Legally Yours,  Political Law

Casco Philippine Chemicals v. Gimenez

Casco Philippine Chemicals v. Gimenez
7 SCRA 347

On July 1, 1959, pursuant to RA 2609 (Foreign Exchange Margin Fee Law), the Central Bank of the Philippines fixed a uniform margin fee of 25% on foreign exchange transactions. Petitioner had bought foreign exchange for the importation of urea and formaldehyde, raw materials for resin glues, and was thus paying for the margin fees at that time. Relying on Resolution No. 1529 of the Monetary Board of the said bank declaring that the separate importation of urea and formaldehyde is exempt from the said fee, the petitioner sought for a refund of the margin fees.

Whether or not urea and formaldehyde are exempt from the payment of the aforesaid margin fee

Urea and formaldehyde are not exempt from fees by law. RA 2609 only exempts urea formaldehyde and not the separate importation of urea and formaldehyde as they are different, the former being a finished product. The enrolled bill which uses the term “urea formaldehyde” is conclusive upon the courts. The courts cannot speculate that there had been an error I printing of the bill as this shall violate the principle of separation of powers. Shall there have been any error in the printing, the remedy is by amendment or curative legislation, not by a judicial decree.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: