Implementing The Memorandum Of Understanding (MOU) Among The Governments Of The Participating Member States Of The Association Of Southeast Asian Nations (ASEAN) On The Second Pilot Project For The Implementation Of A Regional Self-Certification System (“Second Pilot Project”)

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER No. 142

IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING (MOU) AMONG THE GOVERNMENTS OF THE PARTICIPATING MEMBER STATES OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) ON THE SECOND PILOT PROJECT FOR THE IMPLEMENTATION OF A REGIONAL SELF-CERTIFICATION SYSTEM (“SECOND PILOT PROJECT”)

WHEREAS, ASEAN Leaders decided to establish an ASEAN Economic Community (AEC) by 2015 and adopted the AEC Blueprint at the 13th ASEAN Summit on 20 November 2007 to establish ASEAN as a single market and production base, making it more dynamic and competitive as an economic region where there is a free flow of goods, services, investment, skilled labor and capital;

WHEREAS, the Rules of Origin (ROO) play a crucial role in the achievement of a free flow of goods within the ASEAN single market;

WHEREAS, the ASEAN Trade in Goods Agreement (ATIGA), which was signed on 26 February 2009 in Cha-am, Thailand, and entered into force on 17 May 2010, provides for a framework to realize the free flow of goods in...

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Summary of Executive Order No. 142

Objective (Section 1):
- Implements the Memorandum of Understanding (MOU) among ASEAN member states on the Second Pilot Project for a regional self-certification system.
- Aims to implement a self-certification system within ASEAN Free Trade Area (AFTA) in preparation for an ASEAN-wide Self-Certification System by 2015.

Self-Certification Scheme (Section 2):
- Under the self-certification scheme, Certified Exporters can self-declare that their products satisfy the ASEAN Trade in Goods Agreement (ATIGA) Rules of Origin (ROO) by making a declaration on the commercial invoice.
- No need to present a Certificate of Origin (Form D) to claim tariff preferences.

Procedural Arrangements (Section 3):
- The MOU on the Second Pilot Project shall be implemented according to the modalities set out in its Annex.

Obligations (Section 4):
- The Philippines shall accord preferential tariff treatment to goods originating from other participating ASEAN member states upon submission of either:
    - A Certificate of Origin (Form D), or
    - An Invoice Declaration made by a Certified Exporter in accordance with the MOU Annex and Bureau of Customs (BOC) regulations.

Implementing Agency (Section 5):
- The BOC shall be the implementing agency and shall perform the following functions:
    - Grant, suspend or revoke the status of Certified Exporters based on qualifications/criteria/conditions imposed (Section 5a).
    - Monitor the proper use of the Certified Exporters status, including verification of Invoice Declarations (Section 5b).
    - Monitor compliance of Certified Exporters with relevant laws and regulations (Section 5c).
    - Perform other appropriate functions for implementation (Section 5d).
    - Issue a Customs Administrative Order after consultations with stakeholders (Section 5).

Repealing Clause (Section 6):
- All issuances, orders, rules and regulations inconsistent with this Order are repealed, amended or modified accordingly.

Separability Clause (Section 7):
- If any provision is declared invalid or unconstitutional, the other provisions shall remain valid and subsisting.

Effectivity Clause (Section 8):
- This Order shall take effect immediately upon publication in a newspaper of general circulation.
- It shall remain in force until the termination of the MOU on the Second Pilot Project.