EXECUTIVE ORDER NO. 145 January 1, 1994
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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Executive Orders
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)
Executive Order No. 145
Summary of Executive Order No. 145
Establishment of the ASEAN Free Trade Area (AFTA)
- Agreed by ASEAN Member States to establish the AFTA using the Common Effective Preferential Tariff (CEPT) Scheme as the main mechanism within a time frame of fifteen (15) years beginning 1 January 1993. (Section 1)
- The final effective tariffs shall range from 0 to 5%. (Section 1)
Coverage of the CEPT Scheme
- All manufactured products, including capital goods, processed agricultural products, and those products falling outside the definition of agricultural products shall be included in the CEPT Scheme. (Section 1)
Accelerated Tariff Reduction Programme
- Fifteen (15) groups of products identified for accelerated tariff reduction, namely: vegetable oils, cement, chemicals, pharmaceuticals, fertilizers, plastics, rubber products, leather products, pulp, textiles, ceramic and glass products, gems and jewelry, copper cathodes, electronics, and wooden and rattan furniture. (Section 1)
- For products identified by the Philippines for accelerated rate reduction under the CEPT Scheme:
- Tariff rates (MFN/PTA) of 20% or below shall be reduced to 5% and zero by 1 January 2000. (Section 1)
- Tariff rates (MFN/PTA) above 20% shall be reduced to 5% and zero by 1 January 2003. (Section 1)
Normal Tariff Reduction Programme
- For products identified by the Philippines for normal rate reduction:
- For products with existing tariff (MFN/PTA) of 20% or below, tariffs shall be reduced to 5% and zero through a seven (7) year programme starting 1 January 1996 up to 1 January 2003. (Section 1)
- For products with existing tariff rates (MFN/PTA) above 20%, tariffs shall be reduced to 20% by 1 January 2001. (Section 1)
- The subsequent reduction of tariff rates from 20% to 5% and zero shall be done within seven (7) years, with the minimum rate of reduction set at five (5) percentage points every two years starting 1 January 2004 up to 1 January 2008. (Section 1)
Implementation
- The articles listed in Annex "A" shall be subject to the ASEAN CEPT in accordance with the 1994 schedule indicated in Columns 5 and 6 of Annex "A". (Section 1)
- In the event that any subsequent changes are made in the basic (MFN) Philippine rate of duty to a rate lower than the ASEAN CEPT Rate on any of the articles listed in Annex "A", such article shall automatically be accorded the corresponding reduced rate of duty. (Section 2)
- From the date of effectivity of this Order, all articles listed in Annex "A" entered or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty for 1994 herein prescribed subject to qualification under the Rules of Origin as provided for in the Agreement on the CEPT Scheme for the AFTA signed on 28 January 1992. (Section 3)
- This Executive Order shall take effect on 1 January, 1994. (Section 4)
Establishment of the ASEAN Free Trade Area (AFTA)
- Agreed by ASEAN Member States to establish the AFTA using the Common Effective Preferential Tariff (CEPT) Scheme as the main mechanism within a time frame of fifteen (15) years beginning 1 January 1993. (Section 1)
- The final effective tariffs shall range from 0 to 5%. (Section 1)
Coverage of the CEPT Scheme
- All manufactured products, including capital goods, processed agricultural products, and those products falling outside the definition of agricultural products shall be included in the CEPT Scheme. (Section 1)
Accelerated Tariff Reduction Programme
- Fifteen (15) groups of products identified for accelerated tariff reduction, namely: vegetable oils, cement, chemicals, pharmaceuticals, fertilizers, plastics, rubber products, leather products, pulp, textiles, ceramic and glass products, gems and jewelry, copper cathodes, electronics, and wooden and rattan furniture. (Section 1)
- For products identified by the Philippines for accelerated rate reduction under the CEPT Scheme:
- Tariff rates (MFN/PTA) of 20% or below shall be reduced to 5% and zero by 1 January 2000. (Section 1)
- Tariff rates (MFN/PTA) above 20% shall be reduced to 5% and zero by 1 January 2003. (Section 1)
Normal Tariff Reduction Programme
- For products identified by the Philippines for normal rate reduction:
- For products with existing tariff (MFN/PTA) of 20% or below, tariffs shall be reduced to 5% and zero through a seven (7) year programme starting 1 January 1996 up to 1 January 2003. (Section 1)
- For products with existing tariff rates (MFN/PTA) above 20%, tariffs shall be reduced to 20% by 1 January 2001. (Section 1)
- The subsequent reduction of tariff rates from 20% to 5% and zero shall be done within seven (7) years, with the minimum rate of reduction set at five (5) percentage points every two years starting 1 January 2004 up to 1 January 2008. (Section 1)
Implementation
- The articles listed in Annex "A" shall be subject to the ASEAN CEPT in accordance with the 1994 schedule indicated in Columns 5 and 6 of Annex "A". (Section 1)
- In the event that any subsequent changes are made in the basic (MFN) Philippine rate of duty to a rate lower than the ASEAN CEPT Rate on any of the articles listed in Annex "A", such article shall automatically be accorded the corresponding reduced rate of duty. (Section 2)
- From the date of effectivity of this Order, all articles listed in Annex "A" entered or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty for 1994 herein prescribed subject to qualification under the Rules of Origin as provided for in the Agreement on the CEPT Scheme for the AFTA signed on 28 January 1992. (Section 3)
- This Executive Order shall take effect on 1 January, 1994. (Section 4)