Legal basis and import-control system
- Executive Order No. 193 is issued by virtue of powers vested in the President under Republic Act No. 330.
- Republic Act No. 330 authorizes the President to establish an import control system regulating imports of non-essential and luxury articles by creating an import control board.
- Republic Act No. 330 authorizes the issuance of rules and regulations to carry the import control system into effect.
- Republic Act No. 330 penalizes violations of its import control provisions.
What is regulated: non-essential and luxury imports
- Section 1 bars importing any non-essential or luxury article listed under Section 2 without a valid import license from the Import Control Board.
- Section 2 provides that the articles in Appendix A (duly certified by the Chairman of the Import Control Board, by authority of the President) are considered luxury or non-essential articles.
- Section 2 authorizes the Import Control Board, by authority of the President, to add to or delete from the Appendix A list as circumstances warrant.
Import licensing requirement and validity
- Section 1 requires an import license duly issued by the Import Control Board for each importation of the listed non-essential or luxury articles.
- The import license must be signed by authority of the President: Chairman, Import Control Board.
- Section 6 states that an import license remains valid during the quota period in which it was issued.
- Section 6 authorizes the Import Control Board to extend the expiry date if the shipment does not arrive in the Philippines during the license period for justifiable cause satisfactory to the Board.
Quotas, allocations, and limits for 1949
- Section 3 fixes the quantity or value that may be imported within the year 1949 for each listed article.
- Section 3 authorizes the Import Control Board, by authority of the President, to fix import limits quarterly, semi-annually, or annually, at the Board’s discretion, using the percentage reduction schedule in Appendix B.
- Section 4 requires the Import Control Board to fix the quota for each article in quantities or total money values.
- Section 4 requires allocation of each quota (by authority of the President) to importers duly registered for that article, based on their respective quantities or values of imports during the base period, reduced according to Appendix B percentages.
Reserved quota for new importers
- Section 5 provides that not more than 20 per cent of the quota fixed for each article shall be set aside for importers who had no importation during the base period but were subsequently registered as importers of such articles.
- Section 5 limits new importer allocations: no new importer may receive an allocation bigger than one fifth of the percentage allocated to the old importers.
- Section 5 requires applications for licenses covering any portion of this reserved 20 per cent quota to be filed within one month from the date the quota is announced.
- Section 5 provides that any portion of the reserved quota not allocated or used becomes available for allocation to the old importers.
Qualification requirements to receive a license
- Section 7 prohibits granting an import license unless the applicant meets all requirements:
- The applicant must be duly registered as an importer in the Securities and Exchange Commission or in the Bureau of Commerce.
- The applicant must be duly licensed to do business in the Philippines and must have paid all lawful taxes and fees due.
- The applicant must be registered with the Import Control Board for purposes of the Import Control Law.
Application contents required under oath
- Section 8 requires every import-license applicant to file a written application under oath with the Board before a license is issued.
- The application must state:
- The name and address of the Importer or the importer’s duly authorized agent or representative.
- The name and address of the Exporter.
- The port or ports of origin of the articles to be imported.
- The port of destination.
- The description of the articles and the quantity and declared value thereof.
Fees and revolving fund for Board operations
- Section 9 requires a filing fee of ₱2 for every application for an import license.
- Section 9 requires a license fee of ₱1 for each ₱1,500 of the c.i.f. value of the article covered by the import license, or fraction of that value amounting to ₱500 or more.
- Section 10 provides that application and license fees collected under Section 9 constitute a revolving fund for the operating expenses of the Board.
- Section 10 ties the revolving fund to Section 5 of Executive Order No. 160, series of 1948.
Consular invoice marking requirement
- Section 11 requires that every consular invoice issued for the importation of non-essential and luxury articles must show the Import License number for that importation.
Forfeiture and penalties for violations
- Section 12 provides that articles imported in violation of the Order are subject to forfeiture.
- Section 12 requires forfeiture to follow the procedure under Chapter 39 of the Revised Administrative Code.
- Section 12 also subjects violative imports to the penalties prescribed by Republic Act No. 330, the Import Control Law.
Effectivity and transition
- Section 13 sets effectivity on January 1, 1949.
- Section 13 subjects to the Order all commodities affected by the Order that leave the ports of embarkation after January 1, 1949.