AN ACT TO REGULATE IMPORTS AND FOR OTHER PURPOSES

Case Overview and Summary

Summary of Republic Act No. 426 (An Act to Regulate Imports)

Definitions
- Defines key terms such as "import quota", "quota allocation", "import license", "foreign exchange", "old importer", "new importer", "Board", and "Commissioner". (Section 1)

Import Control Board
- Creates an Import Control Board with three members appointed by the President, representing the Central Bank, businessmen, and consumers. (Section 2)
- The Board establishes policies, rules, and regulations for import control, supervises the Import Control Administration, and carries out the provisions of the Act. (Section 3)

Import Control Administration
- Creates an Import Control Administration headed by a Commissioner appointed by the President. (Section 4)
- The Commissioner grants quota allocations, issues import licenses, implements Board policies, and appoints personnel. (Section 4)
- The Administration has an auditor appointed by the Auditor General and a Research and Statistics Division. (Section 4)

Import Application Process
- Importers must file an application for quota allocation and license with the Import Control Administration. (Section 5)
- Old importers must provide details of their previous imports, while new importers must state their financial resources. (Section 5)
- No importation is allowed without a proper import license. (Section 6)

Import Quota Fixing
- The Board fixes import quotas based on a schedule of percentages for prime, essential, nonessential, and luxury imports. (Section 7)
- Prime imports (e.g., corned beef, meat, household remedies) are reduced by up to 40%. (Section 7, Appendix A)
- Essential imports (e.g., cotton textiles, bread, radios) are reduced by 40-60%. (Section 7, Appendix B)
- Nonessential imports (e.g., bicycles, canned fish, shoes) are reduced by 60-80%. (Section 7, Appendix C)
- Luxury imports (e.g., automobiles, liquors, jewelry) are reduced by 80-90%. (Section 7, Appendix D)
- The Board can impose maximum reductions for items with sufficient local supply. (Section 7)

Exemptions from Import Quotas
- Raw materials for prime, essential, and dollar-saving/producing commodities are exempt. (Section 8)
- Personal imports without foreign exchange, supplies for government/military/charitable use, barter imports, and religious goods are exempt. (Section 8)
- Goods imported under price control laws, for rent/lease/exhibition, and pursuant to any Price Control Law are exempt. (Section 8)

Quota Allocation Process
- The Board reserves 30-50% of import quotas for new importers over three fiscal years. (Section 14)
- Old importers' allocations are based on their previous imports and sales tax paid. (Section 12)
- New importers' allocations are based on financial capacity and business standing. (Section 14)
- The Commissioner approves applications and issues import licenses. (Section 16)
- Applications are processed in chronological order, and no application can remain pending for more than 60 days. (Section 16)

Foreign Exchange and Import Licenses
- The Monetary Board of the Central Bank certifies the available foreign exchange for imports. (Section 17)
- The Central Bank issues exchange cover upon presentation of an import license. (Section 18)
- If foreign exchange is insufficient, the Board reduces it proportionately among license holders. (Section 19)

Penalties and Violations
- Violations are punishable by a fine of ₱5,000-₱50,000, imprisonment of 2-5 years, or both. (Section 20)
- Aliens face deportation in addition to fines. (Section 20)
- Juridical persons are subject to fines, and their licenses may be revoked. (Section 20)
- Imported goods in violation are subject to forfeiture. (Section 20)
- Officials involved in bribery or aiding violations face additional penalties and disqualification. (Section 20)

Appropriation and Repeals
- ₱750,000 is appropriated annually for the Board and Administration's expenses. (Section 21)
- Conflicting laws, orders, and regulations are repealed. (Section 22)
- The Board must fix import quotas within 60 days, and existing quotas and allocations remain in effect until revised. (Section 23)
- The Act takes effect upon approval. (Section 24)