Section 1. It is
hereby declared to be the national policy of the state during periods
of short supply or of unreasonable price levels to protect the interest
of the consumer by preventing, locally or generally, the scarcity,
monopolization, hoarding, injurious speculation, manipulation, and
profiteering, affecting the supply, distribution and movement of both
imported and locally manufactured or produced foodstuffs, textile,
clothing, drugs, medicines, paper and paper products, school supplies,
construction materials, agricultural and industrial machinery and their
spare parts, fertilizers, insecticides and weedicides, and fuel and
lubricants, and other commodities control of the prices of which may be
deemed essential to public interest.
Sec. 2. To implement the above-declared policy
and to carry out the provisions of this Act, the President of the
Philippines is hereby authorized, upon certification of the National
Economic Council that a commodity is in short supply or there exists
reasonable ground to believe it will disappear from the open market, or
the price thereof has risen to an abnormal level:
(1) To establish, by executive order, such maximum
prices at which the commodity may be sold at retail or wholesale, as
shall be generally fair, reasonable and equitable;
(2) To direct the NARIC, with the respect to rice
and corn, and the NAMARCO, with respect to other commodities, to import
the commodity in short supply for distribution in the local market, and
such importation shall not be subject to any tax or foreign exchange
control, but should the Price Administration Board be created, this
function shall be exercised upon its recommendation;
(3) To impound at reasonable cost, if public
interests demand, local inventories of the commodity in short supply
and order their distribution by the NAMARCO in the local market;
(4) To promulgate, by Executive Order, such rules
and regulations as may be necessary to carry out the policy declared in
Section I hereof and enforce the powers granted herein; and
(5) To designate such existing board,
instrumentality or agency, of the government, hereinafter called
Agency, to assist him in the execution of this Act, or he may upon such
certification by the National Economic Council, create a Price
Administration Board which shall be composed of a Chairman, who shall
be at the same time the Price Administrator, the General Manager of the
National Marketing Corporation (NAMARCO), the General Manager of the
National Rice and Corn Corporation (NARIC), the Chief of the Philippine
Constabulary and the Solicitor General and four other members, one to
represent producers, one to represent the distributors, and the two
others to represent the consumers, one of whom shall be a woman and the
other to represent labor, who shall be appointed by the President of
the Philippines with the consent of the Commission on Appointments.
The Chairman shall receive a compensation of twelve thousand pesos per
annum and the four other appointive members shall each receive a per
diem of twenty-five pesos for each meeting actually attended by them
and in no case to exceed five hundred pesos per month. Subject to the
Civil Service Law, rules and regulations, the Price Administrator shall
appoint, suspend and remove and fix the compensation of the other
officials and employees of the Board.
In the provinces, municipalities and chartered cities, the Agency or
the Price Administration Board shall enforce the provisions of this Act
through the provincial price administration committee, the municipal
price administration committee and the city price administration
committee, respectively, and shall have general supervision and control
over the said committees insofar as their duties pertain to the
enforcement of this Act.
There shall be a provincial price administration committee in each
province, to be composed of the provincial fiscal, as chairman, the
provincial commander of the Philippine Constabulary, the division
superintendent of schools, the provincial treasurer, the commercial
agent of the province or one of them so designated by the Agency or
Price Administration Board, and the head of a civic organization
appointed by the Price Administrator, as members. In provinces where
there are two or more civic organizations, the heads of at least two
such organizations shall be appointed as members of the Committee.
There shall be a municipal price administration committee in each
municipality, to be composed of the municipal treasurer, as chairman,
the chief of police, the senior public school principal teacher, and
the head of a civic organization appointed by the Price Administrator,
as members: Provided, That in municipalities where there are two or
more civic organizations, the heads of at least two of such
organizations shall be appointed as members of the committee.
There shall be a city price administration committee in each chartered
city, to be composed of the city attorney or fiscal, as chairman, the
chief of police, the city superintendent of schools, the city
treasurer, and the head of a civic organization appointed by the Price
Administrator as members. In cities where there are two or more civic
organizations, the heads of at least two such organizations shall be
appointed as members of the committee. The provincial and city price
administration committees shall appoint an executive director with a
corresponding staff for their respective committees who shall be
responsible for the management and implementation of the policies of
their respective committees.
Sec. 3. For the purposes of this Act an abnormal
price level shall be deemed to exist whenever the price, retail and/or
wholesale, of a commodity has risen to an unreasonable level
considering public interest, the procurement cost of the commodity and
the just and fair margin of profit which the wholesaler or retailer
should realize.
To determine the maximum prices provided in Sec. 2(1) hereof, the
following factors shall be taken into account:
(1) The estimated supply of the commodity available
in the market;
(2) The cost of production of the commodity, if
locally produced, or its landed cost and the duties or taxes paid
thereon if imported;
(3) The cost of distribution which shall include the
cost of transportation, storage or warehousing dues, rentals,
management, salaries and wages; and
(4) The reasonable margin of profit which should be
allowed to insure a continuous supply of the commodity and/or encourage
the local production thereof.
Sec. 4. In order to facilitate the determination
of the maximum selling prices of any commodity under price control, and
the enforcement of the provisions of this Act, the President or the
Price Administration Board if created, may require the assistance of
officials, agents, employees, agencies or instrumentalities of the
government and, where necessary, require them to act, without extra
compensation, as his or its deputies and agents.
Such deputies, agents, officials, employees and/or agencies of the
government deputized by authority of the President of the Philippines
or the Board for the purpose of enforcing the provisions of this Act,
shall have the following powers:
(1) With the written authority of the chief or head
or official in charge of the price control agency in any province, city
or municipality, to examine bills of lading, bills of sales, invoices,
books, records and other pertinent documents owned or in the possession
of any importer, producer, manufacturer, wholesaler or retailer, and
for this purpose they may, upon such written authority, by subpoena or
subpoena duces tecum, require any person to appear and testify or to
appear and produce books, records and other documents, or both; and
(2) Upon the issuance of a search warrant by a
competent court, to inspect premises, bodegas, warehouses storerooms
where stocks of controlled commodities or the documents and papers
above referred to are kept; and in the case of contumacy by, or refusal
to obey a subpoena or subpoena duces tecum issued to any such person of
the city or municipality in which such importer, wholesaler, retailer
manufacturer or producer is found or resides or transacts business,
upon application, and after notice to any such person and hearing,
shall have jurisdiction to issue an order requiring such person to
appear and give testimony or to appear and produce books, records and
other writings, or both, and any failure to obey such order of the
court shall be punished by such court as contempt thereof, with a fine
of not more than six hundred pesos or imprisonment of not more than six
months, or both.
Sec. 5. Within fifteen days after the Executive
Order establishing control of prices under Sec. 2 (1) hereof shall
have taken effect, all importers, manufacturers or producers,
wholesalers, and retailers with stocks worth not less than P1,000 of
the commodity or commodities under controlled prices shall file with
the Agency designated by the President or the Board under Sec. 2(5)
hereof, or with its duly authorized representative a complete and true
inventory of their stock under oath. Thereafter, all expected or
subsequent shipments of such commodities by importers shall be declared
under oath to the Agency or its duly authorized representative within
five days after receipt of the corresponding bills of lading and other
shipping documents. All merchandise reported as required in this Act
shall be deemed offered for sale.
Any undeclared stock shall be considered prima facie evidence of
hoarding and may be impounded by the Agency or the Board and
immediately disposed of through the NAMARCO at the controlled prices
thereof. The proceeds of such sale shall be deposited with the court of
justice having jurisdiction over the criminal case for violation of
this section and the rules and regulations promulgated pursuant
thereto. Upon conviction of the owner or possessor of such excess
stock, the said impoundage shall be considered as penalty in addition
to that prescribed in Sec. 9 hereof, but in the event the owner or
possessor accused of hoarding is found innocent, the said excess stock
shall be returned to him or, if already sold, the proceeds of the sale
be given to him without any deduction.
Sec. 6. Importers, manufacturers or producers and
wholesalers of commodities the prices of which have been placed under
control shall transmit to the Agency or Board or its duly authorized
representative a monthly report of their sales under oath.
Sec. 7. All persons engaged in the retail sale of
commodities the prices of which have been placed under control shall
post in a conspicuous place in their establishment, store or stall a
list of all commodities displayed and offered for sale with their
corresponding prices with the corresponding quantities purchased by
them and the corresponding dates of their purchase, and in addition,
shall attach to said merchandise price tags in such manner as to be
within the plain view of the public.
Sec. 8. No importer, manufacturer or producer,
wholesaler or retailer of any commodity the price of which has been
placed under control shall refuse to sell any such merchandise if he
has such merchandise in stock.
Sec. 9. Imprisonment for a period of not less than
two years not more than ten years and/or a fine of not less than two
thousand pesos nor more than ten thousand pesos shall be imposed upon
any person who, during the effectivity of the Executive Order
establishing control over the price of commodities:
(1) sells at retail or wholesale any commodity in
excess of the maximum prices established by the President of the
Philippines under Sec. 2(1) hereof;
(2) purchases any commodity in excess of the maximum
prices as provided for in the immediately preceding paragraph, unless
he makes a denunciation of the act to the proper authorities within
seven (7) days or unless it can be shown by satisfactory proof that the
purchase was done under circumstances of compelling necessity, or in
good faith;
(3) refuses to sell any commodity under price control
which he keeps either as an importer, manufacturer or producer,
wholesaler or retailer in his establishment, store or stall, whether,
displayed or not;
(4) having in stock merchandise the price of which is
under control, shall transfer the same or make a false or fictitious
sale of all or any portion thereof so as to defeat the purpose of this
Act;
(5) fails or refuses to file with the Agency or Board
of its duly authorized representative or inventory of his stock and/or
to transmit bills of lading or bills of sale; or
(6) violates any provision of this Act or any order,
rule or regulation issued pursuant to the provisions of this Act:
Provided, however, That in the case of aliens, in addition to the
penalty herein provided, the offender shall, upon conviction, be
subject to immediate deportation without the necessity of any further
proceedings on the part of the Deportation Board: Provided, further,
That if the offender is a naturalized Filipino citizen, in addition to
the penalty hereinabove provided, his naturalization certificate shall
be cancelled.
In the case of corporations, partnerships or associations, the
president, managing director or manager shall be held liable under this
Section .
In addition to the penalties prescribed above, the persons,
corporations, partnerships or associations found guilty of any
violation of this Act or of any order, rules or regulations issued
pursuant to its provisions shall be barred from the wholesale and
retail business for a period of five years for the first offense, and
shall be permanently barred for the second offense; and in the case of
importers, as additional penalty, they shall be placed on the blacklist
of the Central Bank and their import license shall immediately be
revoked.
In case the violations is committed by, or in the interest of a foreign
juridical person duly licensed to engage in business in the
Philippines, such license to engage in business in the Philippines
shall immediately be revoked.
Any government officer or employee, who, by neglect or connivance, has
enabled an importer, wholesaler, retailer or any person who has the
above described commodities in his control or possession, to hide or
transfer his stock, or has in any mannerded or abetted in the violation
or circumvention of the provisions of this Act, shall be held
criminally liable as co-principal under this section and shall, in
addition, suffer the penalty of perpetual absolute disqualification to
hold public office. Any government officer or employee who shall use
the powers vested upon him by this law or by rules and regulations
pursuant thereto, to obtain money, benefit or anything of value, or
being duly authorized by the Agency or Board to act as its agent, shall
divulge to any person, or make known information regarding the income,
method of operation or other confidential information regarding the
business of any person, association or corporation, knowledge of which
was acquired by him in the course of the discharge of his official
duties, shall be punished by both a fine of not less than five hundred
pesos nor more than five thousand pesos and imprisonment of not less
than two years nor more than five years.
The failure or refusal on the part of the seller of any commodity to
issue the corresponding serially-numbered receipt or invoice required
to be issued to the purchaser under existing law, rules or regulations,
shall be prima facie evidence that the commodity was sold in excess of
the authorized maximum selling price.
Section 10. If any provision of this Act or the
applicability of such provision to any person or circumstance shall be
held invalid, the validity of the remainder of this Act and the
applicability of such provision to other persons or circumstances shall
not be affected thereby.
Section 11. The sum of three hundred thousand pesos
or so much thereof as may be necessary is hereby appropriated out of
any funds in the National Treasury not otherwise appropriated to carry
out the provisions of this Act.
Section 12. The orders, rules and regulations that
may be promulgated by the President pursuant to the provisions of this
Act shall take effect fifteen days after their publication once a week
for two consecutive weeks in at least two newspapers, one in English
and another in the National Language, of general circulation in the
Philippines and fifteen days after the same has been posted at the
entrance of the City Hall or municipal building of each city,
municipality or municipal district in English and in the local dialect.
This Act shall be in force until December 31, 1960 unless extended or
sooner terminated by concurrent resolution of Congress: Provided,
however, That any extension of the effectivity of this Act as above
provided for may be terminated at any time also by concurrent
resolution of Congress. The orders, rules or regulations promulgated by
the President pursuant to the provisions of this Act shall continue to
be in force until terminated by Presidential proclamation or by
concurrent resolution of Congress, but in no case to extend beyond the
effectivity of this Act: Provided, further, That convictions rendered
under this Act or under the duly promulgated orders, rules or
regulations issued pursuant thereto shall remain valid and enforceable,
and prosecutions of offenses committed during the effectivity thereof
shall continue and shall not be barred until terminated by conviction
or acquittal of the accused.
Section 13. This Act shall take effect upon its
approval.
Approved: July 16, 1959
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