G.R. No. 101273 - Garcia vs. Executive Secretary

On November 27, 1990, President issued Executive Order No. 438 imposing an additional 5% ad valorem duty on all imported articles, including crude oil and oil products, on top of existing duties.
On January 3, 1991, Executive Order No. 443 increased that additional duty from 5% to 9% ad valorem across the board.

On July 24, 1991, the Department of Finance requested the Tariff Commission to initiate proceedings under Section 401 of the Tariff and Customs Code to consider a specific levy on crude oil and petroleum products (HS 27.09–27.11). The Commission held public hearings for interested parties to present evidence.
On August 15, 1991, Executive Order No. 475 reduced the additional duty on all imports from 9% to 5% ad valorem, except crude oil and oil products, which remained at 9%.
The Tariff Commission submitted to the President its “Report on Special Duty on Crude Oil and Oil Products” dated August 16, 1991.
On August 23, 1991, Executive Order No. 478 imposed, in addition to the 9% ad valorem duty, a special duty of ₱0.95 per liter (₱151.05 per barrel) on imported crude oil and ₱1.00 per liter on imported oil products.

Congressman Enrique T. Garcia filed a Petition for Certiorari, Prohibition and Mandamus assailing the validity of EOs 475 and 478 as violative of Section 24, Article VI of the 1987 Constitution (which reserves revenue bills to originate in the House of Representatives) and of Section 401 of the Tariff and Customs Code (which petitioner contended restricts presidential tariff action to “protection” of local industries, not revenue raising).

On April 30, 1992, Executive Order No. 517 lifted the additional duty imposed by EO 443 on all imports except selected articles under HS 27.09 and 27.10, thereby maintaining the 9% duty on crude oil and oil products. The Court held that this did not render the petition moot.

Whether Executive Orders Nos. 475 and 478, being revenue-generating measures, exceed the President’s authority under Section 24, Article VI of the Constitution, which vests the power to originate revenue bills exclusively in the House of Representatives.

Whether these Executive Orders contravene Section 401 of the Tariff and Customs Code, which petitioner interprets as authorizing tariff adjustments only for the protection of local industries, not for raising additional revenue.