G.R. No. L-20700 - Teodoro vs. Macaraeg

Act No. 2380, enacted on February 28, 1914, provides for the inspection, grading, and baling of abaca (Manila hemp), maguey (cantala), sisal, and other fibers.
The Act defines specific terms such as "fiber," "abaca," "grading station," "grading establishment," and others in Section 1.
Section 2 details the creation of standards for the commercial grades of fibers, to be established by the Director of Agriculture.
Section 3 requires permits for grading fibers and mandates that graded fibers correspond to official standards.
Section 5 prescribes the dimensions, weight, and conditions for bales to be exported.
Sections 6 and 7 set out inspection procedures, certification, and penalties for violations, including fines and the revocation of grading permits.

Sections of the original Act were incorporated into the Administrative Code, including section 1244 concerning customs clearance and section 1783 specifying bale requirements.
Act No. 3263 (1925) established the Philippines Fiber Inspection Service and the Fiber Standardization Board, tasked with overseeing classification, baling, inspection, and standardization.
Section 1772 of the Administrative Code, as amended, vests the Fiber Standardization Board with authority to determine official fiber grading standards, issue general orders, and approve changes after public notice.
Section 1788 mandates that fibers shall not be exported in quantities greater than one bale without being graded, baled, inspected, and certified.
Section 2748 prescribes penalties, including fines up to three hundred pesos and permit revocation for counterfeiting or tampering with fiber marks or altering fiber quantity or quality.

The petitioner, Juan B. Alegre, challenged orders or actions of the Insular Collector of Customs relating to the enforcement of these grading, inspection, and baling laws for fiber exports.
The central legal question concerns whether the delegation of authority to the Fiber Standardization Board is an unconstitutional delegation of legislative power.

Whether Act No. 2380 and its amendments, particularly the delegation of authority to the Fiber Standardization Board, constitute an unconstitutional delegation of legislative power.
Whether the Fiber Standardization Board’s authority to determine official fiber grading standards and enforce inspection and certification requirements is valid under the law.
Whether the regulatory scheme established by the law and the Administrative Code properly balances legislative policy declaration and administrative execution.