The Comissioner of Customs (COC) issued CMO 27-2003, regulating tariffs on wheat depending on factors such as:
(1) importer or consignee;Hypermix sought declaratory relief, assailing the said CMO.
(2) country of origin; and
(3) port of discharge.
The RTC struck down the regulation, ruling that the basic requirements of hearing and publication in the issuance of CMO 272003 were not complied with. This was affirmed by the CA, hence the instant petition.
RULING
The Court ruled in favor of Hypermix.
Aside from violating the respondent’s right to due process in the issuance of the CMO due to the failure to observe the requirements under the Revised Administrative Code, the Commissioner of Customs also diminished the powers granted by the Tariff and Customs Code with regard to wheat importation when it no longer required the customs officer’s prior examination and assessment of the proper classification of the wheat.
Section 1403 of the Customs Law mandates that the customs officer must first assess and determine the classification of the imported article before tariff may be imposed.
It is well-settled that rules and regulations, which are the product of a delegated power to create new and additional legal provisions that have the effect of law, should be within the scope of the statutory authority granted by the legislature to the administrative agency.