MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE 2009-2012 PHILIPPINE SC…
Cooperation (Framework Agreement) between the Association of South East
Asian Nations (ASEAN) and the People’s Republic of China (China) was
signed by the Heads of Government/ State of the ASEAN Member States and
China on 4 November 2002 in Cambodia;
WHEREAS, Articles 2(a), 3(1), and 8(1) of the Framework Agreement
reflect the Parties’ commitment to establish the ASEAN-China Free Trade
Area (ACFTA) covering trade in goods by 2010 for ASEAN 6 and China, and
by 2015 for the newer ASEAN Member States;
WHEREAS, the Agreement on Trade in Goods of the Framework Agreement
was signed by the Economic Ministers of the Parties on 29 November 2005
in Laos;
WHEREAS, Article 3(2)(a) of the Agreement on Trade in Goods of the
Framework Agreement provides that tariff lines placed in the Normal
Track by each party shall have their respective applied Most Favored
Nation (MFN) tariff rates gradually reduced and eliminated in accordance
with the modalities set out in Annex 1[*] of the Agreement with the objective of achieving the targets prescribed in the threshold therein;
WHEREAS, as an integral part of its commitments, each Party shall
eliminate all its tariff lines placed in the Normal Track not later than
1 January 2010, with flexibility to have tariffs on some tariff lines,
not exceeding 150 tariff lines, eliminated not later than 1 January
2012. For the Philippines, the list of products for flexibility
exceeding 150 tariff lines shall be determined after a review in 2008;
WHEREAS, during the 29th ASEAN-China Trade Negotiating Group Meeting,
it was agreed that a review of the Sensitive Track be initiated with the
end in view to improve market access pursuant to the provisions of
paragraph 2, Article 17 of the Agreement of Trade in Goods of the
Framework Agreement;
WHEREAS, the NEDA Board approved on 10 February and 26 May 2009 the
2009-2012 tariff reduction schedule under the Normal Track of the ACFTA
in compliance with the Philippines’ commitment under the Framework
Agreement; and the transfer of certain tariff lines from the Sensitive
Track to the Normal Track;
WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (PD
1464), as amended, empowers the President of the Republic of the
Philippines, upon the recommendation of the National Economic and
Development Authority, to modify import duties for the promotion of
foreign trade;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic
of the Philippines, by virtue of the powers vested in me by law, do
hereby order:
SECTION 1. The articles specifically listed in Annex “A”[*]
hereof (2009-2012 Philippine Schedule of tariff Reduction under the
Normal T rack of the ACFTA), as classified under Section 104 of the
Tariff and Customs Code of 1978, as amended, shall be subject to the
ACFTA rates in accordance with the schedule indicated in Columns 4-7 of
Annex “A”. The ACFTA rates so indicated shall be accorded to imports
coming from the Parties to the Agreement on Trade in Goods of the
Framework Agreement applying tariff concession to the same product
pursuant to Article 3 of the Agreement on Trade in Goods of the
Framework Agreement.SECTION 2. The articles specifically listed in Annex “B”[*]
hereof (Articles Transferred from Sensitive Track to the Normal Track
of the ACFTA), as classified under Section 104 of the Tariff and Customs
Code of 1978, as amended, shall be subject to the ACFTA rates in
accordance with the schedule indicated in Columns 4-7 o f Annex “B”. The
ACFTA rates so indicated shall be accorded to imports coming from the
Parties to the Agreement on Trade in Goods of the Framework Agreement
applying tariff concession to the same product pursuant to Article 3 of
the Agreement on Trade in Goods of the Framework Agreement.SECTION 3. For ASEAN 9 (i.e. Brunei Darussalam, Cambodia,
Indonesia, Lao Peoples Democratic Republic, Malaysia, Myanmar,
Singapore, Thailand, and Vietnam), the applicable rate shall be the
ACFTA rate subject to the submission of the proper Certificate of
Origin, Form E. The Tariff Commission pursuant to Section 1313(a) of the
Tariff and Customs Code of the Philippines, as amended, may upon
request, issue tariff classification rulings to confirm the applicable
rates of duty of particular products subject to this section.SECTION 4. In the event that any subsequent changes are
made in the basic MFN Philippine rates of duty on any of the article
listed in Annexes “A” and “B” to a rate lower than the rate prescribed
in Columns 4-7 of said Annexes, such article shall automatically be
accorded the corresponding reduced duty.SECTION 5. From the date of effectivity of this Order,
all articles listed in Annexes “A” and “B” entered into or withdrawn
from warehouses in the Philippines for consumption shall be imposed the
rates of duty therein prescribed subject to compliance with the Rules of
Origin as provided for in Article 5 of the Agreement on Trade in Goods
of the Framework Agreement.SECTION 6. All presidential issuances, administrative
rules and regulations, or parts thereof, which are contrary to or
inconsistent with this Executive Order are hereby revoked or modified
accordingly.SECTION 7. This Executive Order shall take effect fifteen
(15) days following its complete publication in the Official Gazette or
in a newspaper of general circulation in the Philippines.
Adopted: 30 June 2009
(SGD.) GLORIA M. ARROYO
President of the Philippines
BY THE PRESIDENT:
(SGD.) EDUARDO R. ERMITA
Executive Secretary
[*] Not Filed with ONAR.