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202 - American Inter-Fashion Corporation v. Office of The President - Razon

The GTEB cancelled Glorious Sun Fashion's export quotas in 1984, finding it guilty of misdeclaring imported materials. Glorious Sun filed petitions arguing its due process rights were violated as the decision was not supported by evidence disclosed to it. In 1987, Glorious Sun filed again with GTEB to restore its quotas, again alleging due process violations and undue influence. The GTEB and Office of the President denied the petitions. When American Inter-Fashion intervened opposing Glorious Sun's appeal, the court found the 1984 GTEB proceedings irregular and violated Glorious Sun's due process rights by failing to disclose evidence used against it. The court remanded the case back to the GTEB for further

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231 views2 pages

202 - American Inter-Fashion Corporation v. Office of The President - Razon

The GTEB cancelled Glorious Sun Fashion's export quotas in 1984, finding it guilty of misdeclaring imported materials. Glorious Sun filed petitions arguing its due process rights were violated as the decision was not supported by evidence disclosed to it. In 1987, Glorious Sun filed again with GTEB to restore its quotas, again alleging due process violations and undue influence. The GTEB and Office of the President denied the petitions. When American Inter-Fashion intervened opposing Glorious Sun's appeal, the court found the 1984 GTEB proceedings irregular and violated Glorious Sun's due process rights by failing to disclose evidence used against it. The court remanded the case back to the GTEB for further

Uploaded by

Marianne Agunoy
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Bernard Anthony Razon

American Inter-Fashion Corporation v. Office of the President G.R. No. 92422


Facts:
On April 27, 1984, Garments and Textile Export Board (GTEB) declared that respondent
Glorious Sun was guilty of misdeclaration of imported raw materials resulting in dollar salting
abroad and, therefore, its export quotas should be cancelled. Respondent Glorious Sun Fashion
filed a petition for certiorari and prohibition with the Court contending that its right to due
process of law was violated, and that the GTEB decision was not supported by substantial
evidence. However, on July 25, 1984, respondent Glorious Sun Fashion filed a manifestation of
its intention to withdraw the petition.
More than two years later, on October 15, 1986, respondent Glorious Sun Fashion filed
with the GTEB a petition for the restitution of its export quota allocation and requested for a
reconsideration of the GTEB decision dated April 27,1984. Once again, respondent Glorious Sun
Fashion alleged that the charges against it in OSC Case No. 84-B-1 were not supported by
evidence. Moreover, it alleged that the GTEB decision cancelling its export quotas was rendered
as a result of duress, threats, intimidation and undue influence exercised by former Minister
Roberto Ongpin in order to transfer Glorious Sun Fashion's export quotas to Marcos cronyowned corporations (De Soleil Corporation and American Inter-Fashion).
On September 4, 1987, the GTEB denied the petition of the respondent. An appeal was
then taken on October 5, 1987 to the Office of the President. At this point, petitioner American
Inter-Fashion sought to intervene in the proceedings and filed its opposition to Glorious
Fashions appeal has long become final, and that a favorable action on the appeal would result in
the forfeiture of the export quotas which were legally allocated to it. The Office of the President
ruled in favor of respondent Glorious Sun, finding the proceedings before the GTEB in 1984
irregular, and remanded the case to GTEB for further proceedings.

Issue: (Art III, Section 1)


1. Whether or not the Office of the President committed grave abuse of discretion amounting to
lack of jurisdiction in finding that there was a violation of Glorious Suns right to procedural due
process. NO
Decision:
1. In its petition, the petitioner admits that the GTEB in the 1984 hearings failed to
disclose to Glorious Sun vital evidence used by GTEB in arriving at its conclusion that Glorious
Sun was guilty of dollar-salting. The petitioner claims that the subsequent disclosure of the
documents by GTEB to Glorious Sun in 1987 cured the defect of non-disclosure of evidence in
1984 under the constitutional provision of due process enunciated in the landmark case of Ang
Tibay v. The Court of Industrial Relations.
The court ruled that the argument of the petitioner is misleading. The glaring fact is that
Glorious Sun was denied due process when the GTEB failed to disclose evidence used by it in
rendering a resolution against Glorious Sun.
Moreover, as pointed out by Deputy Executive Secretary Elma, the documents disclosed
to Glorious Sun by GTEB in 1987 enhanced the charge that Glorious Sun was denied due
process.

Contrary to the petitioner's posture, the record clearly manifests that in cancelling the
export quotas of the private respondent GTEB violated the private respondent's constitutional
right to due process. Before the cancellation in 1984, the private respondent had been enjoying
export quotas granted to it since 1977. In effect the private respondent's export quota allocation
which initially was a privilege evolved into some form of property right which should not be
removed from it arbitrarily and without due process only to hurriedly confer it on another.

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