Be it enacted by the Senate and Home of Representatives of the Philippines in Congress assembled:

SECTION 1. Paragraph g of Section four hundred two, Part 3, Title II, Book I of Republic Act Numbered One thousand nine hundred thirty-seven is hereby amended as follows:

"g. (1) The Commission, upon its own motion, or in pursuance of a request of the President or a resolution of either House of Congress, or upon application of any interested party when in the judgment of the Commission there is good and sufficient reason therefor, shall conduct an investigation to determine whether any product, is being imported into the Philippines in such quantities and/or under such conditions as to cause or threaten, serious injury to the domestic industry producing like or directly competitive products. Notice of the investigation shall be published at least once a week for two consecutive weeks in two newspapers of general circulation, with the Philippines, and a copy of the notice shall be sent by registered mail to the importer or importers and domestic producers if their addresses are known to the Commission, at least ten days before the investigation; and all interested parties shall be given an opportunity to be heard at the investigation. In determining whether domestic industry has suffered or is being threatened with serious injury, the Commission shall determine whether the wholesale prices at which the domestic products are sold are reasonable, taking into account the cost of raw materials, labor, overhead and a fair return on investment. The Commission shall render a report to the President, through the National Economic Council, within three months after the motion, request, resolution or application was received.

"Should the Commission find that the representations made in accordance with the preceding paragraph are justified, it shall recommend to the President, through the National Economic Council, the withdrawal, modification or suspension, in whole or in part, of any concession under any trade agreement or the establishment of import quota which shall not be less than ten per centum nor more than one hundred per centum of the average annual quantity imported or, in the absence thereof, the average annual value of such importation during the three calendar years immediately preceding the date such quota is fixed, or the imposition of other import restrictions to the extent and for the time necessary to prevent or remedy such injury. Any remedial action recommended shall be conditioned upon the wholesale prices of domestic products being reduced to or being maintained at, such fair level as the Commission shall recommend for the protection of consumers.

"(2) The National Economic Council shall have thirty days from receipt of the report to evaluate it. Upon the expiration of the said period the Chairman of the National Economic Council shall submit the report to the President, enclosing the evaluation and recommendation of the National Economic Council.

"(3) Upon receipt of the report of the findings and commendations of the Commission, the President prescribe such adjustments in the rates of import duties, withdraw, modify or suspend, in whole or in part, any concession under any trade agreement, establish import quota or institute such other import restrictions as the Commission recommends through the National Economic Council to be necessary in order to fully protect domestic industry and the consumers, subject to the condition that the wholesale prices of the domestic products concerned shall be reduced to or maintained at the level recommended by the Commission unless, for good cause shown, an increase thereof, as recommended by the Commission through the National Economic Council, is authorized by the President. Should increases be made without such authority, the Commission shall immediately notify the President, who shall allow the importation of competing products in such quantities as to protect the public from the unauthorized increase in wholesale prices."

SEC. 2. This Act shall take effect upon its approval.