EXECUTIVE ORDER NO. 239 - 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 PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN Industrial Cooperation (AICO) Scheme signed in Singapore on 27 April 1996;  

WHEREAS, the Philippines is a participating country in the approved AICO Arrangement of Ford Motor Company Philippines, Inc. and Laguna Autoparts Mfg., Corp. (LAMCOR), both along with Thailand;

WHEREAS, under the FORD AICO Arrangement, the Philippines (Ford Motor Co. Phils. Inc.) will import from Thailand certain original equipment manufacturer (OEM) automotive parts/components for FORD Laser LYNX passenger cars (HS 8703.90 10) and Ford Ranger Pick-ups (HS 8704.90 10). In exchange, Thailand will import from the Philippines complementary component parts for the OEM of FORD Laser LYNX passenger cars;

WHEREAS, under the LAMCOR AICO Arrangement, the Philippines (Laguna Autoparts Mfg. Corp.) will import from Thailand certain intermediate products for the assembly of OEM alternators and starters. In exchange, Thailand will import from the Philippines complementary component parts for alternators and starters;

WHEREAS, AICO Certificate of Eligibility Nos. Ford/2000/1 and MEL/2000/3 were both issued on 03 January 2000 in favor of the participating companies in the FORD and LAMCOR AICO Arrangements;

WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, participating companies in the approved FORD and LAMCOR AICO Arrangements shall qualify for 0-5% preferential tariff rates to be extended by Thailand and the Philippines as participating countries, effective within 45 days from the date of issuance of the Certificate of Eligibility by the ASEAN Secretariat.  

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic 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 the AICO rate of 5% on component parts of Laser LYNX passenger cars (HS 8703.90 10) and the AICO rate of 3% on component parts of Ranger Pick-ups (HS 8704.90 10) as specified in Column 6 thereof.

Sec. 2. The AICO rate provided in Annex “A”, shall be accorded to the AICO entity in Thailand (Auto Alliance (Thailand) Company Limited) effective from 03 January 2000.

Sec. 3. The articles specifically listed in Annex “B” hereof, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of 3% on vacuum pump assemblies (HS 8414.10 00), yoke assemblies, rotor assemblies (HS 8511.90 00), and rear and front brackets (HS 8511.90 00) as specified in Column 5 thereof.

Sec. 4. The AICO rate provided in Annex “B” shall be accorded to the AICO entity in Thailand (Mitsubishi Electric Thai Auto Parts Co. Ltd.) effective 03 January 2000.  

Sec. 5. In the event that any subsequent changes are made in the basic (MFN) Philippine rate of duty on any of the articles listed in Annexes “A” and “B” to a rate lower than the AICO rate prescribed in Column 6 of Annex “A” and Column 5 of Annex “B”, such article shall automatically be accorded the corresponding reduced rate of duty. Effective 01 January 2003, the final CEPT rate on the subject articles shall apply.

Sec. 6. Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annexes “A” and “B” which are entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rates specified under Section s 1 and 3, hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form “D”.

Sec. 7. Any revision/s to the part numbers appearing in the aforesaid Annexes shall be communicated immediately to the Bureau of Customs by the Board of Investments 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 4th day of May, in the year of our Lord, Two Thousand.  

Annex A
ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED FORD AICO SCHEME

SOURCE APPLICABLE
HS   MODEL/TYPE PRODUCT PART  COUNTRY   AICO
CODE DESCRIPTION NO.     (AICO COMPANY) PREFERENTIAL
TARIFF (%)
  (1) (2)    (3)   (4)   (5)     (6)

8703.90 10 Laser Lynx   Various Component Thailand 5

Passenger Car Parts: (Auto Alliance
Thailand
Radiator   ZL01 15 200 A (Co. Ltd.)
Radiator   ZL02 15 200 A
Cooling Unit    BK2K 61520
Condenser Assy     B25F 61 480
Tank Assy Receiver BJ3D 61 500A
Hose Fible, H  B25F 61 461
Hose Fible, L   B25F 61 462D
Pipe-Cooler #4   BJ3D 61 467B
Pipe-Cooler #3   BJ3D 61 466B
Pipe-Cooler #2   BJ3D 61 465D
Pipe-Cooler #1   B25F 61 464
Blower Unit  BJ0E 61 140C
Stiffener ZL01 10 430
Hose Assy Air-Int  ZM01 1322X
Hose Assy Air-Int    B33G 1322X
Rubber E/MTG#2   B25D 39050
Cable Rear RH B25D 44 410
Cable Rear LH   B25D 44 420
Window Assy Back B25N 63 930
Tank Assy Washer  B25D 67 480

(Pick-ups) Parts: (Auto Alliance
Motor Vehicles   Thailand
Engine Complete  WLTE 02000 Co. Ltd.)
Trans-Complete   M51V03000
Frame Assy   UH83 3801X
Axle-R  UTOJ 0580X
Shaft Assy-Prop  SAO2 25100
Gear + Pitman UJ06 32920
Link Assy   UJ08 32260
Wheel Disc (5)   99655 35040
Meter Set   UJ34 55430
Tank Comp-Fuel    UH71 42100
Booster Assy Brake UJ08 43950
Sill-Side, In, R, Rh     UH83 5395Z
Sill-Side, In, Rh     UH83 53950
Sill-Side, In, R, Lh UH83 5495Z
Sill-Side, In, Lh   UH83 54950
Sill-Side, In, R, Rh UH83 53952
Sill-Side, In, R, Lh UH83 54952
Panel Assy-Shroud UH71 53100
Reinf-Apron, R, Rh UH71 53227
Reinf-Apron, R, Lh  UH71 54227
Panel Assy-Dash, Lwt UJ06 54400
Bolt  9079 50816
Stay-Carrier, Bat, A UH71 532DX
Stay-Carrier, Bat, B UH71 532DY
Carrier-Battery     UH71 532D3
Bolt 90796 0612
Floor Assy-F UJ12 53600
Disc Assy Clutch  WLA1 16460
Blower Unit UJ06 61140
Axle-F; Rh   UTOC 04800
Glass Wind Shield  UH71 63901
Shaft Energy Absord UH71 32100
Apron Assy Whl Rh  UH71 5321Y
Panel Floor   UH83 65101
Mat Assy - Floor   UJ12 6867X
Cover Assy - Clutch   WLA1 16410
Floor Assy - R UH83 53700
Rest Assy - Load  UH83 65800
Apron Assy-Whl LH UH71 54210
Control Assy-Htr     UJ06 61190
Belt-B UJ12 57630
Belt-A-LH UH83 57780
Belt-A-RH UH83 57720

Parts of Vacuum Pump: (Mitsubishi
  Electric Thai Auto
Vacuum Pump   Parts Co. Ltd.)
Assy (60 cc) A595C31471
Vacuum Pump
   Assy (30 cc)  A595C21171

   Parts of Alternator: (Mitsubishi
   Electric Thai Auto
   Rotor Assy (R4.28 Ohm) A882B58474 Parts Co. Ltd.)
   Rotor Assy (R2.73 Ohm) A882B59974

   Parts of Starter: (Mitsubishi
  Electric Thai Auto
   Yoke Assy    M800C49771 Parts Co. Ltd.)
   Bracket Front  M641AA0871
   Bracket Rear     M642B28771