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…
Aquino Office of the President endorsing a certified copy of Executive
Order No. 198 dated January 15, 2000 entitled; “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 On Certain Products Under The Asean Industrial Cooperation
(Aico) Scheme.”
For your information and guidance.
Adopted: 29 Feb. 2000
(SGD.) RENATO A. AMPIL
Acting Commissioner
Attachment
EXECUTIVE ORDER NO. 198
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 ON
CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME
WHEREAS, the Philippines is a Contracting Party to the Basic
Agreement on the AICO Scheme signed in Singapore on 27 April 1996;
WHEREAS, the AICO Scheme seeks to improve the competitive position
of ASEAN companies in the global and ASEAN markets by providing the
means to apply the principles of economies of scale and scope in the
manufacturing process, supported by preferential import duties to
enhance across ASEAN border transactions;
WHEREAS, the Philippines is a participating country in the approved
AICO Schemes of Honda Cars Phils. Inc. (HCPI) and Toyota Motor
Philippines, Corp. (TMPC) along with Indonesia and Malaysia;
WHEREAS, under the Honda AICO Arrangement, it was agreed that the
Philippines (Honda Cars Phils., Inc.) will import various component
parts from Indonesia (P.T. Honda Prospect Motor) and Malaysia (Honda
Autoparts Manufacturing (M) Sdn. Bhd.) for the original equipment
manufacture (OEM) of Honda models Civic, City and Accord passenger cars.
In exchange, Indonesia (P.T. Honda Prospect Motor) will import certain
automotive component parts from the Philippines (Honda Cars Phils.,
Inc.) for the OEM of Honda models Civic, City and Accord passenger cars;
WHEREAS, under the Toyota AICO Arrangement, the Philippines (Toyota
Motor Philippines Corp.) will import from Malaysia (T & K Autoparts
Sdn. Bhd.) for the original equipment manufacture (OEM) of Toyota
Corolla passenger cars and TUV light commercial vehicles for the
transport of persons and goods.
WHEREAS, AICO Certificates of Eligibility Nos. Honda/1998/3(A) and
Honda/1999/5 were issued on 22 June and 1 July 1999, respectively in
favor of the participating companies in the Honda AICO Arrangement; AICO
Certificate of Eligibility No. Toyota/1998/3(A) was issued on 30 June
1999 in favor of the participating companies in the Toyota AICO
Arrangement.
WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement
on the AICO Scheme, participating companies in the approved Honda
Arrangement shall qualify for 0-5% preferential tariff rate to be
extended by the Philippines, Indonesia and Malaysia as participating
countries, effective within 45 days from the date of issuance of the
Certificate of Eligibility by the ASEAN Secretariat;
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, 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:
SEC. 1 . The articles specifically listed in Annex “A”
hereof, as classified under Section 104 of the Tariff and Customs Code
of 1978, as amended, shall be accorded the AICO rate of 5% as specified
in Column 6 thereof.
SEC. 2. The AICO rates provided in Annex “A” shall be
accorded to the AICO entity in Indonesia (P.T. Honda Prospect Motor)
effective from 1 July 1999 and to the AICO entity in Malaysia (Honda
Autoparts Manufacturing (M) Sdn. Bhd.) effective from 22 June 1999.
SEC. 3. The articles specifically listed in Annex “B”
hereof, as classified under Section 104 of the Tariff and Customs Code
of 1978, as amended, shall be accorded the AICO rate of 3% and 5% as
specified in Column 6 thereof.
SEC. 4. The AICO rates provided in Annex “B” shall be
accorded to the AICO entity in Malaysia (T & K Autoparts Sdn. Bhd.)
effective from 30 June 1999.
SEC. 5. In the event that any subsequent changes are
made in the basic (MFN) Philippine rate of duty on the articles listed
in Annexes “A” and “B” to a rate lower than the AICO rate prescribed in
Column 6 thereof, such article shall automatically be accorded the
corresponding reduced rate of duty. Effective 1 January 2003, the final
CEPT rate on the subject article shall apply.
SEC. 6 . Upon the effectivity of this Executive Order,
the article specifically listed in the aforesaid Annexes “A” and “B”
which are entered or withdrawn from warehouses in the Philippines for
consumption shall pay the applicable AICO preferential tariff rate
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”.
SEC. 7. Any revision/s to the part numbers appearing in
Column 4 of Annexes “A” and “B”, 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.
SEC. 8 . This Executive Order shall take effect immediately.
Adopted: 15 Jan. 2000
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(SGD.) JOSEPH E. ESTRADA
President |
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| By the President: |
(SGD.) RONALDO B. Zamora
Executive Secretary |