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 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 Scheme of Goya, Inc., along with Indonesia;

WHEREAS,
under the Goya AICO Arrangement, it was agreed that the Philippines
(Goya, Inc.) will import FOX’S Fruit, FOX’s Mints and POLO from
Indonesia, and in the exchange, Indonesia (PT. Nestle Indonesia) will
import FOX’s Wrappers/Pouch and POLO Wrappers from the Philippines;

WHEREAS,
AICO Certificate of Eligibility No. Nestle/2001/4 (A) was reissued on
30 July 2001 nullifying AICO Certificate of Eligibility No.
Nestle/2001/4 issued on 29 May 2001 in favor of the participating
companies in the Goya, Inc. AICO Arrangement;

WHEREAS,
in consonance with Articles 5 and 7 of the Basic Agreement on the AICO
Scheme, participating companies in the approved Goya, Inc. Arrangement
shall qualify for 0-5% preferential tariff rates to be extended by
Indonesia and the Philippines as participating countries, effective
within 45 days from the date of issuance of the Certificate of
Eligibility 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 5% as specified
in Column 4 thereof.

SECTION 2.   The AICO rate provided in Annex “A” shall be accorded to the AICO entity in Indonesia (PT. Nestle Indonesia) effective 24 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 4
thereof, such article shall automatically be accorded the corresponding
reduced rate of duty.  Effective 1 January 2003, the final CEPT rate on the subject articles 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 rates 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