[ EXECUTIVE ORDER NO. 215, February 15, 2000 ]

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME



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

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Toyota, along with Malaysia, Thailand and Indonesia;

WHEREAS, under the Toyota AICO Arrangement, the Philippines (Toyota Motor Philippines Corporation and Toyota Autoparts Philippines) will import from Indonesia, Malaysia and Thailand certain original equipment manufacturer (OEM) automotive parts/components for Corolla and Camry passenger cars (HS 8703.90 10) and Toyota Utility Vehicle (TUV) for the transport of persons (HS 8702.90 10). In exchange, Indonesia, Malaysia and Thailand will import from the Philippines complementary component parts for the OEM of Kijang, Corolla, Camry, Unser, Hilux and Soluna.

WHEREAS, AICO Certificate of Eligibility Nos. Toyota/ 1999/9 was issued on 27 September 1999, Toyota/1999/6(A) and Toyota/1999/7(A) were re-issued on 14 October 1999 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, participating companies in the approved Toyota AICO Arrangements shall qualify for 0 - 5% preferential tariff rates to be extended by Malaysia and the Philippines as participating countries, effective within 45 days from the date of issuance of the Certificate of Eligibility No. Toyota/1999/9 and by Thailand, Indonesia and the Philippines as participating countries, effective on 15 October 1999 for the re-issued Certificate of Eligibility Nos. Toyota/1999/6(A) and Toyota/1999/7(A), respectively, by the ASEAN Secretariat.

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, 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 "A" hereof, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of 5% as component parts of Corolla and Camry passenger cars (HS 8703.90 10) and the AICO rate of 3% as component parts of TUV for the transport of persons (HS 8702.90 10) as specified in Column 6 thereof.

SECTION 2. The AICO rate provided in Annex "A" shall be accorded to the AICO entity in Malaysia (Assembly Services Sdn. Bhd. And T&K Autoparts Sdn. Bhd.) effective 27 September 1999 and to the AICO entities in Indonesia (PT. Toyota Astra Motors) and Thailand (Toyota Motor Thailand, Co. Ltd. and Siam Toyota Manufacturing Co., Ltd.) effective 14 October 1999.

SECTION 3. In the event that any subsequent changes are made in the basic (MFN) Philippine rate of duty on any of the articles listed in Annex "A" to a rate lower than the AICO rate prescribed in Column 6 of Annex "A", such article shall automatically be accorded the corresponding reduced rate of duty. Effective 1 January 2003, the final CEPT rate on the rate on the subject articles shall apply.

SECTION 4. 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 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 "D".

SECTION 5. Any revision/s to the part numbers appearing in Column 4 of Annex "A" shall be communicated immediately to the Bureau of Customs by the Board of Investments within the five (5) days after receipt of the official copy of the revised part numbers from the ASEAN Secretariat.

SECTION 6. This Executive Order shall take effect immediately.

Done in the City of Manila, this 15th day of Feb. in the year of Our Lord, Two Thousand.

(Sgd.) JOSEPH EJERCITO ESTRADA

By the President:

(Sgd.) RONALDO B. ZAMORA
Executive Secretary