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 PREFERENTIAL TARIFF RATES O…

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Honda Cars Philippines, Inc. (Honda) along with Thailand;

WHEREAS,
under the Honda AICO Arrangement, the Philippines (Honda Cars
Philippines, Inc.) will import from Thailand (Honda Automobile Thailand
Co. Ltd.) original equipment manufacture (OEM) automotive
parts/components for Honda CR-V, light commercial vehicle (HS 8702.90
10).  In exchange, Thailand will import from the Philippines complementary component parts for the OEM of Honda CR-V, light commercial vehicle;

WHEREAS, AICO Certificate of Eligibility (COE) No. Honda/2001/18 was issued on 11 December 2001, in favor of the participating companies in the Honda AICO Arrangement;

WHEREAS,
in consonance with Articles 5 and 7 of the Basic Agreement of the AICO
Scheme, participating companies in the approved Honda AICO Arrangements
shall qualify for 0-5% preferential tariff rates to be extended by
Thailand and the Philippines for Honda.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, 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”^[1] hereof, as classified
under Section 104 of the Tariff and Customs Code of 1978, as amended,
shall be accorded the AICO rate of 3% on parts/components (HS Hdg. Nos.
8702.90 10) of Honda CR-V, light commercial vehicle as specified in
Column 6 thereof.

SECTION 2.   The AICO rate provided in Annex “A” shall be accorded to the AICO entity in Thailand (Honda Automobile Thailand Co. Ltd.) upon the effectivity of this Executive Order.

SECTION 3.   In
the event that any subsequent changes are made in the basic (Most
Favored Nation) Philippine rate of duty on any of the articles listed in
Annex “A” to a rate lower than the AICO rate prescribed in Column 6 of
Annex “A”, such articles shall automatically be accorded the
corresponding reduced rate of duty. Effective 1 January 2003, the final CEPT rate on the subject articles shall apply.

SECTION 4.   Upon
the effectivity of this Executive Order, the articles specially listed
in the aforesaid Annex “A” which are entered or withdrawn from
warehouses in the Philippines for consumption shall pay the applicable
AICO preferential tariff rates specified under Section 1 hereof, subject
to qualification under the Rules of Origin for the CEPT, as evidenced
by the Certificate of Origin – Form “D”.

SECTION 5.   Any
revision/s to the part numbers appearing in Column 4 of Annex “A” shall
be communicated immediately to the Bureau of Customs by the Board of
Investments within five (5) days after receipt of the official copy of
the revised part numbers from the ASEAN Secretariat.

SECTION 6.   This Executive Order shall take effect immediately.

Adopted: 09 April 2002

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary