WHEREAS , Executive Order No. 418 dated 04 April 2005 was issued to mitigate the impact of used vehicle trading on air quality and road safety through the imposition of additional specific duty of PhP 500,000.00 on the importation of used motor vehicles falling under Headings 87.02, 87.03 and 87.04;

WHEREAS , Section 1 of the Executive Order 418 specifically provides for the exemption of trucks, buses and special purpose vehicles which fall under Headings 87.02, 87.04 and 87.05 from the application of the additional specific duty;

WHEREAS , Article 2, Section 3.1 of Executive Order No. 156 dated December 12, 2002 prohibits the importation of all used motor vehicles into the country inclusive of the Freeport, except for certain used motor vehicles specifically listed under the same Section;

WHEREAS , the intended product coverage of Executive Order No. 418 does not include used motor vehicles specifically listed under Article 2, Section 3.1 of Executive Order No. 156 and classified as exempt from the import prohibition on used motor vehicles;

WHEREAS , it is necessary to amend Executive Order No. 418 to reflect the intended product coverage of the imposition of additional specific duty on used motor vehicle importation.

NOW , THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Philippines, pursuant to the powers vested in me under Section 401 of the Tariff and Customs Code of 1978, as amended, do hereby order:

SECTION 1 . Section 1 of Executive Order No. 418 is hereby amended to read as follows:

œSECTION 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 subject to the rates of import duty indicated opposite each article, except for trucks, buses and special purpose vehicles, motor vehicles under the œNo Dollar Importation Program  and motor vehicles authorized for importation by the Department of Foreign Affairs intended for use by officials of the Diplomatic Corps whose rate of duty will be the ad valorem rate only.

SECTION 2. The nomenclature and the rates of import duty on tariff headings not enumerated and those listed but represented by the symbol œX X X  shall remain in force and in effect.

SECTION 3 . Upon the effectivity of this Executive Order, the articles listed in Annex œA  hereof, which are entered and withdrawn from warehouses in the Philippines for consumption shall be levied the Most Favored Nation (MFN) rates herein prescribed.

SECTION 4 . This Executive Order shall take effect thirty (30) days immediately following its publication in two (2) newspapers of general circulation.

Done in the City of Manila, Philippines, this 19th day of December in the year of Our Lord, Two Thousand and Five.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary