Who issues and when it takes effect
- Executive Order No. 62 is dated August 14, 1945.
- The Order takes effect two days after the date of its promulgation.
- It is done in the City of Manila on August 14, 1945, by Sergio Osmeña, President of the Philippines.
- Jose S. Reyes, Secretary to the President, signs “By the President.”
Ceiling prices and how they’re computed
- Section 1 sets the retail ceiling prices for listed commodities, computed based on the official markups in Section 2.
- Alcohol (185 proof) has a retail ceiling price of P1.00 per liter plus specific tax.
- Bread / Pan de sal ceiling prices are set per the listed units and prices: .60 per loaf and .05 per piece (for 40 gram pieces).
- Wheat flour ceiling price is set at .27 per kilo.
- Cracked corn and cracked wheat ceiling prices are set at 12.85 per cavan and .56 per ganta, and 16.56 per cavan and .72 per ganta, respectively.
- Refined salt ceiling prices are set at 10.70 per cavan and .10 per kilo.
- Sugar (refined U.S. centrifugal), muscovado, and related listed sugar ceiling prices are set at .55 per kilo, .50 per kilo, and .40 per kilo, respectively.
- Retail ceiling prices for canned goods, sardines, condensed and evaporated milk, and other specified items are set by the listed per-tin or per-unit amounts, including:
- Corned beef (16 oz. tin): .56 per tin; Spam (12 oz. tin): .96 per tin; Stew (meat and vegetables, 16 oz. tin): .60 per tin.
- Condensed milk (14 oz. tin): .52 per tin; Evaporated milk (14 oz. tin): .33 per tin.
- Canned pork and beans (16 oz. tin): .44 per tin.
- Canned sardines: Natural (15 oz. tin): .30 per tin; In tomato sauce (15 oz. tin): .34 per tin.
Markups: wholesaler and retailer percentages
- Section 2 prescribes the wholesaler and retailer markups used to fix ceiling prices.
- Wholesaler markup is stated “above landed cost,” and retailer markup is stated “above wholesaler’s price.”
- For Bulk Food, the markup is 10% (wholesaler) and 15% (retailer).
- For Canned Milk, the markup is 10% (wholesaler) and 15% (retailer).
- For Canned Meat or Fish, the markup is 10% (wholesaler) and 20% (retailer).
- For Canned Vegetables or Fruit, the markup is 15% (wholesaler) and 25% (retailer).
- For Bread or Pan de sal, the wholesaler markup appears as 25%, while the retailer markup is listed as 25%.
- For Other food, the markup is 15% (wholesaler) and 25% (retailer).
- For major non-food categories, the Order fixes markups, including:
- Steel and Iron, heavy; Building Materials: 15% (wholesaler) / 20% (retailer).
- Hardware, Nails, Wire, Tools: 15% / 25%.
- Plumbing and Electrical Fixtures: 20% / 25%.
- Textiles: 15% / 25%.
- Clothing, old or new Shoes: 20% / 30%.
- Drugs and Medical Supplies: 20% / 30%.
- Medical Equipment: 20% / 30%.
- Liquor: 25% / 25%.
- Jewelry, Novelties, Toys: 40% / 60%.
- Tobacco Products: 15% / 20%.
- Miscellaneous Building Materials: 15% / 25%.
- Paper Products, Stationary and Alcohol Supplies: 20% / 25%.
- Newsprint: 15% (wholesaler) and retailer markup shown as a.
- Machinery, Industrial and Office: 15% / 20%.
- Automobiles, Trucks and Automotive Equipments and Parts: 20% / 30%.
- Philippine-made Handicraft Articles: 20% / 30%.
- All other products not specifically mentioned: 20% (wholesaler) and retailer markup shown as 15-30%.
How ceiling prices apply in practice
- Section 3 establishes that the ceiling price for wholesalers equals landed cost plus a profit margin not exceeding the corresponding markup in Section 2.
- “Landed cost” consists of CIF Manila or port of landing value plus charges including arrastre, discharge, and delivery to the bodega.
- Section 4 establishes that the ceiling price for retailers equals the wholesaler’s invoice price plus the retailer’s expenses in transporting the goods from the wholesaler’s bodega to the point of sale, plus a profit margin not exceeding the corresponding markup in Section 2.
- Section 5 limits markup rights when a wholesaler sells directly to an industrial consumer: the wholesaler is entitled only to the wholesaler’s markup.
- Section 5 also allows combined entitlement when a wholesaler performs both wholesaler and retailer functions: the wholesaler may be entitled to both the wholesaler’s and retailer’s markups.
- Section 6 allows increases for points outside of the City of Manila or outside of the territorial jurisdiction of the port of landing: ceiling prices may be increased by an amount per unit equal to the exact amount of additional transportation expenses at government fixed rates, if any, or otherwise at the cheapest rate available, plus other necessary or unavoidable expenses incurred or to be incurred by the retailer in taking goods to the resale place.
- Section 7 establishes a presumption rule for sales in units of measure other than those specified in Section 1: such sales are presumed to be at prices exceeding the fixed ceilings, and the vendor may overthrow the presumption only by proving that the prices charged do not exceed the fixed ceiling prices.
Prohibited conduct and penalties
- Section 8 makes it unlawful for any vendor and/or owner or manager of any store, firm, or establishment to sell any listed article/commodity/merchandise at prices above the ceiling prices fixed by the Order (or above maximum selling prices fixed under the Order’s markup system).
- Section 8 also prohibits withholding goods for purposes of speculation and profiteering.
- Section 8 provides that conviction results in punishment of imprisonment of not less than fifteen days and not more than six months, or a fine of not less than fifty pesos and not more than one thousand pesos, or both, at the court’s discretion.
Repeal and effectivity
- Section 9 repeals all Executive Orders and all Emergency Control Administration Orders, or any of their provisions, that conflict or are inconsistent with Executive Order No. 62.
- Section 10 sets effectivity at two days after promulgation, for Executive Order No. 62.