WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN Industrial Cooperation Scheme signed inSingapore on 27 April 1996;

WHEREAS, the Philippines is a signatory to the Protocol to Amend the Basic Agreement on the ASEAN Industrial Cooperation Scheme signed in Singapore on 21 April 2004;

WHEREAS , the Philippines is a participating country in the approved AICO Arrangements of Toyota Motor Philippines Corporation, and Toyota Autoparts Philippines, Inc. along with Malaysia;

WHEREAS , under theToyota AICO Certificate of Eligibility No. Toyota/2005/31, the Philippines (Toyota Motor Philippines Corporation and Toyota Autoparts Philippines, Inc.) will import from Malaysia (Assembly Services Sdn. Bhd.) certain original equipment manufacture (OEM) automotive parts / components for Toyota Innova (AHTN 8703.9027A / 8703.90.28A). In exchange, Malaysia (Assembly Services Sdn. Bhd.) will import from the Philippines complementary component parts for the OEM of Toyota Innova, Vios, Camry and Corolla;

WHEREAS , AICO Certificate of Eligibility No.Toyota /2005 /31 was issued on 20 April 2005, in favor of the participating companies in the Toyota AICO Arrangement;

WHEREAS , in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, as amended participating companies in the approved Toyota AICO Arrangements shall qualify for 0% preferential tariff rates to be extended by Malaysia and the Philippines as participating countries.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO , President 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 0% on parts/components as specified in Column 5 thereof.

SECTION 2 . The AICO rate provided in Annex œA  shall be accorded to the AICOentity in Malaysia (Assembly Services Sdn. Bhd.) upon the effectivity of this Executive Order.

SECTON 3 . Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annex œA  that entered into or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rates specified under Section 1 hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form œD .

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

SECTION 5. This Executive Order shall take effect fifteen (15) days following its complete publication in two (2) newspapers of general circulation in the Philippines.

DONE in the City of Manila, this 23rd day of December, in the year of Our Lord, Two Thousand and Five.

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary