Modifying the Rates of Duty on Certain Imported articles as Provided for Under the Tariff and Customs Code of 1978, As Amemded, In Order to Implement the 1994 Philippine Schedule of Tariff Reductions on Articles Included in the Accelerated and Normal Programmes of the Common Effective Preferential Tariff (CEPT) Scheme for the Asean Free Trade Area (AFTA)

EXECUTIVE ORDER NO. 145 December 27, 1993

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE 1994 PHILIPPINE SCHEDULE OF TARIFF REDUCTIONS ON ARTICLES INCLUDED IN THE ACCELERATED AND NORMAL PROGRAMMES OF THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR THE ASEAN FREE TRADE AREA (AFTA)

WHEREAS, the Heads of State and Governments of ASEAN, convinced that ASEAN cooperation is vital to the well-being of their peoples, unequivocally declared at their Fourth Summit Meeting held in Singapore on 28 January 1992 that ASEAN must move towards a higher plane of political, security, and economic cooperation to ensure regional peace, progress and prosperity;

WHEREAS, having reviewed the profound international political and economic changes that have occurred since the end of the Cold War and considered their implications for ASEAN, the Heads of the ASEAN Member States declared the ASEAN shall continuously contribute to an open international economic regime;

WHEREAS, in the field of economic cooperation,...

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Summary of Executive Order No. 145

Establishment of the ASEAN Free Trade Area (AFTA)
- Agreed upon by ASEAN Member States to enhance economic cooperation and remove trade barriers.
- The Common Effective Preferential Tariff (CEPT) Scheme is the main mechanism for AFTA.
- Tariff rates to be reduced to 0-5% within 15 years starting January 1, 1993. (Basis: Whereas clauses)

Coverage of the CEPT Scheme
- Includes all manufactured products, capital goods, processed agricultural products, and non-agricultural products. (Basis: Section 4 of Agreement on CEPT Scheme)
- 15 groups of products identified for accelerated tariff reduction. (Basis: Whereas clause)

Tariff Reduction Schedule for the Philippines

Accelerated Programme:
- For products with tariff rates (MFN/PTA) of 20% or below, reduce to 5% and 0% by January 1, 2000. (Basis: Section 6)
- For products with tariff rates (MFN/PTA) above 20%, reduce to 5% and 0% by January 1, 2003. (Basis: Section 6)

Normal Programme:
- For products with tariff rates (MFN/PTA) of 20% or below, reduce to 5% and 0% through a 7-year programme from January 1, 1996 to January 1, 2003. (Basis: Section 7)
- For products with tariff rates (MFN/PTA) above 20%, reduce to 20% by January 1, 2001, then reduce from 20% to 5% and 0% within 7 years from January 1, 2004 to January 1, 2008, with a minimum reduction of 5 percentage points every two years. (Basis: Section 7)

Implementation
- The articles listed in Annex "A" shall be subject to the ASEAN CEPT Rates for 1994 as indicated in Columns 5 and 6 of Annex "A". (Basis: Section 1)
- If the basic (MFN) Philippine rate is lower than the ASEAN CEPT Rate, the lower rate shall apply. (Basis: Section 2)
- The ASEAN CEPT Rates shall apply to articles entered or withdrawn from warehouses in the Philippines for consumption, subject to qualification under the Rules of Origin. (Basis: Section 3)
- The Executive Order takes effect on January 1, 1994. (Basis: Section 4)