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    1 Executive Secretary Vs Southwing Heavy Industries

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    Maribeth G. Tumaliuan
    The Supreme Court ruled that Executive Order 156, which banned the importation of used vehicles through the Subic Bay Freeport Zone, was invalid. The order exceeded the President's authority by extending the import prohibition to the Freeport Zone, which the Bases Conversion and Development Act of 1992 considers to some extent a foreign territory. The domestic industry the order aimed to protect was the Philippines' customs territory, not the Freeport Zone, where national tariff and customs laws do not apply.

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    1 Executive Secretary Vs Southwing Heavy Industries

    Uploaded by

    Maribeth G. Tumaliuan
    2K views1 page
    The Supreme Court ruled that Executive Order 156, which banned the importation of used vehicles through the Subic Bay Freeport Zone, was invalid. The order exceeded the President's authority by extending the import prohibition to the Freeport Zone, which the Bases Conversion and Development Act of 1992 considers to some extent a foreign territory. The domestic industry the order aimed to protect was the Philippines' customs territory, not the Freeport Zone, where national tariff and customs laws do not apply.

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    Statutory Construction Case Digest

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    1 Executive Secretary vs Southwing Heavy Industries

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    The Supreme Court ruled that Executive Order 156, which banned the importation of used vehicles through the Subic Bay Freeport Zone, was invalid. The order exceeded the President's authority by extending the import prohibition to the Freeport Zone, which the Bases Conversion and Development Act of 1992 considers to some extent a foreign territory. The domestic industry the order aimed to protect was the Philippines' customs territory, not the Freeport Zone, where national tariff and customs laws do not apply.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views1 page

    1 Executive Secretary Vs Southwing Heavy Industries

    Uploaded by

    Maribeth G. Tumaliuan
    The Supreme Court ruled that Executive Order 156, which banned the importation of used vehicles through the Subic Bay Freeport Zone, was invalid. The order exceeded the President's authority by extending the import prohibition to the Freeport Zone, which the Bases Conversion and Development Act of 1992 considers to some extent a foreign territory. The domestic industry the order aimed to protect was the Philippines' customs territory, not the Freeport Zone, where national tariff and customs laws do not apply.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    EXECUTIVE SECRETARY VS SOUTHWING HEAVY INDUSTRIES, INC.

    G.R. NO. 164171. FEBRUARY 20, 2006

    FACTS:

    On December 12, 2002, President Gloria Macapagal Arroyo issued Executive Order 156 entitled
    "Providing for a comprehensive industrial policy and directions for the motor vehicle
    development program and its implementing guidelines." The said provision prohibits
    the importation of all types of used motor vehicles in the country including the Subic Bay
    Freeport, or the Freeport Zone, subject to a few exceptions. Consequently, three separate
    actions for declaratory relief were filed by Southwing Heavy Industries Inc., Subic Integrated
    Macro Ventures Corp, and Motor Vehicle Importers Association of Subic Bay Freeport Inc.
    praying that judgment be rendered declaring Article 2, Section3.1 of the EO 156 unconstitutional
    and illegal.

    The RTC rendered a summary judgment declaring that Article 2, Section 3.1 of EO 156 constitutes
    an unlawful usurpation of legislative power vested by the Constitution with Congress and that
    the proviso is contrary to the mandate of Republic Act 7227(RA7227) or the Bases Conversion
    and Development Act of 1992 which allows the free flow of goods and capital within the Freeport.

    Appeal in the CA was denied.

    ISSUES:

    Whether or not the Executive Order banning the importation of used vehicles through the Free
    Trade Zone is valid.

    HELD:

    NO. EO 156, exceeded the scope of its application by extending the prohibition on the
    importation of used cars to the Freeport, which RA 7227, considers to some extent, a foreign
    territory. The domestic industry which the EO seeks to protect is actually the "customs territory"
    which is defined under the Rules and Regulations Implementing RA 7227 which states: "the
    portion of the Philippines outside the Subic Bay Freeport where the Tariff and Customs Code of
    the Philippines and other national tariff and customs laws are in force and effect."

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