EXECUTIVE ORDER NO. 336 - 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 DECISION TAKEN BY THE ASEAN SENIOR ECONOMIC OFFICIAL’S MEETING TO EXTEND A 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 (MOU) on the Brand-to-Brand Complementation (BBC) Scheme for the Automotive Industry under the BAAIC signed by the ASEAN Economics Ministers in Pattaya, Thailand on 18 October 1988;

WHEREAS, the Philippines, along with Malaysia and Thailand, is a participating country in the approved BBC Scheme of Nissan Motor Co., Ltd.;

WHEREAS, at the ASEAN Senior Economic Officials’ Meeting (SEOM) held in Jakarta, Indonesia from 15-17 March 1995, it was agreed that under the Nissan BBC Scheme, the Philippines will import certain completely-knocked-down (CKD) component parts for the original equipment manufacture of Nissan Sentra (B 14) passenger cars and Nissan Resort (Y 10) pick-up from Malaysia and Thailand in exchange for Philippine exports of complementary component parts to the said two countries;

WHEREAS, in accordance with paragraph b(i) of Sec. 9 of the MOU on the BBC Scheme, participating countries shall grant a minimum fifty per centum (50%) Margin of Preference (MOP) to existing BBC products within 90 days of approval by SEOM;

WHEREAS, the component parts, specified in Certificates of Eligibility (COEs) Nos. N 1B/95 and N 103/95 issued in favor of Thailand (Siam Nissan Automobile Co. Ltd., and in Certificates of Eligibility Nos. N 017/95 and N 4B/95 issued in favor of Malaysia (Tan Chong & Sons Motor Co. Sdn. Bhd.), are existing products, i.e., already being manufactured at the time of approval by SEOM held from 15-17 March 1995;

WHEREAS, under paragraph b(ii) of Sec. 9 of the MOU, non-participating countries shall initially waive their rights under Chapter II, Article 8, paragraph 2, of the ASEAN Preferential Trading Arrangements (PTA) for the first four years from date of granting of MOP and shall thereafter enjoy the MOP granted by participating countries as soon as they extend the same MOP;

WHEREAS, under paragraphs b(ii) and b(iv) of Sec. 9 of the MOU the waiver period shall be extended beyond the first four years for as long as the non-participating countries do not wish to grant the MOP up to a maximum waiver period of eight years. After the maximum eight-year waiver period, any entity in any member country, whether the member country is participating in the specific BBC Scheme or not, which produces the BBC product shall enjoy the same MOP in the participating countries for the BBC product;

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 9 thereof. In effect, such articles shall be subject to the BBC Preferential Tariff in accordance with the schedule indicated opposite each article as specified in Columns 10, 11 and 12 of Annex “A”.

Sec. 2. The MOP provided in Annex “A” on body metal part (floor FR) and engine parts for Nissan Sentra (B 14) light passenger cars and on trim parts and body metal parts for Nissan AD Resort (Y 10) pick-ups shall be accorded exclusively to the BBC entity in Thailand (Siam Nissan Automobile Co., Ltd.) effective from 15 June 1995 up to 14 June 1999. Thereafter, the same 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 Thailand shall then be extended up to 13 June 2003.

Sec. 3. The MOP provided in Annex “A” on body metal parts and gear and linkage assembly power steering for Nissan Sentra (B 14) light passenger cars and on manual steering gear for Nissan AD Resort (y 10) pick-ups shall be accorded exclusively to the BBC entity in Malaysia (Tan Chong & Sons Motor Co. Sdn. Bhd.) effective from 15 June 1995 up to 14 June 1999. Thereafter, the same 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 13 June 2003.

Sec. 4. Effective 14 June 2003, the MOP provided in Annex “A” shall be extended to any entity in another ASEAN member country which produces the subject BBC products, whether the country is participating in the BBC Scheme or not.

Sec. 5. The minimum fifty per centum (50%) MOP accorded under this Executive Order shall remain effective regardless of any subsequent changes in the basic Philippine rate of duty on the aforementioned articles.

Sec. 6. Upon the effectivity of this Executive Order, all the  aforementioned 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 the ASEAN Preferential Trading Arrangements, as amended, and shall pay the applicable BBC Preferential Tariff specified under Section 1 hereof.

Sec. 7. Any revision/s to the part numbers appearing in Column 4 of Annex “A” shall be communicated to the Bureau of Customs by the Department of Trade and Industry within five (5) days after receipt of the official copy of the revised part numbers from the ASEAN Secretariat.

Sec. 8. 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 UNDER THE APPROVED NISSAN BBC SCHEME

HS MODEL/TYPE PRODUCT/PART NAME PART NO. SOURCE
CODE COUNTRY
(1) (2) (3) (4) (5)

ex 8703.90 10 Nissan Sentra (B 14) Body Metal Parts:

Light Passenger Car
Floor FR   74312  72Y00 Thailand
Hoodledge Lwr, FR RH 64132  65Y00 Malaysia
Hoodledge Lwr, FR LH 64133  2M100 Malaysia
Hoodledge Lwr, RR RH 64142  65Y00 Malaysia
Hoodledge Lwr, RR RH 64143  65Y00 Malaysia
Hoodledge Upr, RH 64112  1M200 Malaysia
Hoodledge Upr, LH  64113  1M200 Malaysia
Supt FR Susp Spr, RH 64124  OM000 Malaysia
Supt FR Susp Spr, LH  64125 OM000 Malaysia

Camshaft Int   13020 61J00 Thailand
Camshaft Int   13020 73C00  Thailand
Camshaft Ext 13020  61J10  Thailand
Camshaft Ext 13020 74C10  Thailand
Pump Assy-Water 21010  OM300 Thailand
FR-Cover With Oil Pump 13500  OM300 Thailand

(Y 10) Pick-Up
Lamp Assy Lic Plate   26510  93R00 Thailand
Lamp Assy RR Comb RH 26550  93R00 Thailand
Lamp Assy RR Comb LH 26555 93R00 Thailand

Brkt. Assy RR Towing
Hook LH    51139  93R00 Thailand
Patch-Side Panel, RH 77594  93R05 Thailand
Patch-Side Panel, LH  77594 93R05 Thailand
Gusset-RR FDR RH 78162 93R05 Thailand
Gusset-RR FDR LH     78163  93R05 Thailand
Reinf Assy RR UPR, R 77592  93R01 Thailand
Reinf Assy RR UPR, R 77593  93R01 Thailand

Engine Parts 20 10 3 50 10 5 1.5

Gear and 20 10 3 50 10 5 1.5
Linkage Assay

Manual    10 10 3 50 5 5 1.5
Steering
Gear