MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE MINIMUM NINETY PER CENTUM (…

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WHEREAS, the Philippine is a
Contracting Party to the Revised Basic Agreement on ASEAN Industrial Joint
Ventures (BAAIJV) signed in Manila on 15 December 1987;

WHEREAS, the Philippines, along
with Brunei Darussalam, Indonesia, Malaysia, Singapore, and Thailand, is a
participating country in the approved NESTLE ASEAN Industrial Joint Venture
Projects;

WHEREAS, in accordance with the
Revised BAAIJV, all participating countries shall extend a minimum ninety
percent (90%) Margin of Preference (MOP) to new AIJV products within 90 days of
their commercial production;

WHEREAS, the commercial
production of non-dairy creamer by Nestle ASEAN THAILAND, Ltd. started in
November 1993; that of “Smarties” chocolate dragees and “Kitkat” chocolate
wafers by Nestle ASEAN (Malaysia) Sdn. Bhd. in December 1993; and that of
Soya-based milk powder by P.T. Nestle ASEAN INDONESIA will start in January
1994;

NOW, THEREFORE, I, FIDEL V.
RAMOS, President of the Philippines, pursuant to the powers vested in me under
Section 402 of the Tariff and Customs Code of 1978, as amended, do hereby order:

SECTION 1. The articles
specifically listed in Annex “A” as classified under Section 104 of the Tariff
and Customs Code of 1978, as amended, shall be accorded a minimum ninety per
centum (90%) MOP as specified in column 8 of said Annex “A”. In effect, such
articles shall be subject to the AIJV Preferential Tariff in accordance with
the schedule indicated opposite each article as specified in columns 9, 10, 11,
and 13 of Annex “A”.

SEC. 2. The MOP herein provided
on non-dairy creamer shall be accorded to the AIJV entity in Thailand effective
from 1 November 1993 up to 1 November 1997; that on chocolate dragees and
chocolate wafers shall be accorded to the AIJV entity in Malaysia effective
from 1 December 1993 up to 1 December 1997; and that on soya-based milk powder
shall be accorded to the AIJV entity in Indonesia effective from 1 January 1994
to 1 January 1998. As provided under Article III, paragraphs 3 (c) and (d) of
the Revised, BAAIJV, the participating countries shall waive their rights under
Chapter II, Article 8, paragraph 2 of the ASEAN PTA for the first four (4)
years in respect of entities which are not AIJVs but produce the same products
within their countries. However, such entities in the participating countries
which are not AIJVs but produce the same products shall enjoy the same MOP
after the waiver period of four (4) years.

SEC. 3. The minimum ninety per
centum (90%) MOP accorded under this Executive Order to the accredited AIJV
entities in Thailand, Malaysia, And Indonesia shall remain effective
irrespective of any subsequent change in the basic Philippine rate of duty on
the above-mentioned articles.

SEC. 4. After the effectivity of
this Executive Order, all the above-described articles entered or withdrawn
from warehouses in the Philippines for consumption shall be subject to
qualification under the Rules of Origin as prescribed in the Agreement on ASEAN
Preferential Trading Arrangements ratified on 1 August 1977.

SEC. 5. This Executive Order
shall take effect immediately.

DONE in the City of Manila, this 25th day of January in the year of Our Lord, nineteen hundred and
ninety-four.

(Sgd.) FIDEL
V. RAMOS
President of the Philippines

By the President:

(Sgd.) TEOFISTO T. GUINGONA, JR.
Executive Secretary

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