WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996;

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Mitsubishi Motors Philippines (MMPC) and Asia Transmission Corporation (ATC) along with Indonesia;

WHEREAS, under the MMPC and ATC AICO Arrangement, the Philippines (Mitsubishi Motors Philippines Corporation and Asia Transmission Corporation) will import from Indonesia (PT. Krama Yudha Tiga Berlian Motors) certain original equipment manufacture (OEM) automotive parts/components for L-300 Van (HS 8702.90 10), Adventure Van (HS 8702.90 10), and L-200 Pick-up (HS 8704.90 10), and in exchange Indonesia will import from the Philippines complementary parts/components for the OEM of Kuda D and G, and L-300:

WHEREAS, AICO Certificate of Eligibility (COE) No. Mitsubishi/2000/2(A) was issued on 25 August 2000 replacing AICO COE No. Mitsubishi/2000/2 issued on 17 May 2000, in favor of the participating companies in the Mitsubishi AICO Arrangement;

WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, participating companies in the approved MMPC AICO Arrangement shall qualify for 0-5% preferential tariff rates to be extended by Indonesia and the Philippines for MMPC as participating countries, effective within 45 days from the date of issuance of the Certificate of Eligibility No. Mitsubishi/2000/2(A) by the ASEAN Secretariat.

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 3% on parts/components of L-300 Van (HS 8702.90 10), Adventure Van (HS 8702.90 10), and L-200 Pick-up (HS 8704.90 10) as specified in Column 6 thereof.

SEC. 2. The AICO rate provided in Annex œA  shall be accorded to the AICO entity in Indonesia (PT. Krama Yudha Tiga Berlian Motors) effective 18 July 2000.

SEC. 3. In the event that any subsequent changes are made in the basic (Most Favored Nation) Philippine rate of duty on any of the articles listed in Annex œA  to a rate lower than the AICO rate prescribed in Column 6 of Annex œA , such article shall automatically be accorded the corresponding reduced rate of duty. Effective 01 January 2003, the final CEPT rate on the article shall apply.

SEC. 4. Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annex œA  which are entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rate 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 .

SEC. 5. Any revision/s to the part numbers appearing in Column 4 of Annex œA  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 number/s from the ASEAN Secretariat.

SEC. 6. The Secretary of Finance in consultation with the National Economic & Development Authority (NEDA) shall issue the appropriate guidelines to implement and rationalize the preferential tariff privilege herein granted.

SEC. 7. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 3rd day of November in the year of Our Lord, two thousand and one.

(SGD.) GLORIA MACAPAGAL-ARROYO
President of the Philippines

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary