QuestionsQuestions (EXECUTIVE ORDER NO. 62)
It fixes official markups for wholesalers and retailers of certain commodities to prevent excessive profits during the emergency and thereby establish reasonable ceiling prices.
The ceiling price for wholesalers is the landed cost plus a margin of profit not exceeding the corresponding markup. Landed cost consists of the CIF Manila (or port of landing) value plus charges such as arrastre, discharge, and delivery to the bodega.
The retailer ceiling price is the wholesaler’s invoice price plus the retailers’ expenses for transporting goods from the wholesaler’s bodega to the point of sale, plus a margin of profit not exceeding the corresponding markup.
In such sales, the wholesaler is entitled only to the wholesaler’s markup (not both wholesaler and retailer markups).
He may be entitled to both the wholesaler’s and the retailer’s markups.
The ceiling prices may be increased by the exact additional transportation expenses at government fixed rates if any; otherwise at the cheapest available rate, plus other necessary or unavoidable expenses incurred or to be incurred by the retailer to bring the goods to the place of resale.
Such sales may be presumed to be at prices exceeding the fixed ceiling prices, and the vendor may only rebut the presumption by proof that the charged prices do not exceed the fixed ceiling prices.
Upon conviction: imprisonment of not less than 15 days but not more than 6 months, or a fine of not less than ₱50 but not more than ₱1,000, or both, at the court’s discretion.
It repeals all Executive Orders and all Emergency Control Administration Orders (and provisions thereof) that conflict or are inconsistent with EO No. 62.
Two days after the date of its promulgation.
EO No. 62 sets specific retail ceiling prices for bread/pan de sal and, in the markup table, assigns a wholesaler markup of 25% and a retailer markup of 25% for “Bread or Pan de sal” (subject to the computation rules for ceiling prices).
For example, canned meat or fish has 10% wholesaler markup and 20% retailer markup. This implies that retailers are allowed a higher profit margin than wholesalers for that category, consistent with the markup limits.
Land ed cost is the CIF Manila (or port of landing) value plus charges such as arrastre, discharge, and delivery to the bodega.
The order states that any vendor and/or owner or manager of any store, firm, or establishment making such sale or withholding goods for speculation and profiteering shall be punished upon conviction.