SC voids used-car importation ban in Subic
Tetch Torres, INQ7.net
THE administration usurped the functions of the legislature when it issued an executive order that prohibits the importation of all types of used motor vehicles, except under certain conditions, the Supreme Court has said.
"To be valid, an administrative issuance must not be beyond the limits of the authority conferred. It must not supplant or modify the Constitution, its enabling statute and other existing laws, for such is the sole function of the legislature which the other branches of the government cannot usurp," the high court, through Associate Justice Consuelo Ynares-Santiago, said in its 26-page ruling.
The high court en banc said Executive Order 156 made an "invalid modification" of Republic Act 7227 or the Bases Conversion and Development Act of 1992 allowing the free flow of goods and capital within the Subic Bay Freeport.
But the high court also noted that EO 156 can still be implemented in any part of the country except the Freeport.
"The provision is declared valid insofar as it applies to the Philippine territory outside the presently fenced-in former Subic Naval Base area and void with respect to its application to the secured fenced-in former Subic Naval Base area," the high court said.
It pointed out that prohibiting the importation ban in the Freeport through the EO rendered useless the purpose of RA 7227, which is to draw investors into the country.
On February 14 last year, the Court of Appeals affirmed the decision of the Olongapo City Regional Trial Court declaring as unconstitutional EO 156, signed by President Gloria Macapagal-Arroyo on Dec.12, 2004.
Specifically, the ban was contained in Section 3 of EO 156 which provides that the importation of all types of used motor vehicles is prohibited, except under certain conditions.
The government has justified the imposition of the ban on used motor vehicle importation as part of the government's comprehensive industrial policy to fully develop the local motor vehicle industry.
The order was questioned by the Motor Vehicle Importers Association (MVIA) of Subic Bay Freeport Inc., (MVIA) and several other companies within the Freeport and got a favorable ruling from the lower court.
The government appealed before the Appeals Court which noted that the EO tended to give the President legislative powers.
It also noted that aside from EO 226 or the Omnibus Investment Code of 1987, which was used as basis for the issuance of EO 156, there was no other basis for banning the importation of used vehicles.
EO 226 is a law of general application while RA 7227 is a special law. Under the rules, a general law may not prevail over a law enacted to apply to a specific situation, the Appeals Court said.
THE administration usurped the functions of the legislature when it issued an executive order that prohibits the importation of all types of used motor vehicles, except under certain conditions, the Supreme Court has said.
"To be valid, an administrative issuance must not be beyond the limits of the authority conferred. It must not supplant or modify the Constitution, its enabling statute and other existing laws, for such is the sole function of the legislature which the other branches of the government cannot usurp," the high court, through Associate Justice Consuelo Ynares-Santiago, said in its 26-page ruling.
The high court en banc said Executive Order 156 made an "invalid modification" of Republic Act 7227 or the Bases Conversion and Development Act of 1992 allowing the free flow of goods and capital within the Subic Bay Freeport.
But the high court also noted that EO 156 can still be implemented in any part of the country except the Freeport.
"The provision is declared valid insofar as it applies to the Philippine territory outside the presently fenced-in former Subic Naval Base area and void with respect to its application to the secured fenced-in former Subic Naval Base area," the high court said.
It pointed out that prohibiting the importation ban in the Freeport through the EO rendered useless the purpose of RA 7227, which is to draw investors into the country.
On February 14 last year, the Court of Appeals affirmed the decision of the Olongapo City Regional Trial Court declaring as unconstitutional EO 156, signed by President Gloria Macapagal-Arroyo on Dec.12, 2004.
Specifically, the ban was contained in Section 3 of EO 156 which provides that the importation of all types of used motor vehicles is prohibited, except under certain conditions.
The government has justified the imposition of the ban on used motor vehicle importation as part of the government's comprehensive industrial policy to fully develop the local motor vehicle industry.
The order was questioned by the Motor Vehicle Importers Association (MVIA) of Subic Bay Freeport Inc., (MVIA) and several other companies within the Freeport and got a favorable ruling from the lower court.
The government appealed before the Appeals Court which noted that the EO tended to give the President legislative powers.
It also noted that aside from EO 226 or the Omnibus Investment Code of 1987, which was used as basis for the issuance of EO 156, there was no other basis for banning the importation of used vehicles.
EO 226 is a law of general application while RA 7227 is a special law. Under the rules, a general law may not prevail over a law enacted to apply to a specific situation, the Appeals Court said.
posted by OlongapoCity Zambales at
8:37 PM
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