WHEREAS, the economic crisis besetting the country makes it necessary to provide temporary relief from the difficulties being suffered by domestic industries;

WHEREAS, the currency depreciation spawned by the crisis requires some action to cushion industries against surges of low-priced imports;

WHEREAS, Section 401 of the Tariff and Customs Code of 1978, as amended, empowers the President to increase, reduce or remove existing rates of duty, as well as to modify the tariff nomenclature;

WHEREAS, while encouraging duty-free importation of slabs and scraps will increase the competitiveness of the dominant steel producer and enable it to share the benefits to downstream users, it is nevertheless the desire of the government to ensure that the duty on hot-rolled coils (HRC) tariffs at 7% not be a hindrance to the efficiency of downstream flat product producers, such that, if HRC capacity utilization of National Steel Corporation (NSC) is not sustained at a level of at least 50% from July 1, 1999, tariff rate on HRC will go down to 3%;

WHEREAS, the Iron and Steel Industry Act (RA 7103) provides that the National Economic and Development Authority (NEDA) shall recommend to the appropriate authority a rational tariff structure that shall enhance the viability of the industry, specifically tariff rates on imported raw materials, such that NEDA now invokes its prerogative and recommends that DTI/BOI, as the lead agencies for the development of the industry, shall accredit legitimate importers/users of low carbon and high carbon steel wire rods who are to enjoy such tariff incentive on the importation of steel wire rods at 3% tariff rate:

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, 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, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the rates of import duty in accordance with the schedule indicated opposite each article.

SECTION 2. The Nomenclature and the rates of import duty on tariff headings not enumerated and those listed but represented by the symbol "x x x" shall remain in force and effect.

SECTION 3. Upon the effectivity of the Executive Order, the articles specifically listed in the aforesaid "Annex" which are entered in or withdrawn from warehouses in the Philippines for consumption shall be levied the rates of duty herein prescribed.

SECTION 4. All other Presidential issuances, administrative rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly.

SECTION 5. This Executive Order shall take effect immediately following the complete publication in two (2) newspapers of general circulation in the Philippines.

Adopted: 15 Jan. 1999

(SGD.) RONALDO B. ZAMORA
Executive Secretary

---

^* Text Available at the Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.