QuestionsQuestions (BOC MEMORANDUM)
The memorandum refers to the Supreme Court decision in G.R. Nos. 124360 and 127867, titled Francisco S. Tatad, et al. v. Hon. Ruben D. Torres, et al., declaring R.A. 8180 (the Oil Deregulation Law) unconstitutional.
It has the inevitable consequence of reviving the old law that R.A. 8180 had repealed, specifically the revival of old tariff rates: 10% for crude oil and 20% for refined petroleum products.
It states that the decision “shall become final and executory on 19 December 1997.”
The memorandum states “specifically on April 16, 1996” as the effective point to determine shipments entered after the deregulation law took effect.
A list of oil shipments entered after the deregulatory act took effect (April 16, 1996) up to 19 December 1997, including the amount of duties/taxes actually collected (at 3% or 7% as the case may be).
It requires reporting the amounts actually collected at “3% or 7% as the case may be,” depending on the circumstances of the shipments.
To impose the old rates of 10% for crude oil and 20% for refined petroleum products effective 19 December 1997.
It implies that when a law is declared unconstitutional, it is considered void from the beginning and therefore cannot suspend the operation of the repealed/changed prior law; the prior tariff regime revives.
Because customs actions affecting tax liabilities and tariff rates must be aligned with the Supreme Court decision once it becomes final and enforceable; before finality, enforcement could be premature or uncertain.
Shipments are to be listed for the period April 16, 1996 to 19 December 1997 (with actual duties collected), while the old tariff rates are to be imposed starting 19 December 1997 after the decision becomes final.
It is directed to BOC personnel for compliance, and it is signed by Guillermo L. Parayno, Jr., Commissioner of Customs.
It indicates that the directives are mandatory and must be followed without deviation, reflecting the BOC’s duty to implement the Supreme Court’s ruling.
To create a factual record for review and possible adjustments, audits, refunds, or recalculations consistent with the revived tariff rates and the Supreme Court ruling’s effects.
10% for crude oil and 20% for refined petroleum products.
That R.A. 8180 previously repealed or altered the old tariff provisions, and once R.A. 8180 is voided, the old provisions (including tariff rates) must operate again.