Article 93Supplement v1, p. 93

COMMERCIAL LAWS SUPPLEMENT

for the duration of the condition that brought it about,

but not for more than sixty (60) days: Provided, That, in

the case of basic necessities that are wholly imported and

deregulated under existing laws such as, but not limited

to, household LPG and kerosene, price control thereon

shall remain effective for a period of not more than fifteen

(15) days, taking into consideration the current inventory

or supply levels thereof. (as amended by RA No 10623)

The terms "disaster" and "calamity" shall include those

brought about by natural or man-made causes, whether

local or foreign.

SECTION 7. Mandated Price Ceiling . — The President,

upon the recommendation of the implementing agency,

or the Price Coordinating Council, may impose a price

ceiling on any basic necessity or prime commodity if any

of the following conditions so warrants:

(1) The impendency, existence, or effects of a calamity;

(2) The threat, existence, or effect of an emergency;

(3) The prevalence or widespread acts of illegal price

manipulation:

(4) The impendency, existence, or effect of any event that

causes artificial and unreasonable increase in the price of

the basic necessity or prime-commodity; and

(5) Whenever the prevailing price of any basic necessity or

prime commodity has risen to unreasonable levels.

SECTION

8.

Determination

of

Price

Ceilings .

—

In

determining the reasonable price ceiling, the following

factors may be taken into consideration:

(1)

The

average

price,

in the last three (3) months

immediately preceding the proclamation of the price

ceiling, of the basic necessity or prime commodity under

consideration;

(2) The supply available in the market;

(3) The cost to the producer, manufacturer, distributor or

seller including but not limited to:

(a) The exchange rate of the peso to the foreign currency

with which a basic necessity or prime commodity or any

component, ingredient or raw material thereof was paid

for;

(b) Any change in the amortization cost of machinery

brought about by any change in the exchange rate of the

peso to the foreign currency with which the machinery

was bought through credit facilities;

(c) Any change in the cost of labor brought about by a

change in the minimum wage; and

(d) Any increase in the cost of transporting or distributing

the basic necessity or prime commodity to the area of

destination.

(4) Such other factors or conditions which will aid in

arriving at a just and reasonable price ceiling.

SECTION

9.

Allocation

of

a

Buffer

Fund

to

the

Implementing Agency . — The implementing agency may

procure,

purchase,

import,

or

stockpile

any

basic

necessity or prime commodity, devise ways and means of

distributing them for sale at reasonable prices in areas

where there is shortage of supply or a need to effect

changes in its prevailing price. For any or all of these

purposes, a buffer fund shall be allocated in the annual

appropriations of the implementing agencies.

SECTION

10.

Powers

and

Responsibilities

of

Implementing Agencies . — To carry out the intents and

purposes of this Act, the head of the implementing

agency shall have the following additional powers and

responsibilities:

(1)

He

shall,

with

the

approval

of

the

President,

promulgate rules, regulations, and procedure for the

implementation of this Act;

(2) He shall develop, promulgate and implement all

programs, projects or measures to promote productivity

in all basic necessities and prime commodities under his

agency's jurisdiction;

(3) He shall promote and facilitate the establishment of

an

effective

procurement,

storage,

marketing

and

distribution

system

of

basic

necessities

and

prime

commodities to ensure their availability in all areas of the

country where they are needed;

(4) During instances of panic-buying, he may, with the

approval of the President, institute temporary measures

to ensure orderly and equitable distribution to consumers

of

basic

necessities

and

prime

commodities in the

affected area;

(5) Form time to time, he may issue suggested reasonable

retail prices for any or all basic necessities and prime

commodities under his jurisdiction for the information

and

guidance

of

producers,

manufacturers,

traders,

dealers, sellers, retailers, and consumers;

(6) He shall cause the immediate dissemination of any

mandated price ceiling for any basic necessity or prime

commodity

under

his

agency's

jurisdiction

through

publication in a newspaper of general circulation in the

area

affected,

and

through

broadcast

by

radio,

or

whenever deemed to materially make dissemination of

the information more effective, by television. He may also

cause

the

information

to

be

disseminated

through

posting in public markets, supermarkets or other public

places;

(7) He may, upon approval of the President, and subject to

existing laws, rules and regulations on bidding, enter into

any

agreement

with

any

local

or foreign producer,

manufacturer,

supplier,

distributor,

or

seller

for

the

procurement of supplies of stocks of any basic necessity

or prime commodity for purposes of buffer stocking:

Provided , That, in areas where there are shortages or

rampant illegal manipulation of prices, he may order their

immediate sale;

(8) He may, subject to existing laws, rules and regulations

on bidding, enter into any agreement with owners or

operators

of

warehouses

or storage houses or with

owners, operators of franchise holders of vehicles or

public utilities for the storage, transport, or distribution of

any basic necessity or prime commodity;

(9) He may conduct investigations of any violation of this

Act

and,

after

due

notice

and

hearing,

impose

administrative fines in such amount as he may deem

reasonable which shall in no case be less than One

thousand pesos (P1,000) nor more than One million pesos

(P1,000,000). In the imposition of administrative fines the

following factors shall be taken into consideration:

(a)

Whether

the subject of the violation is a basic

necessity or a prime commodity; violations involving

basic necessities shall be deemed more serious;

(b) Whether the subject of the violation is under price

control under Sections 6 and 7 of this Act; violations

involving basic necessities and prime commodities under

price control shall be deemed more serious;

(c) The number of violations committed; respondents

who had previously been found to have violated any of

the provisions of this Act shall be imposed a higher fine;

and

(d)

Such

other

considerations

as

may

be

deemed

necessary to carry out the intents and purposes and

provisions of this Act.

(10) He may require the attendance and testimony of

witnesses or the production of goods, objects, books,

papers,

documents,

contracts,

records,

financial

statements,

accounts,

agreements

and

such

other

evidences material in the determination of any violation

of this Act;

(11) Without prejudice to the power to issue temporary

closure or temporary restraining order for a period which

shall not be more than ten (10) days, he may, after due

notice

and

hearing

issue

cease

and

desist

orders;

reprimand;

censure;

suspend,

revoke

or

cancel

any

permit, license, authority or registration issued by his

© Compiled by RGL

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