Carbonilla v Board of Airlines Representatives

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.

What happened?

The Bureau of Customs issued a Customs Admin. Order which adjusts the overtime pay of
Customs personnel in NAIA. The CAO was approved by the Dept. of Finance pursuant to the
provisions of Tariff and Customs Code of the Phillipines.

What caused the conflict?

BAR objected the increase in overtime pay.

Later on, the case was appealed to the CA which ruled that Sec. 3506 of the TCCP failed the
completeness and sufficient standard tests because it did not set limitations to the delegate’s
authority.

Issue:
Whether there was undue delegation (NO)

Ruling:
Section 3506 of the TCCP did not fail the completeness and sufficient standard tests. Under
the first test, the law must be complete in all its terms and conditions when it leaves the
legislature such that when it reaches the delegate, the only thing he will have to do is to
enforce it. The second test requires adequate guidelines or limitations in the law to determine the
boundaries of the delegate’s authority and prevent the delegation from running riot.

Section 3506 of the TCCP complied with these requirements. The law is complete in itself
that it leaves nothing more for the BOC to do: it gives authority to the Collector to assign
customs employees to do overtime work; the Commissioner of Customs fixes the rates; and it
provides that the payments shall be made by the importers, shippers or other persons served.

Section 3506 also fixed the standard to be followed by the Commissioner of Customs when it
provides that the rates shall not be less than that set by law to be paid to employees of private
enterprise.