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 Indonesia and Malaysia;

WHEREAS,
under the Honda AICO Arrangement, the Philippines (Honda Cars
Philippines, Inc.) will import from Indonesia (PT. Honda Prospect Motor)
certain original equipment manufacture (OEM) automotive
parts/components for Honda Civic and Accord passenger cars (HS 8703.90
10).  In exchange, Indonesia will import from the Philippines complementary parts/components for the OEM of Honda Civic and Accord;

WHEREAS,
under the Honda AICO Arrangement, the Philippines (Honda Cars
Philippines, Inc.) will import from Malaysia (Oriental Assemblers Sdn.
Bhd., and Honda Autoparts Manufacturing [M] Sdn. Bhd.) certain original
equipment manufacture (OEM) automotive parts/components for Honda CR-V
light commercial vehicles (HS 8702.90 10). In exchange, Malaysia will import from the Philippines complementary parts/components for the OEM of Honda CR-V;

WHEREAS, AICO Certificate of Eligibility (COE) Nos. Honda/2001/15 and Honda/2001/16 were issued on 29 and 31 October 2001, respectively, in favor of the participating companies in the Honda AICO Arrangements;

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
Indonesia, Malaysia 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 of Honda CRV
light commercial vehicles (HS 8702.90 10) and 5% on parts/components of
Honda Civic and Accord passenger cars (HS 8703.90 10) as specified in
Column 6 thereof.

SECTION 2.   The
AICO rate provided in Annex “A” shall be accorded to the AICO entity in
Indonesia (PT. Honda Prospect Motor), and to the AICO entity in
Malaysia (Oriental Assemblers Sdn. Bhd., and Honda Autoparts
Manufacturing [M] Sdn. Bhd.) 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 article shall automatically be accorded the
corresponding reduced rate of duty.  Effective 01 January 2003, the final CEPT rate on the 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 number/s 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