July 1964 - Philippine Supreme Court Decisions/Resolutions
Philippine Supreme Court Jurisprudence
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G.R. No. L-12610 July 16, 1964 - BACOLOD MURCIA MILLING CO., INC. v. CENTRAL BANK OF THE PHILIPPINES:
EN BANC
[G.R. No. L-12610. July 16, 1964.]
BACOLOD MURCIA MILLING CO., INC., Petitioner-Appellant, v. CENTRAL BANK OF THE PHILIPPINES, Respondent-Appellee.
R E S O L U T I O N
LABRADOR, J.:
The motion raises two important issues: (1) that petitioner can not be held to have been estopped by his failure to protest against the enforcement of Circular No. 20 on time, and (2) that the injunction should issue on the ground that Circular No. 20 is unconstitutional.
On the first issue, the record discloses that on December 16, 1949 Export Regulations (Annex 1-B to Reply Memo. of Appellee), formerly known as E. C. Form No. 2, was promulgated with the following provisions:jgc:chanrobles.com.ph
"Without a specific license from the Central Bank no goods, merchandise and/or commodities may be shipped, forwarded, or sent direct to the exporter’s head office and/or agents abroad, or to any foreign branch or agency of such exporter, which are not covered by a draft or drafts drawn in U.S. dollars representing the full value of the goods, merchandise and/or commodities being or to be shipped, forwarded, or sent abroad, and unless the collection of the proceeds of sale of such goods, merchandise and/or commodities is to be undertaken by, or entrusted to, a bank which is incorporated or licensed to do business in the Philippines.
"All Commercial banks incorporated and/or licensed to do business in the Philippines are hereby designated agents of the Central Bank of the Philippines, for the purpose of these regulations, and a general license is hereby granted such banks to handle bills and shipping documents arising from the exportation of goods, commodities, and/or merchandise from the Philippines to foreign countries, and/or the collection of such bills or the proceeds of sale of such goods, merchandise and/or commodities in accordance with these regulations."cralaw virtua1aw library
Consonant with the above regulations, especially with the first paragraph quoted, petitioner herein had secured its export license for the sugar shipped with the accompanying drafts drawn in U.S. dollars representing the value of the whole sugar. In accordance with paragraph 2 above quoted, the drafts accompanying the sugar were, as per regulations, entrusted to the Commercial bank "for the collection of the proceeds of the sale" of the sugar. So that the petitioner herein was well aware that it was exporting its sugar subject to the conditions set forth in the said regulations, especially the paragraphs quoted above.
The supposed protest made by the petitioner herein against the collection of the proceeds of the sale in U.S. dollars by the Central Bank came after the shipment had been made under the conditions specified in the license issued by the Central Bank accompanying the corresponding draft and subject to the export regulations already mentioned. If the petitioner had really protested the enforcement of Circular No. 20, it should have refused to secure the license with the draft mentioned, with the authority granted to the commercial banks to collect the dollars for the Central Bank.
We, therefore, find no merit in the first ground of the motion for reconsideration.
With respect to the second ground, it is Our considered opinion that the matter has long become moot. Under Republic Act No. 2609, the power of the Central Bank to commandeer the dollars earned by exporters was superseded by the provisions of the said Act, which provides in part:jgc:chanrobles.com.ph
"SECTION 1. The provisions of any law to the contrary notwithstanding when and as long as the Central Bank of the Philippines subjects all transactions in gold and foreign exchange to licensing in accordance with the provisions of section seventy-four of Republic Act Numbered Two hundred sixty-five, the Central Bank, in respect of all sales of foreign exchange by the Central Bank and its authorized agent banks, shall have authority to establish a uniform margin of not more than forty per cent over the banks’ selling rates stipulated by the Monetary Board under section seventy-nine of Republic Act Numbered Two hundred sixty-five, which margin shall not be changed oftener than once a year except upon the recommendation of the National Economic Council and the approval of the President. The Monetary Board shall fix the margin at such rate as it may deem necessary to effectively curtail any excessive demand upon the international reserve.
"In implementing the provisions of this Act, along with other monetary, credit and fiscal measures to stabilize the economy, the monetary authorities shall take steps for the adoption of a four-year program of gradual decontrol."cralaw virtua1aw library
The above law was implemented by Circular No. 133 of the Central Bank dated January 21, 1962 (58 O.G. p. 882).
The issue to prohibit the enforcement of said Circular No. 20 is, therefore, moot and it is unnecessary for Us to pass upon the same.
WHEREFORE, the motion for reconsideration filed by the petitioner should be, as it is hereby, denied.
Bengzon, C.J., Bautista Angelo, Concepcion, Reyes, J.B.L. and Regala, JJ., concur.
Paredes, J., did not take part.
Makalintal, J., took no part.
On the first issue, the record discloses that on December 16, 1949 Export Regulations (Annex 1-B to Reply Memo. of Appellee), formerly known as E. C. Form No. 2, was promulgated with the following provisions:jgc:chanrobles.com.ph
"Without a specific license from the Central Bank no goods, merchandise and/or commodities may be shipped, forwarded, or sent direct to the exporter’s head office and/or agents abroad, or to any foreign branch or agency of such exporter, which are not covered by a draft or drafts drawn in U.S. dollars representing the full value of the goods, merchandise and/or commodities being or to be shipped, forwarded, or sent abroad, and unless the collection of the proceeds of sale of such goods, merchandise and/or commodities is to be undertaken by, or entrusted to, a bank which is incorporated or licensed to do business in the Philippines.
x x x
"All Commercial banks incorporated and/or licensed to do business in the Philippines are hereby designated agents of the Central Bank of the Philippines, for the purpose of these regulations, and a general license is hereby granted such banks to handle bills and shipping documents arising from the exportation of goods, commodities, and/or merchandise from the Philippines to foreign countries, and/or the collection of such bills or the proceeds of sale of such goods, merchandise and/or commodities in accordance with these regulations."cralaw virtua1aw library
Consonant with the above regulations, especially with the first paragraph quoted, petitioner herein had secured its export license for the sugar shipped with the accompanying drafts drawn in U.S. dollars representing the value of the whole sugar. In accordance with paragraph 2 above quoted, the drafts accompanying the sugar were, as per regulations, entrusted to the Commercial bank "for the collection of the proceeds of the sale" of the sugar. So that the petitioner herein was well aware that it was exporting its sugar subject to the conditions set forth in the said regulations, especially the paragraphs quoted above.
The supposed protest made by the petitioner herein against the collection of the proceeds of the sale in U.S. dollars by the Central Bank came after the shipment had been made under the conditions specified in the license issued by the Central Bank accompanying the corresponding draft and subject to the export regulations already mentioned. If the petitioner had really protested the enforcement of Circular No. 20, it should have refused to secure the license with the draft mentioned, with the authority granted to the commercial banks to collect the dollars for the Central Bank.
We, therefore, find no merit in the first ground of the motion for reconsideration.
With respect to the second ground, it is Our considered opinion that the matter has long become moot. Under Republic Act No. 2609, the power of the Central Bank to commandeer the dollars earned by exporters was superseded by the provisions of the said Act, which provides in part:jgc:chanrobles.com.ph
"SECTION 1. The provisions of any law to the contrary notwithstanding when and as long as the Central Bank of the Philippines subjects all transactions in gold and foreign exchange to licensing in accordance with the provisions of section seventy-four of Republic Act Numbered Two hundred sixty-five, the Central Bank, in respect of all sales of foreign exchange by the Central Bank and its authorized agent banks, shall have authority to establish a uniform margin of not more than forty per cent over the banks’ selling rates stipulated by the Monetary Board under section seventy-nine of Republic Act Numbered Two hundred sixty-five, which margin shall not be changed oftener than once a year except upon the recommendation of the National Economic Council and the approval of the President. The Monetary Board shall fix the margin at such rate as it may deem necessary to effectively curtail any excessive demand upon the international reserve.
"In implementing the provisions of this Act, along with other monetary, credit and fiscal measures to stabilize the economy, the monetary authorities shall take steps for the adoption of a four-year program of gradual decontrol."cralaw virtua1aw library
The above law was implemented by Circular No. 133 of the Central Bank dated January 21, 1962 (58 O.G. p. 882).
The issue to prohibit the enforcement of said Circular No. 20 is, therefore, moot and it is unnecessary for Us to pass upon the same.
WHEREFORE, the motion for reconsideration filed by the petitioner should be, as it is hereby, denied.
Bengzon, C.J., Bautista Angelo, Concepcion, Reyes, J.B.L. and Regala, JJ., concur.
Paredes, J., did not take part.
Makalintal, J., took no part.
