DONNELLY v.

AGREGADO as a condition ex or the exportation of scrap metals and other

merchandise
Bautista Angelo, J. | May 31, 1954 | Topic: Delegation to the President
 The secretaries of departments are mere assistants of the Chief Executive
FACTS:
and "the multifarious executive and administrative functions of the Chief
 Congress enacted Commonwealth Act 728, making it unlawful to export Executive are performed by and through the executive departments, and the
agricultural or industrial products, merchandise, articles, materials, and acts of the secretaries of such departments, performed and promulgated in
supplies without a permit from the President of the Philippines, and the regular course of business, are, unless disapproved or reprobated by the
conferred upon him the authority to “regulate, curtail, control, and prohibit Chief Executive, presumptively the acts of the Chief Executive.
the exportation of materials abroad and to issue such rules and regulations o The fact that the resolution was approved by PSA and the
as may be necessary to carry out the provisions of this Act, through such
collection of the royalty fees was not decreed by virtue of an order
department or office as he may designate."
issued by the President himself does not invalidate said resolution
 Acting upon this vested authority, the President promulgated EO 3 allowing because the act of the Cabinet is deemed to be, and essentially is,
the exportation of other merchandise like scrap metals, provided an export the act of the President
license is first obtained from the Philippine Sugar Administration (PSA) 2. W/N the CA No. 728 is a valid delegation of legislative power – YES
o PSA, upon recommendation of the National Development
 It is contended that the royalty rates prescribed in the Cabinet resolution are
Company, approved a resolution fixing the schedule of royalty not fees but in effect partake of the nature of an ad valorem tax the
rates to be charged on metal exports imposition of which cannot be delegated to the President by Congress
 Marc Donnelly exported large amounts of metals during the period of Dec  The rule which forbids delegation of legislative power is not absolute . It
1947 to Sept 1948 for which it paid by way of royalty fees Php 54,82.84 admits of exceptions as when the Constitution itself authorizes such
delegation
o He requested for refund of said royalty fees and contended that the  ITC, the Constitution expressly authorizes such delegation (Art VI Sec
resolution of PSA fixing the schedule of royalty rates on metal 22(2))
exports and providing for their collection constitutes an undue o Royalty rates may take the form of tariff rates
delegation of legislative powers because, in substance, it creates o The power to exact royalties for permissive or lawful use of
and imposes an ad valorem tax property rights is deemed included in the authority conferred to the
President by CA no. 728
ISSUES & RATIO:
 As a rule, common trades or industries, or the exportation of merchandise in
1. W/N the resolution of the PSA is a valid - YES general, cannot be prohibited, but may only be regulated in the exercise of
the police power of the State; not so with regard to scrap metals whose
 Under Art VI Sec 22 (2) of the Constitution, the Congress may authorize the exportation may be completely banned
president, subject to certain limitations, to fix, within specified limits, tariff o This is the core of CA No. 728, which authorizes the President not
rates, import or export quotas, and tonnage and wharfage dues merely to regulate but to prohibit altogether the exportation of
o Congress approved CA No. 782 in pursuance of Art VI Sec 22(2) certain articles, among them scrap metals
of the Constitution, conferring upon the President authority to o Acting under authority granted by the Act, the president chose not
regulate, curtail, control, and prohibit the exports of scrap metals to completely ban the exportation of scrap metals, but permitted its
and to issue such rules and regulations as may be necessary to exportation upon payment of certain royalty
carry out its provisions o The payment of these royalties cannot be considered as an
imposition or one exacted under duress, for the exporter who wants
o Implementing this authority, PSA approved the resolution now in to avail of this privilege is free to act on the matter as his interest
question authorizing the levy and collection of certain royalty fees might dictate