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The case involves whether a rice milling business that receives palay from customers to mill into rice, and sometimes stores palay onsite until it can be milled, falls under the General Bonded Warehousing Act. The Act regulates businesses that receive commodities for storage. The Court affirmed that the rice milling business is covered by the Act based on a section stating milling palay for customers is considered receiving for storage. The Court found the mill sometimes stored customers' palay onsite, bringing it under the Act. The Court also noted the Act's purpose is consumer protection, and covering milling palay achieves this even if storage is incidental to milling.
The case involves whether a rice milling business that receives palay from customers to mill into rice, and sometimes stores palay onsite until it can be milled, falls under the General Bond…