Rules and Regulations Governing Administrative Actions for Violations of Trade and Industry Laws (E.O. No. 913, s. 1983)

November 25, 1983

MTI MINISTRY ORDER NO. 69-83

SUBJECT : Rules and Regulations Governing Administrative Actions for Violations of Trade and Industry Laws

Pursuant to Section 18 of Executive Order No. 913 dated October 7, 1983, the following rules and regulations governing administrative actions in the Ministry of Trade and Industry for violations of trade and industry laws covered by said Executive Order are hereby prescribed and promulgated for the compliance, guidance and information of all concerned:

RULE I

Definition of Terms

SECTION 1. Definition of Terms. — When used in these rules and regulations, the term:

a. "Minister" means the Minister of Trade and Industry.

b. "Ministry" means the Ministry of Trade and Industry and/or any of its bureaus, offices, or attached agencies, or any other office, unit or committee by whatever name which is placed under or attached to the Ministry of Trade and Industry.

c. "Head of Office" means the Director, Executive Director, corporate President, Chief or Head of any bureau, office or agency under or attached to the Ministry.

d. "Trade and Industry law" means any Act, Commonwealth Act, Republic Act, Batas Pambansa, Presidential Decree, General Order, Letter of Instructions, Executive Order, and other similar issuances, which regulate trade and industry activities, the violation of which subjects the offender to criminal or administrative penalties or civil liability, or does not subject the offender to any penalty, sanction, or liability at all, and which laws or issuances are subject to the implementation, administration, execution or enforcement of the Ministry. The rules and regulations implementing the said laws and issuances are deemed included in the term "trade and industry law".

When a ministry, bureau, office, agency, local government unit, government-owned or controlled corporation including any of its subsidiaries, or any other government instrumentality deputizes the Ministry upon the latter's request, to perform some of its functions which are related to trade and industry, as provided under Section 15 of Executive Order No. 913, the regulatory laws and rules and regulations on which said functions are based shall be deemed "trade and industry laws" and therefore the violations thereof shall be subject to the adjudicatory power of the Minister.

The following are some of the laws covered by the term "trade and industry law".

1. Arts. 1-30, Code of Commerce — Law on registration of merchants,

2. Act No. 2333 — Law on untrue, deceptive or misleading advertisements.

3. Act No. 2728 as amended — Organic Act of the then Bureau of Commerce. ADHcTE

4. Act No. 3595 as amended — Law on the manufacture, importation, and sale of galvanized iron, barbed wire and nails.

5. Act No. 3596 — Law on the sale of paints and paint materials.

6. Act No. 3740 as amended — Law on fraudulent advertising, mislabeling and misbranding.

7. Art. 186, Act No. 3815 as amended — Law on monopolies and combinations in restraint of trade.

8. Art. 187, Act No. 3815 are amended — Law on importation and disposition of falsely-marked articles or merchandise made of gold, silver, or other precious metals or their alloys.

9. Art. 188, Act No. 3815 as amended — Law on substitution and alteration of trade-marks, trade names or service marks.

10. Art. 189, Act No. 3815 as amended — Law on unfair competition, fraudulent registration of trade mark, trade name or service mark, fraudulent designation of origin, and false description.

11. Act No. 3883 as amended — Law on business names.

12. Act No. 3893 as amended — Law on bonded warehouses.

13. Act No. 3952 as amended — Law on bulk sales.

14. R.A. No. 71 as amended — Law on price tags.

15. R.A. No. 165 as amended — Law on patents.

16. R.A. No. 166 as amended — Law on trade-marks, trade names and service marks.

17. R.A. No. 623 as amended — Law on the use of duly-stamped or marked containers for products.

18. R.A. No. 1180 as amended — Law on retail trade nationalization.

19. Sec. 3, R.A. No. 1292 — Law requiring importers of prime commodities to sell to Filipino retailers at the same mark-up as their sales through their present trade channels at least 30% of their imports.

20. R.A. No. 3137 — Law on embroidery and apparel.

21. R.A. No. 4109 — Law on product standards.

22. P.D. No. 94 as amended — Charter of the Philippine Cement Industry Authority.

23. P.D. No. 165 as amended — Law Creating the Philippine Shippers Council.

24. P.D. No. 218 as amended — Law on the establishment of regional headquarters of multinationals.

25. P.D. No. 272 as amended — Charter of the Iron and Steel Authority.

26. P.D. No. 279 — Charter of the Design Center Philippines.

27. P.D. No. 488 as amended — Charter of the then Ministry of Industry.

28. P.D. No. 721 — Charter of the then Ministry of Trade.

29. P.D. No. 930 — Law on export procedure and documentation.

30. P.D. No. 1167 — Law regulating the overseas construction industry.

31. P.D. No. 1419 — Law on the establishment of regional warehouse of multinationals.

32. P.D. No. 1466 — Law on the utilization of services of Philippine flag vessels, in international trade.

33. P.D. No. 1572 — Law on accreditation of service and repair enterprises.

34. P.D. No. 1674 — Law on price stabilization of prime and essential commodities. EHIcaT

35. P.D. No. 1746 — Law creating the Construction Industry Authority of the Philippines (CIAP).

36. P.D. No. 1788 — Charter of the NACIDA.

37. P.D. No. 1820 — Law on International Gift-giving Program.

38. Ex. Or. No. 537 as amended— Charter of the Garments and Textile Export Board.

39. Ex. Or. No. 574 — Revised Charter of the then Ministry of Trade.

40. Ex. Or. No. 782 — Law on the importation of used trucks and engines.

41. Ex. Or. No. 843 — Law creating a Commission on Export Procedures.

42. LOI No. 444 — Law on trading with socialist and other centrally-planned economy countries.

43. LOI No. 1208 — Law on product qualification, product quality assurance and quality control schemes for electrical wires, materials, components and devices, as well as fire-fighting equipment, systems and devices.

44. LOI No. 1305 — Law on cement hoarding, price manipulation and profiteering.

45. LOI No. 1336 — Law requiring MTI (among other agencies) to ensure that all export proceeds are remitted.

46. LOI No. 1355 — Law modifying the International Gift-giving Program.

47. LOI No. 1359 — Law directing measures to prevent hoarding, profiteering and price manipulation of prime and essential commodities.

RULE II

Commencement of Action

SECTION 2. Commencement of Action. — All administrative actions in the Ministry for violations of trade and industry laws covered by Executive Order No. 913 shall be commenced either by filing a Complaint together with the sworn statements of Complainant and his witnesses covering their testimonies and the documentary evidence or by filing a "Statement of Violation".

SECTION 3. Paragraphs and Numbers for the Sworn Statements. — Every sworn statement mentioned in the preceding Section shall be divided into paragraphs so numbered as to be readily identified, each of which shall contain a statement of a single set of circumstances.

SECTION 4. Complaint Defined. — A Complaint is a sworn written statement charging a person, corporation, partnership or association with an offense, and subscribed by the Complainant or by his/its duly authorized representative.

SECTION 5. "Statement of Violation" Defined. — A "Statement of Violation" is a written statement charging a person, corporation, partnership or association with an offense, and subscribed by the Head of Office concerned.

SECTION 6. Suit Against Associations Without Juridical Personalities. — When two or more persons associated in any business, transact such business under a common name, whether it comprises names of such persons or not, the associates may be sued by such common name.

Persons associated in business who are sued under a common name must all be named individually in the Answer filed by them or on their behalf with their respective business address.

SECTION 7. Form. — The Complaint/Statement of Violation shall be legibly written or typewritten on legal-size paper. Its caption shall state the name and address of the office with which it is filed, the title of the action, the statement "Adm. Case No. _____," and the word "Complaint" or "Statement of Violation" as the case may be. The said title shall include the names of the parties and the words "Complainant" and "Respondent". (See Forms 1 and 2, Appendix of Forms)

SECTION 8. Contents. — The Complaint/Statement of Violation shall state the following:

(a) The names and addresses of the Complainant and Respondent.

(b) The section, article, or paragraph of the trade and industry law violated.

(c) The ultimate facts of the cause of action and/or the acts of omissions complained of as constituting the offense.

(d) The approximate time of the commission of the offense or the approximate time of the discovery of such commission.

(e) The Complaint shall state further the relief prayed for, while the Statement of Violation shall state further the penalties and preliminary and preventive orders recommended by the Head of Office.

SECTION 9. Where to File Complaint. — (a) The complaint shall be filed in triplicate with the Head of Office having jurisdiction over the offense, in the Central Office. For instance, violations of R.A. No. 4109 (Law on Product Standards) shall be filed with the Director of Product Standards.

(b) Where a single case or transaction involves violations falling within the jurisdiction of two or more Heads of Office, a separate Complaint shall be filed with each Head of Office concerned. For instance, a case or transaction involving violations of R.A. No. 4109 (on product standards), Act No. 3740 as amended (on mislabeling) and P.D. No. 1674 (on price ceiling) all at the same time, should have three Complaints — one each for the Director of Product Standards, Director of Domestic Trade and Executive Director of Price Stabilization, respectively. However, the Adjudication Officer may direct the consolidation of all such violations arising from a single case or transaction and direct that only one of the concerned Heads of Office or any officer of the Ministry shall act on the case in order to expedite the disposition thereof.

SECTION 10. Where to File Statement of Violation. — The Statement of Violation shall be filed directly with the Chief Hearing Officer, in the Central Office.

SECTION 11. When to File Complaint/Statement of Violation. — (a) The Complaint/Statement of Violation shall be filed within three years from the day of the commission of the offense or if such date is unknown at the time, from the discovery thereof. After the said period of three years, the filing thereof shall be barred.

(b) The administrative action under these rules and regulations is independent of the corresponding criminal or civil actions for the violations of trade and industry laws.

SECTION 12. Who Shall Prosecute and Defend the Case. — The Complaint shall be prosecuted by the Complainant by himself or Counsel. The Statement of Violation shall be prosecuted by the Mediation Officer of the office concerned. The Complaint/Statement of Violation shall be defended by the Respondent by himself or Counsel.

SECTION 13. Procedures and Penalties to Continue to be in Force. — Procedures and penalties where a Board Council, Authority or Committee (or its authorized representative) hears and decides cases involving violations of trade and industry laws, shall continue to be in force unless the Minister directs that the procedure and penalties under Executive Order No. 913 and these Rules and Regulations be the one applied in lieu thereof.

SECTION 14. Procedures and Penalties Abolished. — Existing procedures and penalties where no Board, Council, Authority or Committee hears and decides cases involving violations of trade and industry laws (such as the procedures and penalties for violations of the Business Names Law provided in Rule VIII of Domestic Trade Administrative Order No. 80, Series of 1982 are hereby abolished and henceforth said cases shall be adjudicated under Executive Order No. 913 and these Rules and Regulations. Nevertheless, the Rules of Practice in Patent and Trademark Cases as well as other rules of procedures and penalties as the Minister may determine shall continue to be in force.

RULE III

Certain Determinations by the Head of Office

SECTION 15. Determination if the Ministry Should Adjudicate the Case or Not. — (a) The adjudication of cases under these rules and regulations is discretionary with the Minister and not a matter of right for the Complainants. Thus, after the Complaint has been docketed and given an administrative case number in the office concerned, the Head of Office shall determine whether the Ministry should adjudicate the case or not, taking into consideration the following, among others:

(1) Whether or not the adjudication of the case will aid in the enforcement of the trade and industry law violated and if it does, the extent thereof. cDAISC

(2) The wisdom, propriety, and expediency of adjudicating the case.

(3) The resources of the office concerned which are available for adjudicating the case.

(4) The other legal remedies available to the parties in settling their disputes.

(5) Whether or not the case is a priority in the adjudication program of the Ministry.

(b) Unless the Minister decides otherwise, if the Head of Office elects not to adjudicate the case, he shall issue an order which shall state: "Pursuant to Section 15 of the Rules and Regulations of Executive Order No. 913, this Office elects not to adjudicate the case." No reason shall be given for such elected action. The said order is not appealable.

SECTION 16. Determination of Prima Facie Case. — If the Head of Office believes that the case should be adjudicated by the Ministry he shall then proceed to determine from the Complaint, the attached sworn statements of Complainant and his witnesses, and documentary evidence whether or not a prima facie case exists. If there is, he shall give due course to the Complaint. If none exist, he may dismiss the case or ask the Complainant to amend the Complaint and its attachments. The Mediation Officer may assist the Complainant, if so requested, in the amendment of the Complaint and its attachments and may even administer the required oath for the Complaint.

SECTION 17. Determination of Necessity of Mediating the Case. — If there is a prima facie case, or the Complaint and its attachments have already been amended and there is already a prima facie case, as provided in the preceding Section, the Head of Office shall give due course to the Complaint by either:

(a) Directing that the Complaint pass through the mediation stage first, if he believes that mediation is necessary. If both parties are residing outside Metropolitan Manila, the Head of Office may transmit the Complaint to any field office of the Ministry which is most accessible to the parties and where there is a Mediation Officer, with instructions to mediate the case in accordance with these rules and regulations and to submit his report thereon to him (Head of Office); or

(b) Elevating the Complaint to the Chief Hearing Officer as provided in Section 21 hereof, if he believes otherwise.

RULE IV

Mediation

SECTION 18. Mediation Conference. — Upon receipt of the Complaint to be mediated, the Mediation Officer shall immediately call the parties to a mediation conference by sending each party a Notice of Mediation, under his own signature or that of the Head of Office. The Notice intended for the Respondent shall be accompanied by a copy of the complaint and its attachments. No summons shall be sent to the Respondent at the mediation state.

SECTION 19. Mediation Period. — The Mediation Officer has fifteen working days from the time the Complaint was filed with the Head of Office within which to mediate the case. The time during which (a) the Notice of Mediation is in the mail, (b) the records of the case are in transit to the field office of the Ministry, and (c) the Complaint is being amended, shall be deducted in the computation of the said period. This period may be extended by the Head of Office for a time not exceeding rive working days when very necessary.

SECTION 20. Compromise/Mediation Agreement. — If the parties agree within the said mediation period on an amicable settlement, the Compromise/Mediation Agreement shall be reduced to writing, signed by the parties and approved by the Head of Office in the Decision that he shall render.

In the Decision, the Head of Office may require the parties to submit to him from time to time reports on compliance with their undertakings under the said Agreement. The said Decision is not appealable and is immediately executory.

SECTION 21. Elevation of Case to Chief Hearing Officer. — If the Respondent does not appear at the mediation conference despite notice, or the parties cannot agree on an amicable settlement within the mediation period, then the Head of Office shall elevate the case to the Chief Hearing Officer in the Central Office, for formal hearing, and at the same time transmitting the entire record of the case. The Memorandum of Transmittal shall state in brief what transpired at the mediation period, and may include a recommendation as to what penalties should be imposed and what preliminary and preventive orders should be issued in the formal hearing stage, assuming that no preliminary or preventive orders have been previously issued under Section 23 hereof. cCTESa

SECTION 22. Rights of the Aggrieved Party in Case of Failure or Refusal to Abide by the Compromise/Mediation Agreement. — If one of the parties to the Compromise/Mediation Agreement fails to abide by the said Agreement, the other party may:

(a) File a Motion for Execution of Judgement with the Head of Office. The latter may issue the Order of Execution and the corresponding Writ of Execution, deputizing and requiring any of the persons and entities mentioned in Section 12 of Executive Order No. 913 to execute and enforce said decision and order.

(b) Regard the Compromise/Mediation Agreement as rescinded and insist upon his original Complaint. He shall inform the Head of Office about this and the latter shall immediately elevate the original Complaint to the Chief Hearing Officer, for formal investigation. The elevation procedure laid down in the preceding Section shall be followed.

SECTION 23. Recommendation of Head of Office of Issuance of Preliminary and Preventive Orders. — If the Head of Office believes that certain preliminary and preventive orders under Sections 49 and 50 hereof should be issued during the mediation period, he shall recommend to the Adjudication Officer the issuance of such orders. When granted, such orders may be allowed to stay up to the time before the rendition of decision by the Adjudication Officer.

SECTION 24. Conversion of Complaint. — At the discretion of the Head of Office and with the consent of the Complainant, a Complaint may be converted into a Statement of Violation and filed under Section 10 of these rules and regulations, provided, that the date of filing of the said Statement of Violation is within the 3 year limitation provided in Section 11 (a) hereof.

RULE V

Formal Hearing

SECTION 25. Assigning the Case. — (a) Upon receipt of the case elevated by the Head of Office under Sections 17 (b), 21 and 22 (b) hereof or the Statement of Violation filed by the Head of Office under Section 10 hereof, the Chief Hearing Officer shall immediately assign the case to any of the Hearing Officers or conduct the formal hearing by himself.

(b) If both parties are residing outside Metropolitan Manila, the Chief Hearing Officer may transmit the Complaint/Statement of Violation to any field office of the Ministry which is most accessible to the parties and where there is a Hearing Officer, with instructions to conduct the formal hearing of the case in accordance with these rules and regulations and to submit his report thereon to him (Chief Hearing Officer).

SECTION 26. Sending of Summons and Notices of Hearing. — The assigned Hearing Officer shall immediately prepare and serve the summons to the Respondent by mail, personal service by any authorized person, or publication, as the case may require. Notices of Hearing shall likewise be prepared and send as provided in Section 31 hereof.

 

SECTION 27. Summons and Answers. — The summons shall require respondent to answer the Complaint/Statement of Violation (and not file a Motion to Dismiss) within fifteen (15) days from service thereof. The Respondent shall answer the Complaint/Statement of Violation in writing, by either denying specifically the material allegations of the Complaint/Statement of Violation or alleging any lawful defense. Within said fifteen (15) days, the Respondent shall file said answer together with his sworn statement and those of his witnesses and his documentary evidence and serve copies thereof upon the Complainant/Head of Office.

SECTION 28. Dismissal and Default. — (a) If the Complainant/Mediation Officer does not appear at the time and place designated in the Notice of Hearing or in a subsequent order, the Complaint/Statement of Violation may be dismissed for failure to prosecute and render judgment for the Respondent to recover his costs from the Complainant. No such cost shall be rendered in case of Statement of Violation. Within one (1) day after receipt of the Order of Dismissal, the Complainant/Mediation Officer may file a motion to set it aside if his failure to do so appear was by reason of fraud, accident, mistake or excusable negligence.

(b) If the Respondent fails to answer within said period, the Hearing Officer shall upon motion of the Complainant/Mediation Officer or motu proprio declare the Respondent in default and forthwith receive evidence ex-parte. No service of papers other than substantially amended or supplemental pleadings and final orders or decisions shall be necessary on a party in default unless he files a motion to set aside the order of default within one day from receipt thereof on any of the four grounds mentioned in subsection (a) hereof, in which event he shall be entitled to notice of all further proceedings regardless of whether the order of default is set aside or not. HacADE

SECTION 29. Answer to Amended Complaint/Amended Statement of Violation. — If the Complaint/Statement of Violation is amended, the time fixed for the filing and service of the Answer shall, unless otherwise ordered, run from receipt of a copy of the order admitting the Amended Complaint/Statement of Violation or from the service of such Amended Complaint/Statement of Violation. The original Answer shall be considered as Answer to the Amended Complaint/Statement of Violation unless a new Answer is filed within ten (10) days from said receipt or service.

SECTION 30. Motions to Dismiss Not Allowed. — Motions to Dismiss on any of the grounds mentioned in the Rules of Court shall not be allowed. Such grounds shall instead be pleaded as affirmative defenses, the resolution of which shall be made in the decision on the merits. The Hearing Officer may, for good cause shown, conduct a preliminary hearing on any of the affirmative defenses if this will expedite the resolution of the case.

SECTION 31. Notice of Hearing. — Notice of Hearing shall be served upon each party by mail, personal service by any authorized person, or publication, as the case may require.

SECTION 32. What is Equivalent to Service of Summons. — The voluntary appearance of the Respondent in the Action is equivalent to service of summons.

SECTION 33. Discretion of Hearing Officer to Conduct a Pre-formal Hearing. — (a) Within five days from receipt of the Answer, the Hearing Officer may send Notice of Pre-Formal Hearing, requiring the parties to appear before him for pre-formal hearing on the date set in the notice, and to submit on that set date or preferably prior thereto a Pre-Formal Hearing Brief containing the following:

(1) A brief statement of the parties' claims and defenses.

(2) Suggestions, if any, for simplification of issues.

(3) A list of additional documents they intend to produce as evidence, together with appropriate markings as exhibits. They must be ready to produce these for examination during the pre-formal hearing conference.

(4) A statement whether they can stipulate on facts not admitted in their pleadings. If so, they should come with drafts of matters they are ready to stipulate on.

(5) A statement whether they are open to the possibility of an amicable settlement; if so, they should be prepared on the pre-formal hearing date to submit their minimum demands for purposes of settlement.

(b) The presence of the parties and their counsel is required, but if the counsels are provided with powers of attorney to make admissions and/or to make and accept compromise proposals, the presence of the parties may be dispensed with.

(c) Should a party and/or his counsel fail to appear at the pre-formal hearing, and/or fail to comply with the directives set out above, the Complaint may be dismissed, or Respondent considered as in default, ex parte hearing held and decision rendered or other appropriate orders issued.

(d) The above-mentioned pre-formal hearing shall apply only to Complaints and not to Statements of Violation.

SECTION 34. Continuance/Postponement. — (a) Should the assigned Hearing Officer be absent on the scheduled date of hearing, the Chief Hearing Officer may, upon request of either or both parties or motu proprio hear the case by himself or instruct one of the Hearing Officers who are present to hear the case.

(b) All hearings may be set for two or three consecutive days. Adjourned hearings may be set for continuance for at least two successive days within a period not exceeding fifteen (15) days from the date of the last hearing.

(c) In order to comply with the time limit within which to resolve the case, no postponement of hearings specially those scheduled by agreement of parties shall be allowed over the objection of any party. However, for justifiable reasons and upon written motion filed with the Hearing Officer three (3) days before the scheduled hearing with proof of service upon the other party, a postponement may be granted under the conditions set forth in the preceding paragraph.

SECTION 35. Order of Formal Hearing. — The following procedure shall be observed during the hearing of the case:

(a) The Complainant/Mediation Officer shall present the sworn statements of witnesses (which shall constitute the direct testimony of the affiants) and other documentary evidence and shall make his witnesses available for cross examination by Respondent during the scheduled hearings.

(b) The Respondent shall then present the sworn statements of witnesses (which shall constitute the direct testimony of the affiants) and other documentary evidence and shall make his witnesses available for cross-examination by Complainant/Mediation Officer during the scheduled hearings.

(c) The Complainant/Mediation Officer and Respondent may, in succession, present rebuttal and sub-rebuttal evidence.

(d) If testimony of a witness residing outside the Philippines is to be taken, the direct examination shall be in the form affidavit, to be submitted within the period fixed by the Hearing Officer, and the opposing party may cross-examine the witness through written interrogatories in the manner prescribed by the Rules of Court.

(e) Failure of any of the witnesses to appear for cross-examination will not generally invalidate the allegations or the exhibits attached to the affidavit if they are not controverted or can be proven otherwise during the course of the hearing.

(f) When the presentation of evidence is concluded and the evidence formally offered, the case is deemed submitted for decision, unless the parties at their request and at the Hearing Officer's discretion are allowed to file their respective memorandum within ten (10) days, in which case it is deemed submitted upon the filing of the said memorandum or upon the expiration of the period if no memorandum is filed.

SECTION 36. Agreed Statement of Facts. — (a) The Complainant/Mediation Officer and the Respondent may agree in writing upon the facts involved in the action, and ask judgment upon the facts agreed upon, without the introduction of evidence. The Hearing Officer shall immediately prepare the decision and submit it to the Chief Hearing Officer or Adjudication Officer, as the case may be, for his signature, if the agreed statement of facts is sufficient to support a decision.

(b) If the parties can agree only on some of the facts in issue, the hearing shall be held as to the others.

SECTION 37. Demurrer to Evidence Not Allowed. — No Demurrer to Evidence shall be entertained after the presentation of Complainant's/Mediation Officer's evidence. Respondent shall forthwith be required to present his evidence.

SECTION 38. Judgment on the Pleadings. — Where an answer fails to tender an issue or otherwise admits the material allegations of the adverse party's pleadings, the Chief Hearing Officer/Adjudication Officer may, on motion of the party, render judgment on such pleadings.

SECTION 39. Summary Judgment. — Any party seeking to recover upon a claim or counterclaim or against whom a claim or counterclaim is asserted may at any time after the issues are joined, move with supporting affidavits, depositions or admissions of parties, for a summary judgment in his favor as to all or any part thereof. The motion shall be served at least ten (10) days before the time specified for the hearing. The adverse party prior to the day of hearing, the judgment sought shall be rendered forthwith if the pleadings, depositions and admission on file, together with the affidavits, show that there is no genuine issue as to any material fact and that the movant is entitled to a judgement as a matter of law.

RULE VI

Evidence

SECTION 40. Ex Parte Evidence. — In addition to the sworn statements, testimonies and documentary evidence submitted by the parties, the Hearing Officer may receive ex parte evidence material and relevant to the case (such as reports of government agencies and testimonies of persons not presented by the parties), or conduct an ocular inspection, without prior notice to the parties. All ex parte evidence received by the Hearing Officer shall be reduced to writing and any party in interest shall have the opportunity to examine and rebut the same by further evidence.

 

SECTION 41. Evidence Required. — Substantial evidence shall be sufficient to support a decision or order.

Substantial evidence does not necessary import preponderant evidence as is required in a civil case. Substantial evidence is more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. aIcCTA

RULE VII

Decisions and Orders

SECTION 42. Rendition of Decisions. — (a) All decisions determining the merits of cases shall be in writing, prepared by the Hearing Officer, stating clearly and distinctly the facts and law on which they are based, and signed by the Chief Hearing Officer or Adjudication Officer, as the case may be.

(b) The case shall be decided within thirty working days from the time the formal hearing was terminated.

(c) Decisions and final orders shall be served by mail, personal service by an authorized person, or publication, as the case may require.

SECTION 43. Officials Authorized to Render Decisions. — (a) If the penalty/ies to be imposed is/are any one of more of the following, the decision shall be rendered by the Chief Hearing Officer:

(1) Fine not exceeding fifty thousand pesos plus not more than five hundred pesos for each day of continuing violation. If in the decision there are two or more respondents/violations fined, the basis for determining the fifty-thousand-peso and the five-hundred peso limits shall be the totality of each of the two sets of fines.

(2) Suspension of the validity of any permit, license, authority, or registration which may have been granted by the Ministry for a period not exceeding one year.

(3) Closure of business establishment for not more than thirty days.

(4) Censure.

(b) If the penalty/ies to be imposed is/are other than those mentioned above, the decision shall be rendered by the Adjudication Officer.

RULE VIII

Imposable Administrative Penalties and Sanctions

SECTION 44. Administrative Penalties and Sanctions Imposable. — After formal hearing, the Chief Hearing Officer or Adjudication Officer, as the case may be, subject to the preceding Section, may impose one or more of the following administrative penalties or sanctions, as he may deem commensurate with the offense, even if not prayed for by the Complainant nor recommended by the Head of Office concerned:

(a) The issuance of a cease-and-desist order.

(b) The acceptance of a voluntary assurance of compliance or discontinuance under such terms and conditions as may be imposed.

(c) The condemnation or seizure of products which are the subject of the offense.

(d) The seizure and forfeiture of the paraphernalia and all properties, real or personal, which have been used in the commission of the offense.

(e) The imposition of administrative fines in such amount as deemed reasonable by the Chief Hearing Officer/Adjudication Officer, which shall in no case be less than five hundred pesos nor more than one hundred fifty thousand pesos plus not more than one thousand pesos for each day of continuing violation. The fine imposed under this Section shall be regardless of the limits of the criminal fine fixed in the trade and industry law violated.

(f) The cancellation of any permit, license, authority, or registration which may have been granted by the Ministry, or the suspension of the validity thereof for such period of time as the Minister may deem reasonable which shall not however, exceed one year.

(g) The withholding of any permit, license, authority, or registration which is being secured by the Respondent from the Ministry. aTADcH

(h) The assessment of damages.

(i) Censure.

(j) Other analogous penalties or sanctions, such as:

(1) Disqualification not exceeding one year, from availing of any incentive or assistance given or extended by the Ministry (like loans; technical, managerial and legal advices; marketing assistance; trade leads; data and literature; and arbitration and conciliation services).

(2) Disqualification not exceeding one year from participating in public hearings conducted by the Ministry.

(3) Disqualification not exceeding one year from entering into any contract or agreement with the Ministry.

(4) Disqualification not exceeding one year from participating in trade missions and trade expositions.

(5) Closure of business establishment for a period not exceeding one year.

SECTION 45. Cease-and-Desist Order. — The cease-and-desist order referred to in the preceding Section shall specify the acts that the respondent shall cease and desist from and shall require him to submit a report of compliance therewith within a reasonable time which shall be fixed in the order.

SECTION 46. Voluntary Assurance of Compliance or Discontinuance. — (a) The voluntary assurance of compliance or discontinuance may include one or more of the following:

(1) An assurance to comply with the provisions of the trade and industry law violated.

(2) An assurance to refrain from engaging in unlawful acts and practices or unfair or unethical trade practices subject of the administrative action.

(3) An assurance to recall, replace, repair or refund the money value of defective products distributed in commerce.

(4) An assurance to reimburse the complainant the expenses and the costs incurred in prosecuting the case in the Ministry.

(b) The Adjudication Officer may also require the respondent to submit periodic reports of compliance and file a bond to guarantee compliance with his undertaking.

SECTION 47. Disposition of Seized Products. — The products seized and condemned/forfeited under Sub-section (c), Section 44 hereof as well as the paraphernalia and real/personal properties seized and forfeited under Subsection (d) of the same Section shall be disposed of under a separate set of guidelines that the Minister will issue.

SECTION 48. Fines. — Fines imposed and collected by the Ministry shall be deposited with the National Treasury and shall accrue to the General Fund pursuant to Section 50 of P.D. No. 1177 except such portions thereof which will be used in the implementation of Executive Order No. 913 and these rules and regulations when duly authorized.

RULE IX

Preliminary and Preventive Orders

SECTION 49. Preliminary Orders. — (a) At any time after the commencement of the administrative action and before judgment, the Adjudication Officer may, motu proprio or upon verified application by the Complaint or upon recommendation of the Head of Office concerned, issue a preliminary order requiring a person to refrain from a particular act or to perform a particular act, if the Adjudication Officer is satisfied that the commission or continuance of the act complained of during the pendency of the action or the non-performance thereof would probably work injustice to the Complainant; or that the Respondent is doing, threatens, or is about to do, or is procuring or suffering to be done, some act probably in violation of the Complainant's rights respecting the subject of the administrative action and tending to render the judgment ineffectual.

(b) The Adjudication Officer may require the Complainant to file with the Head of Office concerned a bond executed to the Respondent, in an amount to be fixed by the Adjudication Officer, to the effect that the Complainant will pay to such party all damages which he may sustain by reason of the preliminary order if the Chief Hearing Officer/Adjudication Officer should finally decide that the Complainant was not entitled thereto. ATcaEH

(c) The preliminary orders may be granted with or without prior notice and hearing on the application for issuance of preliminary order, at the sound discretion of the Adjudication Officer.

(d) The preliminary orders may be dissolved fully or partially at any time by the Adjudication Officer motu proprio or upon application by the Respondent or recommendation of the Head of Office concerned with or without prior notice and hearing on the application for dissolution thereof, at the sound discretion of the Adjudication Officer.

SECTION 50. Preventive Orders. — At any time after the commencement of the administrative action and before judgment, the Adjudication Officer may motu proprio or upon the recommendation of the Head of Office, issue preventive orders as provided under Section 11 of Executive Order No. 913.

RULE X

Motion for Reconsideration

SECTION 51. With Whom Filed and Period of Filing. — Any party adversely affected by the decision of the Chief Hearing Officer/Adjudication Officer may file a motion for reconsideration with the said official who rendered the decision, stating his grounds therefore, within ten days from receipt of the decision. Only one motion for reconsideration shall be allowed any party. The pendency of the said motion shall suspend the 15-day period of appeal provided in Section 54 hereof.

SECTION 52. Minute Order on Such Motion. — The order on the motion for reconsideration to be issued by the Chief Hearing Officer/Adjudication Officer denying said motion may be in a minute one such as: "Petitioner's Motion for Reconsideration dated ___________ is hereby denied for lack of merit."

SECTION 53. Order by Reference. — The order on the motion need not state fully the grounds for granting or denying it but may simply make reference to the pleadings, motions, transcript of stenographic notes, and other records of the case.

RULE XI

Appeal

SECTION 54. Finality of Decision and Order. — (a) The decision and order of the Chief Hearing Officer/Adjudication Officer shall become final and executory fifteen days after the receipt of a copy thereof by the party affected unless within the said period an administrative appeal to the President or judicial review, if proper, has been perfected.

(b) The appeal to the President shall be in accordance with the rules and regulations promulgated by his office.

(c) Interlocutory orders shall not be appealable.

RULE XII

Executions of Decisions

SECTION 55. Order and Writ of Execution. — As soon as a decision or order has become final and executory, the Chief Hearing Officer/Adjudication Officer shall on motion of the interested party or motu proprio issue an Order of Execution and the corresponding Writ of Execution deputizing and requiring any of the persons and entities mentioned in Section 12 of Executive Order No. 913 to execute and enforce said decision or order.

 

SECTION 56. Execution Pending Appeal. — On motion of the prevailing party with notice to the adverse party or motu proprio the Chief Hearing Officer/Adjudication Officer may, in his discretion, order execution to issue even before the expiration of the time to appeal, upon good reasons to be stated in an order.

RULE XIII

Adjudication, Hearing, and Mediation Officers

SECTION 57. To Whom They Refer To. — The Adjudication Officer, Chief Hearing officer, Hearing Officers, and Mediation Officers in these rules and regulations refer to officials who are regularly appointed to such positions and/or to officials designated as such as follows:

(a) The Minister shall designate the Adjudication Officer while the latter shall designate the Chief Hearing Officer and Hearing Officers. DTcASE

(b) The Heads of Office shall designate their respective Mediation Officers from among the officers and employees of the Ministry, preferably those under their respective supervision.

SECTION 58. Powers and Duties of Hearing Officers. — The Chief Hearing Officer and Hearing Officers shall have the following powers and duties:

(1) To administer oaths and affirmations.

(2) To authorize amendment of Complaint/Statement of Violation.

(3) To issue summons, subpoena, subpoena duces tecum to compel the attendance of parties and witnesses and the production of any book, paper, correspondence, document, contract, and other records which are relevant or material to the hearing.

(4) To make preliminary rulings on questions and issues raised at the hearing, subject to the final ruling thereon to be made by the deciding official when he renders the decision.

(5) To take/receive relevant and material testimony/evidence and rule on offers of evidence.

(6) To regulate the course of hearing.

(7) To submit his report to the deciding official immediately upon termination of formal hearing together with the prepared decision/order.

(8) If in the conduct of the hearing a procedural matter, issue, or question arises and there is no provision in these rules and regulations that corresponds thereto, the Chief Hearing Officer/Hearing Officer shall either:

(a) Apply the applicable, consistent, practical and convenient provisions of the Rules of Court;or

(b) Adopt such rules, processes and proceedings which are consistent with fair play and conformable to the spirit and intent of Executive Order No. 913.

SECTION 59. Contempt. — In the performance of their duties and functions under Executive Order No. 913 and these rules and regulations, the Adjudication Officer, Chief Hearing Officer and Hearing Officers shall have the same power to punish direct and indirect contempts granted to superior courts under Rule 71 of the Rules of Court.

SECTION 60. Power of Minister Despite Delegation of Powers. — Despite the delegation of the powers of the Minister, made in these rules and regulations, the Minister may, in his discretion:

(a) Conduct personally any phase of any proceeding under these rules and regulations; or

(b) Designate another official or create a committee to conduct any phase of any proceeding under these rules and regulations. Such official or committee shall exercise all the powers and perform all the duties pertaining to the Adjudication Officer, Head of Office, Chief Hearing Officer, Hearing Officer, or Mediation Officer, depending on the particular phase of proceeding he is authorized to conduct.

RULE XIV

Recorded Proceedings

SECTION 61. Reporting of Proceedings. — The proceedings in the hearings shall be taken down and transcribed by the assigned stenographer. In his absence or unavailability, the Hearing Officer may:

(a) Use a tape recorder and after the proceedings ask a stenographer to transcribe the same; or

(b) Designate a private stenographer for the purpose, upon agreement and at the expense of the parties. The said stenographer shall take his oath before assuming the duties; or

(c) Use such other methods as may sufficiently reflect the proceedings.

RULE XV

Other Provisions

SECTION 62. Repealing Clause. — All rules and regulations and orders in consistent herewith are hereby repealed or amended accordingly. CETIDH

SECTION 63. Publication and Effectivity. — These rules and regulations shall be published in full text in two newspapers of general circulation in the Philippines and shall take effect fifteen days after such publication.

(SGD.) ROBERTO V. ONGPINMinister of Trade and Industry