MEMORANDUM ORDER NO. 73, September 12, 2002
PROVIDING AMENDMENTS TO MO 51 S. 2002, “AMENDMENTS TO M.O. 346, AMENDING THE GUIDELINES ON THE CAR DEVELOPMENT PROGRAM (CDP), THE COMMERCIAL VEHICLE DEVELOPMENT PROGRAM (CVDP), …
WHEREAS, the Philippines, as member of
the World Trade Organization (WTO), has committed to eliminate all
laws, provisions, rules, regulations, and guidelines that may run
counter to the different Agreements under the auspices of the WTO to
which the Philippines is a signatory, such as the Agreement of
Trade-Related Investment Measures (TRIMS);
WHEREAS, the Agreement on TRIMS
mandates the elimination of laws, provisions, rules, regulations, and
guidelines that provide for local content (LC) and net foreign exchange
earnings (NFEE) requirements as they are considered contrary to the
provisions thereof;
WHEREAS, the Philippines was granted
formal approval by the Council for Trade in Goods (CTG) for the
extension of the applicability of the subject TRIMS for an additional
period of 3½ years from, and after, 1 January 2000, the original expiry
date of the transition period for the elimination of TRIMS, subject to a
required phase-out schedule;
WHEREAS, in order to amplify the rates
prescribed in the CDP, CVDP, MDP under Section 7.1 of Chapter 1 (CDP),
Section 16 and 16.4 of Chapter II (CVDP) and Section 24.1 of Chapter III
(MDP), Memorandum Order No. 51-A shall supercede Memorandum Order No. 51;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby amend Memorandum Order No. 51 dated 22 January 2002 and order the following:
SECTION 1. Section
7.1 Chapter I (CDP), Section 16.1 & 16.4 Chapter II (CVDP) and
Section 24.1 of Chapter III (MDP) are hereby amended to read:
“Participants of the CDP, CVDP and MDP shall comply with the following local content requirements.”
|
Period |
CDP |
|
|
CVDP |
|
|
MDP |
|
|
|
|
I & II |
I & II |
III |
IVA |
IVB |
IVC |
IVD-V |
Cat. A |
Cat. B |
|
Jan. 1, 2002 until June 30, 2002 |
35% |
39.375% |
19.163% |
18.76% |
19.46% |
11.839% |
12.049% |
39.375% |
30.625% |
|
July 1, 2002 until Dec. 31 2002 |
30% |
33.750% |
16.425% |
16.08% |
16.68% |
10.148% |
10.328% |
33.750% |
26.250% |
|
Jan. 1, 2003 until June30, 2003 |
25% |
28.125% |
13.688% |
13.40% |
13.90% |
8.456% |
8.606% |
28.125% |
21.875% |
|
July 1, 2003 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
SECTION 2. Section
10.2, 10.3 and 10.4 of Chapter I (CDP), Section 19.1 Chapter II (CVDP)
and Section 26.1 of Chapter III (MDP) are hereby amended to read:
“Participants of the CDP, CVDP, MDP will still be required to earn foreign exchange credits through the export of automotive products to be able to import CKDs. The
net foreign earnings shall be recorded in ledger without bonus and the
foreign exchange ratio (as a percentage of CKD import value) shall be as
follows:
|
Date |
CDP |
|
CVDP |
MDP |
||
|
|
Cat. I |
Cat. II |
Cat. III |
Cat. I & II |
Cat. III, IV and V |
Cat. A & B |
|
Jan. 1 2002 until Dec. 31, 2002 |
15% |
55% |
75% |
15% |
5% |
15% |
|
Jan. 1, 2003 until June30, 2003 |
15% |
55% |
75% |
15% |
5% |
15% |
|
July 1, 2003 |
0 |
0 |
|
0 |
0 |
0 |
SECTION 3. Repealing Clause.
— All other executive orders, administrative orders, rules and
regulations, or parts thereof inconsistent with the provisions of this
Memorandum Order are hereby repealed or modified accordingly.
SECTION 4. Effectivity. — This Memorandum Order shall take effect immediately.
Adopted: 12 Sept. 2002
(SGD.) ALBERTO G. ROMULO
Executive Secretary