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 Republic Asahi Glass Corporation (RAGC) along with Thailand;

WHEREAS , under the RAGC AICO Arrangement, the Philippines (Republic-Asahi Glass Corporation) will import from Thailand (Thai Glass Co. Ltd.) original equipment manufacture (OEM) rear windshield safety glass (backlites) for motor vehicles (HS 7007.11 00), and in exchange, Thailand will import from the Philippines safety glass for kitchen appliances;

WHEREAS , AICO Certificate of Eligibility (COE) No. Asahi Glass/2000/1 was issued on 26 September 2000 in favor of the participating companies in the Republic-Asahi Glass Corporation AICO Arrangement;

WHEREAS , in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, participating companies in the approved RAGC AICO Arrangements shall qualify for 0 - 5% preferential tariff rates to be extended by Thailand and the Philippines as participating countries, effective within 45 days from the date of issuance of the Certificate of Eligibility No. Asahi Glass/2000/1 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 older:

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 5% on OEM rear windshield safety glass (backlites) for motor vehicles (HS 7007.11 00) as specified in Column 4 thereof.

SEC 2. The AICO rate provided in Annex œA  shall be accorded to the AICO entity in Thailand (Thai Safety Glass Co. Ltd.) effective 26 September 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 4 of Annex œA , such article shall automatically be accorded the corresponding reduced rate of duty. Effective 1 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effectivity of this Executive Order, the articles specifically listed in the aforesaid Annex œA  which are entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rate specified under Section 1 hereof, subject to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. 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 6. 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

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary