrules.Forthe
respondents, the proper statutory interpretation of the crucial phrase in connection with is to
pretendthatthephrasedidnotexistatallinthestatute.TheCourt,intakingtheefforttoexamine
themeaningandextentofthephrase,ismerelygivingbreathtothelegislativewill.

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The Court likewise stated that the respondents position calls for split jurisdiction, which is
judiciallyabhorred.Inrebuttal,thepublicrespondentsciteSections2313and2402oftheTariffand
CustomsCode(TCC),whichallegedlyprovideforasplittingofjurisdictionoftheCTA.Accordingto
publicrespondents,underSection2313oftheTCC,adecisionoftheCommissionerofCustoms
affirmingadecisionoftheCollectorofCustomsadversetothegovernmentiselevatedforreview
to the Secretary of Finance. However, under Section 2402 of the TCC, a ruling of the
CommissioneroftheBureauofCustomsagainstataxpayermustbeappealedtotheCourtofTax
Appeals,andnottotheSecretaryofFinance.
Strictlyspeaking,thereviewbytheSecretaryofFinanceofthedecisionoftheCommissioner
of Customs is not judicial review, since the Secretary of Finance holds an executive and not a
judicial office. The contrast is apparent with the situation in this case, wherein the interpretation
favored by the respondents calls for the exercise of judicial review by two different courts over
essentially the same questionwhether the DTI Secretary should impose general safeguard
measures. Moreover, as petitioner points out, the executive department cannot appeal against
itself.TheCollectorofCustoms,theCommissionerofCustomsandtheSecretaryofFinanceare
all part of the executive branch. If the Collector of Customs rules against the government, the
executivecannotverywellbringsuitincourtsagainstitself.Ontheotherhand,ifaprivateperson
isaggrievedbythedecisionoftheCollectorofCustoms,hecanhaveproperrecoursebeforethe
courts,whichnowwouldbecalledupontoexercisejudicialreviewovertheactionoftheexecutive
branch.
More fundamentally, the situation involving split review of the decision of the Collector of
CustomsundertheTCCisnotapropostothecaseatbar.TheTCCinthatinstanceisquiteexplicit
onthedivergentreviewingbodyorofficialdependingonwhichpartyprevailedattheCollectorof
Customs level. On the other hand, there is no such explicit expression of bifurcated appeals in
Section29oftheSMA.
[45]
Public respondents likewise cite Fabian v. Ombudsman
as another instance wherein the
Courtpurportedlyallowedsplitjurisdiction.ItisarguedthattheCourt,inrulingthatitwastheCourt
of Appeals which possessed appellate authority to review decisions of the Ombudsman in
administrativecaseswhiletheCourtretainingappellatejurisdictionofdecisionsoftheOmbudsman
in nonadministrative cases, effectively sanctioned split jurisdiction between the Court and the
[46]
CourtofAppeals.
Nonetheless,thisargumentissuccessfullyundercutbySouthernCross,whichpointsoutthe
essentialdifferencesinthepowerexercisedbytheOmbudsmaninadministrativecasesandnon
administrativecasesrelatingtocriminalcomplaints.Intheformer,theOmbudsmanmayimposean
administrativepenalty,whileinactinguponacriminalcomplaintwhattheOmbudsmanundertakes
isapreliminaryinvestigation.Clearly,thecapacityinwhichtheOmbudsmantakesonindeciding
anadministrativecomplaintiswhollydifferentfromthatinconductingapreliminaryinvestigation.In
contrast, in ruling upon a safeguard measure, the DTI Secretary acts in one and the same role.
Thevariancebetweenanordergrantingordenyinganapplicationforasafeguardmeasureispolar
though emanating from the same equator, and does not arise from the distinct character of the
putativeactionsinvolved.
PhilcemcorimputesintelligentdesignbehindtheallegedintentofCongresstolimitCTAreview
only to impositions of the general safeguard measures. It claims that there is a necessary tax
implicationincaseofanimpositionofatariffwheretheCTAsexpertiseisnecessary,butthereis
nosuchtaximplication,hencenoneedfortheassumptionofjurisdictionbyaspecializedagency,
when the ruling rejects the imposition of a safeguard measure. But of course, whether the ruling
under review calls for the imposition or nonimposition of the safeguard measure, the common
questionforresolutionstilliswhetherornotthetariffshouldbeimposedanissuedefinitelyfraught
withataxdimension.Thedeterminationofthequestionwillcalluponthesamekindofexpertise
thataspecializedbodyastheCTApresumablypossesses.
In response to the Courts observation that the setup proposed by respondents was novel,
unusual,cumbersomeandunwise,publicrespondentsinvokethemaximthatcourtsshouldnotbe
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[47]
concernedwiththewisdomandefficacyoflegislation.
Butthisprescindsfromthebogusclaim
thattheCTAmaynotexercisejudicialreviewoveradecisionnottoimposeasafeguardmeasure,
a prohibition that finds no statutory support. It is likewise settled in statutory construction that an
interpretation that would cause inconvenience and absurdity is not favored. Respondents do not
address the particular illogic that the Court pointed out would ensue if their position on judicial
reviewwereadopted.Accordingtotherespondents,whilearulingbytheDTISecretaryimposinga
safeguardmeasuremaybeelevatedonreviewtotheCTAandassailedonthegroundoferrorsin
factandinlaw,arulingdenyingtheimpositionofsafeguardmeasuresmaybeassailedonlyonthe
groundthattheDTISecretarycommittedgraveabuseofdiscretion.AsstressedintheDecision,
[c]ertiorariisaremedynarrowinitsscopeandinflexibleinitscharacter.Itisnotageneralutility
[48]
toolinthelegalworkshop.
ItisincorrecttosaythattheDecisionbarsanyeffectiveremedyshouldtheTariffCommission
actorconcludeerroneouslyinmakingitsdeterminationwhetherthefactualconditionsexistwhich
necessitate the imposition of the general safeguard measure. If the Tariff Commission makes a
negativefinaldetermination,theDTISecretary,boundasheisbythisnegativedetermination,has
torenderadecisiondenyingtheapplicationforsafeguardmeasurescitingtheTariffCommissions
findingsasbasis.Necessarilythen,suchnegativedeterminationoftheTariffCommissionbeingan
integralpartoftheDTISecretarysrulingwouldbeopenforreviewbeforetheCTA,whichagainis
especially qualified by reason of its expertise to examine the findings of the Tariff Commission.
Moreover, considering that the Tariff Commission is an instrumentality of the government, its
actions(asopposedtothoseundertakenbytheDTISecretaryundertheSMA)arenotbeyondthe
paleofcertiorarijurisdiction.UnfortunatelyforPhilcemcor,ithingeditscauseontheclaimthatthe
DTISecretarysactionsmaybeannulledoncertiorari,notwithstandingtheexplicitgrantofjudicial
reviewoverthatcabinetmembersactionsundertheSMAtotheCTA.
Finallyonthispoint,PhilcemcorarguesthatassumingthisCourtsinterpretationofSection29
iscorrect,suchrulingshouldnotbegivenretroactiveeffect,otherwise,agrossviolationoftheright
todueprocesswouldbehad.ThiserroneouslypresumesthatitwasthisCourt,andnotCongress,
whichvestedjurisdictionontheCTAoverrulingsofnonimpositionrenderedbytheDTISecretary.
We have repeatedly stressed that Section 29 expressly confers CTA jurisdiction over rulings in
connection with the imposition of the safeguard measure, and the reassertion of this point in the
Decisionwasamatterofemphasis,notofcontrivance.Thedueprocessprotectiondoesnotshield
thosewhoremainpurposelyblindtotheexpressrulesthatensurethesportingplayofprocedural
law.
Besides, respondents claim would also apply every time this Court is compelled to settle a
novel question of law, or to reverse precedent. In such cases, there would always be litigants
whosecausesofactionmightbevitiatedbytheapplicationofnewlyformulatedjudicialdoctrines.
Adopting their claim would unwisely force this Court to treat its dispositions in unprecedented,
sometimes landmark decisions not as resolutions to the live cases or controversies, but as legal
doctrineapplicableonlytofuturelitigations.
II.PositiveFinalDetermination
BytheTariffCommissionan
IndispensableRequisitetothe
ImpositionofGeneralSafeguardMeasures
ThesecondcorerulingintheDecisionwasthatcontrarytotheholdingoftheCourtofAppeals,
theDTISecretarywasbarredfromimposingageneralsafeguardmeasureabsentapositivefinal
determinationrenderedbytheTariffCommission.Thefundamentalpremiserootedinthisrulingis
based on the acknowledgment that the required positive final determination of the Tariff
Commissionexistsasaproperlyenactedconstitutionallimitationimposedonthedelegationofthe
legislativepowertoimposetariffsandimpoststothePresidentunderSection28(2),ArticleVIof
theConstitution.
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CongressionalLimitationsPursuant
ToConstitutionalAuthorityonthe
DelegatedPowertoImpose
SafeguardMeasures
The safeguard measures imposable under the SMA generally involve duties on imported
products, tariff rate quotas, or quantitative restrictions on the importation of a product into the
country. Concerning as they do the foreign importation of products into the Philippines, these
safeguard measures fall within the ambit of Section 28(2), Article VI of the Constitution, which
states:
TheCongressmay,bylaw,authorizethePresidenttofixwithinspecifiedlimits,andsubjecttosuch
limitationsandrestrictionsasitmayimpose,tariffrates,importandexportquotas,tonnageandwharfage
dues,andotherdutiesorimpostswithintheframeworkofthenationaldevelopmentprogramofthe
[49]

Government.

The Court acknowledges the basic postulates ingrained in the provision, and, hence,
governinginthiscase.Theyare:
(1) It is Congress which authorizes the President to impose tariff rates, import and
exportquotas,tonnageandwharfagedues,andotherdutiesorimposts.Thus,theauthority
cannotcomefromtheFinanceDepartment,theNationalEconomicDevelopmentAuthority,orthe
WorldTradeOrganization,nomatterhowinsistentorpersistentthesebodiesmaybe.
(2) The authorization granted to the President must be embodied in a law. Hence, the
justification cannot be supplied simply by inherent executive powers. It cannot arise from
administrative or executive orders promulgated by the executive branch or from the wisdom or
whimofthePresident.
(3)TheauthorizationtothePresidentcanbeexercisedonlywithinthespecifiedlimits
set in the law and is further subject to limitations and restrictions which Congress may
impose. Consequently, if Congress specifies that the tariff rates should not exceed a given
amount,thePresidentcannotimposeatariffratethatexceedssuchamount.IfCongressstipulates
thatnodutiesmaybeimposedontheimportationofcorn,thePresidentcannotimposedutieson
corn,nomatterhowactivelythelocalcornproducerslobbythePresident.Eventhemostpicayune
oflimitsorrestrictionsimposedbyCongressmustbeobservedbythePresident.
There is one fundamental principle that animates these constitutional postulates. These
impositionsunderSection28(2),ArticleVIfallwithintherealmofthepoweroftaxation,a
powerwhichiswithinthesoleprovinceofthelegislatureundertheConstitution.
WithoutSection28(2),ArticleVI,theexecutivebranchhasnoauthoritytoimposetariffs
andothersimilartaxleviesinvolvingtheimportationofforeigngoods.AssumingthatSection
28(2) Article VI did not exist, the enactment of the SMA by Congress would be voided on the
ground that it would constitute an undue delegation of the legislative power to tax. The
constitutional provision shields such delegation from constitutional infirmity, and should be
recognizedasanexceptionalgrantoflegislativepowertothePresident,ratherthantheaffirmation
ofaninherentexecutivepower.
Thisbeingthecase,thequalifiersmandatedbytheConstitutiononthispresidentialauthority
attainprimordialconsideration.First,theremustbealaw,suchastheSMA.Second,theremustbe
specified limits, a detail which would be filled in by the law. And further, Congress is further
empoweredtoimposelimitationsandrestrictionsonthispresidentialauthority.Onthislastpower,
theprovisiondoesnotprovideforspecifiedconditions,suchasthatthelimitationsandrestrictions
must conform to prior statutes, internationally accepted practices, accepted jurisprudence, or the
consideredopinionofmembersoftheexecutivebranch.
TheCourtrecognizesthattheauthoritydelegatedtothePresidentunderSection28(2),Article
VI may be exercised, in accordance with legislative sanction, by the alteregos of the President,
such as department secretaries. Indeed, for purposes of the Presidents exercise of power to
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imposetariffsunderArticleVI,Section28(2),itisgenerallytheSecretaryofFinancewhoactsas
alter ego of the President. The SMA provides an exceptional instance wherein it is the DTI or
AgricultureSecretarywhoistaskedbyCongress,intheircapacitiesasalteregosofthePresident,
toimposesuchmeasures.Certainly,theDTISecretaryhasnoinherentpower,evenasalteregoof
thePresident,tolevytariffsandimports.
Concurrently,thetaskingoftheTariffCommissionundertheSMAshouldbelikewiseconstrued
within the same context as part and parcel of the legislative delegation of its inherent power to
impose tariffs and imposts to the executive branch, subject to limitations and restrictions. In that
regard,boththeTariffCommissionandtheDTISecretarymayberegardedasagentsofCongress
withintheirlimitedrespectivespheres,asordainedintheSMA,intheimplementationofthesaid
law which significantly draws its strength from the plenary legislative power of taxation. Indeed,
eventhePresidentmaybeconsideredasanagentofCongressforthepurposeofimposing
safeguardmeasures.ItisCongress,notthePresident,whichpossessesinherentpowersto
imposetariffsandimposts.Withoutlegislativeauthorizationthroughstatute,thePresident
has no power, authority or right to impose such safeguard measures because taxation is
inherentlylegislative,notexecutive.
WhenCongresstasksthePresidentorhis/heralteregostoimposesafeguardmeasures
underthedelineatedconditions,thePresidentorthealteregosmaybeproperlydeemedas
agents of Congress to perform an act that inherently belongs as a matter of right to the
legislature. It is basic agency law that the agent may not act beyond the specifically delegated
powersordisregardtherestrictionsimposedbytheprincipal.Inshort,Congressmayestablishthe
procedural framework under which such safeguard measures may be imposed, and assign the
variousofficesinthegovernmentbureaucracyrespectivetaskspursuanttotheimpositionofsuch
measures, the task assignment including the factual determination of whether the necessary
conditions exists to warrant such impositions. Under the SMA, Congress assigned the DTI
[50]
Secretary and the Tariff Commission their respective functions
in the legislatures scheme of
things.
There is only one viable ground for challenging the legality of the limitations and restrictions
imposed by Congress under Section 28(2)Article VI, and that is such limitations and restrictions
are themselves violative of the Constitution. Thus, no matter how distasteful or noxious these
limitationsandrestrictions may seem, the Court has no choice but to upholdtheirvalidityunless
theirconstitutionalinfirmitycanbedemonstrated.
What are these limitations and restrictions that are material to the present case? The entire
SMAprovidesforalimitedframeworkunderwhichthePresident,throughtheDTIandAgriculture
Secretaries, may impose safeguard measures in the form of tariffs and similar imposts. The
limitationmostrelevanttothiscaseiscontainedinSection5oftheSMA,captionedConditionsfor
theApplicationofGeneralSafeguardMeasures,andstating:
TheSecretaryshallapplyageneralsafeguardmeasureuponapositivefinaldeterminationofthe
[Tariff]Commissionthataproductisbeingimportedintothecountryinincreasedquantities,whether
absoluteorrelativetothedomesticproduction,astobeasubstantialcauseofseriousinjuryorthreatthereof
tothedomesticindustryhowever,inthecaseofnonagriculturalproducts,theSecretaryshallfirstestablish
[51]

thattheapplicationofsuchsafeguardmeasureswillbeinthepublicinterest.
PositiveFinalDetermination
ByTariffCommissionPlainly
RequiredbySection5ofSMA

There is no question that Section 5 of the SMA operates as a limitation validly imposed by
[52]
Congressonthepresidential
authorityundertheSMAtoimposetariffsandimposts.Thatthe
positive final determination operates as an indispensable requisite to the imposition of the
safeguardmeasure,andthatitistheTariffCommissionwhichmakessuchdetermination,arelegal
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propositions plainly expressed in Section 5 for the easy comprehension for everyone but
respondents.
Philcemcor attributes this Courts conclusion on the indispensability of the positive final
determinationtoflawedsyllogisminthatwereadthepropositionifAthenBasifitstatedifA,and
[53]
only A, then B.
Translated in practical terms, our conclusion, according to Philcemcor, would
have only been justified had Section 5 read shall apply a general safeguard measure upon, and
onlyupon,apositivefinaldeterminationoftheTariffCommission.
Statutes are not designed for the easy comprehension of the fiveyear old child. Certainly,
general propositions laid down in statutes need not be expressly qualified by clauses denoting
exclusivity in order that they gain efficacy. Indeed, applying this argument, the President would,
under the Constitution, be authorized to declare martial law despite the absence of the invasion,
rebellionorpublicsafetyrequirementjustbecausethefirstparagraphofSection18,ArticleVIIfails
[54]
tostatethemagicwordonly.
ButletusforthenoncepursuePhilcemcorslogicfurther.ItclaimsthatsinceSection5does
notallegedlylimitthecircumstancesuponwhichtheDTISecretarymayimposegeneralsafeguard
measures,itisaworthypursuittodeterminewhethertheentirecontextoftheSMA,asdiscerned
byalltheotherfamiliarindicatorsoflegislativeintentsuppliedbynormsofstatutoryinterpretation,
wouldjustifysafeguardmeasuresabsentapositivefinaldeterminationbytheTariffCommission.
The first line of attack employed is on Section 5 itself, it allegedly not being as clear as it
sounds. It is advanced that Section 5 does not relate to the legal ability of either the Tariff
Commission or the DTI Secretary to bind or foreclose review and reversal by one or the other.
Such relationship should instead be governed by domestic administrative law and remedial law.
Philcemcorthuswouldliketocastthepropositioninthismanner:Doesitruncontrarytoourlegal
ordertoassert,astheCourtdidinitsDecision,thatabodyofrelativejuniorcompetenceasthe
TariffCommissioncanbindanadministrativesuperiorandcabinetofficer,theDTISecretary?Itis
easytoseewhyPhilcemcorwouldliketodivorcethisDTISecretaryTariffCommissioninteraction
from the confines of the SMA. Shorn of context, the notion would seem radical and unjustifiable
thatthelowlyTariffCommissioncanbindthehandsandfeetoftheDTISecretary.
It can be surmised at once that respondents preferred interpretation is based not on the
expresslanguageoftheSMA,butfromimplicationsderivedinaroundaboutmanner.Certainly,no
provision in the SMA expressly authorizes the DTI Secretary to impose a general safeguard
measuredespitetheabsenceofapositivefinalrecommendationoftheTariffCommission.Onthe
other hand, Section 5 expressly states that the DTI Secretary shall apply a general safeguard
measureuponapositivefinaldeterminationofthe[Tariff]Commission.Thecausalconnectionin
Section5betweentheimpositionbytheDTISecretaryofthegeneralsafeguardmeasureandthe
positive final determination of the Tariff Commission is patent, and even respondents do not
disputesuchconnection.
As stated earlier, the Court in its Decision found Section 5 to be clear, plain and free from
ambiguitysoastorenderunnecessaryresorttothecongressionalrecordstoascertainlegislative
intent. Yet respondents, on the dubitable premise that Section 5 is not as express as it seems,
again latch on to the record of legislative deliberations in asserting that there was no legislative
intenttobartheDTISecretaryfromimposingthegeneralsafeguardmeasureanywaydespitethe
absenceofapositivefinaldeterminationbytheTariffCommission.
Let us take the bait for a moment, and examine respondents commonly cited portion of the
legislative record. One would presume, given the intense advocacy for the efficacy of these
citations, that they contain a smoking gun express declarations from the legislators that the DTI
Secretary may impose a general safeguard measure even if the Tariff Commission refuses to
render a positive final determination. Such smoking gun, if it exists, would characterize our
Decisionasdisingenuousforignoringsuchcontraryexpressionofintentfromthelegislatorswho
enactedtheSMA.Butaswithmanythings,theanticipationismoredramaticthanthetruth.

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TheexcerptscitedbyrespondentsarederivedfromtheinterpellationofthelateCongressman
[55]
Marcial Punzalan Jr., by then (and still is) Congressman Simeon Datumanong.
Nowhere in
these records is the view expressed that the DTI Secretary may impose the general safeguard
measuresiftheTariffCommissionissuesanegativefinaldeterminationorotherwiseisunableto
make a positive final determination. Instead, respondents hitch on the observations of
CongressmanPunzalanJr.,thattheresultsofthe[Tariff]Commissionsfindings...issubsequently
submittedto[theDTISecretary]forthe[DTISecretary]toimposeornottoimposeandthatthe
[DTISecretary]hereiswhowouldmakethefinaldecisionontherecommendationthatismadeby
[56]
amoretechnicalbody[suchastheTariffCommission].
ThereisnothingintheremarksofCongressmanPunzalanwhichcontradictourDecision.His
observationsfallinaccordwiththerespectiverolesoftheTariffCommissionandtheDTISecretary
under the SMA. Under the SMA, it is the Tariff Commission that conducts an investigation as to
whethertheconditionsexisttowarranttheimpositionofthesafeguardmeasures.Theseconditions
areenumeratedinSection5,namelythataproductisbeingimportedintothecountryinincreased
quantities,whetherabsoluteorrelativetothedomesticproduction,astobeasubstantialcauseof
serious injury or threat thereof to the domestic industry. After the investigation of the Tariff
Commission, it submits a report to the DTI Secretary which states, among others, whether the
abovestated conditions for the imposition of the general safeguard measures exist. Upon a
positive final determination that these conditions are present, the Tariff Commission then is
mandatedtorecommendwhatappropriatesafeguardmeasuresshouldbeundertakenbytheDTI
Secretary.Section13oftheSMAgivesfive(5)specificoptionsonthetypeofsafeguardmeasures
theTariffCommissionrecommendstotheDTISecretary.
Atthesametime,nothingintheSMAobligestheDTISecretarytoadopttherecommendations
madebytheTariffCommission.Infact,theSMArequiresthattheDTISecretaryestablishthatthe
application of such safeguard measures is in the public interest, notwithstanding the Tariff
Commissions recommendation on the appropriate safeguard measure upon its positive final
determination. Thus, even if the Tariff Commission makes a positive final determination, the DTI
Secretary may opt not to impose a general safeguard measure, or choose a different type of
safeguardmeasureotherthanthatrecommendedbytheTariffCommission.
Congressman Punzalan was cited as saying that the DTI Secretary makes the decision to
impose or not to impose, which is correct since the DTI Secretary may choose not to impose a
safeguard measure in spite of a positive final determination by the Tariff Commission.
Congressman Punzalan also correctly stated that it is the DTI Secretary who makes the final
decisionontherecommendationthatismade[bytheTariffCommission],sincetheDTISecretary
maychoosetoimposeageneralsafeguardmeasuredifferentfromthatrecommendedbytheTariff
Commissionornottoimposeasafeguardmeasureatall.Nowhereintheseciteddeliberationswas
CongressmanPunzalan,oranyothermemberofCongressforthatmatter,quotedassayingthat
the DTI Secretary may ignore a negative determination by the Tariff Commission as to the
existence of the conditions warranting the imposition of general safeguard measures, and
thereafter proceed to impose these measures nonetheless. It is too late in the day to ascertain
from the late Congressman Punzalan himself whether he had made these remarks in order to
assure the other legislators that the DTI Secretary may impose the general safeguard measures
notwithstandinganegativedeterminationbytheTariffCommission.Butcertainly,thelanguageof
Section 5 is more resolutory to that question than the recorded remarks of Congressman
Punzalan.
RespondentsemployedconsiderableefforttobecloudSection5withundeservedambiguityin
orderthataproperresorttothelegislativedeliberationsmaybehad.YetassumingthatSection5
deserves to be clarified through an inquiry into the legislative record, the excerpts cited by the
respondentsarefarmoreambiguousthanthelanguageoftheassailedprovisionregardingthekey
questionofwhethertheDTISecretarymayimposesafeguardmeasuresinthefaceofanegative
determination by the Tariff Commission. Moreover, even Southern Cross counters with its own
[57]
excerptsofthelegislativerecordinsupportoftheirownview.

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It will not be difficult, especially as to heavilydebated legislation, for two sides with
contrapuntal interpretations of a statute to highlight their respective citations from the legislative
[58]
debate in support of their particular views.
A futile exercise of secondguessing is happily
avoidedifthemeaningofthestatuteisclearonitsface.ItisevidentfromthetextofSection5
thattheremustbeapositivefinaldeterminationbytheTariffCommissionthataproductis
being imported into the country in increased quantities (whether absolute or relative to
domestic production), as to be a substantial cause of serious injury or threat to the
domesticindustry.Anydisputationtothecontraryis,atbest,theproductofwishfulthinking.
For the same reason that Section 5 is explicit as regards the essentiality of a positive final
determinationbytheTariffCommission,thereisnoneedtorefertotheImplementingRulesofthe
SMA to ascertain a contrary intent. If there is indeed a provision in the Implementing Rules that
allows the DTI Secretary to impose a general safeguard measure even without the positive final
determination by the Tariff Commission, said rule is void as it cannot supplant the express
languageofthelegislature.Respondentsessentiallyrehashtheirpreviousargumentsonthispoint,
andthereisnoreasontoconsiderthemanew.TheDecisionmadeitclearthatnothinginRule13.2
of the Implementing Rules, even though captioned Final Determination by the Secretary,
authorizestheDTISecretarytoimposeageneralsafeguardmeasureintheabsenceofapositive
[59]
final determination by the Tariff Commission.
Similarly, the Rules and Regulations to Govern
theConductofInvestigationbytheTariffCommissionPursuanttoRepublicActNo.8800nowcited
bytherespondentdoesnotcontainanyprovisionthattheDTISecretarymayimposethegeneral
safeguardmeasuresintheabsenceofapositivefinaldeterminationbytheTariffCommission.
Section 13 of the SMA further bolsters the interpretation as argued by Southern Cross and
upheldbytheDecision.Thefirstparagraphthereofstatesthat[u]ponitspositivedetermination,the
[Tariff] Commission shall recommend to the Secretary an appropriate definitive measure, clearly
referringtotheTariffCommissionastheentitythatmakesthepositivedetermination.Ontheother
hand,thepenultimateparagraphofthesameprovisionstatesthat[i]ntheeventofanegativefinal
determination, the DTI Secretary is to immediately issue through the Secretary of Finance, a
written instruction to the Commissioner of Customs authorizing the return of the cash bonds
previously collected as a provisional safeguard measure. Since the first paragraph of the same
provision states that it is the Tariff Commission which makes the positive determination, it
necessarily follows that it, and not the DTI Secretary, makes the negative final determination as
[60]
referredtointhepenultimateparagraphofSection13.
TheSeparateOpinion considers as highly persuasive of former Tariff Commission Chairman
[61]
Abon, who stated that the Commissions findings are merely recommendatory.
Again, the
considered opinion of Chairman Abon is of no operative effect if the statute plainly states
otherwise, and Section 5 bluntly does require a positive final determination by the Tariff
[62]
CommissionbeforetheDTISecretarymayimposeageneralsafeguardmeasure.
Certainly,the
Courtcannotgivecontrollingeffecttothestatementsofanypublicofficerinseriousdenialofhis
dutiesifthelawotherwiseimposesthedutyonthepublicofficeorofficer.
Nonetheless,ifwearetorenderpersuasiveeffectontheconsideredopinionofthemembers
oftheExecutiveBranch,itbearsnotingthattheSecretaryoftheDepartmentofJusticerendered
an Opinion wherein he concluded that the DTI Secretary could not impose a general safeguard
[63]
measureiftheTariffCommissionmadeanegativefinaldetermination.
UnlikeChairmanAbons
imprompturemarksmadeduringahearing,theDOJOpinionwasrenderedonlyafterathorough
study of the question after referral to it by the DTI. The DOJ Secretary is the alter ego of the
[64]
Presidentwithastatedmandateastheheadoftheprincipallawagencyofthegovernment.
As
theDOJSecretaryhasnodenominatedroleintheSMA,hewasabletorenderhisOpinionfrom
thevantageofjudiciousdistance.ShouldnothisOpinion,studiedanddirecttothepointasitis,
carrygreaterweightthanthespontaneousremarksoftheTariffCommissionsChairmanwhichdo
notevenexpresslydisavowthebindingpoweroftheCommissionspositivefinaldetermination?
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III.DTISecretaryhasNoPowerofReview
OverFinalDeterminationoftheTariffCommission
We should reemphasize that it is only because of the SMA, a legislative enactment, that the
executive branch has the power to impose safeguard measures. At the same time, by
constitutional fiat, the exercise of such power is subjected to the limitations and restrictions
similarlyenforcedbytheSMA.InexaminingtherelationshipoftheDTIandtheTariffCommission
asestablishedintheSMA,itisessentialtoacknowledgeandconsiderthesepredicates.
ItisnecessarytoclarifytheparadigmestablishedbytheSMAandaffirmedbytheConstitution
underwhichtheTariffCommissionandtheDTIoperate,especiallyinlightofthesuggestionsthat
theCourtsrulingsonthefunctionsofquasijudicialpowerfindapplicationinthiscase.Perhapsthe
reflexiveapplicationofthequasijudicialdoctrineinthiscase,rootedasitisinjurisprudence,might
allowforsomeconvenienceinruling,yetdoingsoultimatelybetraysignoranceofthefundamental
powerofCongresstoreorganizetheadministrativestructureofgovernanceinwaysitseesfit.
TheSeparateOpinionoperatesfromwhollydifferentpremiseswhichareincomplete.Itsmain
stance, similar to that of respondents, is that the DTI Secretary, acting as alter ego of the
President,maymodifyandalterthefindingsoftheTariffCommission,includingthelattersnegative
finaldeterminationbysubstitutingitwithhisownnegativefinaldeterminationtopavethewayfor
[65]
hisimpositionofasafeguardmeasure.
Fatally,thisconclusionisarrivedatwithoutconsidering
thefundamentalconstitutionalpreceptunderSection28(2),ArticleVI,ontheabilityofCongressto
imposerestrictionsandlimitationsinitsdelegationtothePresidenttoimposetariffsandimposts,
aswellastheexpressconditionofSection5oftheSMArequiringapositivefinaldeterminationof
theTariffCommission.
AbsentSection5oftheSMA,thePresidenthasnoinherent,constitutional,orstatutory
powertoimposeageneralsafeguardmeasure.Tellingly,theSeparateOpiniondoesnotdirectly
confronttheinevitablequestionastohowtheDTISecretarymaygetawaywithimposingageneral
safeguard measure absent a positive final determination from the Tariff Commission without
violatingSection5oftheSMA,whichalongwithSection13ofthesamelaw,standsastheonly
direct legal authority for the DTI Secretary to impose such measures. This is a constitutionally
guaranteed limitation of the highest order, considering that the presidential authority exercised
undertheSMAisinherentlylegislative.
Nonetheless, the Separate Opinion brings to fore the issue of whether the DTI Secretary,
actingeitherasalteregoofthePresidentorinhiscapacityasheadofanexecutivedepartment,
may review, modify or otherwise alter the final determination of the Tariff Commission under the
SMA.Thesucceedingdiscussionshallfocusonthatquestion.
Preliminarily, we should note that none of the parties question the designation of the DTI or
Agriculture secretaries under the SMA as the imposing authorities of the safeguard measures,
eventhoughSection28(2)ArticleVIstatesthatitisthePresidenttowhomthepowertoimpose
tariffsandimpostsmaybedelegatedbyCongress.ThevalidityofsuchdesignationundertheSMA
shouldnotbeindoubt.WerecognizethattheauthorizationmadebyCongressintheSMAtothe
DTIandAgricultureSecretarieswasmadeincontemplationoftheircapacitiesasalteregosofthe
President.
[66]
Indeed, in Marc Donnelly & Associates v. Agregado
the Court upheld the validity of a
Cabinet resolution fixing the schedule of royalty rates on metal exports and providing for their
collectioneventhoughCongress,underCommonwealthActNo.728,hadspecificallyempowered
thePresidentandnotanyotherofficialoftheexecutivebranch,toregulateandcurtailtheexportof
metals.Insoruling,theCourtheldthatthemembersoftheCabinetwereactingasalteregosof
[67]
the President.
In this case, Congress itself authorized the DTI Secretary as alter ego of the
Presidenttoimposethesafeguardmeasures.IftheCourtwaspreviouslywillingtoupholdthealter
egostariffauthority despite the absence of explicit legislative grant of suchauthorityonthealter
ego,allthemorereasonnowwhenCongressitselfexpresslyauthorizedthealteregotoexercise
thesepowerstoimposesafeguardmeasures.
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Notwithstanding,CongressinenactingtheSMAandprescribingtherolestobeplayedtherein
bytheTariffCommissionandtheDTISecretarydidnotenvisionthatthePresident,orhis/heralter
ego,couldexercisesupervisorypowersovertheTariffCommission.IftrulyCongressintendedto
allow the traditional alter ego principle to come to fore in the peculiar setup established by the
SMA,itwouldhaveassignedtherolenowplayedbytheDTISecretaryunderthelawinsteadtothe
NEDA. The Tariff Commission is an attached agency of the National Economic Development
[68]
[69]
Authority,
whichinturnistheindependentplanningagencyofthegovernment.
[70]
TheTariffCommissiondoesnotfallundertheadministrativesupervisionoftheDTI.
Onthe
other hand, the administrative relationship between the NEDA and the Tariff Commission is
established not only by the Administrative Code, but similarly affirmed by the Tariff and Customs
Code.
[71]
Justice Florentino Feliciano, in his ponencia in Garcia v. Executive Secretary
,
acknowledged the interplay between the NEDA and the Tariff Commission under the Tariff and
Customs Code when he cited the relevant provisions of that law evidencing such setup. Indeed,
under Section 104 of the Tariff and Customs Code, the rates of duty fixed therein are subject to
periodic investigation by the Tariff Commission and may be revised by the President upon
[72]
recommendation of the NEDA.
Moreover, under Section 401 of the same law, it is upon
periodic investigations by the Tariff Commission and recommendation of the NEDA that the
[73]
Presidentmaycauseagradualreductionofprotectionlevelsgrantedunderthelaw.
Atthesametime,undertheTariffandCustomsCode,nosimilarroleorinfluenceisallocated
totheDTIinthematterofimposingtariffduties.Infact,thelongstandingtraditionhasbeenforthe
Tariff Commission and the DTI to proceed independently in the exercise of their respective
functions.OnlyveryrecentlyhaveourstatutesdirectedanysignificantinterplaybetweentheTariff
CommissionandtheDTI,withtheenactmentin1999ofRepublicActNo.8751ontheimpositionof
countervailingdutiesandRepublicActNo.8752ontheimpositionofantidumpingduties,andof
coursethepromulgationayearlateroftheSMA.Inallthesethreelaws,theTariffCommissionis
tasked,uponreferralofthematterbytheDTI,todeterminewhetherthefactualconditionsexistto
warrant the imposition by the DTI of a countervailing duty, an antidumping duty, or a general
safeguardmeasure,respectively.Inallthreelaws,thedeterminationbytheTariffCommissionthat
these required factual conditions exist is necessary before the DTI Secretary may impose the
corresponding duty or safeguard measure. And in all three laws, there is no express provision
[74]
authorizingtheDTISecretarytoreversethefactualdeterminationoftheTariffCommission.
Infact,theSMAindubitablyestablishesthattheTariffCommissionisnomereflunkyoftheDTI
Secretarywhenitmandatesthatthepositivefinalrecommendationoftheformerbeindispensable
to the latters imposition of a general safeguard measure. What the law indicates instead is a
relationship of interdependence between two bodies independent of each other under the
AdministrativeCodeandtheSMAalike.Indeed,eventheabilityoftheDTISecretarytodisregard
theTariffCommissionsrecommendationsastotheparticularsafeguardmeasurestobeimposed
evincestheindependencefromeachotherofthesetwobodies.Thisisproperlysofortworeasons
theDTIandtheTariffCommissionareindependentofeachotherundertheAdministrativeCode
andimproprietyisavoidedincaseswhereintheDTIitselfistheoneseekingtheimpositionofthe
generalsafeguardmeasures,pursuanttoSection6oftheSMA.
Thus,inascertainingtheappropriatelegalmilieugoverningtherelationshipbetweentheDTI
andtheTariffCommission,itisimperativetoapplyforemost,ifnotexclusively,theprovisionsofthe
SMA.Theargumentthattheusualrulesonadministrativecontrolandsupervisionapplybetween
the Tariff Commission and the DTI as regards safeguard measures is severely undercut by the
plain fact that there is no longstanding tradition of administrative interplay between these two
entities.
Withintheadministrativeapparatus,theTariffCommissionappearstobealowerrankrelative
to the DTI. But does this necessarily mean that the DTI has the intrinsic right, absent statutory
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authority,toreversethefindingsoftheTariffCommission?Toinsistthatitdoes,onewouldhaveto
concedeforinstancethat,applyingthesamedoctrinalguide,theSecretaryoftheDepartmentof
ScienceandTechnology(DOST)hastherighttoreversetherulingsoftheCivilAeronauticsBoard
(CAB)ortheissuancesofthePhilippineCoconutAuthority(PCA).AswiththeTariffCommission
DTI,thereisnostatutoryauthoritygrantingtheDOSTSecretarytherighttooverruletheCABor
thePCA,suchrightpresumablyarisingonlyfromthepositionofsubordinacyofthesebodiestothe
DOST. To insist on such a right would be to invite department secretaries to interfere in the
exerciseoffunctionsbyadministrativeagencies,eveninareaswhereinsuchsecretariesarebereft
ofspecializedcompetencies.
The Separate Opinion notes that notwithstanding above, the Secretary of Department of
TransportationandCommunicationmayreviewthefindingsoftheCAB,theAgricultureSecretary
may review those of the PCA, and that the Secretary of the Department of Environment and
[75]
Natural Resources may pass upon decisions of the Mines and Geosciences Board.
These
three officers may be alteregos of the President, yet their authority to review is limited to those
agencies or bureaus which are, pursuant to statutes such as the Administrative Code of 1987,
undertheadministrativecontrolandsupervisionoftheirrespectivedepartments.Thus,underthe
express provision of the Administrative Code expressly provides that the CAB is an attached
[76]
agencyoftheDOTC
,andthatthePCAisanattachedagencyoftheDepartmentofAgriculture.
[77]
ThesamelawestablishestheMinesandGeoSciencesBureauasoneoftheSectoralStaff
[78]
[79]
Bureaus
thatformspartoftheorganizationalstructureoftheDENR.
Asrepeatedlystated,theTariffCommissiondoesnotfallundertheadministrativecontrolofthe
DTI,butundertheNEDA,pursuanttotheAdministrativeCode.ThereliancemadebytheSeparate
Opiniontothosethreeexamplesarethusmisplaced.
Nonetheless, the Separate Opinion asserts that the SMA created a functional relationship
between the Tariff Commission and the DTI Secretary, sufficient to allow the DTI Secretary to
exercise alter ego powers to reverse the determination of the Tariff Commission. Again,
considering that the power to impose tariffs in the first place is not inherent in the President but
arises only from congressional grant, we should affirm the congressional prerogative to impose
limitations and restrictions on such powers which do not normally belong to the executive in the
firstplace.NowhereintheSMAdoesitstatethattheDTISecretarymayimposegeneralsafeguard
measureswithoutapositivefinaldeterminationbytheTariffCommission,orthattheDTISecretary
mayreverseorevenreviewthefactualdeterminationmadebytheTariffCommission.
Congress in enacting the SMA and prescribing the roles to be played therein by the Tariff
CommissionandtheDTISecretarydidnotenvisionthatthePresident,orhis/heralterego could
exercise supervisory powers over the Tariff Commission. If truly Congress intended to allow the
traditionalalteregoprincipletocometoforeinthepeculiarsetupestablishedbytheSMA,itwould
haveassignedtherolenowplayedbytheDTISecretaryunderthelawinsteadtotheNEDA,the
bodytowhichtheTariffCommissionisattachedundertheAdministrativeCode.
TheCourthasnoissuewithupholdingadministrativecontrolandsupervisionexercisedbythe
headofanexecutivedepartment,butonlyoverthosesubordinateofficesthatareattachedtothe
department, or which are, under statute, relegated under its supervision and control. To declare
thatadepartmentsecretary,evenifactingasalteregoofthePresident,mayexercisesuchcontrol
orsupervisionoverallexecutiveofficesbelowcabinetrankwouldleadtoabsurdresultssuchas
thoseadvertedtoabove.Asappliedtothiscase,thereisnolegaljustificationfortheDTISecretary
toexercisecontrol,supervision,revieworamendatorypowersovertheTariffCommissionandits
positivefinaldetermination.Inpassing,wenotethatthereis,admittedly,afeasiblemodebywhich
administrativereviewoftheTariffCommissionsfinaldeterminationcouldbehad,butitisnotthe
procedure adopted by respondents and now suggested for affirmation. This mode shall be
discussedinaforthcomingsection.
TheSeparateOpinionassertsthatthePresident,orhis/heralteregocannotbemadeamere
rubberstampoftheTariffCommissionsinceSection17,ArticleVIIoftheConstitutiondenominates
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[80]
theChiefExecutiveexercisescontroloverallexecutivedepartments,bureausandoffices.
But
let us be clear that such executive control is not absolute. The definition of the structure of the
executive branch of government, and the corresponding degrees of administrative control and
supervision,isnottheexclusivepreserveoftheexecutive.Itmaybeeffectivelybelimitedbythe
Constitution,bylaw,orbyjudicialdecisions.
The Separate Opinion cites the respected constitutional law authority Fr. Joaquin Bernas, in
supportofthepropositionthatsuchplenarypowerofexecutivecontrolofthePresidentcannotbe
restricted by a mere statute passed by Congress. However, the cited passage from Fr. Bernas
actually states, Since the Constitution has given the President the power of control, with all its
[81]
awesome implications, it is the Constitution alone which can curtail such power.
Does the
PresidenthavesuchtariffpowersundertheConstitutioninthefirstplacewhichmaybecurtailed
by the executive power of control? At the risk of redundancy, we quote Section 28(2), Article VI:
TheCongressmay,bylaw,authorizethePresidenttofixwithinspecifiedlimits,andsubjecttosuch
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
programoftheGovernment.ClearlythepowertoimposetariffsbelongstoCongressandnottothe
President.
ItiswithinreasontoassumetheframersoftheConstitutiondeemedittoooneroustospellout
all the possible limitations and restrictions on this presidential authority to impose tariffs. Hence,
the Constitution especially allowed Congress itself to prescribe such limitations and restrictions
itself,aprudentmoveconsideringthatsuchauthorityinherentlybelongstoCongressandnotthe
President. Since Congress has no power to amend the Constitution, it should be taken to mean
that such limitations and restrictions should be provided by mere statute. Then again, even the
presidential authority to impose tariffs arises only by mere statute. Indeed, this presidential
privilegeisbothcontingentinnatureandlegislativeinorigin.Thesecharacteristics,when
weighed against the aspect of executive control and supervision, cannot militate against
Congresssexerciseofitsinherentpowertotax.
Thebarefactisthattheadministrativesuperstructure,forallitsunwieldiness,ismereputtyin
thehandsofCongress.Thefunctionsandmandatesoftheparticularexecutivedepartmentsand
bureausarenotcreatedbythePresident,butbythelegislativebranchthroughtheAdministrative
[82]
Code.
ThePresidentistheadministrativeheadoftheexecutivedepartment,assuchobliged
toseethateverygovernmentofficeismanagedandmaintainedproperlybythepersonsincharge
of it in accordance with pertinent laws and regulations, and empowered to promulgate rules and
issuancesthatwouldensureamoreefficientmanagementoftheexecutivebranch,forsolongas
[83]
such issuances are not contrary to law.
Yet the legislature has the concurrent power to
reclassify or redefine the executive bureaucracy, including the relationship between various
administrative agencies, bureaus and departments, and ultimately, even the power to abolish
executivedepartmentsandtheircomponents,hamstrungonlybyconstitutionallimitations.TheDTI
itself can be abolished with ease by Congress through deleting Title X, Book IV of the
Administrative Code. The Tariff Commission can similarly be abolished through legislative
[84]
enactment.
At the same time, Congress can enact additional tasks or responsibilities on either the Tariff
Commission or the DTI Secretary, such as their respective roles on the imposition of general
safeguardmeasuresundertheSMA.Indoingso,thesameCongress,whichhastheputative
authority to abolish the Tariff Commission or the DTI, is similarly empowered to alter or
expand its functions through modalities which do not align with established norms in the
bureaucraticstructure. The Court is bound to recognize the legislative prerogative to prescribe
such modalities, no matter how atypical they may be, in affirmation of the legislative power to
restructuretheexecutivebranchofgovernment.
TherearefurtherlimitationsontheexecutivecontroladvertedtobytheSeparateOpinion.The
President, in the exercise of executive control, cannot order a subordinate to disobey a final
decisionofthisCourtoranycourts.Ifthesubordinatechoosestodisobey,invokingsoleallegiance
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tothePresident,thejudicialprocessescanbeutilizedtocompelobeisance.Indeed,whenpublic
officersoftheexecutivedepartmenttaketheiroathofoffice,theyswearallegianceandobedience
nottothePresident,buttotheConstitutionandthelawsoftheland.Theinvocationofexecutive
controlmustyieldwhenunderitssubsumptionincludesanactthatviolatesthelaw.
TheSeparateOpinionconcedesthattheexerciseofexecutivecontrolandsupervisionbythe
[85]
PresidentisboundbytheConstitutionandlaw.
Still,justthreesentencesafterassertingthat
the exercise of executive control must be within the bounds of the Constitution and law, the
Separate Opinion asserts, the control power of the Chief Executive emanates from the
[86]
ConstitutionnoactofCongressmayvalidlycurtailit.
LawsareactsofCongress,hencevalid
confusion arises whether the Separate Opinion truly believes the first proposition that executive
controlisboundbylaw.ThisisaquagmirefortheSeparateOpiniontoresolveforitself
The Separate Opinion unduly considers executive control as the ne plus ultra constitutional
standardwhichmustgoverninthiscase.ButwhilethePresidentmaygenerallyhavethepowerto
control,modifyorsetasidetheactionsofasubordinate,suchpowersmaybeconstrictedbythe
Constitution, the legislature, and the judiciary. This is one of the essences of the checkand
balancesysteminourtripartiteconstitutionaldemocracy.Notoneheadofabranchofgovernment
mayoperateasaCaesarwithinhis/herparticularfiefdom.
AssumingthereisaconflictbetweenthespecificlimitationinSection28(2),ArticleVIofthe
Constitutionandthegeneralexecutivepowerofcontrolandsupervision,theformerprevailsinthe
specific instance of safeguard measures such as tariffs and imposts, and would thus serve to
qualify the general grant to the President of the power to exercise control and supervision over
his/hersubalterns.
Thus, if the Congress enacted the law so that the DTI Secretary is bound by the Tariff
Commission in the sense the former cannot impose general safeguard measures absent a final
positivedeterminationfromthelattertheCourtisobligedtorespectsuchlegislativeprerogative,no
matter how such arrangement deviates from traditional norms as may have been enshrined in
jurisprudence.Theonlygroundunderwhichsuchlegislativedeterminationasexpressedinstatute
may be successfully challenged is if such legislation contravenes the Constitution. No such
argumentisposedbytherespondents,whodonotchallengethevalidityorconstitutionalityofthe
SMA.
Giventhesepremises,itisutterlyrecklesstoexaminetheinterrelationshipbetweentheTariff
Commission and the DTI Secretary beyond the context of the SMA, applying instead traditional
preceptsonadministrativecontrol,reviewandsupervision.Forthatreason,theDecisiondeemed
inapplicablerespondentspreviouscitationsofCariov.CommissioneronHumanRightsandLamb
v. Phipps, since the executive power adverted to in those cases had not been limited by
[87]
constitutionalrestrictionssuchasthoseimposedunderSection28(2),ArticleVI.
A similar observation can be made on the case of Sharp International Marketing v. Court of
[88]
Appeals,
now cited by Philcemcor, wherein the Court asserted that the Land Bank of the
Philippineswasrequiredtoexerciseindependentjudgmentandnotmerelyrubberstampdeedsof
sale entered into by the Department of Agrarian Reform in connection with the agrarian reform
program.PhilcemcorattemptstodemonstratethattheDTISecretary,aswiththeLandBankofthe
Philippines, is required to exercise independent discretion and is not expected to just merely
accedetoDARapprovedcompensationpackages.Yetagain,suchgrantofindependentdiscretion
is expressly called for by statute, particularly Section 18 of Rep. Act No. 6657 which specifically
requires the joint concurrence of the landowner and the DAR and the [Land Bank of the
Philippines] on the amount of compensation. Such power of review by the Land Bank is a
consequenceofclearstatutorylanguage,asisourholdingintheDecisionthatSection5explicitly
requires a positive final determination by the Tariff Commission before a general safeguard
measure may be imposed. Moreover, such limitations under the SMA are coated by the
constitutionalauthorityofSection28(2),ArticleVIoftheConstitution.

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Nonetheless, is this administrative setup, as envisioned by Congress and enshrined into the
SMA, truly noxious to existing legal standards? The Decision acknowledged the internal logic of
thestatutoryframework,consideringthattheDTIcannotexercisereviewpowersoveranagency
suchastheTariffCommissionwhichisnotwithinitsadministrativejurisdictionthatthemechanism
employed establishes a measure of check and balance involving two government offices with
different specializations and that safeguard measures are the exception rather than the rule,
[89]
pursuanttoourtreatyobligations.
Weseenoreasontodeviatefromtheseobservations,andindeedcanaddsimilarlyoriented
comments.Corollarytothelegislativepowertodecreepoliciesthroughlegislationistheabilityof
the legislature to provide for means in the statute itself to ensure that the said policy is strictly
implemented by the body or office tasked so tasked with the duty. As earlier stated, our treaty
obligations dissuade the State for now from implementing default protectionist trade measures
[90]
suchastariffs,andallowthesameonlyunderspecifiedconditions.
Theconditionsenumerated
under the GATT Agreement on Safeguards for the application of safeguard measures by a
[91]
membercountryarethesameastherequisiteslaiddowninSection5oftheSMA.
Toinsulate
the factual determination from political pressure, and to assure that it be conducted by an entity
especially qualified by reason of its general functions to undertake such investigation, Congress
deemeditnecessarytodelegatetotheTariffCommissionthefunctionofascertainingwhetheror
not the those factual conditions exist to warrant the atypical imposition of safeguard measures.
After all, the Tariff Commission retains a degree of relative independence by virtue of its
attachmenttotheNationalEconomicDevelopmentAuthority,anindependentplanningagencyof
[92]
thegovernment,
andalsoowingtoitsvauntedexpertiseandspecialization.
Thematterofimposingasafeguardmeasurealmostalwaysinvolvesnotjustoneindustry,but
thenationalinterestasitencompassesotherindustriesaswell.Yetinallcandor,anydecisionto
impose a safeguard measure is susceptible to all sorts of external pressures, especially if the
domestic industry concerned is wellorganized. Unwarranted impositions of safeguard measures
maysimilarlybedetrimentaltothenationalinterest.Congresscouldnotbeblamedifitdesiredto
insulatetheinvestigatoryprocessbyassigningittoabodywithaputativedegreeofindependence
andtraditionalexpertiseinascertainingfactualconditions.Affectedindustrieswouldhavecauseto
lobbyfororagainstthesafeguardmeasures.Thedecisionmakerisintheunenviablepositionof
havingtobendaneartolistentoallconcernedvoices,includingthosewhichmayspeaksoftlybut
carry a big stick. Had the law mandated that the decision be made on the sole discretion of an
executiveofficer,suchastheDTISecretary,itwouldbemarkedlyeasierforsafeguardmeasures
tobeimposedorwithheldbasedsolelyonpoliticalconsiderationsandnotonthefactualconditions
thataresupposedtopredicatethedecision.
ReferenceofthebindingpositivefinaldeterminationtotheTariffCommissionisofcourse,not
afailsafemeanstoensureabiasfreedetermination.Butatleastthelegislatedinvolvementofthe
Commission in the process assures some measure of measure of checkandbalance involving
two different governmental agencies with disparate specializations. There is no legal or
constitutional demand for such a setup, but its wisdom as policy should be acknowledged. As
prescribedbyCongress,boththeTariffCommissionandtheDTISecretaryoperatewithinlimited
frameworks,underwhichnobodyacquiresanundueadvantageovertheother.
WerecognizethatCongressdeemeditnecessarytoinsulatetheprocessinrequiringthatthe
factualdeterminationtobemadebyanostensiblyindependentbodyofspecializedcompetence,
the Tariff Commission. This prescribed framework, constitutionally sanctioned, is intended to
prevent the baseless, whimsical, or considerationinduced imposition of safeguard measures. It
removesfromtheDTISecretaryjurisdictionoveramatterbeyondhisputativespecializedaptitude,
thecompilationandanalysisofpicayunefactsanddeterminationoftheirlimitedcausalrelations,
and instead vests in the Secretary the broad choice on a matter within his unquestionable
competence,theselectionofwhatparticularsafeguardmeasurewouldassistthedulybeleaguered
localindustryyetatthesametimeconformtonationaltradepolicy.Indeed,theSMArecognizes,
and places primary importance on the DTI Secretarys mandate to formulate trade policy, in his
capacityasthePresidentsalteregoontrade,industryandinvestmentrelatedmatters.
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Atthesametime,thestatutorylimitationsonthisauthorizedpoweroftheDTISecretarymust
prevailsincetheConstitutionitselfdemandstheenforceabilityofthoselimitationsandrestrictions
asimposedbyCongress.Policywisdomwillnotsavealawfrominfirmityifthestatutoryprovisions
violate the Constitution. But since the Constitution itself provides that the President shall be
constrained by the limits and restrictions imposed by Congress and since these limits and
restrictionsaresoclearandcategorical,thentheCourthasnochoicebuttoupholdthereins.
[93]
Evenassumingthatthisprescribedsetupmadelittlesense,orseemeduncommonlysilly,
theCourtisboundbyproprietynottodisputethewisdomofthelegislatureaslongasitsactsdo
notviolatetheConstitution.SincethereisnoconvincingdemonstrationthattheSMAcontravenes
the Constitution, the Court is wont to respect the administrative regimen propounded by the law,
evenifitallotstheTariffCommissionahigherdegreeofpuissancethannormallyexpected.Itisfor
thisreasonthatthetraditionalconceptionsofadministrativerevieworquasijudicialpowercannot
controlinthiscase.
Indeed,toapplythelatterconceptwouldcausetheCourttofallintoalinguistictrapowingto
themultifaceteddenotationsthetermquasijudicialhascometoacquire.
[94]
UndertheSMA,theTariffCommissionundertakesformalhearings,
receivesandevaluates
[95]
testimonyandevidencebyinterestedparties,
andrendersadecisionisrenderedonthebasis
oftheevidencepresented,intheformofthefinaldetermination.Thefinaldeterminationrequiresa
conclusionwhethertheimportationoftheproductunderconsiderationiscausingseriousinjuryor
threat to a domestic industry producing like products or directly competitive products, while
[96]
evaluatingallrelevantfactorshavingabearingonthesituationofthedomesticindustry.
This
process aligns conformably with definition provided by Blacks Law Dictionary of quasijudicial as
the action, discretion, etc., of public administrative officers or bodies, who are required to
investigate facts, or ascertain the existence of facts, hold hearings, weigh evidence, and draw
conclusions from them, as a basis for their official action, and to exercise discretion of a judicial
[97]
nature.
However, the Tariff Commission is not empowered to hear actual cases or controversies
lodgeddirectlybeforeitbyprivateparties.Itdoesnothavethepowertoissuewritsofinjunctionor
enforcement of its determination. These considerations militate against a finding of quasijudicial
powers attributable to the Tariff Commission, considering the pronouncement that quasijudicial
adjudicationwouldmeanadeterminationofrightsprivilegesanddutiesresultinginadecisionor
[98]
orderwhichappliestoaspecificsituation.
Indeed, a declaration that the Tariff Commission possesses quasijudicial powers, even if
ascertained for the limited purpose of exercising its functions under the SMA, may have the
unfortunateeffectofexpandingtheCommissionspowersbeyondthatcontemplatedbylaw.After
all, the Tariff Commission is by convention, a factfinding body, and its role under the SMA,
burdenedasitiswithfactualdetermination,isbutamerecontinuanceofthistradition.However,
Congress through the SMA offers a significant deviation from this traditional role by tying the
decision by the DTI Secretary to impose a safeguard measure to the required positive factual
determinationbytheTariffCommission.Congressisnotboundbypasttraditions,orevenbythe
jurisprudence of this Court, in enacting legislation it may deem as suited for the times. The sole
benchmark for judicial substitution of congressional wisdom is constitutional transgression, a
standardwhichtherespondentsdonotevenattempttomatch.
RespondentsSuggestedInterpretation
OftheSMATransgressesFairPlay
Respondents have belabored the argument that the Decisions interpretation of the SMA,
particularlyoftheroleoftheTariffCommissionvisvistheDTISecretary,isnoxioustotraditional
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notionsofadministrativecontrolandsupervision.Butindoingso,theyhavefailedtoacknowledge
thecongressionalprerogativetoredefineadministrativerelationships,alicensewhichfallswithin
the plenary province of Congress under our representative system of democracy. Moreover,
respondentsownsuggestedinterpretationfallswaywardofexpectationsofpracticalfairplay.
AdoptingrespondentssuggestionthattheDTISecretarymaydisregardthefactualfindingsof
theTariffCommissionandinvestigatoryprocessthatprecededit,itwouldseemthattheelaborate
procedureundertakenbytheCommissionundertheSMA,withalltheattendantguaranteesofdue
process,isbutaninutilespectacle.AsJusticeGarcianotedduringtheoralarguments,whywould
theDTISecretarybotherwiththeTariffCommissionandinsteadconducttheinvestigationhimself.
[99]
Certainly, nothing in the SMA authorizes the DTI Secretary, after making the preliminary
determination, to personally oversee the investigation, hear out the interested parties, or receive
[100]
evidence.
Infact,theSMAdoesnotevenrequiretheTariffCommission,whichistaskedwith
[101]
thecustodyofthesubmittedevidence,
toturnovertotheDTISecretarysuchevidenceithad
[102]
evaluatedinordertomakeitsfactualdetermination.
Clearly,asCongresstaskedittobe,itis
the Tariff Commission and not the DTI Secretary which acquires the necessary intimate
acquaintancewiththefactualconditionsandevidencenecessaryfortheimpositionofthegeneral
safeguard measure. Why then favor an interpretation of the SMA that leaves the findings of the
TariffCommissionbereftofoperativeeffectandmakesthemsubservienttothewishesoftheDTI
Secretary,apersonagewithlesserworkingfamiliaritywiththerelevantfactualmilieu?Infact,the
bare theory of the respondents would effectively allow the DTI Secretary to adopt, under the
subterfugeofhisdiscretion,thefactualdeterminationofaprivateinvestigativegrouphiredbythe
industryconcerned,andrejecttheinvestigativefindingsoftheTariffCommissionasmandatedby
theSMA.Itwouldbehighlyirregulartosubstitutewhatthelawclearlyprovidesforadubioussetup
ofnostatutorybasisthatwouldbereadilysusceptibletorankchicanery.
Moreover, the SMA guarantees the right of all concerned parties to be heard, an elemental
requirementofdue process, by theTariff Commission in the context ofitsinvestigation.TheDTI
Secretaryisnotsimilarlyempoweredortaskedtohearouttheconcernsofotherinterestedparties,
andifhe/shedoesso,itarisespurelyoutofvolitionandnotcompulsionunderlaw.
Indeed, in this case, it is essential that the position of other than that of the local cement
industryshouldbegivendueconsideration,cementbeinganindispensableneedfortheoperation
ofotherindustriessuchashousingandconstruction.Whilethegeneralsafeguardmeasuresmay
operatetothebetterinterestsofthedomesticcementindustries,itsdeprivationofcheapercement
importsmaysimilarlyworktothedetrimentoftheseotherdomesticindustriesandcorrespondingly,
thenationalinterest.Notably,theTariffCommissioninthiscaseheardtheviewsontheapplication
of representatives of other allied industries such as the housing, construction, and cementbag
[103]
industries,andotherinterestedpartiessuchasconsumergroupsandforeigngovernments.
It
isonlybeforetheTariffCommissionthattheirviewshadbeenheard,andthisisbecauseitisonly
the Tariff Commission which is empowered to hear their positions. Since due process requires a
judiciousconsiderationofallrelevantfactors,theTariffCommission,whichisinabetterpositionto
hear these parties than the DTI Secretary, is similarly more capable to render a determination
conformablywiththedueprocessrequirementsthantheDTISecretary.
Inasimilarvein,SouthernCrossaptlynotesthatininstanceswhenitistheDTISecretarywho
initiatesmotupropriotheapplicationforthesafeguardmeasurepursuanttoSection6oftheSMA,
respondents suggested interpretation would result in the awkward situation wherein the DTI
Secretary would rule upon his own application after it had been evaluated by the Tariff
[104]
Commission.PertinentlycitedisourrulinginCoronav.CourtofAppeals
thatnomancanbe
[105]
at once a litigant and judge.
Certainly, this anomalous situation is avoided if it is the Tariff
Commissionwhichistaskedwitharrivingatthefinaldeterminationwhethertheconditionsexistto
warrantthegeneralsafeguardmeasures.Thisisthesetupprovidedforbytheexpressprovisions
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of the SMA, and the problem would arise only if we adopt the interpretation urged upon by
respondents.
ThePossibilityforAdministrativeReview
OftheTariffCommissionsDetermination
TheCourthasbeenemphaticthatapositivefinaldeterminationfromtheTariffCommissionis
required in order that the DTI Secretary may impose a general safeguard measure, and that the
DTISecretaryhasnopowertoexercisecontrolandsupervisionovertheTariffCommissionandits
final determination. These conclusions are the necessary consequences of the applicable
provisionsoftheConstitution,theSMA,andlawssuchastheAdministrativeCode.However,the
law is silent though on whether this positive final determination may otherwise be subjected to
administrativereview.
ThereisnoevidentlegislativeintentbytheauthorsoftheSMAtoprovideforaprocedureof
administrative review. If ever there is a procedure for administrative review over the final
determinationoftheTariffCommission,suchproceduremustbedoneinamannerthatdoesnot
contravene or disregard legislative prerogatives as expressed in the SMA or the Administrative
Code,orfundamentalconstitutionallimitations.
In order that such procedure of administrative review would not contravene the law and the
constitutionalschemeprovidedbySection28(2),ArticleVI,itisessentialtoassertthatthepositive
finaldeterminationbytheTariffCommissionisindispensableasarequisitefortheimpositionofa
general safeguard measure. The submissions of private respondents and the Separate Opinion
cannot be sustained insofar as they hold that the DTI Secretary can peremptorily ignore or
disregard the determinations made by the Tariff Commission. However, if the mode of
administrative review were in such a manner that the administrative superior of the Tariff
Commissionweretomodifyoralteritsdetermination,thensuchreversalmaystillbevalidwithin
theconfinesofSection5oftheSMA,fortechnicallyitisstilltheTariffCommissionsdetermination,
administrativelyrevisedasitmaybe,thatwouldserveasthebasisfortheDTISecretarysaction.
However,andfatallyforthepresentpetitions,suchadministrativereviewcannotbeconducted
by the DTI Secretary. Even if conceding that the Tariff Commissions findings may be
administratively reviewed, the DTI Secretary has no authority to review or modify the same. We
havebeenemphaticonthereasonssuchasthatthereisnotraditionalorstatutorybasisplacing
theCommissionunderthecontrolandsupervisionoftheDTIthattoallowsuchwouldcontravene
dueprocess,especiallyiftheDTIitselfweretoapplyforthesafeguardmeasuresmotuproprio.To
holdotherwisewoulddestroytheadministrativehierarchy,contraveneconstitutionaldueprocess,
anddisregardthelimitationsorrestrictionsprovidedintheSMA.
Instead,assumingadministrativereviewwereavailable,itistheNEDAthatmayconductsuch
reviewfollowingtheprinciplesofadministrativelaw,andtheNEDAsdecisioninturnisreviewable
by the Office of the President. The decision of the Office of the President then effectively
substitutes as the determination of the Tariff Commission, which now forms the basis of the DTI
Secretarysdecision,whichnowwouldberipeforjudicialreviewbytheCTAunderSection29of
theSMA.ThisistheonlywaythatadministrativereviewoftheTariffCommissionsdetermination
may be sustained without violating the SMA and its constitutional restrictions and limitations, as
wellasadministrativelaw.
In bare theory, the NEDA may review, alter or modify the Tariff Commissions final
determination, the Commission being an attached agency of the NEDA. Admittedly, there is
nothing in the SMA or any other statute that would prevent the NEDA to exercise such
administrative review, and successively, for the President to exercise in turn review over the
NEDAsdecision.
Nonetheless,inacknowledgingthispossibility,theCourt,withoutdenigratingthebareprinciple
thatadministrativeofficersmayexercisecontrolandsupervisionovertheactsofthebodiesunder
itsjurisdiction,realizesthatthiscomesattheexpenseofaspeedyresolutiontoanapplicationfora
safeguardmeasure,anapplicationdependentonfluctuatingfactualconditions.Thefurtherdelay
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wouldfosteruncertaintyandinsecuritywithintheindustryconcerned,aswellaswithallotherallied
industries,whichinturnmayleadtosomemeasureofeconomicdamage.Delayiscertain,since
judicialreviewauthorizedbylawandnotadministrativereviewwouldhavethefinalsay.Thefact
thattheSMAdidnotexpresslyprohibitadministrativereviewofthefinaldeterminationoftheTariff
Commission does not negate the supreme advantages of engendering exclusive judicial review
overquestionsarisingfromtheimpositionofageneralsafeguardmeasure.
In any event, even if we conceded the possibility of administrative review of the Tariff
CommissionsfinaldeterminationbytheNEDA,suchwouldnotdenymerittothepresentpetition.It
doesnotchangethefactthattheCourtofAppealserredinrulingthattheDTISecretarywasnot
boundbythenegativefinaldeterminationoftheTariffCommission,orthattheDTISecretaryacted
without jurisdiction when he imposed general safeguard measures despite the absence of the
statutorypositivefinaldeterminationoftheCommission.
IV.CourtsInterpretationofSMA
InHarmonywithOther
ConstitutionalProvisions
In response to our citation of Section 28(2), Article VI, respondents elevate two arguments
groundedinconstitutionallaw.Oneisbasedonanotherconstitutionalprovision,Section12,Article
XIII,whichmandatesthat[t]heStateshallpromotethepreferentialuseofFilipinolabor,domestic
materialsandlocallyproducedgoodsandadoptmeasuresthathelpmakethemcompetitive.Byno
meansdoesthisprovisiondictatethattheCourtfavorthedomesticindustryinallcompetingclaims
that it may bring before this Court. If it were so, judicial proceedings in this country would be
rendered a mockery, resolved as they would be, on the basis of the personalities of the litigants
andnottheirlegalpositions.
Moreover,thedutyimposedonbySection12,ArticleXIIIfallsprimarilywithCongress,which
inthatregardenactedtheSMA,alawdesignedtoprotectdomesticindustriesfromthepossibleill
effectsofouraccessiontotheglobaltradeorder.Inconvenientlyperhapsforrespondents,theSMA
alsohappenstoprovideforaprocedureunderwhichsuchprotectivemeasuresmaybeenacted.
TheCourtcannotjustimposewhatitdeemsasthespiritofthelawwithoutgivingdueregardtoits
letter.
Inlikemindedmanner,theSeparateOpinionlooselystatesthatthepurposeoftheSMAisto
[106]
protect or safeguard local industries from increased importation of foreign products.
This
inaccuratelyleavestheimpressionthattheSMAipsofactounravelsaprotectivecloakthatshelters
all local industries and producers, no matter the conditions. Indeed, our country has knowingly
chosen to accede to the world trade regime, as expressed in the GATT and WTO Agreements,
despite the understanding that local industries might suffer illeffects, especially with the easier
entry of competing foreign products. At the same time, these international agreements were
designed to constrict protectionist trade policies by its membercountries. Hence, the median, as
expressedbytheSMA,doesallowfortheapplicationofprotectionistmeasuressuchastariffs,but
onlyafteranelaborateprocessofinvestigationthatensuresfactualbasisandindispensableneed
for such measures. More accurately, the purpose of the SMA is to provide a process for the
protection or safeguarding of domestic industries that have duly established that there is
substantial injury or threat thereof directly caused by the increased imports. In short, domestic
industriesarenotentitledtosafeguardmeasuresasamatterofrightorinfluence.
Respondents also make the astounding argument that the imposition of general safeguard
measuresshouldnotbeseenasataxationmeasure,butinsteadasanexerciseofpolicepower.
Thevainhopeofrespondentsindivorcingthesafeguardmeasuresfromtheconceptoftaxationis
toexcludefromconsiderationSection28(2),ArticleVIoftheConstitution.
This argument can be debunked at length, but it deserves little attention. The motivation
behindmanytaxationmeasuresistheimplementationofpolicepowergoals.Progressiveincome
taxesalleviatethemarginbetweenrichandpoorthesocalledsintaxesonalcoholandtobacco
manufacturers help dissuade the consumers from excessive intake of these potentially harmful
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products. Taxation is distinguishable from police power as to the means employed to implement
these public good goals. Those doctrines that are unique to taxation arose from peculiar
[107]
considerationssuchasthoseespeciallypunitiveeffectsoftaxation,
andthebeliefthattaxes
[108]
arethelifebloodofthestate.
Theseconsiderationsnecessitatedtheevolutionoftaxationasa
distinctlegalconceptfrompolicepower.Yetatthesametime,ithasbeenrecognizedthattaxation
[109]
maybemadetheimplementofthestatespolicepower.
EvenassumingthattheSMAshouldbeconstruedexclusivelyasapolicepowermeasure,the
Courtrecognizesthatpolicepowerislodgedprimarilyinthenationallegislature,thoughitmayalso
[110]
be exercised by the executive branch by virtue of a valid delegation of legislative power.
Considering these premises, it is clear that police power, however illimitable in theory, is still
exercisedwithintheconfinesofimplementinglegislation.Todeclareotherwiseistosanctionrule
by whim instead of rule of law. The Congress, in enacting the SMA, has delegated the power to
imposegeneralsafeguardmeasurestotheexecutivebranch,butatthesametimesubjectedsuch
imposition to limitations, such as the requirement of a positive final determination by the Tariff
Commission under Section 5. For the executive branch to ignore these boundaries imposed by
Congress is to set up an ignoble clash between the two coequal branches of government.
Considering that the exercise of police power emanates from legislative authority, there is little
questionthattheprerogativeofthelegislativebranchshallprevailinsuchaclash.
V.AssailedDecisionConsistent
WithRulinginTaadav.Angara
[111]
PublicrespondentsallegethattheDecisioniscontrarytoourholdinginTaadav.Angara,
since the Court noted therein that the GATT itself provides builtin protection from unfair foreign
competitionandtradepractices,whichaccordingtothepublicrespondents,wasareasonwhythe
Honorable [Court] ruled the way it did. On the other hand, the Decision eliminates safeguard
measuresasamodeofdefense.
Thisisbalderdash,aswithanyandallclaimsthattheDecisionallowsforeignindustriestoride
roughshodoverourdomesticenterprises.TheDecisiondoesnotprohibittheimpositionofgeneral
safeguard measures to protect domestic industries in need of protection. All it affirms is that the
positivefinaldeterminationoftheTariffCommissionisfirstrequiredbeforethegeneralsafeguard
measures are imposed and implemented, a neutral proposition that gives no regard to the
nationalitiesofthepartiesinvolved.ApositivedeterminationbytheTariffCommissionishardlythe
elusiveShangrilaofadministrativelaw.Ifaparticularindustryfindsitdifficulttoobtainapositive
final determination from the Tariff Commission, it may be simply because the industry is still
sufficiently competitive even in the face of foreign competition. These safeguard measures are
designedtoensuresalvation,notavarice.
Respondents well have the right to drape themselves in the colors of the flag. Yet these
postures hardly advance legal claims, or nationalism for that matter. The fineries of the costume
pageantarenobettermeasureofpatriotismthansimpleobediencetothelawsoftheFatherland.
And even assuming that respondents are motivated by genuine patriotic impulses, it must be
remembered that under the setup provided by the SMA, it is the facts, and not impulse, that
determinewhethertheprotectivesafeguardmeasuresshouldbeimposed.Asonceorated,facts
are stubborn things and whatever may be our wishes, our inclinations, or the dictates of our
[112]
passions,theycannotalterthestateoffactsandevidence.
Itisourgoalasjudgestoenforcethelaw,andnotwhatwemightdeemascorrecteconomic
policy. Towards this end, we should not construe the SMA to unduly favor or disfavor domestic
industries,simplybecausethelawitselfprovidesforamechanismbyvirtueofwhichtheclaimsof
theseindustriesarethoroughlyevaluatedbeforetheyarefavoredordisfavored.Whatwemustdo
is to simply uphold what the law says. Section 5 says that the DTI Secretary shall impose the
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general safeguard measures upon the positive final determination of the Tariff Commission.
NothinginthewhereasclausesortheinvisibleinkprovisionsoftheSMAcanmagicallydeletethe
wordspositivefinaldeterminationandTariffCommissionfromSection5.
VI.OnForumShopping
Weremainconvincedthattherewasnowillfulanddeliberateforumshoppinginthiscaseby
SouthernCross.Thecausesofactionthatanimatethispresentpetitionforreviewandthepetition
for review with the CTA are distinct from each other, even though they relate to similar factual
antecedents. Yet it also appears that contrary to the undertaking signed by the President of
Southern Cross, Hironobu Ryu, to inform this Court of any similar action or proceeding pending
beforeanycourt,tribunaloragencywithinfive(5)daysfromknowledgethereof,SouthernCross
informed this Court only on 12August 2003 of the petition it had filed with the CTA eleven days
earlier.Anappropriatesanctioniswarrantedforsuchfailure,butnotthedismissalofthepetition.
VII.EffectsofCourtsResolution
PhilcemcorarguesthatthegrantingofSouthernCrosssPetitionshouldnotnecessarilyleadto
the voiding of the Decision of the DTI Secretary dated 5 August 2003 imposing the general
safeguard measures. For Philcemcor, the availability of appeal to the CTA as an available and
adequateremedywouldhavemadetheCourtofAppealsDecisionmerelyerroneousorirregular,
butnotvoid.Moreover,thesaidDecisionmerelyrequiredtheDTISecretarytorenderadecision,
whichcouldhaveverywellbeenadecisionnottoimposeasafeguardmeasurethus,itcouldnot
besaidthattheannulleddecisionresultedfromthejudgmentoftheCourtofAppeals.
The Court of Appeals Decision was annulled precisely because the appellate court did not
have the power to rule on the petition in the first place. Jurisdiction is necessarily the power to
decideacase,andacourtwhichdoesnothavethepowertoadjudicateacaseisonethatisbereft
ofjurisdiction.WefindnoreasontodisturbourearlierfindingthattheCourtofAppealsDecisionis
nullandvoid.
Atthesametime,theCourtinitsDecisionpaidparticularheedtothepeculiaritiesattachingto
the 5 August 2003 Decision of the DTI Secretary. In the DTI Secretarys Decision, he expressly
stated that as a result of the Court of Appeals Decision, there is no legal impediment for the
Secretarytodecideontheapplication.Yetthetruthremainedthattherewasalegalimpediment,
namely,thatthedecisionoftheappellatecourtwasnotyetfinalandexecutory.Moreover,itwas
declarednullandvoid,andsincetheDTISecretaryexpresslydenominatedtheCourtofAppeals
Decisionashisbasisfordecidingtoimposethesafeguardmeasures,thelatterdecisionmustbe
voidedaswell.Otherwiseput,withouttheCourtofAppealsDecision,theDTISecretarysDecision
of5August2003wouldnothavebeenrenderedaswell.
Accordingly,theCourtreaffirmsasanullitytheDTISecretarysDecisiondated5August2003.
Asanecessaryconsequence,nofurtheractioncanbetakenonPhilcemcorsPetitionforExtension
oftheSafeguardMeasure.Obviously,iftheimpositionofthegeneralsafeguardmeasureisvoidas
wedeclaredittobe,anyextensionthereofshouldlikewisebefruitless.Theproperremedyinstead
is to file a new application for the imposition of safeguard measures, subject to the conditions
prescribedbytheSMA.Shouldthisstepbeeventuallyavailedof,itisonlyhopedthattheparties
involved would content themselves in observing the proper procedure, instead of making a
mockeryoftheruleoflaw.
WHEREFORE,respondentsMotionsforReconsiderationareDENIEDWITHFINALITY.
RespondentDTISecretaryisherebyENJOINEDfromtakinganyfurtheractiononthepending
PetitionforExtensionoftheSafeguardMeasure.
HironobuRyu,PresidentofpetitionerSouthernCrossCementCorporation,andAngaraAbello
ConcepcionRegala&Cruz,counselpetitioner,areherebygivenFIVE(5)daysfromreceiptofthis
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Resolution to EXPLAIN why they should not be meted disciplinary sanction for failing to timely
informtheCourtofthefilingofSouthernCrosssPetitionforReviewwiththeCourtofTaxAppeals,
asadvertedtoearlierinthisResolution.
SOORDERED.
Puno, Quisumbing, AustriaMartinez, Callejo, Sr., Azcuna, ChicoNazario, and Garcia, JJ.,
concur.
Davide, Jr., C.J., YnaresSantiago, SandovalGutierrez, and CarpioMorales, JJ., joins J.
PanganibaninhisSeparateOpinion.
Panganiban,J.,seeseparateopinion.
Carpio,J.,nopart.
Corona,J.,onofficialleave.
[1]

[2]

[3]
[4]
[5]

[6]
[7]
[8]
[9]

Since renamed Cement Manufacturers Association of the Philippines. See Rollo, p. 1634. Considering that the
Decisionreferredtotheprivaterespondentsbytheiroldname,thisResolutionshalldosoaswell,forthesake
ofcontinuity.
SeeSouthernCrossCementCorporationv.PhilippineCementManufacturersCorporation,G.R.No.158540, 8 July
2004,434SCRA65,6980.
SeeTaadav.Angara,338Phil.546,556(1997).
Supranote2at69.
Philcemcors application covered gray Portland cement of all types and excluded white Portland cement, aluminous
cement,andmasonrycement.Rollo,p.127.
InanOrderdated7November2001.Rollo,p.128.
Id.at303.
Id.at334341.
Id.at343.Dated5April2003.

[10]
[11]

Id.at343.

Id.at345416.

[12]

[13]
[14]
[15]

[16]
[17]

Among other claims, Philcemcor alleged that the Tariff Commission arbitrarily ignored the nature of the cement
industryinevaluatingtheinjuryfactors.Rollo,p.394.
Dated5June2003.
Rollo,pp.6784.AndconcurredinbyJusticesP.AlioHormachuelosandE.F.Sundiam.
Citing the rule that factual findings of administrative agencies are binding upon the courts and its corollary, that
courtsshouldnotinterfereinmattersaddressedtothesounddiscretionandcomingunderthespecialtechnical
knowledgeandtrainingofsuchagencies.Rollo,pp.7576,citingLitonjuav.CourtofAppeals,286SCRA136,
andSta.InesMelaleForestProductsCorporationv.Macaraig,299SCRA491.
Id.at82.
Rollo,p.685.PriortothepromulgationofthisnewDecision,SouthernCrosswasalreadyapprehensivethattheDTI
Secretary might act favorably on Philcemcors petition in light of the Court of Appeals ruling. Southern Cross
sentaletterdated19June2003toDTISecretaryRoxas,informinghimthatSouthernCrosswouldbeappealing
theCourtofAppealsDecisiontotheSupremeCourt,andthat[w]etrustthat,inaccordancewiththeRulesof
Court, you will refrain from assuming jurisdiction or from taking any action on the Application for Safeguard
Measures filed by Philcemcor until after the Supreme Court shall have finally decided on our appeal xxx. See
Rollo,pp.679680.

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[18]
[19]
[20]

[21]
[22]
[23]
[24]

[25]

[26]
[27]
[28]
[29]

[30]
[31]

[32]

[33]

[34]
[35]
[36]

SouthernCrossCementCorpvsCementManufacturersAssnofthePhils:158540:August3,2005:J.Tinga:EnBanc:Resolution

Id.at688690.
Id.at681699.
Id. at 775. The pleadings selfexplanatory caption was Reply to PHILCEMCORs Opposition (to Petitioners
ApplicationforaTemporaryRestrainingOrderAnd/orWritofPreliminaryInjunction).
Id.at9521005.
InaResolutiondated4February2004.SeeRollo,p.1191.
TSN,18February2004,p.3.
TheDecisionwaspennedbytheauthorofthisResolution,andconcurredinbySeniorAssociateJusticeReynato
S. Puno (Chairman of the Second Division), Associate Justices Leonardo A. Quisumbing, Alicia Austria
MartinezandRomeoJ.Callejo,Sr.
Southern Cross filed a Manifestation and Motion dated 20 July 2004, alleging a barrage of press releases by
Philcemcor,theDTIandtheiralliescriticalofthisCourtsDecision,characterizingsuchasawellorchestrated
andmalevolentschemeobviouslyintendedtocoerceandpressurethisHonorableCourttoreversetheDecision
and/ortoinfluenceitsresolution.Withoutgivingcredencetotheseallegations,theSecondDivisionoftheCourt
found it prudent to issue a Resolution dated 15 September 2004 enjoining the parties and their counsels,
whether directly or indirectly, from making any public comments in any public forum until the case was finally
adjudicated.SeeRollo,pp.25822585.
Rollo,p.2587.
Seenote22.
SeeTSNdated1March2005,p.5.
A copy of this petition was attached as Annex E to Southern Crosss Urgent Motion dated 15 December 2004.
Rollo,p.2970.
Id.
SeeSection1,Rule65,1997RulesofCivilProcedure.SeealsoBuildingCareCorp.v.NLRC,335Phil.1131,1138
(1997)Bernardov.CourtofAppeals,341Phil.413,425(1997)BFCorporationv.CourtofAppeals,351Phil.
507,519(1998)Tanv.Sandiganbayan,354Phil.463,469(1998).
Before the passage of Republic Act No. 9282 on 30 March 2004, appeals from the decisions of the Court of Tax
AppealswastotheCourtofAppeals.
Interestingly,whiletheSeparateOpinionaccedestothemajorityrulingthattheCourtofAppealshadnojurisdiction
overPhilcemcorspetitionconsideringtheavailabilityofappealtotheCourtofTaxAppeals,itmakesthecurious
statementthat[a]ccordingly,thepresentPetition,whichseeksareviewofavoidDecisionoftheCAshould,in
the ordinary course, also be dismissed. Generally, this Court cannot review a legally inexistent judgment.
SeparateOpinion,infra.In support of this proposition, the case of Velarde v. SJS, G.R. No. 159357, 28April
2004, 428 SCRA 283, is cited. However, a perusal of Velarde, which was penned by the Separate Opinions
author, reveals the Courts actual statement as follows: Indeed, the assailed Decision was rendered in clear
violation of the Constitution, because it made no findings of facts and final disposition. Hence, it is void and
deemed legally inexistent. Consequently, there is nothing for this Court to review, affirm, reverse or even just
modify. Velarde, id. Obviously, the averment in Velarde meant that the Court would be hard put to review a
decision that had no finding of facts to evaluate, or a disposition to reverse, affirm or modify. However, as
transmutedintheSeparateOpinion,itwouldnowconcludethatalegallyinexistentorvoiddecisionoftheCourt
ofAppeals,oranyothercourtforthatmatter,cannotbereviewedbythisCourt.
SeeSection7,RepublicActNo.9282(2004).
Rollo,p.2435.
TheSeparateOpinioncharacterizesthisstatementasloose,citingthelegaltruismthatinterlocutoryordersarenot
subject to an appeal or a petition for review until the main case is finally resolved on the merits. However,

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Section29doesnotqualifywhichrulingsoftheDTISecretaryareexemptfromjudicialreviewbytheCTA.On
theotherhand,theprovisionstatesthatallrulingsoftheDTISecretaryissuedinconnectionwiththeimposition
ofageneralsafeguardmeasure,suchasonwhetherprovisionalsafeguardmeasuresarewarrantedevenbefore
thematterisreferredtotheTariffCommission.Arulingimposingaprovisionalsafeguardmeasureisinasense
interlocutory, since such ruling does not finally dispose of the case. Although pending factual investigation by
theTariffCommissiononreferralbytheDTISecretary,therulingcouldproducefinancialdamageandbyreason
thereof,itisonlyfairthatthepartyaggrievedmayavailofjudicialremediesevenduringtheinvestigation.The
language of Section 29, despite the loose use of the nomenclature petition for review, allows such ruling on a
provisional safeguard measure, interlocutory as it may be, to fall within the ambit of review of the CTA, which
afterallhasthespecializedcompetencetoadjudgetheproprietyoftheprovisionalmeasure.
[37]
[38]
[39]
[40]
[41]
[42]
[43]
[44]
[45]
[46]
[47]
[48]
[49]
[50]

463U.S.85(1983).
514U.S.645(1995).
Rollo,p.2437.
Ibid.
514US645(1995).
Id.at656.
SouthernCross,supranote2,at87.
Id.at88.
Citedas295SCRA470(1998).
MemorandumforPublicRespondentsdated1April2005,p.75.
Rollo,p.2509.
SouthernCross,supranote2,at91.
ArticleVI,Section28(2),1987Constitution.Emphasissupplied.
As delineated under the SMA, the DTI (for nonagricultural products) and Agriculture (for agricultural products)
Secretaries are authorized under Section 5 to impose the general safeguard measures upon a positive final
determination made by the Tariff Commission. Preliminary to such imposition, the secretaries are authorized
underSection6toconductaninitialreviewofapetitionforimpositionofsuchmeasures,ormotuproprioinitiate
a preliminary safeguard investigation, and to impose a provisional safeguard measure under Section 7 even
before transmittal of the application to the Tariff Commission for investigation. Upon a positive final
determinationbytheTariffCommission,theSecretariesmay,underSection13,nowchoosewhichappropriate
definitive safeguard measures to adopt. Under Sections 18 and 19, the DTI and Agriculture Secretaries are
similarly tasked, in conjunction with the Tariff Commission, to act upon actions to reduce, modify or terminate
theexistingsafeguardmeasures,andtoextendorreapplysuchsafeguardmeasures.
The Tariff Commission is empowered, upon referral of the application by the DTI or Agriculture
Secretaries, to conduct its investigation pursuant to Sections 9 to 11 of the SMA, and to arrive at its final
determination of the existence of the factual conditions listed under Section 5 and 12. It likewise is tasked to
investigate the factual basis for actions to reduce, modify, terminate, extend or reapply the existing safeguard
measuresunderSections18and19oftheSMA.ItsfindingsaretobecontainedinareportsubmittedtotheDTI
orAgricultureSecretaries,underSection14.Finally,pursuanttoSection20,itlikewiseconductsanevaluation
oftheeffectivenessoftheactionstakenbythedomesticindustryafterterminationofthesafeguardmeasures.

[51]
[52]

[53]

Section5,Rep.ActNo.8800.Emphasissupplied.
WhileSection5denominatestheDTIorAgricultureSecretaryastheofficerwhoimposesthesafeguardmeasures,
it should be understood that they do so as alter egos of the President, the person who is allowed by the
Constitutiontobedelegatedtheauthoritytoimposetariffsandrestrictions.Infra.
Rollo,p.2398.

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SeeSection18,ArticleVII,Constitution,theprovisionwhichauthorizesthedeclarationofmartiallaw.Theonlytime
the word only is used in the provision is in the context of limiting the extent of the suspension of the writ of
habeas corpus. The suspension of the privilege of the writ shall apply only to persons judicially charged for
rebellionoroffensesinherentinordirectlyconnectedwithinvasion.
Conducted on 28 September 1999. Punzalan, who died in May of 2001, was the author of House Bill No. 7613,
whicheventuallybecametheSMA.
Rollo,pp.1415.
ParticularlytellingaretheremarksofthenSenatorRaulRoco:ButtheSecretarydoesnotactalone.Theremustbe
a positive finding by the Commission. Rollo, p. 2818, and that of then Congressman Sergio Apostol: The final
decision is in the choice of actions to impose rather than in the choice of whether to impose or not despite a
positive determination of injury. Rollo, p. 2819. Interestingly, Southern Cross likewise cites the comments of
CongressmanPunzalansimilarlyreliedonbythepetitioner.
AsnotedintheDecision,itiseasytoselectivelycitepassages,sometimesoutoftheirpropercontext,inorderto
assertamisleadinginterpretation....Minorityorsolitaryviews,anecdotalruminations,oreventheoccasional
crudewitticisms,mayimproperlyacquirethemantleoflegislativeintentbythesolevirtueoftheirpublicationin
the authoritative congressional record. Southern Cross, supra note 2, at 95. U.S. Supreme Court Justice
AntoninScaliahasbeenquotedassaying,Wearegovernedbylaws,nottheintentionoflegislators.Conroyv.
Aniskoff,507U.S.511,519(1993),ScaliaJ.,concurring.Headdedthatstatementsonthelegislativeflooreven
bythebillsauthororsponsorarenotratifiedbythelegislativebodyasawholeandthusdonotreflectmorethan
theindividualdesireofthepersonmakingthestatement.Ibid.
SouthernCross,supranote2,at99104.
See Section 13, Rep. Act No. 8800. Notably, the duty of the DTI Secretary to immediately issue through the
Secretary of Finance, a written instruction to the Commissioner of Customs authorizing the return of the cash
bondsistheonlyroleallocatedbytheSMAtotheDTISecretaryintheeventofanegativefinaldetermination.
SeparateOpinion,infra.
In fact, the remarks of Chairman Abon can even be construed the other way. He speaks of the Commission as
makingrecommendations,andindeedtheTariffCommissionisobligedtorecommendwhatparticularsafeguard
measurestoimplement.TheadviceoftheCommissiononthispointmaybehighlypersuasive,yetitdoesnot
bind the DTI Secretary. Nor would the Tariff Commission have the power to implement the general safeguard
measures. However, the fact remains that the Tariff Commission must come out with a positive final
determinationbeforetheDTISecretarymayimposethegeneralsafeguardmeasures.
SouthernCross,supranote2at74.
SeeSection1,Chapter1,TitleIII,BookIV,AdministrativeCode.
SeparateOpinion,infra.
95Phil.142(1954)
ThefactthattheresolutionwasapprovedbytheCabinetandthecollectionoftheroyaltyfeeswasnotdecreedby
virtueofanorderissuedbythePresidenthimselfdoesnot,inouropinion,invalidatesaidresolutionbecauseit
cannotbedisputedthattheactoftheCabinetisdeemedtobe,andessentiallyis,theactofthePresident.Marc
Donnellyv.Agregado,id.,at146147
SeeSection16,Chapter4,SubtitleC,TitleII,BookV,AdministrativeCodeof1987.
SeeSection2,Chapter1,SubtitleC,TitleII,BookV,AdministrativeCodeof1987.
Respondents point out that the DTI Secretary is a member of the NEDA Board, unto which the powers and
functionsoftheNEDAarevested.SeeSection3,Chapter4,SubtitleC,TitleII,BookV,AdministrativeCode
of1987.Whilethismaybeso,itcannotmeanthattheDTISecretary,onhisown,canexercisethepowersand
functions of the NEDA, such as administrative supervision over its attached agencies. The DTI Secretary is
onlyoneofeleven(11)membersoftheNEDABoard,anditisonlyinthecapacityofNEDABoardmemberthat
thepersonoftheDTISecretarycanexecuteanyactthatwouldberepresentativeoftheNEDA.Insuchcase,
suchactwouldrequireeithertheconcurrenceoftheotherten(10)membersoftheNEDABoardorunderavalid

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delegationofauthoritybytheNEDABoard.Certainly,theDTISecretarycannotexecuteaunilateralactwithout
priordelegatedauthorityfromtheNEDAboardandthenclaimthatsuchactwasexecutedbytheNEDAorits
Board.
[71]
[72]
[73]
[74]

[75]
[76]
[77]
[78]

[79]
[80]
[81]
[82]

[83]

[84]
[85]
[86]
[87]
[88]
[89]
[90]
[91]

G.R.No.101273,3July1992,211SCRA219.
SeeSection104,TariffandCustomsCode.SeealsoGarciav.ExecutiveSecretary,id.at224.
SeeSection401,id.
ThesimilaritiesintheprocedureaslaiddowninRep.ActNos.8751,8752and8800arestrikingindeed,especially
astheylaydownthecommonlimitationofapositivedeterminationbytheTariffCommissionasarequisiteto
the imposition of the corresponding duty or safeguard measures. From the beginning, Southern Cross has
invokedtheprovisionsRep.ActNo.8751and8752asapplicablebyanalogytotheSafeguardMeasuresAct.
TheCourtisnotwonttorelyonindirectanalogicaljustificationsif,asinthiscase,thelawisexplicit.Still,the
analogyisapropostotheSafeguardMeasuresAct,andifanything,revealsacommontrackofmindonthepart
oftheTenthCongresswhichenactedallthreelaws.
SeparateOpinion,infra.
SeeSection23,Chapter6,TitleXV,BookIV,AdministrativeCodeof1987.
SeeSection47,Chapter6,TitleIV,BookIV,AdministrativeCodeof1987.
SeeSection16,Chapter3,TitleXIV,BookIV,AdministrativeCodeof1987,inrelationtoChapter3,TitleXIV,Book
IVofthesamestatute.
SeeSection5,Chapter1,TitleXIV,BookIV,AdministrativeCodeof1987.
SeparateOpinion,infra.
SeeSeparateOpinion,infra.
Notably, the Administrative Code of 1987, though embodied in an executive order, was promulgated by President
Aquino in the exercise of her then extant legislative powers under the aegis of the 1987 Constitution. See
Phividecv.CapitolSteel,G.R.No.155692,23October2003,414SCRA327,331citingSec.7,ArticleXVIII,
Constitution.
SeePhividecv.CapitolSteel,id.,at332citingVINCENTG.SINCO,PHILIPPINEPOLITICALLAW234235(11th
ed.,1962),ascitedbyJ.Mendoza,dissenting,inOplev.Torres,354Phil.948,10141015.
Suchabolitionsofcoursesubjectthroughpresidentialapprovalorlegislativeoverrideofapresidentialveto.
SeparateOpinion,infra.
Ibid.
SeeSouthernCross,supranote2,at9799.
G.R.No.93661,4September1991,201SCRA299.
SouthernCross,supranote2,at105106.
Seealsoid.at106.
Ibid.PhilcemcorarguesthattheWTOSafeguardsAgreementdonotrequirethatconclusiveeffectbegiventothe
findingsofafirstlevelfactfindingbody,orthatthePhilippinesmakesitdifficultfordomesticproducerstoobtain
safeguardmeasures.RespondentsMemorandumdated4April2005,p.41.Theeffectivenessofthatargument
isundercutbythefactthatevenassumingthattheSafeguardsAgreementdoesnotimposesuchrequirements,
the SMA enacted by Congress, the validity of which respondents do not question, may anyway require such
impositions,asitdoesinthiscase,basedonSection28(2),ArticleVIoftheConstitution.

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[92]
[93]

[94]
[95]
[96]

[97]

[98]
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Supranote69.
See J. Stewart, dissenting, Griswold v Connecticut, 381 U.S. 479 (1967) J. Thomas, dissenting, Lawrence v.
Texas,539U.S.558(2003).
Section8,Rep.ActNo.8800.
Id.
Including, in particular, the rate and amount of the increase in imports of the products concerned in absolute and
relative terms, the share of the domestic market taken by the increased imports, and changes in the level of
sales, production, productivity, capacity utilization, profits and losses, and employment. See Section 12, Rep.
Act No. 8800. Moreover, the Tariff Commission is precluded from making a positive determination unless the
investigation demonstrates, on the basis of objective evidence, the existence of the causal link between the
increasedimportsoftheproductunderconsiderationandseriousinjuryorthreatthereoftothedomesticindustry.
Id.
BLACKSLAWDICTIONARY,SixthEdition(1990),at1245.AccordH.deLeon&H.deLeon,Jr.,Administrative
Law:TextandCases,ThirdEdition(1998)at144.
SeeLupangcov.CourtofAppeals,G.R.No.L77372,29April1988160848,856.
SeeTSNdated1March2005,p.171.

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Expressly, the DTI Secretarys role as evaluator of evidence submitted by the concerned parties is limited to the
review documentary evidence attached to the verified petition requesting for safeguard measures, but only for
thepurposeofdeterminingwhethertheimpositionofaprovisionalsafeguardmeasureiswarranted.SeeSection
7,Rep.ActNo.8800.
SeeSection10,Rep.ActNo.8800.
UnderSection14,Rep.ActNo.8800,theenumeratedcontentsoftheReportbytheTariffCommissionislimited
to(a)theinvestigationreport(b)theproposedrecommendations(c)acopyofthesubmittedadjustmentplan
and(d)thecommitmentsmadebythedomesticindustrytofacilitatepositiveadjustmenttoimportcompetition.
This is not to mean that the Tariff Commission is absolutely barred from forwarding such evidence to the DTI
Secretary, but the fact that there is no mandate under Rep. Act No. 8800 for it to do so further bolsters the
apparent legislative intent that it is the Tariff Commission, and not the DTI Secretary, that is empowered to
makethenecessaryfactualdeterminationsthatprecedetheimpositionofthegeneralsafeguardmeasures.
SeeFootnotesNo.15&16,SouthernCross,supranote2,at7172foralistofthepartieswhoparticipatedinthe
investigationconductedbytheTariffCommission.
G.R.No.97356,30September1992214SCRA378.
Theaggrievedpartyshouldnothowever,beoneandthesameofficialuponwhoselapthecomplainthehasfiled
may eventually fall on appeal. Nemo potest esse simul actor et Judex. No man can be at once a litigant and
judge.Id.at389.
SeparateOpinion,infra.
AsU.S.ChiefJusticeMarshalloncesaid,thepowertotaxinvolvesthepowertodestroy.McCullochv.Maryland,
4Wheaton316,citedinSisonv.Ancheta,G.R.No.L59431,July25,1984.
[T]axes being the lifeblood of the government, their prompt and certain availability is of the essence. Id., citing
Verav.Fernandez,G.R.No.L31364,March30,1979,89SCRA199.
Lutz v. Araneta, 98 Phil. 148, 152 (1955) citing Great Atl. & Pac. Tea Co. v. Grosjean, 301 U.S. 412, U.S. v.
Butler,297U.S.1McCullochv.Maryland,supranote96.

SeeI.Cruz,ConstitutionalLaw,p.46.

Supranote3.

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AttributedtotheAmericanPresidentJohnAdams.

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