Sec. 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.

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

(1)    Issue rules and regulations for the enforcement of this Act;

(2)    Formulate policies of the granting of quota allocations and import licenses;

(3)    Budget the dollars certified and made available for imports by the Central Bank of the Philippines, among commodities or groups of commodities;

(4)    Delete or add items to appendix "A"; and

(5)    Reduce or ban the importation of non-essential commodities and those that are already produced economically and in sufficient quantities in the Philippines, except what may be imported under section ten of this Act.

Sec. 4.    In budgeting the dollars available for essential imports, dollars shall be allocated for the importation of machinery, equipment, 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 stock-piling 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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-transferrable.

Sec. 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:

(a)    Commodities of a value not exceeding five thousand pesos (P5,000) already used in a foreign country by the person or family importing the same, and which are being imported for the personal use of the person or family importing them, as well as gifts sent from abroad through the post office, of a value not more than one hundred pesos (P100) each gift, unless there is evidence of abuse in the use of this privilege; and

(b)    Commodities brought from abroad by a person who is returning to the Philippines, provided they are not being brought for commercial purposes, and do not exceed one thousand pesos (P1,000) in value, unless there is evidence of abuse in the use of this privilege.

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

(a)    Commodities brought from abroad without requiring foreign exchange and imported for purposes of investment in the Philippines: Provided, That the proceeds from these goods shall be deposited in any bank and may not be withdrawn therefrom except upon proper showing to the depository bank that said proceeds will be invested in the Philippines.

(b)    Goods imported from countries with which the Philippines has barter trade agreements, preference being given to producers who export to said countries.  

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:

(1)    Any material misrepresentation in any document required by this Act or any rules or regulations issued in pursuance thereto;

(2)    Any violation of the provisions of this Act or any rules or regulations issued thereunder; and

(3)    The payment to any public official, directly or indirectly, of any fee, premium or compensation other than those allowed by laws or regulations, in connection with the issuance or granting of quota allocations or licenses.

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:

(1)    Any material misrepresentation in any document required by this Act or the rules and regulations issued thereunder;

(2)    Any violation of any provisions of this Act or of the rules and regulations issued in pursuance thereto by officers or employees having to do with the enforcement of the same;

(3)    The receiving or accepting, by any public official or employee directly or indirectly, of fees, premiums or compensations of any kind other than those allowed by law or by the rules and regulations, for the performance of any act or service connected with the issuance of import license or quota allocation;

(4)    Any violation of any provisions of this Act or of the rules and regulations issued thereunder: Provided, That in the case of aliens, the penalty to be imposed shall consist of the payment of the fine hereinabove provided for and that of immediate deportation without any further proceedings on the part of any Deportation Board;

Provided, further, That if the violation is committed by the manager, representative, director, agent or employee of any natural or juridical person in the interest of the latter, such violation shall render the employer amenable to the penalty corresponding to the offense, without prejudice to the imposition of the corresponding penalty, either personal or pecuniary or both, upon the manager, representative, director, agent or employee committing the violation;

Provided, furthermore, That in the case of violation being committed by or in the interest of 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.

Sec. 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.

Sec. 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
    Sardines
    Squid
    Mackerel
    Herring
    Salmon
    Tinned Milk

Tinned Beef
    Corned Beef
    Canned Vienna Sausage
    Corned Meat Spread
    Frozen Beef

College 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
(Italicized words are classification, not items of import)
Animal products, inedible
    Hides and skins
    Cattle
    Other hides and skins

Leather, unmanufactured
    Chamois
    Sole and harness leather
    Upper leather
    Patent leather
    Other unmanufactured leather

Leather, manufactures
    Belting
    Belting leather
    Artificial leather

Other inedible animal products
    Glues
    Animal wax

Grains and preparations
    Poultry feeds

Vegetables preparations and vegetables
    Yeast

Rubber and manufactures
    Belts
    Beltings
    Cement (rubber)
    Heels Hose
    Packing and gaskets
    Sheets, crude
    Sheets, manufactured
    Sheeting and cooling
    Soles, inner
    Soles, outer
    Rubber, friction tapes
    Tires

Gums
Arabic
    Tragacanth
    Other gums

Resins
    Camphor
    Rosen, resins
    Shellac
    Other resins and balsams
    Turpentine
    Linseed oil

Seeds and nursery stock
    Seedlings, bulbs and plants
    Onion seeds
    Other vegetable seeds
    All other seeds

Miscellaneous vegetable products
    Fooder and feeds
    Forage crop
    Fodder
    Other forage crop
    Animal feeds
    Hops

Textiles and manufactures
    Cotton
    Unmanufactured
    Raw Cotton
    Semi-manufactures
    Waste Cotton
    Yarns
    Unmercerized
    Mercerized
    Twines

Manufactures —
    Cloth
    Threads, Sewing and Crochet
    Unbleached
    Bleached
    For Embroidery
    Other
    Fabrics
    Remnants
    Miscellaneous Cotton Manufactures
    Beltings
    Filter Cloth
    Ribbon, Ink
    Shoe Tops, Rubberized Fabrics

Flax or linen
Jute and other fibers
    Bags
    Burlaps and Baggings
    Cordage
    Oakum
    Threads and Twines
    Others

Wool and wool manufactures
    Semi-manufactures
    Manufactures
    Woven Fabrics
    Waste Wool

Hair and Manufactures
    Bristles

Rayon or Other Synthetic Textiles
    Manufactures of
    Woven Fabrics
    Cloths
    Remnants
    Other Manufactures
    Threads
    Yarns

Cork and manufactures
    Stoppers
    Board or in Sheets

Paper and manufactures
    Unprinted
    Cigarette paper
    Paper for adding machine and cash register
    Printing paper
    For Books
    For Newspapers
    Roofing felt and sheathing
    Paste board and cardboard
    Wallboard

Non-metallic minerals
    Natural gas
    Coal and related fuel
    Coal
    Coke
    Petroleum products
    Bunker fuel oil
    Diesel oil
    Gasoline and other motor spirits
    Napthas — all lighter products of distillation
    Kerosene
    Lubricating oils
    Coal tar
    Creosote or dead oil
    Flotation oils
    Grease
    Petroleum asphalt
    Unmanufactured
    Other manufactures of asphalt
    Petroleum jelly (Vaseline)
    Residium and all other petroleum products from which
    light bodies have been distilled
    Wax, mineral and paraffin

Gypsum products
    Gypsum
    Plaster of Paris
    Sulphur
    Talc Powder (Not face powder)
    Glass and Glass Products
    Plate glass
    Window glass
    Sheets glass (not plate nor window)
    Bottles, vials, jars, etc.

    Bottles and jars
    Ampules and vials
    Demijohns
    Optical glass and lenses

Clay, Clay Products and other manufactures
    Chalk, crude
    China clay, kaolin
    Fire clay
    Fuller's earth
    Graphite or plumbago
    Pumice Silica

Manufactures
    Asbestos
    Packing
    Shingles and roofing
    Textiles
    Other asbestos

Clay, Clay Products, etc.

    Manufactures
    Bricks, fire
    Emery cloth and
    Emery paper
    Emery sand and powder
    Emery or corundum wheels
    Grind stones
    Hones and Whetstones
    Sewer pipe and conduits

Metals and manufactures
    Iron and steel
    Semi-manufacture
    Pig iron
    Bar iron
    Boiler plates
    Steel rods or bars
    Sheets, plates and hoop iron
    Band Hoop Iron
    Corrugated roofing
    Plain, galvanized
    Tin plates, terneplates and Jaggers tin
    Other galvanized
    Scrap, tin plates
    Steel Mill Products
    Structural Iron and Steel
    Angles and channels
    Beams
    Railroad track materials
    Pre-fabricated
    Structural
    Casting and gorgings
    Other structural
    Wire and Manufacture
    Barb wire
    Cables and Wire ropes
    Gauze Netting, fencing and fence gates
    Round wires
    Bright nail wire
    Roofing nails
    Horseshoe nails
    Except finishing nails
    Spikes
    Tacks, stapples, etc.

    Nuts, bolts, washers and rivets

Advance Manufactures
    Buckets
    Chains
    Horse shoes
    Needles

Iron and Steel
    Advance Manufactures
    Tools
    Augers, drills, braces, gimlets and reamers
    Axes, Adze and hatchets
    File and rasps
    Gauges, squares and levelers
    Hammers
    Hoes, rakes and shovels
    Planes and chisels
    Pliers
    Saws
    Vices
    Wrench
    Mechanics tools not else specified
    All other tools
Incubators and brooders — not electric
Heating and cooking equipments
Welding equipment (oxy-acetylene)
Butts and hinges
Locks
Pipes and Fittings
    Cast iron (soil)
    Steel, Black
    Steel, galvanized
    Screws
    Tackles, pulleys

Machinery except agricultural and electrical
    Printing and book binding machinery
    Book binding machine
    Printing, machine and parts
    Typesetting machines
    Typesetting machine parts
    Power Generating machinery
    Boilers and parts
    Motor parts except electric
    Stationery and marine engines
    Stationery and marine engines, parts
    All other engine and parts
    Construction and Converting machinery
    Concrete mixers and parts
    Hoisting machine
    Road making machinery road making machinery, parts
    All other machinery
    Air compressors
    Coffee and corn mills
    Fiber stripping machine fiver stripping machine, parts
    Logging equipment
    Metal grinders
    Metal working machinery and parts
    Mining machinery and parts
    Oil extracting machine and parts
    Pumps and pumping machinery and parts
    Refrigerating machinery and parts
    Saw mill machinery and parts
    Sewing machines
    Sewing machine parts
    Sugar mill and parts
    Woodworking machinery and parts
    All other machinery, machine and parts except lawn mowers.

    ice cream freezers, and laundry machines.

Agricultural Machinery and Implements
    Irrigation and other pumps
    Plows, cultivators, harrows and parts
    Reapers and mowers
    Rice Hullers and Cleaners
    Rice Hullers and Cleaners parts
    Rice Threshers
    Rice Threshers parts
    All other agricultural machinery, implements and parts
    Non-ferrous metals, except precious
    Aluminum and manufactures of
    Foil
    Sheets, corrugated
    Sheets, plain
    Antimony
    Brass and bronze
    Bars and rods
    Locks, hinges and bolts
    Machinery and parts
    Tacks, screws, nuts, bolts, washers and rivets
    Other builder's hardware
    Pipes and fittings
    Sheets
    Wire

Copper and manufactures
    Bars, ingots, slabs and pigs
    Tacks, screws, nuts, bolts, washers and rivets
    Pipes and fittings
    Sheets (Montz metal)
    Wire (bars)
    Wire, insulated

Lead
    Pigs, bars and sheets
    Bottle caps

Solder and babbit metal
    Type and type metal

Mercury (quicksilver)
Nickel
Tin
    Ingots
    Tinfoil

Zinc
    Pigs, bars and sheets
    Dusts
    Miscellaneous metal manufactures
    Bottle, caps, tinplate
    Cans, empty tinplate
    Cylinders, empty
    Drums, empty
    Ferro, alloys
    Ferrochrome
    Ferrosilicon

Electrical Machinery and Appliances
    Armatures and commutators
    Batteries, flashlights
    Batteries, dry cell
    Batteries, storage or wet
    Condensing units
    Dynamos, generators and turbines
    Electrical Tools
    Incubators and brooders
    Magnets Motor and pumps
    Motors parts
    Transformers
    Welding equipment

Vehicles and Parts
    Trucks
    Automobiles valued not more than P3,800
    Parts and accessories
    Cars, railways, and trams and parts
    Locomotives
    Locomotives parts
    Tractors, wheel type
    Tractor, crawler type
    Tractor, parts
    Parts of equipment and repairs for vessels
    Wagons, trailers and carts
    Wheelbarrows, pushcarts and hand trucks
    Axles, wheels and springs for carts
    All other vehicles and parts

Chemicals, Drugs, Dyes, Medicines and Medical Equipment and Supplies
    Acids
    Acetic
    Boric
    Carbolic
    Citric
    Muriatic (Hydrocloric)
    Nitric
    Oxalic
    Sulphuric
    Tartaric
    All other acids
    Other chemicals

Anti-biotics, household remedies, proprietary medicine, etc.  
    Alum (sodium aluminum, sulphate)
    Ammonia, anhydros
    Ammonia, aqua
    Ammonia, carbonate and bicarbonate
    Baking powder
    Calcium carbide
    Cementing preparation other than rubber
    Cream of Tartar
    Cyanide (potassium and sodium)
    Dextrin Disinfectant deodorants
    Flavoring extracts (ajinomoto, vetsin, etc.)
    Formaldehyde or formalin
    Glycerine
    Insecticides
    Iodoform
    Lime chloride (bleaching powder)
    Magnesium carbonate and bicarbonate
    Magnesium sulphate (Epsom salt)
    Metal polishes
    Oxygen gas
    Potash, caustic
    Potash, chlorate and perchlorate
    Potassium bichronate and chromate
    Potassium bromide
    Saccharine
    Silver nitrate
    Sodium bicarbonate
    Sodium carbonate
    Sodium silicate
    Sodium sulphate (Gloubers salt)
    All other chemicals

Dental equipment, dental products and dental gold
Chemical, Drugs, etc.

    Medicinal and pharmaceutical preparations
    Dyes
    Indigo
    Aneline
    Other dyes
    Dyeing materials
    Cutch
    Other dyeing materials

Fertilizers and Fertilizing Materials
    Animal and Vegetable Fertilizers
    Nitrate of potash
    Phosphate of ammonia
    Sulphate of potash
    Superphosphate
    Mixed fertilizers
    Other chemical fertilizers

Explosives
    Blasting caps
    Cartridge
    Dynamite
    Fuses
    Gunpowder

Paints, Pigments and Vegetables
    Lead, Red
    Lead, White
    Litharge
    Lithophane
    Other, Iron oxide and other mineral earth pigments
    Ultramarine blue
    Varnish
    Zinc oxide
    Linseed oil
    Turpentine

Miscellaneous
    Drawing instruments
    Microscopes
    Surveying and engineering instruments
    Other scientific and laboratory instruments
    Fine tools Films
    Unexposed
    Sensitized paper, including photographic and photostatic paper
    materials for map and plan printing only
    Fish hooks
    Fishing rods and tackles
    Time clocks
    Parts of clocks and watches
    Brushes
    Paint
    Blacking and leather dressing
    Celluloid and manufactures
    Sheets and strips
    Cellophane and manufactures
    Sheets and strips
    Inks, and Ink Powder
    Printers Ink
    Muscilage and paste
    Plastic materials other than Pyroxyline products
    Beltings
    Sheets and sheeting
    Soling and heelings
    Athletic goods not produced locally including .22 caliber
    target firearms and ammunition.

Jute and Hessian Bags