CONSTITUTIONAL LIMITATIONS:

Commissioner of Customs v. Hypermix Feeds Corporation, GR No. 179579, 1 Feb 2012

DOCTRINE: The equal protection clause means that no person or class of persons shall be deprived of the
same protection of laws enjoyed by other classes in the same place in like circumstances. Thus, the guarantee
of the equal protection of laws is not violated if there is a reasonable classification.

FACTS: The Commissioner of Customs issued a memorandum classifying wheat into categories and
imposing different tax rates. Hypermix Feeds Corporation filed a Petition for Declaratory Relief. It anticipated
the implementation of the regulation on its imported and perishable Chinese milling wheat in transit from
China. Hypermix then contended among others that the said memorandum summarily adjudged it to be a feed
grade supplier without the benefit of prior assessment and examination; thus, despite having imported food
grade wheat, it would be subjected to the 7% tariff upon the arrival of the shipment, forcing them to pay 133%
more than what is proper. They further claimed that the equal protection clause of the Constitution was
violated when the regulation treated non-flour millers differently from flour millers for no reason at all.

ISSUE: Whether CMO 27-2003 is unconstitutional for being violating the Equal Protection Clause of the
Constitution.

RULING: Yes, it is unconstitutional.

The guarantee of the equal protection of laws is not violated if there is a reasonable classification. It would
only be reasonable if the classification was shown that (1) it rests on substantial distinctions; (2) it is germane
to the purpose of the law; (3) it is not limited to existing conditions only; and (4) it applies equally to all
members of the same class.

Here, CMO 27-2003 does not conform to the requirements of reasonableness test. The Court could not
determine how the quality of wheat is affected by who imports it, where it is discharged, or which country it
came from. Even if other millers excluded from CMO 27-2003 have imported food grade wheat, the product
would still be declared as feed grade wheat, a classification subjecting them to 7% tariff. On the other hand,
even if the importers listed under CMO 27-203 have imported feed grade wheat, they would only be made to
pay 3% tariff, thus depriving the state of the tax due. The regulation does not only become disadvantageous to
the respondent but also to the state. Thus, the memorandum issued by the Commission of Customs are deemed
unconstitutional for violating the Equal Protection Clause of the Constitution.