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EXECUTIVE ORDERS
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EXECUTIVE ORDER NO. 72 - 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 Malaysia and
Thailand;
WHEREAS, under the Mitsubishi BBC Schemes approved on an ad referendum
basis by Malaysia on 22 April 1997 and Thailand on 31 December 1997 and
by the Philippines on 27 December 1996, the Philippines will import
from Malaysia and Thailand certain completely knocked-down (CKD)
component parts for the original equipment manufacture (OEM) of KZ
Model light commercial vehicles, in exchange for Philippine exports of
complementary component parts to the two 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/1/A/1998 (Rev.) and MMC/2/A/1998 (Rev.)
issued on 15 June 1998 by the ASEAN Secretariat 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
county 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, JOSEPH EJERCITO ESTRADA, 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.
Sec. 2.
Sec. 3.
Sec. 4.
Sec. 5.
Sec. 6.
Sec. 7.
Done in the City of Manila this
15th day of Jan. in the year of Our Lord, Nineteen Hundred and Ninety
Nine.
ANNEX A
ARTICLES GRANTED 50% MARGIN OF PREFERENCE (MOP) UNDER THE APPROVED
MITSUBISHI MOTORS BBC SCHEME
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