EXECUTIVE ORDER NO. 396  - MODIFYING THE RATES OF IMPORT DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMS, CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE MINIMUM 50% MARGIN OF PREFERENCE ON CERTAIN PRODUCTS INCLUDED IN THE BRAND-TO-BRAND COMPLEMENTATION SCHEME IN THE AUTOMOTIVE INDUSTRY UNDER THE BASIC AGREEMENT ON ASEAN INDUSTRIAL COMPLEMENTATION

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on ASEAN Industrial Complementation (BAAIC) signed in Manila on 18 June 1981;

WHEREAS, the Philippines is a signatory to the Memorandum of Understanding on the Brand-to-Brand Complementation in the Automotive Industry under the BAAIC signed by the ASEAN Economic Ministers in Pattaya, Thailand on 18 October 1988;

WHEREAS, the Philippines, along with Malaysia and Thailand, is a participating country in the approved Mitsubishi Motor Corporation Brand-to-Brand Complementation (BBC) Scheme;

WHEREAS, at the 31st Meeting of the Committee on Industry, Minerals and Energy (COIME) held in Bangkok, Thailand on 1-3 February 1989, it was agreed, among others, that the Philippines will import bumper system and steering system and steering system from Thailand and Malaysia, respectively, in exchange for the country’s exports of manual transmission to the said two ASEAN countries;  

WHEREAS, under the Memorandum of Understanding on Brand- to-Brand Complementation in the Automotive Industry, the Philippines shall grant a minimum 50% Margin of Preference (MOP) to BBC products approved by COIME subject to the terms and conditions set out in Sec. 9 (b) of the said Memorandum;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, pursuant to the powers vested in me under Sec. 402 of the Tariff and Customs Code of 1978, as amended, do hereby order:

Section 1. The articles specifically listed in Annex “A” as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded a minimum 50% Margin of Preference (MOP) as specified in Column 7 of said Annex “A”. Accordingly, such articles shall be subject to the Preferential Tariff for ASEAN in accordance with the schedule indicated in Column 8 of Annex “A”.

Sec. 2. The MOP herein provided on bumper system for FUSO (Models FM/FN) trucks and steering system for Lancer (Models LA/LM) passenger cars shall be accorded the Brand-to-Brand Complementation (BBC) entities in Thailand and Malaysia, respectively, effective up to 3 May 1993. Thereafter, this MOP may be granted to a non-participating ASEAN country as soon as that country extends the same MOP itself. If the non-participating country does not wish to grant such MOP and maintains such position throughout the stipulated waiver period, the exclusive application of this MOP to Thailand and Malaysia shall then be extended up to 3 May 1997.

Sec. 3. Effective 4 May 1997, this MOP shall be extended to any entity in any other ASEAN member country which produces the subject BBC products, whether that country is participating in this BBC Scheme or not.

Sec. 4. The 50% MOP accorded under this Executive Order shall remain effective irrespective of any subsequent change in the basic Philippine rate of duty on the above-mentioned articles

Sec. 5. After the effectivity of this Executive Order, all the above-described articles entered or withdrawn from Warehouse in the Philippines for consumption shall be subject to qualification under the Rules of Origin as prescribed in the Agreement on ASEAN Preferential Trading Arrangements ratified on 7 August 1977.

Sec. 6. This Executive Order shall be effective beginning 3 May 1989.

Done in the City of Manila, this 19th day of March, in the year of Our Lord, nineteen hundred and ninety.

ANNEX “A”
ARTICLES GRANTED 50% MOP IN THE APPROVED MITSUBISHI MOTOR CORPORATION BRAND-TO-BRAND (BBC) SCHEME

D E S C R I P T I O N RATE OF MARGIN OF ASEAN
DUTY PRE- PRE-
CCC NO. HS. NO. BRAND PRODUCT/ PART NO. FERENCE   FERENCIAL
NAME PART NAME TARIFF

(1) (2) (3) (4) (5) (6) (7) (8)

ex 87.02 111 ex 8703.90 11 Fuso Bumper System 20% 50% 10%

(Models
FM/FN) Bumper ME910996
trucks
Stay ME908698
ME908699

(Models
LA/LM) Gear MB532391
passenger linkage
cars steering
assembly MB532393
tie rod MB532529
assembly
tie rod MB532410
end
assembly