AN ACT TO REGULATE IMPORTS AND FOR OTHER PURPOSES

[ REPUBLIC ACT NO. 650, June 15, 1951 ]

AN ACT TO REGULATE IMPORTS AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. No commodity may be imported into the Philippines without an import license issued in accordance with the provisions of this Act, with the exception of the cases mentioned in section ten hereof: Provided, That the President of the Philippines, at any time may, by executive order, when the public welfare so demands, direct the importation of any class or kind of commodity without the need of any kind of license which directly or indirectly limits or controls importation and foreign exchange.

Section 2. The import license provided for in section one of this Act shall be issued by the President of the Philippines through such existing board or instrumentality of the Government as he may choose or create to assist him in the execution of this Act. No other government instrumentality or agency shall be authorized to qualify or question the validity of any license so issued. Questions of legality and interpretation of any license shall be decided exclusively by said board or instrumentality subject to appeal to the President.

Section 3. The President, on recommendation of the board or instrumentality provided for in section two, shall, in accordance with the provisions of this Act:

Section 4. In budgeting the dollars available for essential imports, dollars shall be allocated for the importation of machinery, equipments, and raw materials for essential industries which should be encouraged and protected: Provided, however, That in the granting of dollar exchange, first priority shall be given to any government agency which is charged with the duties and functions of stockpiling essential articles, goods, or commodities, and/or with the stabilization of prices; and to all government agencies and instrumentalities for their essential needs as approved by the Department Secretary concerned.

Second priority shall be granted the needs of bona fide producers as regards the capital equipment and raw materials needed by them to the extent that they are not produced locally in adequate quantities.

After meeting the requirements mentioned above in the preceding paragraphs, the balance of the available foreign exchange shall be distributed among business firms and bona fide importers in accordance with the rules and regulations in the allocation of quotas, in proportion to their individual average importation in the year 1949, including such reasonable allocation for bona fide new Filipino importers as would encourage them to participate in importation.

The term "producers" shall include not only producers of agricultural and industrial products, but also public utilities, hospitals, publishers, educational institutions and, in general, institutions promoting the economic development of the country.

Section 5. The Monetary Board of the Central Bank of the Philippines shall certify and publish, immediately upon the passage of this Act, every six months thereafter, and also at any other time as it may deem advisable, the value of foreign exchange which shall be available for imports for the corresponding period.

Section 6. No import license shall be issued without available foreign exchange to cover such license, with the exception of cases enumerated in section ten of this Act.

Section 7. Upon the presentation to the Bureau of Customs of a duly issued import license, it shall be the ministerial duty of said Bureau to allow the entry of the import items covered by such import license.

Section 8. Unless extended in accordance with the rules and regulations, import licenses issued under this Act and which are not used within thirty days after their issue by the opening of a letter of credit or a similar transaction shall be null and void. Import licenses are non-transferable.

Section 9. Anyone who has been granted an import and corresponding foreign exchange license shall account for the investment of the latter, and, if found to have an unexpended balance, the allocation for such balance shall be cancelled. The foreign exchange corresponding to quota allocations and import licenses not used, may be the subject of new quota allocations to be issued in conformity with the rules and regulations.

Section 10. The following shall not be subject to import control and can be brought into Philippine jurisdiction without license:

Section 11. Any provisions of law to the contrary notwithstanding, import license shall be granted for the following:

Section 12. Quota allocations and import licenses granted in favor of an importer who is not a producer, covering essential commodities listed in Appendix "A" may be subjected by the Board of Directors of the Price Stabilization Corporation to a system of controls and rationing in its distribution, subject to such rules and regulations as may be issued by the said Board.

Section 13. All import licenses issued to any importer who is not a producer shall contain the condition that the importer shall reserve not less than fifty per cent of his imports for sale to bona fide Filipino merchants at the same mark-ups granted to his regular trade outlets. An importer who is unable to sell fifty per cent of his import to Filipino merchants shall apply to the President for authority to release the unused portions: Provided, That nothing contained in this Act shall in any way impair or abridge the rights granted to citizens and juridical entities of the United States of America under the Executive Agreement signed on July fourth, nineteen hundred and forty-six, between that country and the Republic of the Philippines.

Section 14. All applications for quota allocations and import licenses and all quota allocations and import licenses granted, as well as decisions, policies, rulings, orders and actions issued or taken under this Act shall be given wide publicity. The rules and regulations shall be published at least ten days before their respective dates of effectivity, giving all interested parties the opportunity within that time to present their views for consideration.

Section 15. The President may summarily bar firms or individuals from filing applications for import and/or from doing business in the Philippines for any of the following acts:

Section 16. There shall be collected on all import licenses granted a license fee of two per cent of the face value of the license, which may be used to defray the expenses of licensing. Any unexpended balance thereof shall accrue to the general funds.

Section 17. All valid quotas and licenses regularly approved by the previous Import Control Administration, the Import Control Board and the Price Stabilization Corporation before the effectivity of this Act shall be recognized and given full force and effect.

Section 18. The penalty or fine of not less than two thousand pesos (P2,000) nor more than twenty thousand pesos (P20,000), or imprisonment of not less than two years nor more than five years, or both such fine and imprisonment at the discretion of the Court shall be imposed upon persons who may be found guilty of the following acts:

Provided, furthermore, That in the case of the violation being committed by or in the interest of a foreign juridical person duly licensed to engage in business in the Philippines, the immediate revocation of such license to engage in business shall form part of the penalty to be imposed:

Provided, also, That if the act committed by a public officer or employee is penalized by any other law, the penalties prescribed in the law punishing the offense shall be imposed in addition to those prescribed herein and that of perpetual absolute disqualification:

And provided, finally, That articles, goods or commodities imported in violation of this Act shall be subject to forfeiture in accordance with the procedure established in the Revised Administrative Code, the proceedings to terminate within thirty (30) days after the importation, and under no circumstances or conditions may such goods be released to the importer without the previous approval of the President.

Section 19. Any sections and provisions of this Act that may be declared unconstitutional by a competent court shall not affect the remaining provisions hereof.

Section 20. Republic Act Numbered Four hundred and twenty-six and Executive Orders Numbered Three hundred and eighty-four and Three hundred and eighty-eight, series of 1950 and 1951, respectively, as well as any other law or order contrary to the provisions of this Act are hereby repealed.

Section 21. This Act shall take effect on July 1, 1951 and continue in effect until June 30, 1953 unless sooner repealed or amended by Congress.

Approved, June 15, 1951.

APPENDIX "A"

COMPLETELY DECONTROLLED ITEMS

Rice

Flour

Tinned Fish

Tinned Beef

Colege Textbooks

Used clothing

Paper and other materials for books

All items decontrolled or ordered imported without limitation as to volume and value by Executive Orders promulgated before the effectivity of this Act.

ESSENTIAL ITEMS OF IMPORT

(Italiced words are classifications, not items of import)

Animal, Products, inedible

Leather, unmanufacture

Leather, manufactures

Other inedible animal products

Grains and preparations

Vegetable preparations and vegetables

Rubber and manufactures

Gums

Arabic

Resins

Seeds and nursery stock

Miscellaneous vegetable products

Textiles and manufactures

Wool and wool manufactures

Hair and Manufactures

Rayon or Other Synthetic Textiles

Cork and manufactures

Paper and manufactures

Non-metallic minerals

Petroleum products

Gypsum products

Clay, Clay Products and other manufactures

Clay, Clay Products, etc.

Metal and manufactures

Advance Manufactures

Iron and Steel

Incubators and brooders-not electric

Heating and cooking equipments

Welding equipment (oxy-acetylene)

Butts and hinges

Locks

Pipes and Fittings

Machinery except agricultural and electrical

Agricultural Machinery and Implements

Non-ferrous metals, except precious

Copper and manufactures

Lead

Solder and babbit metal

Mercury (quicksilver)

Nickel

Tin

Zinc

Electrical Machinery and appliances

Vehicles and Parts

Chemicals, Drugs, Dyes, Medicines and Medical Equipment and Supplies

Anti-biotics, household remedies, proprietary medicine, etc.

Dental equipment, dental products and dental gold

Chemical, Drugs, etc.

Explosives

Paints, Pigments and Vegetables

Miscellaneous

Cellophane and manufactures

Ink, and Ink powder

Muscilage and paste

Plastic materials other than Pyroxyline products

Jute and Hessian Bags