Lifting The Suspension of the Application Of The Tariff Reduction Schedule on Petrochemicals and Certain Plastic Products under the Common Effective Preferential Tariff (CEPT) Scheme for the Asean Free Trade Area (AFTA)

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER No. 486 January 12, 2006

LIFTING THE SUSPENSION OF THE APPLICATION OF THE TARIFF REDUCTION SCHEDULE ON PETROCHEMICALS AND CERTAIN PLASTIC PRODUCTS UNDER THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR THE ASEAN FREE TRADE AREA (AFTA)

WHEREAS, Executive Order 234 dated 27 April 2000, which implemented the 2000-2003 Philippine schedule of tariff reduction of products transferred from the Temporary Exclusion List and the Sensitive List to the Inclusion List of the accelerated CEPT Scheme for the AFTA, provided that the CEPT rates on petrochemicals and certain plastic products will be reduced to 5% on 01 January 2003;

WHEREAS, Executive Order 161 issued on 9 January 2003 provides for the suspension of the application of the tariff reduction schedule on petrochemicals and certain products in 2003 and 2004 only;

WHEREAS, the government recognizes the need to provide an enabling environment for the naphtha cracker plant to attain international competitiveness;

WHEREAS, the NEDA Board approved the lifting of the suspension of the aforesaid tariff...

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Summary of Executive Order No. 486

Lifting the Suspension of Tariff Reduction on Petrochemicals and Plastic Products
- Pursuant to Section 402 of the Tariff and Customs Code of 1978, as amended, the following provisions are ordered:

- The articles listed in Annex "A" shall be subject to the ASEAN CEPT rates according to the schedule in Column 4 of Annex "A". (Section 1)
- If the basic Philippine duty rate on any article in Annex "A" is subsequently lowered, the article shall automatically be accorded the corresponding reduced duty. (Section 2)
- From the effectivity date, all articles in Annex "A" imported or withdrawn from warehouses shall be imposed the prescribed rates, subject to Rules of Origin under the CEPT Agreement for AFTA. (Section 3)
- The Department of Trade and Industry, in coordination with NEDA, DOF, Tariff Commission, and Bureau of Customs, shall promulgate rules governing the reversion of CEPT rates to EO 161 (s.2003) levels once the naphtha cracker plant is in commercial operation. (Section 4)
- Contrary or inconsistent issuances are revoked or modified accordingly. (Section 5)
- This Executive Order takes effect immediately after publication in two newspapers of general circulation. (Section 6)