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 Honda Cars
Philippines, Inc., along with Indonesia, and in the approved RICO
Arrangement of Ford Motor Company Philippines, Inc., along with
Thailand;
WHEREAS, under the Honda AICO
Arrangement., the Philippines (Honda Cars Philippines, Inc.) will import
from Indonesia (PT. Honda Prospect Motor) certain original equipment
manufacture (OEM) automotive parts/components for Honda CR-V Light
commercial vehicles (HS 8702.90 10). In exchange, Indonesia will import from the Philippines complementary parts/components for the OEM of Honda CR-V (Light commercial vehicles);
WHEREAS, under the Ford AICO
Arrangement, the Philippines (Ford Motor Company Philippines, Inc., and
Ford Group Philippines, Inc.) will import from Thailand (Auto Alliance
Thailand Co., Ltd.) certain original equipment manufacture (OEM)
automotive parts/components for Ford Escape/Mazda Tribute & Ford
Laser/Mazda Protégé passenger cars (HS 8703.90 10), and completely built
units (CBU) of Ford J97 Ranger pickup trucks (HS 8704.21 90) for the
transport of goods. In exchange, Thailand will import from the Philippines completely built units (CBU) of Ford U204 Escape/14 Tribute SUV and C206 Laser/J39 Protégé passenger cars;
WHEREAS, AICO Certificate of
Eligibility (COE) No. Honda/2001/20 was issued on 08 February 2002, in
favor of the participating companies in the Honda AICO Arrangement,
while AICO Certificate of Eligibility (COE) No. Ford/2001/2(A) was
issued on 28 February 2002, in favor of the participating companies in
the Ford AICO Arrangement;
WHEREAS, in consonance with Articles 5
and 7 of the Basic Agreement of the AICO Scheme, participating
companies in the approved Honda and Ford AICO Arrangements shall qualify
for 0–5% preferential tariff rates to be extended by Indonesia, Thailand and the Philippines for HCPI and FMCPI.
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% on parts/components of Honda CR-V,
Light commercial vehicle (HS 8702.90 10) as specified in Column 6
thereof.
SECTION 2. The AICO rate provided in Annex “A” shall be accorded to the AICO entity in Indonesia (PT. Honda Prospect Motor) upon the effectivity of this Executive Order.
SECTION 3. The
articles specifically listed in Annex “B”[2] hereof, as classified
under Section 104 of the Tariff and Customs Code of 1978, as amended,
shall be accorded the AICO rate of 3% on parts/components of Ford
Escape/Mazda Tribute and Ford Laser/Mazda Protégé (HS 8703.90 10); and
AICO rate of 5% on completely built units of Ford J97 Ranger Pickup
trucks (8704.21 90) as specified in Column 6 thereof.
SECTION 4. The AICO rate provided in Annex “B” shall be accorded to the AICO entity in Thailand (Auto Alliance Thailand Co. Ltd.) upon the effectivity of this Executive Order.
SECTION 5. 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
Annexes “A” and “B” to a rate lower than the AICO rate prescribed in
Column 6 of Annexes “A” and “B”, respectively, such articles shall
automatically be accorded the corresponding reduced rate of duty. Effective 01 January 2003, the final CEPT rate on the subject articles shall apply.
SECTION 6. Upon
the effectivity of this Executive Order, the articles 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 rates specified under Sections 1
and 3 hereof, subject to qualification under the Rules of Origin for
the CEPT, as evidenced by the Certificate of Origin — Form “D”.
SECTION 7. Any
revision/s to the part numbers appearing in Column 4 of Annexes “A” and
“B”, respectively, 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 number/s from the ASEAN
Secretariat.
SECTION 8. This Executive Order shall take effect on July 19, 2002.
Adopted: 23 Sept. 2002
BY THE PRESIDENT:
(SGD.) ALBERTO G. ROMULO
Executive Secretary