Legal basis: oil deregulation nullity
- The Memorandum treats Republic Act No. 8180 (the Act deregulating the downstream oil industry) as declared unconstitutional by the Supreme Court.
- The Memorandum states that the decision has the inevitable consequence of reviving the old law that Republic Act No. 8180 had repealed.
- The Memorandum directs action consistent with the Supreme Court’s clear language regarding revival of repealed tariff regimes.
- The Memorandum ties compliance to the Supreme Court ruling becoming final and executory on 19 December 1997.
Supreme Court finality date for compliance
- The Memorandum fixes 19 December 1997 as the date when the declaration of nullity becomes final/executory.
- The Memorandum orders that the relevant compliance actions be aligned with the period from April 16, 1996 (the deregulation effectivity reference) up to 19 December 1997.
- The Memorandum requires implementation of the revived tariff rates effective 19 December 1997.
Immediate reporting obligation for BOC
- The Memorandum directs submission of the list of oil shipments entered after the deregulation law took effect.
- The mandated reporting period covers shipments entered after the Deregulation Act came into effect and specifically from April 16, 1996.
- The reporting must cover entries up to 19 December 1997, when the nullity declaration becomes final/executory.
- The reporting must include the amount of duties/taxes actually collected.
Duty/tax collections to be reported
- The Memorandum requires reporting duties/taxes actually collected at 3% or 7%, as applicable “as the case may be.”
- The Memorandum’s required reporting links the duty/tax rates collected to the entries covered within the April 16, 1996 to 19 December 1997 window.
Revival and imposition of old tariff rates
- The Memorandum directs imposition of old rates resulting from the revival of the repealed tariff regime.
- The revived tariff for crude oil is 10%.
- The revived tariff for refined petroleum products is 20%.
- The Memorandum orders these old rates to be effective 19 December 1997.
- The Memorandum links the effective date of the old rates to the Supreme Court decision becoming final and executory on 19 December 1997.
Compliance instruction and enforcement posture
- The Memorandum orders strict compliance with its numbered directives.
- The compliance instructions are framed as directions to observe/comply.
- The Memorandum issues a clear operational command to Customs to both report covered entries and apply the revived rates upon finality.