G.R. No. 157498, July 15, 2005
- Clearly, safeguard measures are not in the nature of taxes, in the sense of being the lifeblood of the national economy, such that their enforcement cannot per se be enjoined.
FACTS:
Petitioners are manufacturers of various steel products, for which the principal raw materials are steel billets, which they import in bulk from foreign suppliers.
On July 17, 2000, R.A. No. 8800 was enacted codifying the provisions of Art. XIX, GATT and the WTO Agreement on Safeguards. These agreements authorize the application of a safeguard measure if a product is being imported into the country in such quantities as would cause or threaten to cause serious injury to domestic producers of like or directly competitive products.
On April 6, 2001, petitioners filed with the RTC of Valenzuela City a petition for declaratory relief and/or certiorari and prohibition seeking to declare R.A. No. 8800 as unconstitutional.
The RTC judge, while holding in abeyance a ruling on the validity of R.A. No. 8800, found a strong case against the constitutionality of said law sufficient to justify a preliminary injunctive relief. Upon appeal, the CA ruled that the RTC judge committed grave abuse of discretion in issuing the writ of injunction.
ISSUE:
- Whether or not the preliminary injunction issued by the trial court should be upheld
HELD:
The Supreme Court ruled in the affirmative.
R.A. No. 8800, also known as the Safeguard Measures Act, authorize the application of a safeguard measure upon finding that a product is being imported into the country in increased quantities as to be a substantial cause of serious injury or threat to the domestic industry. Hence, the primary purpose of safeguard measures is not at all to generate revenue for the government, but to provide protection to domestic industry threatened by import surges. Thus, while suspending the collection of internal revenue taxes will definitely cripple the government, enjoining the enforcement of safeguard measures would not necessarily drain the national coffer.
Note that safeguard measures are not always in the form of a tariff increase. Safeguard measures may, and in fact, usually take the form of a simple quantitative restriction on imports.
Clearly, safeguard measures are not in the nature of taxes, in the sense of being the lifeblood of the national economy, such that their enforcement cannot per se be enjoined.
Only two requisites are necessary for a preliminary injunction to issue: (1) existence of a right to be protected and (2) facts, against which the injunction is to be directed violate said right. While a clear showing of right is necessary, its existence need not be conclusively established. For the purpose of issuing a provisional remedy, a law need not be declared unconstitutional.
