EXECUTIVE ORDER NO. 440 - 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 (MOU) on the Brand-to-Brand Complementation (BBC) Scheme for 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 Schemes of Mitsubishi Motors Corporation along with Indonesia, Malaysia and Thailand;

WHEREAS, under the Mitsubishi BBC Schemes approved on an ad referendum basis by Indonesia on 12 August 1996, by Malaysia and Thailand on 16 September 1996 and by the Philippines on 4 October 1996, the Philippines will import from Indonesia, Malaysia and Thailand certain component parts for the original equipment manufacture (OEM) of completely knocked-down (CKD) of Lancer (Models LA/LM/C/E/MG) passenger cars, L200 (PB/P-CAR) and Colt L300 light commercial vehicles, in exchange for Philippine exports of complementary component parts to the three participating countries;

WHEREAS, under the MOU 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 MOU;

WHEREAS, under Sec. 9(b)(i) of the said MOU, 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, the various component parts specified in Certificates of Eligibility (COEs) Nos. MMC/3/A/96, MMC/5/A/96, MMC/7/A/96, MMC/11/A/96 and MMC/16/A/96 issued on 23 December 1996 in favor of Mitsubishi Motors Corporation are existing products, i.e., already being manufactured at the time of their approval as BBC products;

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” hereof, 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 10 thereof. In effect, said articles shall be subject to the BBC Preferential Tariff in accordance with the schedule indicated opposite each article as specified in Columns 11, 12, 13, and 14 of Annex “A”.

Sec. 2. The MOP provided on the articles specifically listed in Annex “A” shall be accorded exclusively to the BBC entity in Indonesia (P.T. Krama Yudha Tiga Berlian Motors KTB), to the BBC entity in Malaysia (Perusahaan Otomobil Nasional Sdn Bnd PROTON) and to the BBC entity in Thailand (MMC Sittipol Co., Ltd. MSC) effective from 1 January 1997 up to December 31, 2000. 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 Indonesia, Malaysia and Thailand shall then be extended up to December 31, 2004.

Sec. 3. The 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. 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 BBC Preferential Tariff specified under Section 1 hereof, subject to qualification under the Rules of Origin as prescribed in the Agreement on ASEAN Preferential Trading Arrangements, as amended.

Sec. 5. Any revision/s to the part numbers appearing in Column 4 of Annex “A” shall be communicated immediately 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. 6. This Executive Order shall take effect immediately.

Done in the City of Manila this 15th day of September in the year of Our Lord, Nineteen Hundred and Ninety-Seven.

ARTICLES GRANTED 50% MARGIN OF PREFERENCE (MOP) UNDER THE APPROVED MITSUBISHI MOTORS BBC SCHEME

   SOURCE RATE OF DUTY (%) MARGIN OF APPLICABLE BBC
HS CODE. MODEL/TYPE PRODUCT PART NO. COUNTRY PREFERENCE  
  PREFERENTIAL TARIFF (%)
PART NAME (BBC 1 JANUARY (%) 1 JANUARY
COMPANY) 1997 1998 1999 2000    1997 1998 1999 2000

1 2 3 4 5 6 7 8 9 10   11  12  13  14

ex 8702.90 10 L300 Shaft Assy Propeller MB505170 Indonesia 3 3 3  3 50 1.5  1.5 1.5 1.5
Light    MB505171 (P.T. Krama
Commercial MB505172 Yudha Tiga
Vehicle for the   Berlian Motors
transport of persons   (KTB))

ex 8702.90 10 L300 Rear Axle Housing MB290002 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light    (P.T. Krama
Commercial    Yudha Tiga
Vehicle for the Berlian Motors
transport of persons   (KTB))

ex 8702.90 10 L300 Carrier Assy MB393292 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha Tiga
Vehicle for the   Berlian Motors
transport of persons    (KTB))

ex 8702.90 10 L300 Shaft Assy Axle MB664579 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha Tiga
Vehicle for the Berlian Motors
transport of persons (KTB))

ex 8702.90 10 L300 FRT Shock Absorber MT141246X Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha Tiga
Vehicle for the Berlian Motors
transport of persons (KTB))

ex 8702.90 10 L300 Shock Absorber Rear MB515566 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB515568 (P.T. Krama
Commercial Yudha Tiga
Vehicle for the Berlian Motors
transport of persons (KTB))

ex 8702.90 10 L300 Brake Assy FRT LH/RH MB316370 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB316371 (P.T. Krama
Commercial Yudha Tiga
Vehicle for the Berlian Motors
transport of persons (KTB))

ex 8702.90 10 L300 Brake Assy RR LH/RH MB407580 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB407581 (P.T. Krama
Commercial Yudha Tiga
Vehicle for the Berlian Motors
transport of persons (KTB))

ex 8702.90 10 L300 Hub Assy FRT MB891857Y Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha Tiga
Vehicle for the Berlian Motors
transport of persons (KTB))

ex 8702.90 10 L300 Jack Set MB149048 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB149049 (P.T. Krama
Commercial Yudha Tiga
Vehicle for the Berlian Motors
transport of persons (KTB))

ex 8703.90 10 Lancer Connecting Rod Assembly MD117080 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (P.T. Krama
passenger car Yudha Tiga
Berlian Motors
0000000 0000 (KTB))

ex 8703.90 10 Lancer Steering System: Malaysia 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (Perusahaan
passenger car Gear and Linkage Assy Steering MB870948 Otomobil
Gear Assy Power Steering MR130388 Nasional
Gear and Link Assy Steering MB891740 Sdn. Bhd.
Gear and Link Assy Steering MB489394X1 (PROTON))

ex 8703.90 10 Lancer Body Sheet Metal: Malaysia 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (Perusahaan
passenger car Bushing MD574265 Otomobil
Bellow Assy MD857089 Nasional
Hinge, Assy T/LID, LH MB885673 Sdn. Bhd.
Hinge, Assy T/LID, RH MB885674 (PROTON))
Duct, Air Intake MD177555
Foot Rest MB474856
RR Garnish Spkr, LH PW536063
RR Garnish Spkr, RH PW536064
Cover, I/PNL Lower, RH MB847656

ex 8703.90 10 Lancer Door Panel Group: Malaysia 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (Perusahaan
passenger car Panel, FR Door, OTR, LH MB819303 Otomobil
Panel, FR Door, OTR, RH MB819304 Nasional
Panel, RR Door, OTR, LH MB819313 Sdn. Bhd.
Panel, RR Door, OTR, RH MB819314 (PROTON))
Panel, RR Door, INR, LH MB819329
Panel, RR Door, INR, RH MB819330
Panel, FR Door, INR, LH MR200155
Panel, FR Door, INR, RH MR200156
Door, Front, LH M50B31E31001
Door, Front, RH M50B31E31002
Door, Rear, LH M50B32E31001
Door, Rear, RH M50B32E31002
Impact Bar FR LH MR106455
Impact Bar FR RH MR106456
Impact Bar RR LH MR106461
Impact Bar RR RH MR106462

ex 8703.90 10 Lancer Trim Group: Malaysia 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (Perusahaan
passenger car W/Strip, FR DR Open INR, LH MB819673 Otomobil
W/Strip, FR DR Open INR, RH MB819674 Nasional
W/Strip, FR DR Open OTR, LH MR101187 Sdn. Bhd.
W/Strip, FR DR Open OTR, RH MR101188 (PROTON))
W/Strip, RR DR Open INR, LH MB819677
W/Strip, RR DR Open INR, RH MB819678
W/Strip, RR DR Open OTR, LH MR101193
W/Strip, RR DR Open OTR, RH MR101194

ex 8703.90 10 Lancer Fuel Tank Group: Malaysia 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (Perusahaan
passenger car Neck, Fuel Filler MB678940 Otomobil
Lid Assy, Fuel Filler MB945548 Nasional
Fuel Tube MB678884 Sdn. Bhd.
Neck, Fuel Filler MB887050XI (PROTON))

ex 8703.90 10 Lancer Mirror Group: Malaysia 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (Perusahaan
passenger car Mirror Assy, DR LH MB847973 Otomobil
Mirror Assy, DR LH MB847974 Nasional
Mirror Assy, DR LH MB847975 Sdn. Bhd.
Mirror Assy, DR LH MB847976 (PROTON))
Delta Cover INR LH MB814099
Delta Cover INR LH MB814100
Delta Cover INR LH MB814101
Delta Cover INR LH MB814102

ex 8703.90 10 Lancer Suspension/Steering: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) MMC
passenger car Bar Stabilizer MR198869 Sittipol Co.,
Axle Assy, Rear MB844919 Ltd. (MSC))
End Assy, Tie Rod MB871417
Absorber Assy, Rear MR244217
Wheel Assembly, Steering MR748222

ex 8703.90 10 Lancer Brake/Clutch System: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) MMC
passenger car Lever Assy, Parking Brake MR748159 Sittipol Co.,
Cable, Parking Brake LH MR129921 Ltd. (MSC))
Cable, Parking Brake RH MR129922
Shield, Dust MB699270
Shield, Dust MB699271
Bearing Wheel MB808442
Member Assembly, m/c MR235331
Master Cylinder MR129910
Hose, Brake MR129882
Hose, Brake MR129787
Cable Assembly, M/T MR195779

ex 8703.90 10 Lancer Fuel System: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Valve Assembly MB678440 Sittipol Co.,
Pump Complete, Fuel MR135016 Ltd. (MSC))
Hose Assembly, Fuel High MR239558
Cap Assembly, Fuel Filler MB595538
Neck Assembly, Filler MR134966

ex 8703.90 10 Lancer Body Sheet Metal: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car C/MBR Assy, F/FLR FR MR185825 Sittipol Co.,
C/MBR Assy, F/FLR FR MR185826 Ltd. (MSC))
Sill, F/FLR Side INR LH MR185833
Sill, F/FLR Side INR RH MR185834
Pan, Front Floor MR186390
Reinf Assy, B/Bone MR186646
S/MBR, F/FLR INR LH MR186655
S/MBR, F/FLR INR RH MR186656
Rear Floor M50A12E83101
Bracket, Jack MB103189
Reinf, R/Seat Back LH MB830471
Reinf, R/Seat Back RH MB830472
Reinf, S/Belt R/FLR MB826207
Reinf, Towing Hook MB826215
Bracket, Fuel Tank RR MB826249
Bracket, Fuel Tank RR MB826250
Bracket, Spare Tire MB827695
Pan, Rear Floor MB826140
C/MBR, R/FLR MR220689 3 3 3 3 50 1.5  1.5 1.5 1.5
Reinf, Dash Panel Center MR169994
Reinf, Dash Panel MR248462
Brace, R/FLR Side MR185093
Brace, R/FLR Side MB827140
Rail, Roof RR MR185113
Rail, Roof FR MR185156
Bow, Roof MR185158
Rear End Structure M50A23E80101

ex 8703.90 10 Lancer Loose Panel: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Cover Under LH MR185645 Sittipol Co.,
Cover Under RH MR185648 Ltd. (MSC))
Panel, Heat Protector MR199084
Panel, Air Guide MR236447
Panel, Air Guide MR236448

ex 8703.90 10 Lancer Trunk Hardware: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Torsion Bar, Trunklid LH MR186303 Sittipol Co.,
Torsion Bar, Trunklid RH MR186304 Ltd. (MSC))

ex 8703.90 10 Lancer Door Locking: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Check Door MB819505 Sittipol Co.,
Striker MB867059 Ltd. (MSC))
Latch Assembly, Front Door MR185893
Latch Assembly, Front Door MR185894
Latch Assembly, Rear Door MR186477
Latch Assembly, Rear Door MR186478
Check Door MR248283

ex 8703.90 10 Lancer Door Panel: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Sash, F/DR Lower RR MB819523 Sittipol Co.,
Sash, F/DR Lower RR MB819524 Ltd. (MSC))
Sash, R/DR Center MR184639
Sash, R/DR Center MR184640

ex 8703.90 10 Lancer Trim Panel: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Trim, Cowl Side LH MR187927 (MR748293) Sittipol Co.,
Trim, Cowl Side RH MR187928 (MR748295) Ltd. (MSC))
Trim, Center Pillar Lower MR189941 (MR748301)
Trim, Center Pillar Lower MR189942 (MR748303)
Trim, Rear Pillar MR189961 (MR748308)
Trim, Rear Pillar MR189962 (MR748309)
Trim, R/Seat Back Brace MB817319 (MB755722)
Trim, R/Seat Back Brace MB817320 (MB755723)
Grille, Radiator MR191518
Grip, Assist MR270114 (MR270117)
Grip, Assist MR270115 (MR270118)
Grip, Assist MR270116 (MR270119)
Scuff, Plate FR LH MB817365 (MB748400)
Scuff, Plate FR RH MB817366 (MB748402)
Scuff, Plate RR LH MB817369 (MB748404)
Scuff, Plate RR RH MB817370 (MB748406)
Duct, Rear Vent MR201255

ex 8703.90 10 Lancer Electrical System: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Lamp Assy, S/Turn MB821172 Sittipol Co.,
Lamp Assy, Lic Plate MB821101 Ltd. (MSC))
Lamp Assy, T/Room MB529091
Lamp Assy, Room MR748283
Switch, Mirror MB561810
Switch, Hazard MR201510

ex 8703.90 10 Lancer Steering System: Thailand 3 3 3 3 50 1.5  1.5 1.5 1.5
(LA/LM/C/E/MG) (MMC
passenger car Gear and Link Assy Strg. MB870949X2 Sittipol Co.,
Gear Assy Power Strg. MB911897X2 Ltd. (MSC))

ex 8704.90 10 L300 Shaft Assy Propeller MB505170 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB505171 (P.T. Krama
Commercial MB505172 Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Rear Axle Housing MB290002 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Carrier Assy MB393292 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Shaft Assy Axle MB664579 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 FRT Shock Absorber MT141246X Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Shock Absorber Rear MB515566 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB515568 (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Brake Assy FRT LH/RH MB316370 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB316371 (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Brake Assy RR LH/RH MB407580 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB407581 (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Hub Assy FRT MB891857Y Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L300 Jack Set MB149048 Indonesia 3 3 3 3 50 1.5  1.5 1.5 1.5
Light MB149049 (P.T. Krama
Commercial Yudha
Vehicle for the Tiga Berlian
transport of Motors (KTB))
goods

ex 8704.90 10 L200 (PB/P-CAR) Engine Parts: Malaysia 3 3 3 3 50 1.5   1.5 1.5   1.5
Light Commercial (Perusahaan
Vehicle Shaft, O/P Gear Drive MD099211 Otomobil
Key MD000606 Nasional
Sprocket counter MD050179 Sdn. Bhd.
Body Oil Jet MD319528Y (PROTON))
Body Oil Jet MD319530Y
Body Oil Jet MD319536Y
Body Oil Jet MD316538Y
Body Oil Jet ME200408
Sprocket Balance MD199039
Sprocket Camshaft ME200748
Sprocket Crank MD164831
  
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