FACTS
Pursuant to a provision in the Tariff and Customs Code of the Philippines empowering the Collector of Customs to require customs employees to do overtime work and fix rates when the service rendered is to be paid by the importers, shippers or other persons served, the Bureau of Customs through the Commissioner issued CAO 1-2005 increasing the overtime pay of personnel and mandating that it be paid by airline companies, which was approved by the DOF.
The Board of Airlines Representatives expressed objections to this issuance for a number of reasons, assailing its constitutionality and validity.
RULING
The Court ruled in favor of the Bureau of Customs.
The subject provision duly complied with the requirements imposed by the Administrative Code for rate-fixing, namely that it did not fail the completeness and sufficient standard test, and that the Commissioner of Customs was well within his power in creating and implementing the same.
Too, the statute from which the Commissioner of Customs drew his power to issue such an order was a valid enactment of Congress grounded on policy, which is within its discretion and not subject to judicial review.
The overtime pay of BOC employees may be paid by any of the following: (1) all the taxpayers in the country; (2) the airline passengers; and (3) the airline companies which are expected to pass on the overtime pay to passengers. This is a policy decision on the part of Congress that is within its discretion to determine.
