EXECUTIVE ORDER NO. 163 - MODIFYING THE RATES OF IMPORT DUTY OF INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) PRODUCTS UNDER THE TARIFF AND CUSTOMS CODE OF 1978 (PRESIDENTIAL DECREE NO. 1464, AS AMENDED), IN ORDER TO IMPLEMENT THE e-ASEAN FRAMEWORK AGREEMENT

WHEREAS, the e-ASEAN Framework Agreement signed on 24 November 2000 requires ASEAN Member States to eliminate duties and non-tariff barriers on intra-ASEAN trade on ICT products;

WHEREAS, the Agreement commits ASEAN members to an implementation schedule to achieve digital readiness for the region in order to develop the basis for ASEAN’s competitiveness into the future, better the lives of their citizens through the application of information and communication technologies and foster the spirit of ASEAN community;

WHEREAS, Sec. 402 of the Tariff and Customs Code of 1978, as amended, empowers the President, upon the recommendation of the National Economic and Development Authority, to increase, reduce or remove existing protective rates of import duty, as well as to modify the form of duty.

NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. The articles specifically listed in “Annex A” (Information and Communications Technology Products Granted Concession under the e-ASEAN Framework Agreement) hereof, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the ASEAN Common Effective Preferential Tariff (CEPT) indicated in Column 4 of “Annex A”. The ASEAN CEPT rates so indicated shall be accorded to imports coming from ASEAN Member States applying CEPT concession to the same product pursuant to Article 4 of the CEPT Agreement and its Interpretative Notes.

Sec. 2. In the event that any subsequent changes are made in the basic (MFN) Philippine rate of duty on any of the articles listed in “Annex A” to a rate lower than the rate prescribed in Column 4 of “Annex A”, such article shall automatically be accorded the corresponding reduced duty.

Sec. 3. Products eligible for tariff concessions not listed in “Annex A” of this Executive Order, shall be subject to the ASEAN CEPT rates under Executive Order No. 49, Series of 2001, Executive Order No. 234, Series of 2000, Executive Order No. 254, Series of 2000, Executive Order No. 71, Series of 1999, Executive Order No. 487, Series of 1998, and Executive Order No. 453, Series of 1997.

Sec. 4. From the date of effectivity of this Executive Order, all articles listed in “Annex A” entered into or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty therein prescribed, subject to qualification under the Rules of Origin as provided for in the Agreement on the CEPT Scheme for the AFTA signed on 28 January 1992.

Sec. 5. All presidential issuances, administrative rules and regulations, or parts thereof, which are contrary or inconsistent with this Executive Order are hereby repealed or modified accordingly. 

Sec. 6. This Executive Order shall take effect immediately following its complete publication in two (2) newspapers of general circulation in the Philippines.

Done in the City of Manila, this 10th day of January, in the year of our Lord, Two Thousand and Three.

“Annex A”
INFORMATION AND COMMUNICATIONS TECHNOLOGY PRODUCTS (ICT) GRANTED CONCESSION UNDER THE e-ASEAN FRAMEWORK AGREEMENT

Applicable
Hdg. H.S. Code Description ASEAN CEPT
No. Rate (%)
   2003
 (1) (2)   (3) (4)

38.18 3818.00 00 Chemical elements doped for use in electronics, in the Free

form of discs, wafers or similar forms; chemical
compounds doped for use in electronics.

other than those of heading No. 84.71; machines for uses
ancillary to printing.
  - Other printing machinery:
8443.51 00 - - Ink jet printing machines Free

including line telephone sets with cordless handsets and
telecommunication apparatus for carrier-current line
systems or for digital line systems; videophones.
- Telephone sets; videophones:
  8517.19 - - Other
8517.19 10 - - - Telephone sets Free

players and other sound reproducing apparatus, not
incorporating a sound recording device.
- Other sound reproducing apparatus:
8519.99 - - Other
8519.99 10 - - - Cinematographic sound reproducers Free

apparatus, whether or not incorporating a sound
reproducing device.
   8520.90   - Other:
8520.90 10 - - - Cinematographic sound recording apparatus Free

principally with the apparatus of headings Nos. 85.19
to 85.21.
   8522.90   - Other
8522.90 10 - - - Parts and accessories for cinematographic sound Free
   recorders and reproducers

similar recording of other phenomena, other than
products of Chapter 37.
  - Magnetic tapes:
8523.11 - - Of a width not exceeding 4 mm:
   8523.11 90 - - - Other Free
  8523.12     - - Of a width exceeding 4 mm but not exceeding 6.5 mm
8523.12 90 - - - Other Free
  8523.13  - - Of a width exceeding 6.5 mm:
8523.13 20 - - - In pancake or jumbo forms Free
  8523.13 90 - - - Other Free
  8523.20     - Magnetic discs:
8523.20 90 - - - Other Free
  8523.90    - Other:
8523.90 90 - - - Other Free

telegraphy, radio-broadcasting or television, whether or
not incorporating reception apparatus or sound
recording or reproducing apparatus; television cameras;
still image video cameras and other video camera
recorders.
  8525.30 00 - Television cameras Free

radio remote control apparatus.
  8526.10 00 - Radar apparatus Free
  - Other:
8526.91 00 - - Radio navigational aid apparatus Free
   8526.92 00 - - Radio remote control apparatus Free

incorporating radio-broadcast receivers or sound or
video recording or reproducing apparatus; video
monitors and video projectors.
  8528.30 00 - Video projectors Free

circuits, or for making connections to or in electrical
circuits (for example, switches, relays, fuses, surge
suppressors, plugs, sockets, lamp-holders, junction
boxes), for a voltage not exceeding 1,000 volts.
   8536.10 - Fuses:
   8536.10 10 - - - Thermal fuses; glass type fuses Free
  8536.50 - Other switches:
8536.50 90 - - - Other:
 ex 8536.50 90 Electronic AC switches consisting of optically coupled Free
input and output circuits (insulated thyristor AC switches);
electronic switches, including temperature protected
electronic switches, consisting of a transistor and a logic
chip (chip-on-chip technology) for a voltage not exceeding
1,000 volts; electromechanical snap-action switches for
a current not exceeding 11 amps
   ex 8536.50 90 Other 5
- Lamp-holders, plugs and sockets:
8536.69 - - Other:
8536.69 90 - - - Other:
 ex 8536.69 90 Sockets and other plugs for co-axial cables and printed Free
circuits
  ex 8536.69 90 Other

tubes (for example, vacuum or vapour or gas filled valves
and tubes, mercury arc rectifying valves and tubes,
cathode-ray tubes, television camera tubes).
- Cathode-ray television picture tubes, including video monitor
cathode-ray tubes:
  8540.11 00 - - Colour    Free
8540.20 00 - Television camera tubes; image converters and Free
intensifiers; other photo-cathode tubes
8540.40 00 - Data/graphic display tubes, colour, with a phosphor dot Free
screen pitch smaller than 0.4 mm
8540.50 00 - Data/graphic display tubes, black and white or other Free
monochrome
  8540.60 00 - Other cathode-ray tubes Free
- Microwave tubes (for example, magnetrons, klystrons,
travelling wave tubes, carcinotrons), excluding grid
controlled tubes:
  8540.71 00 - - Magnetrons Free
  8540.72 00 - - Klystrons     Free
- Other valves and tubes:
8540.81 00 - - Receiver or amplifier valves and tubes     Free
- Parts:
8540.91 00 - - Of cathode-ray tubes    Free

cables other than those of heading No. 85.44; sheets and
plates of polarising material; lenses (including contact
lenses), prisms, mirrors and other optical elements, of
any material, unmounted, other than such elements of
glass not optically worked.
  9001.10 00 - Optical fibres, optical fibre bundles and cables    Free

any material, mounted, being parts of or fittings for
instruments or apparatus, other than such elements of
glass not optically worked.
- Objective lenses:
  9002.11 00 - - For cameras, projectors or photographic enlargers or Free
reducers

photographic flashlight apparatus and flashbulbs other
than discharge lamps of heading No. 85.39.
  9006.20 00 - Cameras of a kind used for recording documents on Free
microfilm, microfiche or other microforms

system or of the contact type and thermo-copying
apparatus.
- Electrostatic photo-copying apparatus:
9009.12 00 - - Operating by reproducing the original image via an Free
intermediate onto the copy (indirect process)
- Other photo-copying apparatus:
9009.22 00 - - Of the contact type   Free
    9009.30 00 - Thermo-copying apparatus Free

cinematographic) laboratories (including apparatus for
the projection or drawing of circuit patterns on sensitised
semi-conductor materials), not specified or included
elsewhere in this Chapter, negatoscopes; projection
screens.
  9010.50 00 - Other apparatus and equipment for photographic Free
(including cinematographic) laboratories; negatoscopes

for more specifically in other headings; lasers, other than
laser diodes; other optical appliances and instruments,
not specified or included elsewhere in this Chapter.
  9013.20 00 - Lasers, other than laser diodes   Free

the flow, level, pressure or other variables of liquids or
gases (for example, flowmeters, level gauges,
manometers, heat meters), excluding instruments and
apparatus of heading No. 90.14, 90.15, 90.28 or 90.32.
    9026.10 - For measuring or checking the flow or level of liquids:
9026.10 10 - - - Level gauges for motor vehicles   Free
  9026.10 90 - - - Other   Free
  9026.20 - For measuring or checking pressure:
9026.2010 - - - Pressure gauges for motor vehicles Free
   9026.20 90 - - - Other    Free