KEY TAKE-AWAY OR DOCTRINE TO REMEMBER

When
rule is merely interpretative
nature, its
applicability
needs nothing further Kylie
Whenan
theadministrative
law takes effectCOMMISSIONER
OF CUSTOMS v.inHYPERMIX
FEEDS
CORP.
Dado
than its bare issuance, for it gives no real consequence more than what the law itself has already
GR No. 179579 February 1, 2012 Sereno, J.

prescribed. When, on the other hand, the administrative rule goes beyond merely providing for the
means that can facilitate or render least cumbersome the implementation of the law but substantially
increases the burden of those governed, it behooves the agency to accord at least to those directly
affected a chance to be heard, and thereafter to be duly informed, before that new issuance is given the
force and effect of law.
RECIT-READY / SUMMARY
Petitioner issued CMO 27-2003, classifying wheat as food or feed grade. Respondent challenged it
contending that it did not follow the mandate of the Admin Code on public participation, prior notice, and
publication or registration with the University of the Philippines Law Center. Petitioner defensed that it
was an admin rule, not a legislative rule so the mandate is not needed. SC ruled in favor of the
Respondent because it has a legal and substantive right, as it would be made to pay a higher tariff, so
the Petitioners is required to follow the provisions of the Admin Code.
FACTS

Petitioner issued CMO 27-2003. Under the said Memorandum for tariff purposes, wheat was classified

according to:
1. Importer/consignee
2. Country of origin
3. Port of discharge
Depending on these factors, wheat would be classified either as food grade or feed grade. The tariff

for food grade wheat was 3%, for feed grade, 7%.
The Memorandum further provided for the proper procedure for protest or Valuation and Classification
Committee (VCRC) cases, wherein the release of the articles that were the subject of protest required

the importer to post a cash bond to cover the tariff differential.

Respondent filed a Petition for Declaratory Relief w/ RTC-Las Pias, contending that:
CMO 27 2003 was issued without following the mandate of the Admin Code on
public participation, prior notice, and publication or registration with the University
of the Philippines Law Center.

Regulation summarily adjudged it to be a feed grade supplier without the benefit of prior
assessment and examination so, despite having imported food grade wheat, it would be
subjected to the 7% tariff rate

Retroactive application of the regulation was confiscatory in nature.

RTC issued TRO effective for 20 days

Petitioner filed a Motion to Dismiss alleging that CMO 272003 was an internal administrative rule and
not legislative in nature.

RTC: Ruled in favor of the Respondent. Petitioners failed to follow the basic requirements of hearing and
publication in the issuance of CMO 272003.
CA: Dismissed the appeal. Since the regulation affected substantial rights of petitioners and other
importers, petitioners should have observed the requirements of notice, hearing and publication.