Title
Unconstitutionality of Oil Deregulation Law
Law
Boc Memorandum
Decision Date
Dec 22, 1997
The Supreme Court's ruling on December 19, 1997, declared the Oil Deregulation Law (R.A. 8180) unconstitutional, reinstating previous tariff rates of 10% for crude oil and 20% for refined petroleum products, effective immediately.
A

Legal Effect of the Supreme Court Ruling

  • The unconstitutionality ruling revives the previous law that was repealed by RA 8180.
  • Specifically, the old tariff rates on oil imports, which were 10% for crude oil and 20% for refined petroleum products, are reinstated.
  • This revival of tariffs takes effect once the ruling becomes final and executory, starting December 19, 1997.

Directive to Customs Officials

  • Customs officials are directed to submit a list of oil shipments entered between April 16, 1996 (when RA 8180 took effect), and December 19, 1997.
  • The submission must include the duties and taxes actually collected during this period, which were at rates of 3% or 7% as per RA 8180.

Imposition of Old Tariff Rates

  • From December 19, 1997 onward, Customs must impose the reinstated tariff rates of 10% for crude oil and 20% for refined petroleum products.
  • This is in strict compliance with the Supreme Court ruling that nullified RA 8180.

Compliance and Enforcement

  • The memorandum orders strict adherence to the instructions to ensure proper implementation of the Court’s decision.
  • It signifies the legal transition from the deregulated regime back to the previously established tariff framework for the oil industry.

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