Bureau functions: standards and inspection
- Section 3 requires the Bureau to establish standards for and perform inspection of all agricultural, forest, mineral, fish, industrial, and all other products of the Philippines for which no standards have yet been fixed by law, executive order, rules and regulations.
- Section 3 requires the Bureau to conduct inspection and certification of the quality of commodities imported into the Philippines to:
- determine the country of origin; and
- determine whether products satisfy the buyer’s or importer’s requirements or specifications for domestic consumption.
- Section 3 empowers the Bureau to prohibit the discharge and/or release of articles (as growth, raw materials, manufacture, process, or produce) from countries without trade relations with the Philippine government.
- Section 3 authorizes physical, biological and/or chemical tests or analyses needed to examine products to be undertaken in any branch of the Government with facilities until the Bureau has its own facilities.
Director of Standards: powers and duties
- Section 4 places the Director of Standards under the general supervision and control of the Secretary of Commerce and Industry.
- Section 4 gives the Director general powers conferred by law upon Bureau Chiefs.
- Section 4(a) requires the Director to establish standards for products within Section 3 through rules and regulations promulgated by the Director, which the Secretary of Commerce and Industry must approve within one year.
- Section 4(b) allows the Director (personally or through authorized representatives) to inspect, sample, and certify product standards:
- Before the government (including government-owned or controlled corporations) makes any purchase of products within Section 3; and
- Before a producer, manufacturer, and/or dealer offers for sale a commodity affecting the life, health, and property of the people.
- Section 4(c) requires the Director (personally or through authorized representatives) to inspect and sample, and certify whether export shipments abroad of products within Section 3 meet the buyer’s or importer’s kind, class, grade, quality, or standard requirements when no standard has been established.
- Section 4(c) proviso directs that shipments not standardized but conforming to buyer or importer requirements must have corresponding customs or shipping papers/documents stamped with the caption “not under government commodity standardization”, and may be released by the Collector of Customs in accordance with existing Tariff and Customs Laws.
- Section 4(d) requires the Director (personally or through authorized representatives) to inspect, sample, and certify country of origin and conformity to buyer/importer requirements before any imported commodity is discharged and/or released by the Bureau of Customs.
- Section 4(d) provisos require that:
- imports not covered by or not conforming to buyer/importer requirements must be labelled or stamped conspicuously with the caption “do not conform to buyer's or importer's specifications”; and
- imports of articles originating from countries where the Philippines has no trade agreement must be confiscated and/or seized for disposal by the government.
- Section 4(e) requires the Director to fix and collect fees for inspection and certification of inspection and standard and/or testing or analyzing samples and certification of tests or analyses, and other inspection-related services requiring scientific/technological knowledge and skill.
- Section 4(f) authorizes the Director to take testimony or evidence on official matters relating to the exercise of powers, performance of duties, and accomplishment of the Act’s purpose or related rules and regulations.
- Section 4(g) authorizes the Director to initiate and undertake an official investigation into the nature of organization and business methods of any entrepreneur, person, corporation, association, partnership, or firm engaged in manufacture, marketing, and distribution of products within Section 3, but only in connection with any known or reported violation of the Act or non-compliance with rules or regulations issued under it.
Customs clearance and certification requirements
- Section 6 bars the issuance of customs export entry, import entry, declaration, release certificate, manifest, clearance, import permit, and permits to ship abroad and/or discharge for products within Section 3 and/or imported commodities unless they are first inspected under Section 4(b), (c), (d), and/or (e).
- Section 6 proviso provides that no product of the Philippines for which a standard has been established and promulgated under the Act may be sold and/or disposed of in any manner and/or exported unless the Director of Standards (or duly authorized representatives) has certified that it conforms to the applicable standard for local distribution and/or export.
- Section 6 further proviso provides that certification is not required when the manufacturer and/or exporter applies under oath to the Director of Standards that the shipment is in small quantity and the product is not for sale but for private use or consumption only.
- Section 6 imposes on all collectors of customs the duty and responsibility to enforce the prohibition on exportation and/or importation of products covered by the Act.
Sanctions for obstructing inspection
- Section 5 penalizes any person who fails or refuses to comply with a legal summon, subpoena, or subpoena duces tecum of the Director of Standards or his duly authorized agent or representative.
- Section 5 penalizes refusal to be sworn prior to testimony, refusal to answer pertinent questions, giving false or misleading data or information, or willful concealment of a material fact in any investigation made under Section 4(c), (d), (e), (f), and (g).
- Section 5 imposes imprisonment of not less than two (2) months nor more than six (6) months and a fine of not less than PHP 500 nor more than PHP 1,000.
- Section 5 requires deportation if the offender is an alien, after serving the entire period of imprisonment.
- Section 5 proviso provides that if false or misleading information is given under oath, the maximum penalty for giving false testimony shall be imposed.
Criminal penalties for illegal shipments
- Section 7 penalizes any public official, employee, individual, corporation, association, partnership, or firm effecting or abetting shipment abroad and/or facilitating discharge or distribution and/or sale for domestic consumption of any product in violation of Section 6 or related rules and regulations.
- Section 7 imposes imprisonment of not less than six (6) months nor more than two (2) years and a fine of not less than PHP 1,000 nor more than PHP 5,000.
- Section 7 requires deportation if the offender is an alien after serving the entire period of imprisonment.
- Section 7 provides corporate liability where directors or managers are held liable as principals if they knowingly permitted or failed to prevent the violation.
- Section 7 requires, for a naturalized citizen, additional penalties consisting of:
- cancellation of his naturalization certificate; and
- such registration in the civil registry; and
- immediate deportation.
- Section 7 requires, for a foreign juridical person duly licensed to do business in the Philippines, immediate revocation of its license to engage in business in the Philippines.
- Section 7 requires, for a public officer or employee, dismissal from office and perpetual disqualification from holding public office, in addition to the imprisonment and fine.
Bureau conversion, transfer, and funding
- Section 8 converts the Division of Standards into the Bureau and constitutes the Bureau with the Division’s personnel, appropriations, and share in appropriations, funds, furniture, equipment, properties, supplies, records, assets, and liabilities.
- Section 8 transfers to the Director of Standards all powers conferred, duties assigned, and activities assigned to the Division and to the Director of Commerce under Sections one hundred fifty-five, one hundred fifty-six and one hundred fifty-seven of Executive Order No. 94, series of nineteen hundred and forty-seven, including enforcement of Commerce Administrative Orders on standardization and inspection of Philippine products already promulgated under those sections.
- Section 9 appropriates PHP 1,000,000 out of any funds in the National Treasury not otherwise appropriated for salaries, wages, sundry and other expenses, furniture, and equipment needed by such Bureau personnel to carry out the Act.
- Section 10 provides that 25% of all receipts and collections accruing from enforcement of the Act and inspection and certification rules shall be set aside for disbursement for salaries, wages, sundry and other expenses, furniture, and equipment of additional personnel needed to intensify or extend Bureau activities and services.
- Section 10 requires itemization of amounts set aside in a special budget to be approved by the President upon recommendation of the Secretary of Commerce and Industry, for consideration by Congress in its regular or special session for the ensuing fiscal year.
- Section 10 provides that unitemized and unexpended balances of amounts set aside are cumulative from year to year and constitute a special fund called “Philippine Standardization and Inspection Funds” for the stated purposes and other aims and projects that render Bureau services efficient and effective.
Repeal, separability, and effectivity
- Section 11 repeals or modifies Acts, executive orders, administrative orders, and proclamations or parts thereof inconsistent with any provisions of the Act.
- Section 11 includes a separability clause stating that if any part of the Act is adjudged invalid by a court of competent jurisdiction, the remainder is not affected and the invalidity is confined to the part directly involved in the controversy.
- Section 12 states that the Act takes effect upon its approval.
- The Act is approved June 20, 1964