Case Digest (G.R. No. 238263)
Facts:
Department of Trade and Industry and its Bureau of Product Standards v. Steelasia Manufacturing Corporation, G.R. No. 238263, November 16, 2020, Supreme Court Second Division, Lazaro-Javier, J., writing for the Court.
SteelAsia Manufacturing Corporation (Steelasia) filed a petition for declaratory relief on June 24, 2016 in the Regional Trial Court (RTC), Branch 142, Makati City (Civil Case No. R‑MKT‑16‑00874‑SC), seeking nullification of several Department of Trade and Industry (DTI) issuances: DTI Department Administrative Order No. 5, Series of 2008 (DAO No. 5), its Implementing Rules and Regulations (IRR), and DTI Department Administrative Order No. 15‑01, Series of 2015 (DAO No. 15‑01) (and certain implementing guidelines for mandatory certification of steel bars). Steelasia, a local steel bar manufacturer, claimed the DTI rules unlawfully allowed conditional release of imported merchandise from Bureau of Customs (BOC) custody before testing, inspection, and certification — allegedly contravening Republic Act No. 4109 (RA 4109) — and that the regime violated the Equal Protection Clause by favoring importers over local manufacturers.
By Decision dated November 10, 2017, the RTC (Acting Presiding Judge Phoeve C. Meer) granted Steelasia’s petition, declared the assailed DTI issuances ultra vires and of no force and effect, and enjoined the DTI, BPS, and BOC to strictly implement RA 4109; reconsideration was denied by Order dated March 23, 2018. The trial court held testing and inspection must precede any release and was not persuaded the single existing testing facility justified conditional release.
The DTI and the BPS, through the Office of the Solicitor General (OSG), petitioned the Court to reverse the RTC decision, arguing conditional release is only a physical transfer from congested BOC premises to secure, accredited warehouses pending testing and that the DTI acted within its rule‑making power under EO No. 293 and in harmony with Republic Act No. 7394 (RA 7394, the Consumer Act). The OSG emphasized practical considerations (port congestion, storage costs, only one testing center — the MIRDC) and pointed to safeguards in the DTI issuances (padlocking, sealing, inventory, traceability) that preserve custody and integrity of shipments. DTI als...(Subscriber-Only)
Issues:
- Is a petition for declaratory relief a proper remedy to challenge the validity of the DTI Regulations?
- Do the DTI Regulations conflict with RA 4109 and RA 7394, rendering them ultra vires?
- Are the DTI Regulations defective for having been promulgated by DTI alone without joint promulgation with the Commissioner of Customs as allegedly required by Article 15(c) of RA 7394?
- Do the DTI Regulations violate the Equal Protection Clause by treating imported go...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)