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 Arrangement of Mitsuba Philippines Corporation (MPC) along with Thailand;

WHEREAS, under the MPC AICO Arrangement, the Philippines (Mitsuba Philippines Corporation) will import from Thailand
(Thai Summit Mitsuba Manufacturing Corporation, Ltd.) wiper motor
components and link units for the manufacture of wiper assembly, and in
exchange, Thailand (TSMMC) will import from the Philippines frame units, brush holder, bottom cover, and bracket assemblies for the manufacture of wiper assemblies;

WHEREAS,
AICO Certificate of Eligibility (COE) No. Mitsuba/2001/1(A) was
re-issued on 04 July 2001, in favor of the participating companies in
the MPC AICO Arrangement, nullifying AICO Certificate of Eligibility No.
Mitsuba/2001/1 issued on 16 April 2001, in favor of the participating
companies in the MPC AICO Arrangement; and

WHEREAS,
in consonance with Articles 5 and 7 of the Basic Agreement of the AICO
Scheme, participating companies in the approved MPC AICO Arrangement
shall qualify for 0-5% preferential tariff rates to be extended by the
Philippines and Thailand as participating countries, effective within 45
days from the date of issuance of Certificate of Eligibility No.
Mitsuba/2001/1 (A) by the ASEAN Secretariat.

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% as specified in the Column 5
thereof.

SECTION 2.   The AICO rate provided in Annex “A” shall be accorded to the AICO entity in Thailand (Thai Summit Mitsuba Mfg. Co. Ltd.) effective 04 July 2001.

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 5 of
Annex “A”, such articles shall automatically be accorded the
corresponding reduced rate of duty. Effective 01 January 2003, the final
CEPT rate on the article shall apply.

SECTION 4.   Upon
the effectivity of this Executive Order, the articles specifically
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 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”.

SECTION 5.   The
Secretary of Finance in consultation with the National Economic &
Development Authority (NEDA) shall issue the appropriate guidelines to
implement and rationalize the preferential tariff privilege herein
granted.

SECTION 6.   This Executive Order shall take effect immediately.

Adopted: 18 March 2002

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary