Rafael v Embroidery Digest

Facts: 

1. Assailed is the validity of RA 3137. Petitioner, who was engaged in the manufacture of embroidery and apparel products for the purpose of exportation, using imported raw materials and doing business under the style "El Barato Alce Company", was authorized by the Collector of Customs, pursuant to the provisions of the Tariff and Customs Code (RA 1937), to operate a manufacturing bonded warehouse. 

2. By virtue of such authority petitioner imported raw materials exempt from duty and proceeded to manufacture them into finished products for export under the terms and conditions required and specified in the letter-authority.

3. Then RA 3137 was enacted which created a board, the Apparel Control and Inspection Board with the representative from the Bureau of Customs as Chairman and the representatives from the Central Bank, the Department of Commerce and Industry, and the National Economic Council as members, each of them having been previously designated by their respective department heads.

4. Upon recommendation of the Philippine Association of Embroidery and Apparel Exporters, Inc., the Department of Finance named Quintin Santiago, association president, as the representative from the private sector. However, another organization, the Philippine Chamber of Embroidery and Apparel Producers, Inc., to which petitioner was affiliated, questioned the choice of Santiago, apparently because its own nominee to the Board had been rejected. Petitioner subsequently applied for a license wherein he was required to assessment fees. Hence this petition. Petitioner objected particularly to the Section which imposed an assessment fee.

Issue: W/N RA 3137 is constitutional

YES.

The true distinction between delegation of the power to legislate and the conferring of authority or discretion as to the execution of the law consists in that the former necessarily involves a discretion as to what the law shall be, while in the latter the authority or discretion as to its execution has to be exercised under and in pursuance of the law. The first cannot be done, to the latter, no valid objection can be made.