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 COMMITMENT TO REDUCE TH…

WHEREAS, Articles 1.3 and 2.1 of the Framework Agreement on
Comprehensive Economic Cooperation (Framework Agreement) Between the
Association of South East Asian Nations (ASEAN) and the Republic of
Korea reflects the Parties’ commitment to establish the ASEAN – Korean
Free Trade covering Trade in Goods;

WHEREAS, Article 3.2(a) of the Trade in Goods (TIG) Agreement of
the Framework Agreement provides that tariff lines placed in the Normal
Track by each Party shall have their respective applied 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, the aforesaid Annex 1 Section 5(b) of the TIG Agreement
provides that ASEAN 6 shall implement the following targets and
thresholds: (ii) eliminate tariffs for at least 90% of the tariff
lines placed in the Normal Track not later than 1 January 2009; (iii)
eliminate all tariff lines by 2010 with flexibility on 5% of the total
lines, or as listed in the agreed schedule, not later than 1 January
2012;

WHEREAS, the NEDA Board during its meeting on 31 March 2009 approved
the grant of AKFTA rates of 0% on 90% of the products in the Normal
Track with flexibility;

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 the Annex^[*]
(Articles Granted Tariff Concession Under the Normal Track of the
ASEAN – Korea Free Trade Area) hereof, as classified under Section 104
of the Tariff and Customs Code of 1978, as amended, shall be subject to
the AKFTA rates in accordance with the schedule indicated in Columns
4-6 of the Annex. The AKFTA rates so indicated shall be accorded to
imports coming from the parties of 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. For ASEAN 8 (i.e. Brunei Darussalam,
Cambodia, Indonesia, Lao Peoples Democratic Republic, Malaysia,
Myanmar, Singapore and Vietnam) the applicable rate shall be the AKFTA
rate, subject to the submission of the proper Certification of Origin,
Form AK. 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 3. In the event that any subsequent change is
made in the basic (MFN) Philippine rate of duty on any of the articles
listed in the Annex to a rate lower than the rate prescribed in Columns
4-6 of the Annex, such article shall automatically be accorded the
corresponding reduced duty.

SECTION 4. From the date of effectivity of this Order,
all articles listed in the Annex 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 5. 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 6. 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: 15 June 2009

(SGD.) GLORIA M. ARROYO
President of the Philippines  

BY THE PRESIDENT:

(SGD.) EDUARDO R. ERMITA
 Executive Secretary

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^[*] Text Available at Office of the National Administrative Register, U. P. Law Complex, Diliman, Quezon City.