EXECUTIVE ORDER NO. 79
EXECUTIVE ORDER NO. 79 - 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 OF ASEAN INDUSTRIAL COMPLEMENTATION
WHEREAS, the Philippines is a Contracting
Party to the Revised Basic Agreement on Asean Industrial
Complementation (BAAIC) signed in Manila on 16 June 1981;
WHEREAS, the Philippines is a signatory to the Memorandum of
Understanding on the Brand-to-Brand Complementation (BBC) Scheme 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 BBC Schemes of MITSUBISHI Motor
Corporation, NISSAN Motor, Co., Ltd. and TOYOTA Motor Corporation;
WHEREAS, at the Special Meeting of the Committee on Industry, Minerals
and Energy (COIME) held in Jakarta, Indonesia on 24-25 October 1990, it
was agreed that under the MITSUBISHI Motor Corporation BBC Scheme, the
Philippines will import parts of manual transmission and final drive
system and stamping body parts from Thailand in exchange for the
country’s exports of parts of manual transmission and final drive
system to the said ASEAN Co., Ltd. BBC Scheme, Philippines will import
body metal parts and oil pan assembly from Malaysia and body metal
parts from Thailand in exchange for the country’s exports of body metal
and injection parts to the said two countries and that under the Toyota
Motor Corp. BBC Scheme, the Philippines will import fuel tank,
suspension system, steering link assembly, convenient and accessory
equipment, and electrical parts from Malaysia and under body and
electrical parts from exports of manual transmission to the said two
countries;
WHEREAS, under the Memorandum of Understanding on the BBC Scheme 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 said memorandum;
NOW, THEREFORE, I, FIDEL V. RAMOS, 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”, “B” and “C” 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 11 thereof.
Accordingly, such articles shall be subject to the Preferential Tariff
for ASEAN in accordance with the schedule indicated in columns 12 to 16
of said Annexes “A”, “B”, and “C”.
Sec. 2. The MOP herein provided in Annex “A” on
parts of the manual transmission and final drive system for Lancer
(Models LA/LM/C and Galant (Model H) passenger car and stamping body
parts for Galant (Model H) passenger car under the Mitsubishi Motor
Corporation, BBC Scheme shall be accorded the BBC entity in Thailand
effective up to 23 to January 1995. 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 maintain such position throughout the stipulated
waiver period, the exclusive application of this MOP to Thailand shall
then be extended up to 23 January 1999.
Sec. 3. The MOP provided in Annex “B” on body
metal parts and oil pan assembly for Nissan Sentra (Model B13)
passenger car under the NISSAN Motor Co., Ltd. entity in Malaysia
effective up to 23 January 1995. The MOP also herein provided on body
metal parts for Nissan Sentra (Model B13) passenger car under the paid
Scheme shall be accorded the BBC entity in Thailand effective up to 23
January 1995. 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 Malaysia and
Thailand shall then be extended up to 23 January 1999.
Sec. 4. The MOP provided in Annex “C” on steering
link assembly, convenient and accessory equipment, and suspension
systems for Corola (Models EE100, AE101) passenger car and on fuel
tank, suspension system, steering link assembly and electrical parts
for Liteace (Models KM36, CM36) commercial vehicle and on electrical
parts for TUV (Models KF40, KF50) commercial vehicle under the Toyota
Corp. BBC Scheme shall be accorded the BBC entity in Malaysia effective
up to 23 January 1995. The MOP also herein provided on under body and
electrical parts for Corolla (Models EE100, AE101) passenger car and
electrical parts for TUV (Models KF40, K50) commercial vehicle under
the said BBC Scheme shall be accorded the BBC entity in Thailand
effective up to 23 January 1995. 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 Malaysia and
Thailand shall then be extended up to 23 January 1999.
Sec. 5. Effective 24 January 1999, this MOP shall
be extended to any entity in another ASEAN member country which
produces the subject BBC products, whether the country is participating
in these BBC schemes or not.
Sec. 6. 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. 7. After the effectivity of this Executive
Order, all the above described articles entered or withdrawn from
warehouses 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. 8. Any revision/s to the part numbers
appearing in column 4 of Annexes “A”, “B” and “C” shall be immediately
communicated to the Philippine Government. The Department of Trade and
Industry shall endorse the same to the Bureau of Customs within five
(5) days after receipt of the officials copy of the revised part
numbers.
Sec. 9. This Executive Order shall take effect
immediately.
DONE in the City of Manila,
this 2nd day of April in the year of Our Lord, Nineteen Hundred and
Ninety-Three.
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