Attached for your information and guidance is a copy of Executive Order No. 264 dated July 22, 1995 entitled: "Modifying the Nomenclature and the Rates of Import Duty on Certain Imported Articles Under Section 104 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464) as amended."

In view of the publication of the above-mentioned Executive Order in Malaya and Phil. Times Journal (the national newspaper) on July 29, 1995, all concerned is hereby informed that the effectivity date of E.O.L No. 264 is August 28, 1995.

Please be guided accordingly.

Adopted: 07 Aug. 1995

(SGD.) CESAR Z. DARIO
Deputy Commissioner
Internal Administration Group.

Executive Order No. 264

Modifying the Nomenclature and the Rates of Import Duty on Certain Imported Articles Under Section 104 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464) as Amended

WHEREAS, the Medium-Term Philippine Development Plan (MTPDP), 1993-1998 focuses on global competitiveness and people empowerment as the twin strategy towards achieving sustainable economic and human development;

WHEREAS, in order to achieve global competitiveness, the said Plan stipulates that the government should continue to undertake the import liberalization and tariff reform programs towards achieving a structure which approximates uniform effective levels of trade and industrial protection across various sectors of the economy;

WHEREAS, during the Economic Caucus held on 22 July 1993 and the People's Economic Summit on 8 September 1993, it was agreed to further liberalize trade policy through tariff reform and import liberalization;

WHEREAS, as declared in the State of the Nation Address delivered on 25 July 1994, the government "will continue, if not accelerate, the program to reduce tariffs until these reach one uniform rate" to improve the competitiveness of local industries;

WHEREAS, the reduction in tariff levels and in the spread of tariff rates towards a uniform level of protection across all sectors will promote global competitiveness, simplify the tariff structure for ease of customs administration and provide a level playing field for local manufacturers vis-a-vis foreign competition;

WHEREAS, Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464), as amended, empowers the President to increase, reduce or remove existing protective rates of import duty, as well as to modify the form of duty upon the recommendation of the National Economic and Development Authority; and

WHEREAS, NEDA Resolution No. 3 (s. 1995) dated 14 February 1995 unanimously approved the adoption by the Philippines of the 1992 amendments to the Harmonized Commodity Description and Coding System;

NOW, THEREFORE, I, FIDEL V. RAMOS, 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"^* 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 as listed in the aforementioned Annex "A".

SECTION 2. A two-tiered tariff structure of 3% and 10%, for raw materials and finished products, respectively, as listed in Annex "A" hereof, shall be fully implemented by 1 January 2003. The details of such tariff structure shall be prepared and submitted to the President by NEDA in accordance with Section 401 of the same Code.

SECTION 3. Starting 1 January 2004, a uniform rate of 5% ad valorem shall be imposed on said articles.

SECTION 4. The nomenclature and the rates of import duty on tariff headings not enumerated and those listed but represented by the symbol "x x x" in the aforesaid Annex "A" shall remain in force and effect.

SECTION 5. Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annex "A" which are entered or withdrawn from warehouses in the Philippines for consumption shall be levied the rates of duty herein prescribed.

SECTION 6. The provisions of Executive Order 204 (s. 1994) and 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 7. This Executive Order shall take effect 30 days following its complete publication in two (2) newspapers of general circulation in the Philippines.

Adopted: 22 July 1995

(SGD.) FIDEL V. RAMOS
President

By the President:

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