Case Summary (G.R. No. L-3875)
Relevant Legislation
Republic Act No. 330, enacted in July 1948, authorized the Philippine President to regulate the importation of non-essential or luxury articles. Subsequent to this, Executive Order No. 295 was issued on November 29, 1949, detailing the requirements for import licenses. Notably, leaf tobacco was not included in the list of restricted items under this order. However, the landscape changed with the approval of Republic Act No. 426 on May 19, 1950, which placed leaf tobacco under import control, instituting a necessity for an import license.
Initial Inquiry and Subsequent Shipments
Harry S. Stone hill, President of the United States Tobacco Corporation, posed inquiries to Secretary Cornelio Balmaceda regarding the importation of Virginia leaf tobacco. Secretary Balmaceda clarified that the importation of this commodity did not require a license, provided it was treated as part of initial investments without any remittance of foreign exchange. Following this assurance, multiple shipments of leaf tobacco were made to the Philippines, arriving in June 1950.
Legislative Developments and Import Control Board Actions
With the enactment of Republic Act No. 426, the Import Control Board placed restrictions on the importation of leaf tobacco, necessitating an import license for these shipments. Consequently, the Commissioner of Customs refused to release the shipments consigned to the United States Tobacco Corporation, asserting that the goods were subject to the newly established import regulations despite them being en route prior to the act's enactment.
Legal Interpretation of Import Regulations
The crux of the legal issue lies in whether the goods in transit at the time of Republic Act No. 426's approval were subjected to the new regulations. The law's provisions specified the importance of import licenses for items initially deemed uncontrolled. Importantly, the determination of the date of importation was critical; it was established that the date of shipment—rather than the date of arrival—should be considered the legal date of importation.
Ruling on the Validity of Import Actions
The court concluded that since the United States Tobacco Corporation's shipments left prior to the enactment of Republic Act No. 426, they were not illegal under the new law. The insistence by the respondents on legal formalities contravened the principle of fairness, especially after a governme
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Background of the Case
- The case involves the United States Tobacco Corporation as the petitioner against Rufino Luna, in his official capacity as the Import Control Commissioner, and Alfredo Jacinto, as the Acting Commissioner of Customs.
- The legal dispute arose from the provisions of Republic Act No. 330, enacted in July 1948, which allowed the President of the Philippines to establish an import control system for non-essential or luxury articles.
- Following this, Executive Order No. 295 was issued on November 29, 1949, detailing regulations for importing such articles.
Key Provisions of Executive Order No. 295
- Section 1 mandated that no articles listed in the specified section could be imported without an import license from the Import Control Board.
- Section 12 stipulated the necessity of an import license for every foreign order placed post-effectivity of the order, with confiscation of articles ordered without a license.
Inquiry and Response Regarding Leaf Tobacco
- Leaf tobacco was not included in the list of articles requiring an import license under Executive Order No. 295.
- Harry S. Stonehill, President of the United States Tobacco Corporation, sought clarification on whether shipments of leaf tobacco could be made without a license.
- On March 7, 1950, Secretary Cornelio Balmaceda confirmed that Virginia leaf tobacco was not under import control, allowing shipments for use in a new cigarette factory.