Modifying The Rates Of Duty On Breakfast Cereals As Provided Under The Tariff And Customs Code Of 1978, As Amended, In Order To Implement The Ninety Per Centum (90%) Margin Of Preference (MOP) Thereon Included In The Nestle Asean Industrial Joint Venture (AIJV) Projects As Provided For In Article Iii, Paragraphs 3 (D) And 8 (D) Of The Revised Basic Agreement On Asean Industrial Joint Venture (RBAAIJV)

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER No. 73, January 15, 2015 ]

MODIFYING THE RATES OF DUTY ON BREAKFAST CEREALS AS PROVIDED UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE NINETY PER CENTUM (90%) MARGIN OF PREFERENCE (MOP) THEREON INCLUDED IN THE NESTLE ASEAN INDUSTRIAL JOINT VENTURE (AIJV) PROJECTS AS PROVIDED FOR IN ARTICLE III, PARAGRAPHS 3 (D) AND 8 (D) OF THE REVISED BASIC AGREEMENT ON ASEAN INDUSTRIAL JOINT VENTURE (RBAAIJV)

WHEREAS, the Philippines is a Contracting Party to the Revised Basic Agreement on ASEAN Industrial Joint Venture (RBAAIJV) signed in Manila on 15 December 1987;

WHEREAS, The Philippines, along with Brunei Darussalam, Indonesia, Malaysia, Singapore and Thailand, is a participating country in the approved NESTLE ASEAN Industrial Joint Venture Projects;

WHEREAS, among the seven (7) approved NESTLE AIJV Projects, the project on breakfast cereals was assigned to the Philippines (Nestle ASEAN Philippines, Inc.) whose commercial production started in February 1993;

WHEREAS, in accordance with Article III, paras. 1, 2, 6...

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Summary of Executive Order No. 73

Modifying Tariff Rates on Breakfast Cereals to Implement ASEAN Industrial Joint Venture (AIJV) Agreement

- Background:
• The Philippines is a party to the Revised Basic Agreement on ASEAN Industrial Joint Venture (RBAAIJV). (Preamble)
• The Philippines participates in the approved Nestle ASEAN Industrial Joint Venture Projects, including the breakfast cereals project assigned to Nestle ASEAN Philippines, Inc. (Preamble)

- Tariff Preference:
• Breakfast cereals produced by Nestle ASEAN Philippines, Inc. are entitled to a 90% Margin of Preference (MOP) in participating ASEAN countries for 4 years from start of commercial production in February 1993. (Section 1, Preamble)
• After the 4-year exclusivity period, any entity in a participating country producing breakfast cereals shall enjoy the same 90% MOP, irrespective of AIJV status. (Section 1, Preamble)

- Tariff Rates:
• Prepared food obtained by swelling or roasting of cereals (i.e., breakfast cereals) under HS Code 1904.10.00 shall be accorded a minimum 90% MOP. (Section 1)
• The applicable AIJV Preferential Tariff rates are: 1.5% in 1998, 2% in 1999, and 2% in 2000. (Section 1)

- Implementation:
• The 90% MOP for non-AIJV entities in participating countries shall be effective on the date specified in the Certificate of Eligibility issued by the ASEAN Secretariat. (Section 2)
• The 90% MOP shall remain effective until December 31, 2002, after which the final CEPT rates shall apply. (Section 3)
• The AIJV Preferential Tariff shall apply to eligible goods entered or withdrawn from warehouses in the Philippines, subject to Rules of Origin requirements. (Section 4)

- Revocation and Effectivity:
• Inconsistent presidential issuances, rules, and regulations are revoked or modified accordingly. (Section 5)
• This Executive Order takes effect immediately. (Section 6)