EXECUTIVE ORDER NO. 335 - 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 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 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 is a participating country in the approved BBC Scheme of Nissan Motor Co., Ltd. along with Malaysia and Thailand and in the approved BBC Scheme of Asian Carmakers Corporation along with Malaysia;

WHEREAS, at the Meeting of the ASEAN Senior Economic Officials (SEOM) held in Jakarta, Indonesia on 8-10 December 1993, it was agreed that under the Nissan Motor Co., Ltd. BBC Scheme, the Philippines will import certain hoodledge parts from Malaysia and door and bumper trims, engine parts and body parts of metal from Thailand in exchange for Philippine exports of certain body parts of metal and injection parts to the said two countries;

WHEREAS, at the Meeting of the ASEAN Senior Economic Officials held in Jakarta, Indonesia on 2-4 August 1994, it was agreed that under the Asian Carmakers Corporation BBC Scheme, the Philippines will import sheet glass from Malaysia in exchange for Philippine exports of aluminum alloy wheels to Malaysia;

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 the SEOM subject to the terms and conditions set out in Sec. 9(b) of said Memorandum;

WHEREAS, under Sec. 9(b)(i) of the said Memorandum of Understanding, the 50% MOP for existing BBC products shall be granted within 90 days of approval of the BBC products by the SEOM, and for new BBC products, the grant shall be extended from the actual date of commercial production of the products, or upon expiry of 30 months from the date of approval of the products whichever comes earlier;

WHEREAS, under the Nissan BBC Scheme, hoodledge parts listed in Certificate of Eligibility No. N 5 A/93 have been existing at the time of approval by the SEOM held on 8-10 December 1993; whereas, the door and bumper trims, engine parts and body parts of metal listed in Certificate of Eligibility Nos. N I A/93 and N I /94 are new BBC products whose commercial production started in April 1994;

WHEREAS, under the Asian Carmakers BBC Scheme, the sheet glass items listed in Certificate of Eligibility No. 033 have been existing at the time of approval by the SEOM held on 3-4 August 1994;

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” as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded a minimum 50% MOP as specified in Column 11 thereof. Accordingly, said articles shall be subject to the BBC Preferential Tariff in accordance with the schedule indicated in Columns 12, 13, 14, 15 and 16 of said Annex “A”.

Sec. 2. The articles specifically listed in Annex “B” as classified under Section 104 of the Tariff and Customs Code of 1978, as amended shall be accorded a minimum 50% MOP as specified in Column 9 thereof. Accordingly, said articles shall be subject to the BBC Preferential Tariff in accordance with the schedule indicated in Columns 10, 11 and 12 of said Annex “B”.

Sec. 3. The MOP provided in Annex “A” on hoodledge parts for Nissan AD Resort (Model Y 10) pick-up under the Nissan Motor Co., Ltd. BBC Scheme shall be accorded exclusively to the BBC entity in Malaysia (Tan Chong & Sons Motor Co., Sdn. Bhd.) effective from 1 March 1994 up to 28 February 1998. The MOP also herein provided on door and bumper trims, engine parts and body parts for Nissan AD Resort (Model Y 10) pick-up under Thailand (Siam Nissan Automobile Co., Ltd.) effective 1 April 1994 up to 30 March 1998. 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 maximum waiver period of eight (8) years, the exclusive application of the MOP to Malaysia with respect to hoodledge parts shall then be extended up to 27 February 2002 and in the case of door and bumper trims, engine parts and body parts of metal, the exclusive application of the MOP to Thailand shall be extended up to 29 March 2002.

Sec. 4. The MOP provided in Annex “B” on sheet glass for BMW (3-series model) passenger can under the Asian Carmakers Corporation BBC Scheme shall be accorded exclusively to the BBC entity in Malaysia (Auto Bavaria Division Tractors Malaysia (1992) Sdn. Bhd.) effective from 1 November 1994 up to 30 October 1998. 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 maximum waiver period of eight (8) years, the exclusive application of the MOP to Malaysia shall then be extended up to 29 October 2002.

Sec. 5. Effective 28 February 2002 with respect to hoodledge parts and effective 30 March 2002 in the case of door and bumper trims, engine parts and body parts of metal, the MOP shall be extended to any entity in another ASEAN member country which produces the above-mentioned Nissan BBC products as listed in Annex “A” hereof, whether that country is participating in the Nissan BBC Schemes or not. Effective 30 October 2002, the MOP shall be extended to any entity in another ASEAN member country which produces the Asian Carmakers BBC products listed in Annex “B” hereof, whether that country is participating in the Asian Carmakers BBC Scheme or not.

Sec. 6. The 50% MOP accorded under this Executive Order shall remain effective irrespective of any subsequent changes in the basic Philippine rate of duty on the above-mentioned articles.

Sec. 7. Upon the effectivity of this Executive Order, all the above-mentioned 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, as amended, and shall pay the applicable BBC Preferential Tariff specified under Section 1 hereof.

Sec. 8. Any revision/s to the part numbers appearing in Column 4 of Annexes “A” and “B” shall be communicated immediately to the Philippine Government by the ASEAN Secretariat. The Department of Trade and Industry shall endorse the same to the Bureau of Customs within five (5) days after receipt of the official copy of the revised part number for implementation.

Sec. 9. This Executive Order shall take effect immediately.

Done in the City of Manila this 16th day of May in the year of Our Lord, Nineteen Hundred and Ninety-Six.

ANNEX “A”
ARTICLES GRANTED 50% MOP IN THE APPROVED NISSAN MOTOR
CO. LTD. BBC SCHEME

HS HEADING BRAND SOURCE
NO. NAME PRODUCT/PART NAME PART NO. COUNTRY
(1) (2) (3) (4) (5)

ex 8704.90 1   Nissan Hoodledge Parts:

AD Resort (Y 10)
Pick-up Hoodledge     Upper Right  64112 65Y00 Malaysia
Hoodledge    Upper Left 64113 52C00 Malaysia
Hoodledge Reinforce  Upper Front Right 64182 72Y00 Malaysia
Hoodledge Reinforce     Upper Front Left 64183 72Y00 Malaysia
Hoodledge Reinforce     Upper Rear Right 64184 72Y00 Malaysia
Hoodledge Reinforce     Upper Rear Left     64185 72Y00 Malaysia
Hoodledge    Lower Front Right 64132 65Y00 Malaysia
Hoodledge    Lower Front Left   64133 2M100 Malaysia
Hoodledge Lower Rear Right  64142 65Y00 Malaysia
Hoodledge    Lower Rear Left  64143 65Y00 Malaysia
Support Front Suspension Spring Right   64124 50Y00 Malaysia
Support Front Suspension Spring Left    64125 50Y00 Malaysia

AD Resort (Y 10)
Pick-Up Pocket Assy Front Door Right  80910 90R00 Thailand

Pocket Assy Front Door Left  80911 90R00 Thailand
Striker RR Gate 90570-93R00 Thailand
Finisher Assy Lock Pillar Right   76890 93R00 Thailand
Finisher Assy Lock Pillar Left   76891 93R00 Thailand
Garnish Lock Pillar Lower Right   76915 93RE0 Thailand
Garnish Lock Pillar Lower Left 76916 93RE0 Thailand

Resort (Y 10)
Pick-Up  Bumper Rear Side Right  85024 93R00 Thailand

Bumper Rear Side Left 85025 93R00 Thailand
Bkt Assy RR Bmpr RH 85040-93R00 Thailand
Bkt Assy RR Bmpr LH  85041-93R00 Thailand
Bar-A    90460-BAR0  Thailand
Bar-B     90460-BAR0   Thailand

Resort (Y 10)
Pick-Up Cam Shaft Intake   13020-61J00 Thailand

  Cam Shaft Exhaust 13020-61J10 Thailand

Resort (Y 10)
Pick-Up Front Floor 74312 93R00 Thailand

Hood Assy 65100 90R00 Thailand
Cover Locate Hole   74892 01E00 Thailand
Cover Locate Hole   74849 50A00 Thailand
Door Assy Front RH 80100 90RE0 Thailand
Door Assy Front LH  80101 90RE0 Thailand
Rear Gate Assy    93400 93R00 Thailand
Protr Assy-Spare Wheel Hanger 57226-93R00 Thailand
Roof   73112-93R00 Thailand
Rail Roof RR     73231-93R00 Thailand
Ret Holding Side R   73962-93R10 Thailand
Ext Floor Frt 74315-93R00 Thailand
Floor RR RR 74514-93R10 Thailand
Ext RR Floor FR    74516-93R00 Thailand
Floor Side FR R   74518-93R00 Thailand
Floor Side FR L   74519-93R00 Thailand
Cover Floor Side Frt RH 74520-93R00 Thailand
Cover Floor Side Frt LH 74521-93R00 Thailand
Floor Side RR R 74532-93R00 Thailand
Floor Side RR L 74533-93R00 Thailand
Ext Assy RR Floor Side RR RH 74534-93R00 Thailand
Ext Assy RR Floor Side RR LH  74535-93R00 Thailand
Stopper S/Tire RH   74552-93R00 Thailand
Bolst Ext Floor 74553-93R00 Thailand
Stopper S/Tire LH    74553-93R10 Thailand
Mbr Ext Floor R  74580-93R00 Thailand
Mbr Ext Floor L 74581-93R00 Thailand
Brkt Assy Jack Mtg 74594-93R00 Thailand
Mbr RR Side FR, RH     75512-93R00 Thailand
Mbr RR Side FR, LH    75513-73R00 Thailand
Mbr Assy RR Cross End Inr     75616-93R00 Thailand
Mbr RR Cross End Otr   75617-93R00 Thailand
Mbr RR Cross Ctr    75652-93R00 Thailand
Plr Frt Otr RH 76212-94R00 Thailand
Plr Frt Otr LH  76213-94R00 Thailand
Rail Roof Side Inr. RH   76332-93R00 Thailand
Rail Roof Side Inr. LH    76333-93R00 Thailand
Sill Otr Frt RH 76412-93R00 Thailand
Sill Otr Frt LH 76413-93R00 Thailand
Ext Sill Otr RH   76418-93R00 Thailand
Ext Sill Otr LH 76419-93R00 Thailand
Sill Assy Inr Fr RH 76452-93R50 Thailand
Sill Assy Inr Fr RH 76453-93R50 Thailand
Sill Assy Inr RR RH   76454-93R50 Thailand
Sill Assy Inr RR LH   76455-72R50 Thailand
Reinf Lock Plr RH  76516-93R00 Thailand
Reinf Lock Plr LH 76517-93R00 Thailand
Plr Ctr Inr Upr RH     76532-93R01 Thailand
Plr Ctr Inr Upr LH 76533-93R01 Thailand
Plr Ctr Inr Lwr RH   76542-93R00 Thailand
Plr Ctr Inr Lwr LH     76543-93R00 Thailand
Reinf Assy Seat Belt Anch R 76584-93R00 Thailand
Reinf Assy Seat Belt Anch L 76585-93R00 Thailand
Reinf RR Plr RH   76616-93R00 Thailand
Reinf RR Plr LH   76617-93R00 Thailand
Plr RR Inr Upr RH   76632-93R00 Thailand
Plr RR Inr Upr LH 76633-93R00 Thailand
Plr RR Inr Lwr RH   76634-93R00 Thailand
Plr RR Inr Lwr LH 76635-93R00 Thailand
Patch RR Plr Inr RH   76644-93R00 Thailand
Patch RR Inr Lwr LH 76645-93R00 Thailand
Reinf Assy RR Plr Inr, R   76660-93R00 Thailand
Reinf Assy RR Plr Inr, L   76661-93R00 Thailand
Ext RR Plr Reinf 76664-93R01 Thailand
Ret Assy Striker   76690-93R01 Thailand
Ret Assy Striker   76691-93R01 Thailand
W/h RR Otr RH   76712-93R00 Thailand
W/h RR Otr LH    76713-93R00 Thailand
Ext W/h Otr RH   76714-93R00 Thailand
Ext W/h Otr LH  76715-93R00 Thailand
W/h RR Inr RH     76752-93R00 Thailand
W/h RR Inr LH     76753-93R00 Thailand
Ext RR W/h Inr Lwr RH   76756-93R00 Thailand
Ext RR W/h Inr Lwr LH 76757-93R00 Thailand
Brkt Assy Filler Tube RH   76767-93R01 Thailand
Protr Drafter    76805-93R00 Thailand
Fin Assy RR Side Ft RH    76900-93R00 Thailand
Fin Assy RR Side Ft LH  76901-93R00 Thailand
Fin Body Side   76910-93R00 Thailand
Fin Back Plr     76994-93R00 Thailand
Reinf RR Lwr RH   77496-93R00 Thailand
Reinf RR Lwr LH  77497-93R00 Thailand
Side Panel Inr Upr RH   77522-93R01 Thailand
Side Panel Inr Upr LH   77523-93R01 Thailand
Side Panel Inr RR RH 77552-93R00 Thailand
Side Panel Inr RR LH 77553-93R00 Thailand
Reinf Side Panel RH    77578-93R00 Thailand
Reinf Side Panel LH   77579-93R00 Thailand
Reinf Assy RR Ply, R 77594-93R01 Thailand
Reinf Assy RR Ply, L 77595-93R01 Thailand
RR Fend RH   78112-93R01 Thailand
RR Fend LH     78113-93R01 Thailand
Reinf RR Fend RH  78114-93R01 Thailand
Reinf RR Fend LH  78115-93R01 Thailand
Ext RR Fend RH  78118-93R01 Thailand
Ext RR Fend LH     78119-93R01 Thailand
Cover RR Fend RH 78122-93R00 Thailand
Cover RR Fend LH 78123-93R00 Thailand
Corner Assy RR Fdr RH   78136-93R01 Thailand
Corner Assy RR Fdr LH 78137-93R01 Thailand
Brkt Assy RR Comb Lamb RH 78144-93R00 Thailand
Brkt Assy RR Comb Lamb LH 78145-93R00 Thailand
Ext Corner RR Fend RH     78154-93R00 Thailand
Ext Corner RR Fend LH 78155-93R00 Thailand
Brkt Assy Corner Bmpr RR 78190-93R01 Thailand
Lid Assy Fuel Filler   78830-93R00 Thailand
Back Panel 79102-93R00 Thailand
RR Panel Upr W/Reinf   79112-93R50 Thailand
Back Panel Lwr   79122-93R00 Thailand
Brkt Assy Spare Wheel Hanger 79130-93R00 Thailand
Reinf Assy RR Panel Upr R   79140-93R00 Thailand
Reinf Assy RR Panel Upr L 79141-93R00 Thailand
Hookside Gate    93384-93R01 Thailand
Hinge Assy RR Gate 93370-93R10 Thailand
Inr RR Gate   93382-93R10 Thailand

ex 8704.90 1 10 10 10 10 3 50 5 5 5 5 1.5

ex 8704.90 10 10 10 10 3 50 — 5 5 5 1.5

ex 8704.90 10 10 10 10 3 50 — 5 5 5 1.5

ex 8704.90 10 10 10 10 3 50 — 5 5 5 1.5

ex 8704.90 10 10 10 10 3 50 — 5 5 5 1.5

Model)
Passenger car Glass, front door LH 2687346 Malaysia
Glass, front door RH 2687347 Malaysia
Glass, rear door LH 2687162 Malaysia
Glass, rear door RH 2687163 Malaysia
Glass, qtr rear LH 2687654 Malaysia
Glass, qtr rear RH 2687655 Malaysia
Glass, windshield 2687158 Malaysia
Glass, backlite 2687159 Malaysia

Since 19.07.98.