EXECUTIVE ORDER NO. 87 - 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, IN FAVOR OF TOYOTA MOTOR PHILIPPINE CORPORATION (TOYOTA), HONDA CARS PHILIPPINES, INC. (HONDA), AND NISSAN MOTOR PHILIPPINES, INC. (NISSAN)

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

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Toyota Motor Philippines Corporation, along with Indonesia and Thailand; in the approved AICO Arrangement of Honda Cars Philippines, Inc. along with Malaysia and Indonesia; and in the approved AICO Arrangement of Nissan Motor Philippines, Inc. along with Malaysia;

WHEREAS, under the Toyota AICO Arrangement, it was agreed that the Philippines (Toyota Motor Philippines Corporation and Toyota Autoparts Philippines) will import from Indonesia (PT. Toyota Astra Motor) and Thailand (Toyota Motor Thailand Co. Ltd. and Siam Toyota Manufacturing Co., Ltd.) certain original equipment manufacture (OEM) automotive parts/components for Corolla passenger cars (HS 8703.90 10). In exchange, Indonesia and Thailand will import from the Philippines complementary component parts for the OEM of Corolla and Kijang;

WHEREAS, under the Honda AICO Arrangement, the Philippines (Honda Cars Philippines, Inc.) will import from Indonesia (PT. Honda Prospect Motor) and Malaysia (Oriental Assemblers Sdn. Bhd., and Honda Autoparts Manufacturing (M) Sdn. Bhd.) certain original equipment manufacture (OEM) automotive parts/components for Honda Civic passenger cars (HS 8703.90 10). In exchange, Indonesia and Malaysia will import from the Philippines complementary component parts for the OEM of Honda Civic; 

WHEREAS, under the Nissan AICO Arrangement, the Philippines (Nissan Motor Philippines, Inc.) will import from Malaysia (Tan Chong Motor Assemblies Sdn. Bhd. and Nippon Wiper Blade [Malaysia] Sdn. Bhd.) certain original equipment manufacture (OEM) automotive parts/components for Nissan Sentra passenger cars (HS 8703.90 10). In exchange, Malaysia will import from the Philippines complementary component parts for the OEM of Nissan Sentra;

WHEREAS, AICO Certificate of Eligibility Nos. Toyota/2001/20 and Toyota /2001/22 were issued on 17 April 2001, in favor of the participating companies in the Toyota AICO Arrangement; AICO Certificate of Eligibility Nos. Honda/2001/10(A) and Honda/2001/11(A) were re-issued on 19 June 2001 and 28 November 2000, respectively, nullifying AICO Certificate of Eligibility Nos. Honda/2001/10 and Honda/2001/11 issued on 05 October 2000, in favor of the participating companies in the Honda AICO Arrangement; and AICO Certificate of Eligibility No. Nissan/2001/4 was issued on 29 May 2001, in favor of the participating companies in the Nissan AICO Arrangement;

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

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, 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 the AICO rate of 5% on parts/components of Toyota Corolla passenger cars as specified in Column 6 thereof.

Sec. 2. The AICO rate provided in Annex “A” shall be accorded to the AICO entity in Indonesia (PT. Toyota Astra Motor), and in Thailand (Toyota Motor Thailand, Co. Ltd. and Siam Toyota Manufacturing Co., Ltd.) effective 17 April 2001.

Sec. 3. The articles specially 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 5% on parts/components of Honda Civic passenger cars as specified in Column 6 thereof.

Sec. 4. The AICO rate provided in Annex “B” shall be accorded to the AICO entities in Malaysia (Oriental Assemblies Sdn. Bhd., Honda Autoparts Manufacturing (M) Sdn. Bhd., and in Indonesia (PT. Honda Prospect Motor) effective 5 October 2000.

Sec. 5. The articles specially listed in Annex “C” 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 parts/components of Nissan Sentra passenger cars as specified in Column 6 thereof.

Sec. 6. The AICO rate provided in Annex “C” shall be accorded to the AICO entities in Malaysia (Tan Chong Motor Assemblies Sdn. Bhd. and Nippon Wiper Blade (Malaysia) Sdn. Bhd.) effective 29 May 2001.

Sec. 7. In the event that any subsequent changes are made in the basic (Most Favored Nation) Philippine rate of duty on any of the articles listed in Annexes “A, B and C”, to a rate lower than the AICO rate prescribed in Column 6 of Annexes “A, B and C”, such articles shall automatically be accorded the corresponding reduced rate of duty. Effective 1 January 2003, the final CEPT rate on the subject articles shall apply.

Sec. 8. Upon the effectivity of this Executive Order, the articles specially listed in the aforesaid Annexes “A, B and C” which are entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rates specified under Section 1 hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin-Form “D”.

Sec. 9. Any revision/s to the part numbers appearing in Column 4 of Annexes “A, B and C” 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. 10. The Secretary of Finance in consultation with the National Economic & Development Authority (NEDA) shall issue the appropriate guidelines to implement and rationalize the preferential tariff privilege herein granted.

Sec. 11. This Executive Order shall take effect immediately.

Done in the City of Manila, this 18th day of March, in the year of Our Lord, Two Thousand and Two.

Annex “A”
ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED TOYOTA AICO SCHEME

APPLICABLE
SOURCE AICO
HS Code Model/ PRODUCT/ Part No. COUNTRY   PREFERENTIAL
Type    PART NAME   (AICO COMPANY) TARIFF (%)
(1) (2) (3) (4) (5) (6)

8703.90 10   Corolla Various Components/Parts, Indonesia 5

Passenger (P.T. Toyota
Car Cover Assy, Clutch 31210 Astra Motor
Disc Assy, Clutch     31250 [TAM])
Body Assy, Throttle   22210
Body Assy, Throttle  22210
Canister Assy, Charcoal  77740
Flywheel    13405
Belt, V-Ribbed 90080
Plug, Spark    90080
Horn Assy, Low Pitched   86520
Lamp Assy, Courtesy 81230
Adjuster Sub-Assy, Fr Seat, Outer Rh 72011
Adjuster Sub-Assy, Fr Seat, Outer Lh 72012
Adjuster Sub-Assy, Fr Seat, Outer Lh  72012
Adjuster Sub-Assy, Fr Seat, Inner Rh  72021
Adjuster Sub-Assy, Fr Seat, Inner Lh 72022
Adjuster Sub-Assy, Fr Seat, Inner Lh     72022
Handle, Seat Track Adjusting   72211
Pipe Sub-Assy, Reclining Connecting     72501
Reinforce Sub-Assy, Fr Body Pir, Ctr 61037
Reinforce Sub-Assy, Ctr Body Pir, Inn Lh 61038
Reinforcement, Roof Side Rail, Outer Rh 61245
Reinforcement, Roof Side Rail, Outer Lh 61248
Reinforce Sub-Assy, Rocker, Outer Rh    61403
Reinforce Sub-Assy, Rocker, Outer Lh  61404
Shield, Fr Seat Cushion, Lwr Rh   71873
Shield, Fr Seat Cushion, Lwr Lh   71874
Cover, Seat Track Bracket, Inner Fr 72127
Cover, Seat Track Bracket, Inner Rh 72157
Cover, Seat Track Bracket, Inner Lh   72158
Louver Sub-Assy, Cowl Top Ventilator, Rh 55708
Shield, Cowl Vent Splash, Rh   55751

Passenger (Toyota
Car Insulator, Engine Mt, Fr  12361 Motor Co.
Insulator, Engine Mt, Fr     12361 Thailand
Insulator, Engine Mt, Rr    12371 [TMT])
Insulator, Engine Mt. Rr 12371
Insulator, Engine Mt, Lh 12372
Fan Assy, W/Motor 16360
Support Sub-Assy, Radiator, Lwr 16504
Cushion Radiator Support    16523
Support Radiator   16533
Hose Radiator No. 1   16571
Hose Radiator No. 2   16572
Hose, Air Cleaner 17881
Coverter Assy, Monolithic     18450
Cable Assy, Transmission Control 33820
Cable Assy, Transmission Control 33820
Beam Assy, Rr Axle     42110
Beam Assy, Rr Axle    42110
Ornament S/A, Wheel Hub    42603
Ornament S/A, Wheel Hub    42603
Bracket Assy Strg Column Upr W/Switch 45020
Bracket Assy Strg Column Upr W/Switch 45020
Wheel Assy; Steering   45100
Wheel Assy, Steering    45100
Wheel Assy, Steering    45100
Button Assy, Horn   45130
Pad Assy, Steering Wheel   45130
Cover, Steering Column, Upr    45286
Cover, Steering Column, Lwr    45287
Lever Assy, Parking Brake   46210
Lever Assy, Parking Brake   46210

Passenger (Toyota
Car Cylinder Assy, Brake Master 47200 Motor Co.
Cylinder Assy, Brake Master  47200 Thailand
Cylinder Assy, Brake Master  47200 (TMT])
Cylinder Assy, Brake Master    47200
Insulator, Fr Coil Spring, Upr   48157
Insulator, Fr Coil Spring, Lwr 48158
Insulator, Rr Coil Spring    48257
Absorber Assy, Shock, Fr   48510
Absorber Assy, Shock, Fr Lh   48520
Absorber Assy, Shock, Rr Rh 48530
Support Assy, Rr Suspension   48750
Support Assy, Rr Suspension   48755
Bar, Stabilizer 48811
Bar, Stabilizer, Rr 48812
Bush, Stabilizer Bar   48815
Cover Engine Under, Rh    51441
Cover Engine Under, Lh     51442
Cover Engine Under, Lh   51442
Cover, Fr Bumper   52119
Cover, Rr Bumper   52159
Arm Rr Bumper, Rh    52181
Grill Radiator    53111
Seal Hood, To Radiator Support   53381
Cable Assy, Hood Lock Control    53630
Insulator Assy, Dash Panel 55210
R/F Fr Floor Under, Rh   57417
Member Fr Floor Cross, Rh     57451
Member Fr Floor Cross, Lh   57452
Member Fr Floor Cross, Lh   57452

Passenger (Toyota
Car R/F S/A Fr Floor, Ctr 57509 Motor Co,
Pan, Fr Floor 58111 Thailand
Pan, Ctr Floor   58211 [TMT])
Pan, Ctr Floor   58211
Pan, Rr Floor  58311
Pan, Rr Floor   58311
Panel Rr Floor Side, Rh   58313
Panel Rr Floor Side, Lh    58314
Panel Body, Lwr Back 58371
Ret Lug Compt Dr Lock Striker   56373
R/F Body Lwr Back Panel     58375
Cover, Luggage Compartment Side, Rh  58773
Rf S/A. Fr Body Pir Lwr, Rh   61108
Rf S/A. Fr Body Pir Lwr, Lh   81109
Panel, Side Outer, Rh 61111
Panel, Side Outer, Rh     61111
Panel, Side Outer, Lh   61112
Panel, Side Outer, Lh   61112
Panel, Side Outer, Lh   61112
Panel Cowl Side, Rh  61121
Panel Cowl Side, Lh  61122
Gusset, Fr Body Pillar, Upr Inner, Rh 61143
Gusset, Fr Body Pillar, Upr Inner, Lh  61144
Pillar Fr Body Upr Inner, Rh   61161
Pillar Fr Body Upr Inner, Lh 61162
Panel, Quarter, Rh     61611
Panel, Quarter, Rh  61611
Panel, Quarter, Lh 61612
Panel, Quarter, Lh 61612

Passenger (Toyota
Car Gusset Quarter Wheel Rr, Rh 61645 Motor Co.
Gusset Quarter Wheel Fr, Rh   61646 Thailand
Panel Roof Side Inner, Rh   61731 [TMT])
Panel Roof Side Inner, Lh 61732
Panel Roof Side Inner Rr, Rh    61735
Panel Roof Side Inner Rr, Lh  61736
R/F Back Window Opening, Rh   61741
R/F Back Window Opening, Lh 61742
Board, Cowl Side Trim, Rh   62111
Board, Cowl Side Trim, Lh   62112
Garnish, Center Pillar, Lwr Rh   62413
Garnish, Center Pillar, Lwr Lh   62414
Garnish, Roof Side, Inner Rh  82471
Garnish, Roof Side, Inner Lh  62472
Pad, Roof Side Inner Garnish   62475
Panel Roof    63111
Panel Windshield Header Inner  63132
Frame Back Window, Upr    63133
R/F Roof Panel Center   63141
R/F Roof Panel No. 3  63143
R/F Roof Panel No. 4   63144
Headlining Assy, Roof  63310
Headlining Assy, Roof  63310
Pad, Roof Silencer   63341
Pad, Roof Silencer, No. 2     63342
Pad, Roof Silencer, Rr     63343
Pad, Roof Headlining  63351
Panel Upper Back 64111
Panel Upper Back Inner   64112

Passenger (Toyota
Car Reinforcement, Upper Back   64115 Motor Co.
Panel Assy, Package Tray Trim    64330 Thailand
Pad, Package Tray Trim Silencer   64334 [TMT])
Arm S/A, Lug Compt Dr Hinge     64503
Bar, Hinge Torsion, Rh 64531
Bar, Hinge Torsion, Lh 64532
Cable S/A, Luggage Door Control 64607
Lock Assy, Luggage Compt. Door   64610
Cover Assy, Luggage Compt. Trim, Rh   64710
Mat, Luggage Compartment Floor 64711
Cover, Luggage Compt Trim Fr     64717
Cover Assy, Luggage Compt. Trim, Lh 64720
Cover, Rr Combination Lamp Service, Rh 64745
Cover, Rr Combination Lamp Service, Lh 64746
Cover, Spare Wheel 64771
Panel Fr Door Outside, Rh   67111
Panel Fr Door Outside, Lh 67112
Panel Rr Door Outside, Rh 67113
Panel Rr Door Outside, Lh   67114
Panel Fr Door Inside, Rh   67141
Panel Fr Door Inside, Lh     67142
Panel Rr Door Inside, Rh   67143
Panel Rr Door Inside, Lh   67144
Beam S/A Door Side Impact Prot, Rh   67301
Beam S/A Door Side Impact Prot, Lh   67302
Beam S/A Rr Door Prot, Rh   67303
Beam S/A Rr Door Prot, Lh     67304
Reinforcement, Rr Door Lock, Rh 67337
Reinforcement, Rr Door Lock, Lh 67338

Passenger (Toyota
Car Weatherstrip, Fr Door, Rh   67861 Motor Co.
Weatherstrip, Fr Door, Lh 67862 Thailand
Weatherstrip, Rr Door, Rh   67871 [TMT))
Weatherstrip, Rr Door, Lh   67872
Run, Fr Door Glass, Rh     68141
Run, Rr Door Glass, Rh  68142
Run, Fr Door Glass, Lh    68151
Run, Rr Door Glass, Lh     68152
Cylinder & Key Set     69005
Shield, Fr Seat Cushion, Rh 71811
Shield, Fr Seat Cushion, Lh    71812
Shield, Fr Seat Cushion, Inner Rh    71861
Shield, Fr Seat Cushion, Inner Lh 71862
Knob, Vertical Seat Adjuster   72457
Handle, Fr Seat Back Lock    72525
Handle, Reclining Adjuster Release, Lh  72526
Striker, S/A, Rr Seat Back Lock 72601
Adjuster Assy, Fr Shoulder Belt Anchor   73200
Belt Assy, Fr Seat Outer, Rh   73210
Belt Assy, Fr Seat Outer, Lh    73220
Belt Assy, Rr Seat Lap Type, Ctr W/Inner 73300
Belt Assy, Rr Seat Outer, Rh    73360
Reinforcement, Door Armset No. 1, Rh   74217
Reinforcement, Door Armset No. 1, Lh   74218
Reinforcement, Door Armset No. 2   74219
Visor Assy, Rh   74310
Visor Assy, Lh 74320
Visor Assy, Lh 74320
Visor Assy, Lh 74320

Passenger (Toyota
Car Label, Passenger Air Bag, Caution 74598 Motor Co.
Emblem, Radiator Grill    75311 Thailand
Plate, Luggage Compt Door Name No. 2 75442 (TMT])
Plate, Luggage Compt Door Name No. 4   75444
Pipe S/A. Fuel Tank Filler 77011
Cable Sub-Assy, Fuel Lid Lock Control   77035
Fuel Tank, Fr 77111
Fuel Tank, Rr   77112
Plate F/Tank Separating No. 2     77122
Tube S/A, Fuel Suction   77203
Pipe Assy Fuel Tank Filler     77210
Cable Assy, Accelerator Control  78180
Head Lamp Assy, Rh    81110
Head Lamp Assy, Lh    81150
Lamp Assy, Map    81260
Lamp Assy, Rr Combination, Rh 81550
Lamp Assy, Rr Combination, Lh   81560
Lamp Assy, Rr, Rh   81580
Lamp Assy, Rr, Lh  81590
Lamp Assy, Side Turn Signal 81730
Switch Assy, Courtesy Lamp   84231
Switch Assy, Courtesy Lamp 84231
Switch Assy, Stop Lamp   84340
Mirror Assy, Inner Rr View     87810
Cover, Inner Mirror Stay   87834
Mirror Assy, Outlet Rr View, Rh 87910
Cover, Outer Mirror, Rh    87915
Cover, Outer Mirror, Rh  87915
Mirror Assy, Outer Rr View, Lh     87940

Passenger (Toyota
Car Cover, Outer Mirror, Lh  87945 Motor Co.
Cover, Outer Mirror, Lh   87945 Thailand
Emblem Symbol   90975 [TMT))

Passenger (Toyota
Car   Gasket, Cylinder Head Cover 11213 Manufacturing
Piston   13211 Co.
Pin, Piston 13251 [SMT))
Sprocket, Crankshaft Timing     13521
Hose, Water By-Pass No. 1 16261
Hose, Water By-Pass No. 1     16261
Hose, Water By-Pass No. 2     16264
Hose, Water By-Pass No. 2 16264
Gasket, Oil Filter Cap   90080
Filter, Oil  90080

    (Honda Autoparts
  Face, FR Bumper   71101-S5A-0000MA Manufacturing Sdn.
  Face RR BPR 71501-S5A-0000MA Bhd.)

Wheel Assy, Strg   78500-SV4-0030 (P.T. Honda Prospect
Pad Comp Strg Wheel 78530-SV4-0030 Motor)

(Tan Chong Motor
Vehicle Part Lamp Assy-Room   26410 8M600 Assemblies Sdn. Bhd.)
Vehicle Part Lamp Assy-Lic Plate   26510 4M500 and
Vehicle Part Lamp Assy-Stop, High Mtg  26590 4M500 (Nippon Wiper Blade)
Vehicle Part Arm Assy-WS Wipr, Driver 288818M500
Vehicle Part Blade Assy-WS Wiper     28890 8M500
Vehicle Part Arm Assy-WS Wipr, Asst     28886 8M500
Vehicle Part Blade Assy-WS Wiper    28890 8M510
Unit Gear & Linkg Assy-PS     490018M700
Vehicle Part Cover-Fr Door Corner, Inr,   RH   80292 BM600
Vehicle Part Cover-Fr Door Corner, Inr,    LH  80293 BM600
Body Panel Part Shell Fuel Tank Upper 17205 8M600
Body Panel Part Shell Fuel Tank Lower 17206 8M700
Body Panel Part Hoodledge Upr,    RH   64112 5M000
Body Panel Part Hoodledge Upr,   LH   64113 5M000
Body Panel Part Hoodledge Lwr, FR   RH   64132 5M000
Body Panel Part Hoodledge Lwr, FR  LH   64133 5M000
Body Panel Part Hoodledge Lwr, RR  RH 64142 5M000
Body Panel Part Hoodledge Lwr, RR  LH 64143 5M000