Treaties

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Commissioner of Customs vs. Eastern Sea Trading (G.R.

No. L-14279)
Posted: July 25, 2011 in Case Digests

0
FACTS: EST was a shipping company charged in the importation from Japan of onion and garlic into the Philippines. In 1956,

the Commissioner of Customs ordered the seizure and forfeiture of the import goods because EST was not able to comply with

Central Bank Circulars 44 and 45. The said circulars were pursuant to EO 328 w/c sought to regulate the importation of such

non-dollar goods from Japan (as there was a Trade and Financial Agreement b/n the Philippines and Japan then). EST questioned

the validity of the said EO averring that the said EO was never concurred upon by the Senate. The issue was elevated to the Court

of Tax Appeals and the latter ruled in favor of EST. The Commissioner appealed.

ISSUE: Whether or not the EO is subject to the concurrence of at least 2/3 of the Senate.

HELD: No, executive Agreements are not like treaties which are subject to the concurrence of at least 2/3 of the members of the

Senate. Agreements concluded by the President which fall short of treaties are commonly referred to as executive agreements and

are no less common in our scheme of government than are the more formal instruments — treaties and conventions. They

sometimes take the form of exchanges of notes and at other times that of more formal documents denominated ‘agreements’ or

‘protocols’. The point where ordinary correspondence between this and other governments ends and agreements — whether

denominated executive agreements or exchanges of notes or otherwise — begin, may sometimes be difficult of ready

ascertainment. It would be useless to undertake to discuss here the large variety of executive agreements as such, concluded from

time to time. Hundreds of executive agreements, other than those entered into under the trade- agreements act, have been

negotiated with foreign governments. . . . It would seem to be sufficient, in order to show that the trade agreements under the act

of 1934 are not anomalous in character, that they are not treaties, and that they have abundant precedent in our history, to refer to

certain classes of agreements heretofore entered into by the Executive without the approval of the Senate. They cover such

subjects as the inspection of vessels, navigation dues, income tax on shipping profits, the admission of civil aircraft, customs

matters, and commercial relations generally, international claims, postal matters, the registration of trade-marks and copyrights,

etc. Some of them were concluded not by specific congressional authorization but in conformity with policies declared in acts of

Congress with respect to the general subject matter, such as tariff acts; while still others, particularly those with respect to the

settlement of claims against foreign governments, were concluded independently of any legislation.

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