Czaryl Adrian T.

Tomambo 3BLM
C-1900939 ITLP

TANDA VS ANGARA

FACTS

HISTORY

- Respondent–Secretary of DTI, Navarro signed in Morocco the Final Act embodying the results of
the Uruguay Round of Multilateral Negotiations. The Philippines agreed—
o To submit the WTO Agreement for the consideration of their respective competent
authorities, with a view to seeking approval of the Agreement in accordance with their
procedures
o To adopt the Ministerial Declarations and Decisions
- Members of the Senate received a letter from the President stating that the Uruguay Round
Final Act is submitted for its concurrence pursuant to Section 21, Article VII of the Constitution
- Later, the Agreement establishing WTO, Ministerial Declarations and Decisions, and the
Understanding on Commitments in Financial Services, are likewise submitted for the same
matter
- Thereafter, the President certified the necessity of the immediate adoption of PS 1083 — a
resolution Concurring in the Ratification of the Agreement Establishing the WTO
- The Senate adopted Resolution No 97 which concurs the ratification of the Philippines of the
Agreement Establishing the WTO

AGREEMENT ESTABLISHING THE WTO

- Ratified by the President

- It is composed of the Agreement Proper and the “associated legal instruments included in
Annexes 1 – 3

FINAL ACT

- Signed by Secretary Navarro

- It embodies:
o WTO Agreement
o Ministerial Declarations and Decisions — 25 declarations and decisions about:
 Measures which favor least developed countries
 Notification procedures
 Relationship of WTO with the International Monetary Fund (IMF)
 Agreements on technical barriers to trade and on dispute settlement
o Understanding on Commitments in Financial Services
 Limitations and qualifications of commitments to existing non-conforming
measures
 Market access
 National treatment
 Definitions of non-resident supplier of financial services
 Commercial presence and new financial service
 PETITION

- WTO Agreement violates the 1987 Constitution mandate to develop a self-reliant and
independent national economy effectively controlled by Filipinos
o WTO requires the Philippines to place nationals and products of member-countries on
the same footing as Filipino and local products
o WTO intrudes limits and/or impairs the constitutional powers of Congress and Supreme
Court

ISSUES

1. Whether the provisions of the Agreement Establishing the WTO contravene the provisions of
Sec 19 of Article II, and Secs 10 and 12 of Article XII, of the Constitution
2. Whether the provisions limit, restrict, and impair Philippine sovereignty specifically the
legislative power which is vested in the Congress
3. Whether the provisions interfere with the exercise of judicial power of the Court
4. Whether the concurrence of the Senate in the WTO Agreement and its Annexes sufficient and
valid

RULING

FIRST ISSUE

- No. Article II of the Constitution entitled “declaration of principles and state policies” is no-self
executing, therefore, it does not embody judicially enforceable constitutional right — thus,
cannot be violated — but is a guideline for legislation. On the other hand, Secs 10 and 12 [and 1
and 13] were not violated. Although, the Constitution mandates a bias in favor of Filipino goods
and services, it also recognizes the need for business exchange with the rest of the world on the
bases of equality and reciprocity — limiting the protection of Filipino enterprises against unfair
foreign competition and trade practices.
o Moreover, the Constitution does not rule out foreign competition, neither economic
seclusion nor mendicancy in the international community
o It is to be noted as well that the Constitution favors the consumers — reasonable rates
to the public — not the industries nor enterprises
- On the contrary, WTO protects developing countries. WTO decisions are made on the basis of
sovereign equality, with its members having an equal weight in voting. Poor, or developing
countries can protect their common interests more effectively through WTO than through one-
on-one negotiations with a more developed countries.
o In the case of the Philippines, General Agreement on Tariffs and Trade (GATT) only
requires an average tariff reduction of 24% within 10 years — while developed countries
are required an average tariff rate of 36% within 6 years

SECOND ISSUE

- No. Although sovereignty is deemed absolute and all-encompassing on domestic level, it is

subjected to restriction and limitations through treaties or agreements. The Constitution adopts
the generally accepted principles of international law as part of the law of the land — doctrine
of incorporation
 o Treaties limit or restrict the absoluteness of sovereignty, but it is done with a voluntary
act and agreement— that nations may surrender some aspects of their state power in
exchange for greater benefits granted by or derived from a convention or pact.
- UN Charter
o Philippines consented to restrict sovereign rights under the concept of sovereignty as
auto-limitation
o Article 2 of UN Charter
- Philippines agreed to limit the exercise of its sovereign powers of police power, eminent
domain, and taxation

THIRD ISSUE

- No. Article 34 of the General Provisions and Basic Principles of the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS) present no problem in changing the rules of
evidence as the present law — RA 165 – Patent Law
- Arguments in the 2nd issue apply here
- Article 34 does not contain an unreasonable burden, consistent as it is with due process and
concept of adversarial dispute settlement inherent in our judicial system

FOURTH ISSUE

- Yes. The assailed Senate Resolution No. 97 expressed concurrence in exactly what the Final Act
required from its signatories, namely, concurrence of the Senate in the WTO Agreement.
- The Ministerial Declarations and Decisions were deemed adopted without need for ratification.
They were approved by the ministers by virtue of Article XXV: 1 of GATT which provides that
representatives of the members can meet "to give effect to those provisions of this Agreement
which invoke joint action, and generally with a view to facilitating the operation and furthering
the objectives of this Agreement."
- The Understanding on Commitments in Financial Services also approved in Marrakesh does not
apply to the Philippines. It applies only to those 27 Members which "have indicated in their
respective schedules of commitments on standstill, elimination of monopoly, expansion of
operation of existing financial service suppliers, temporary entry of personnel, free transfer and
processing of information, and national treatment with respect to access to payment, clearing
systems and refinancing available in the normal course of business

BRITISH AMERICAN TOBACCO VS CAMACHO

FACTS

HISTORY

- RA 8240 took effect on 1 January 1997, amended Sections 138 – 140 and 142 of the NIRC
- RA 8424 or the Tax Reform Act of 1997 was passed, re-codifying the NIRC — Section 142 was
renumbered as Section 145 of the NIRC
- RA 9334 further amended Section 145 of the NIRC on 1 January 2005

SECTION 145(C)
 - 4 tiers of tax rates based on the net retail price per pack of cigarettes (excludes excise tax and
VAT)
o If the net retail price is above P10 per pack, the tax shall be P13.44 per pack
o If the net retail price exceeds P6.50 but does not exceed P10, the tax shall be P8.96 per
pack
o If the net retail price is P5 but does not exceed P6.50, the tax shall be P5.60 per pack
o If the net retail price is below P5 per pack, the tax shall be P1.12 per pack

REVENUE REGULATIONS

1. No. 9-2003 — amended No. 1-97 by providing a periodic review every 2 years or earlier of the
current net retail price of new brands and variants for the purpose of establishing and updating
their tax classification
2. No. 6-2993 — prescribes the guidelines and procedures in establishing current net retail price of
new brands of cigarettes and alcohol products
3. No. 22-2003 — revised tax classification of certain new brands, introduced in the market after
the enactment of RA 8240 on 1 January 1997
o Based on the survey of their current net retail price, Lucky Strike Filter, Lucky Strike
Lights, and Lucky Strike Menthol Lights were sold at the net retail price exceeding P10.
The BIR thus recommended the applicable tax rate of P13.44 in pursuant to Section
145(c) of the NIRC

PETITION

- Petitioner filed before the RTC of Makati, a petition for injection with prayer for the issuance of
a TRO and/or writ of preliminary injunction
o To enjoin the implementation of Section 145 of the NIRC, and Revenue Regulations and
Memorandum Order, on the ground that they discriminate against new brands of
cigarettes — a violation of the equal protection and uniformity provisions of the
Constitution

ISSUE RELATED TO GATT

- Whether RA 8240, as amended by RA 9334, and its IRR violate the General Agreement on Tariffs
and Trade (GATT) of 1947

PARAGRAPH 2, ARTICLE III, PART II OF GATT

- The products of the territory of any contracting party imported into the territory of any other
contracting party shall not be subject, directly, or indirectly, to internal taxes or other internal
charges of any kind in excess of those applied, directly or indirectly, to like domestic products.
Moreover, no contracting party shall otherwise apply internal taxes or other internal charges to
imported or domestic products in a manner contrary to the principles set forth in paragraph 

RULING

- No. The classification freeze provision uniformly applies to all newly introduced brands in the
market, whether imported or locally manufactured. It does not purport to single out imported
cigarettes in order to unduly favor locally produced ones
- Moreover, the petitioner’s evidence was anchored on the alleged unequal tax treatment
between old and new brands which involves a different frame of reference vis-à-vis local and
important products. Therefore, not within the parameters of the GATT
o Even if it was proven that the classification freeze provision violates the GATT, the
outcome will be the same
 The GATT is a treaty duly ratified by the Philippine Senate and under Article VII,
Section 21 of the Constitution, it merely acquired the status of a statute
 Applying the basic principles of statutory construction in case of
irreconcilable conflict between statutes, RA 8240, as amended by RA
9334, would prevail over the GATT either as a later enactment by
Congress or as a special law dealing with the taxation of sin products.