[ EXECUTIVE ORDER NO. 239, May 04, 2000 ]

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 y Thailand and the Philippines as participating countries, effective within 45 days from the date of issuance of the Certificates 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 Section 402 of the Tariff and Customs Code of 1978, as amended, do hereby order:

SECTION 1. The articles specifically listed in Annex œA , 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 passengers 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.

SECTION 2. The AICO rate provided in Annex œA , shall be accorded to the AICO entity in Thailand (Auto Alliance (Thailand) Company Limited) effective from 03 January 2000.

SECTION 3. The articles specifically listed in Annex œB  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.

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

SECTION 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 œA  and œB  to a rate lower than the AICO rate prescribed in Column 6 of Annex œA  and Column 5 of Annex œB , 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.

SECTION 6. Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annexes œA  and œB  which are entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rates specified under Sections 1 and 3, hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form œD .

SECTION 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.

SECTION 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.

(Sgd.) JOSEPH EJERCITO ESTRADA

By the President:

RONALDO B. ZAMORA
Executive Secretary