Question & AnswerQ&A (Act No. 307)
Commodities covered include alcohol, bread, canned meat, cracked corn, cracked wheat, wheat flour, canned milk, canned pork and beans, refined salt, canned sardines, and various forms of sugar (refined, U.S. centrifugal, muscovado).
Ceiling prices for wholesalers are determined by adding a margin of profit not exceeding the prescribed wholesaler’s markup to the landed cost, which includes the CIF Manila or port value plus charges such as arrastre, discharge, and delivery to the bodega.
Retailers' ceiling prices are the wholesalers' invoice price plus transportation expenses from the wholesaler's bodega to the point of sale and a margin of profit not exceeding the prescribed retailers' markup.
For canned milk, the wholesaler’s markup is 10% above the landed cost, and the retailer’s markup is 15% above the wholesaler’s price.
Violators are punishable upon conviction by imprisonment of not less than 15 days but not more than six months, or a fine ranging from fifty to one thousand pesos, or both, at the court’s discretion.
Sales made by units of measure other than those specified may be presumed to have exceeded the fixed ceiling prices. This presumption may be rebutted only by proof provided by the vendor that the prices do not exceed the ceiling prices.
Ceiling prices may be increased by the exact amount of additional transportation expenses at government-fixed rates or the cheapest available rate, plus other necessary unavoidable expenses incurred in bringing goods to the place of resale.
Yes, a wholesaler performing retailer functions may be entitled to both wholesaler’s and retailer’s markups.
Any Executive Orders or Emergency Control Administration Orders or provisions conflicting with this Order are repealed.
This Executive Order takes effect two days after its promulgation date, which was August 14, 1945.