QuestionsQuestions (EXECUTIVE ORDER NO. 606)
Executive Order No. 606 was issued pursuant to the powers vested in the President under Section 3 of Republic Act No. 509, which declared national policy authorizing the President (for a limited period) to fix ceiling prices of commodities and promulgate rules and regulations regarding prices.
Section 1 covers essential construction materials—specifically imported galvanized iron sheets (Japanese, Belgian, and English) and aluminum sheets (U.S.A.) and Duralmin (aluminum) sheets (Japanese)—and prohibits their sale above the maximum selling prices set for wholesalers and retailers.
The order expressly provides that the commodities “shall not be sold at more than” the maximum selling prices for wholesalers and retailers; thus, any sale above the ceilings would constitute a violation of the executive price regulation.
For each sheet specification (gauge and dimensions), the order provides two figures: a maximum selling price for wholesalers and a maximum selling price for retailers, with separate amounts listed in the table under “Wholesaler’s Price” and “Retailer’s Price.”
Section 3 states that the ceiling prices include: 17% special excise tax on foreign exchange, 7% sales tax, and 1% municipal tax.
Yes. The ceiling prices are mandatory maximum prices. Section 3 explicitly states what taxes are included; any sale above the ceiling remains a prohibited act under Section 1, regardless of the seller’s asserted justification.
Section 2 repeals: (1) Section 4 of Executive Order No. 448 (June 9, 1951), and (2) Section 3 of Executive Order No. 440 (May 8, 1953), by setting up new ceiling prices in Section 1.
Yes. The repealing clause removes the prior provisions (Sections 4 and 3 of the specified executive orders) and replaces them with the new ceiling prices set in Section 1 of Executive Order No. 606.
It takes effect three days after the date of its issuance (i.e., three days after June 26, 1953).
In this context, “essential commodities” refers to commodities considered important for public welfare and subject to regulated maximum prices—here, certain construction materials (galvanized iron and aluminum sheets).
The applicable ceiling price depends on the specific gauge number and sheet dimensions (e.g., 30x32x3, corrugated or plain). One must match the product specification listed in the table with the product being sold, then use the corresponding wholesaler or retailer ceiling price.
The order identifies categories by origin in its description (Japanese, Belgian, and English) and provides ceiling prices in the table for the listed items; students should analyze the table entries to see that ceilings vary by gauge and dimensions, and the order categorizes imports accordingly.
It clarifies that the maximum selling price already factors in those taxes. This prevents sellers from claiming that additional tax pass-through should allow pricing above the ceilings.
The order states it is issued upon the recommendation of the Price Administration Board, indicating that the Board provided input/supporting recommendations for the ceiling pricing before presidential issuance.
Replealing earlier sections signals a complete substitution for the previously existing ceiling regime for the covered commodities; thus, the new ceiling prices in Executive Order No. 606 govern.