EXECUTIVE ORDER NO. 263 - MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE TRANSFER OF THE LAST TRANCHÉ OF PRODUCTS FROM THE AGRICULTURAL PRODUCT SENSITIVE LIST (SL) TO THE COMMON EFFECTIVE PREFERENTIAL TARIFF INCLUSION LIST (CEPT-IL) AND THE MODIFICATION OF THE CEPT RATE ON OIL CAKE AND OTHER SOLID RESIDUES OF MAIZE (CORN) GERM, SODIUM TRIPOLYPHOSPHATES AND CASSAVA STARCH

WHEREAS, the Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, Lao People’s Democratic Republic, Malaysia, Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Viet Nam, signed the Protocol on the Special Arrangement for Sensitive and Highly Sensitive Products on 30 September 1999; 

WHEREAS, Member States (i.e., Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand) phased-in sensitive products to the CEPT Scheme beginning on 01 January 2001 with fibility but not later than 01 January 2003 and shall complete the phasing-in by 01 January 2010;

WHEREAS, Article III of the Protocol provides that the beginning rate shall be the applied rate and the ending tariff rates shall be 0-5%;

WHEREAS, on 5 November 2001, the NEDA Board approved the 2001-2010 Philippine CEPT Schedule for sensitive agricultural products;

WHEREAS, on 9 December 2003, the NEDA Board confirmed the phasing-in of 44 sensitive agricultural products to the CEPT-IL in 2003 and approved the modification of the CEPT rate on oil cake and other residues of maize (corn) germ, sodium tripolyphosphates and cassava starch, respectively;

WHEREAS, Sec. 402 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464), 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 Republic 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” hereof (Sensitive Agricultural Products Granted Concession under the CEPT for the AFTA), as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the ASEAN CEPT rate in accordance with the year 2003-2005 schedule indicated in Columns 4-6 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. The articles specifically listed in Annex “B” hereof (Articles Granted Concessions under the CEPT for the AFTA), as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the ASEAN CEPT rate indicated in Column 4 of Annex “B”. 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. 3. 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” and “B” to a rate lower than the rate prescribed in Columns 4-6 of Annex “A” and Column 4 of Annex “B”, such articles shall automatically be accorded the corresponding reduced duty.

Sec. 4. From the date of effectivity of this Order, all articles listed in Annexes “A” and “B” entered 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 day of December 30, in the year of Our Lord, Two Thousand and Three.

Annex “A”
SENSITIVE PRODUCTS GRANTED CONCESSION
 UNDER THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) FOR THE ASEAN FREE TRADE AREA (AFTA)

HDG. HS DESCRIPTION APPLICABLE ASEAN RATE (%)
NO. CODE 2003 2004 2005
(1) (2) (3) (4) (5) (6)

02.03 Meat of swine, fresh, chilled or frozen
   - Fresh or chilled:
0203.11   - - - Carcasses and half-carcasses:
0203.11 10 - - - In-Quota 30 30 30

0203.11 20 - - - Out-Quota 40 40 40

0203.12 - - Hams, shoulders and cuts thereof with
bone in 30 30 30
0203.12 10 - - - In-Quota

0203.12 20 - - - Out-Quota 40 40 40

0203.19     - - - Other
0203.19 10 - - - Pork bellies
0203.19 11 - - - - In-Quota 30 30 30

0203.19 12 - - - - Out-Quota 40 40 40

0203.19 20 - - - Fore-ends and cuts thereof:
0203.19 21 - - - - In-Quota 30 30 30

0203.19 22 - Out-Quota 40 40 40

0203.19 90 --- Other
0203.19 91 - - - - In-Quota 30 30 30

0203.19 92 - - Out-Quota 40 40 40

    - Frozen:
0203.21 - - Carcasses and half-carcasses.

0203.21 10 - - - In-Quota 30 30 30

0203.21 20 - - - Out-Quota 40 40 40

0203.22 - - Hams, shoulders and cuts thereof with
bone in 30 30 30

0203.22 10 - - - In-Quota

0203.22 20 - - - Out-Quota 40 40 40

0203.29 - - Other.

0203.29 10 - - - Pork bellies.

0203.29 11 - - - - In-Quota 30 30 30

0203.29 12 - - - - Out-Quota 40 40 40
0201.29 20 - - - Fore-ends and cuts thereof:
0203.29 21 - - - - In-Quota 30 30 30

0203.29 22 - - - - Out-Quota 40 40 40

0203.29 90 - - - Other
0203.29 91 - - - - In-Quota 30 30 30

0203.29 92 - - - - Out-Quota 40 40 40

02.07 Meat and edible offal, of the poultry of
   heading No. 01.05, fresh, chilled or frozen

  - Of fowls of the species Gallus domesticus:
0207.11 - - Not cut in pieces, fresh or chilled.

0207.11 10 - - - In-Quota 40 40 40

0207.11 20 - - - Out-Quota 40 40 40

0207.12 - - Not cut in pieces, frozen:
0207.12 10 - - - In-Quota 40 40 40

0207.12 20 - - - Out-Quota 40 40 40

0207.13     - - Cuts and offal, fresh or chilled:
0207.13 10 - - - In-Quota 40 40 40

0207.13 20 - - - Out-Quota 40 40 40
0207.14 - - Cuts and offal, frozen:
0207.14 10 - - - Liver:
0207.14 11 - - - - In-Quota 40 40 40

0207.14 12 - - - - Out-Quota 40 40 40

0207.14 90 - - - Other.

0207.14 91 - - - - In-Quota 40 40 40

0207.14 92 - - - - Out-Quota 40 40 40

0207.27 - - Cuts and offal, frozen.

0207.27 10 - - - Liver
0207.27 11 - - - - In-Quota 40 40 40

0207.27 12 - - - - Out-Quota 40 40 40

0207.27 90 - - - Other.

0207.27 91 - - - - In-Quota 30 30 30

0207.27 92 - - - - Out-Quota 40 40 40

- Of ducks, geese or guinea fowls.

0207.32 - - Not cut in pieces, fresh or chilled
0207.32 10 - - - Of ducks.

0207.32 11 - - - - In-Quota 40 40 40

0207.32 12 - - - - Out-Quota 40 40 40

0207.32 20 - - - Of geese or guinea fowls.

0207.32 21 - - - - In-Quota 30 30 30

0207.32 22 - - - - Out-Quota 40 40 40

0207.35 - - Other, fresh or chilled.

0207.35 10 - - - In-Quota 40 40 40

0207.35 20 - - - Out-Quota 40 40 40

0207.36 - - Other, frozen
0207.36 10 - - - Fatty livers: 40 40 40
0207.36 11 - - - - In-Quota

0207.36 12 - - - - Out-Quota 40 40 40

10.05 Maize (corn)

1005.90   - Other
1005.90 90 - - - Other
1005.90 91 - - - - In-Quota 35 35 35

1005.90 92 - - - - Out-Quota 50 50 50

Annex “B”
ARTICLES GRANTED CONCESSION UNDER
 THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR THE ASEAN FREE TRADE AREA (AFTA)

Applicable
HS HS Code Description CEPT
Heading Rate of
Duty (%)
(1) (2) (3) (4)

11.08 Starches; inulin.

- Starches:

whether or not ground or in the form of
pellets, resulting from the extraction of
vegetable fats or oils, other than those of
heading 23.04 or 23.05.

phosphonates (phosphites) and
phosphates; polyphosphates, whether or
not chemically defined.

- Polyphosphates:
2835.31 00 - - Sodium triphosphate (sodium 5
tripolyphosphate)