Modifying The Rates Of Duty On Certain Imported Articles As Provided For Under The Tariff And Customs Code Of The Philippines (TCCP), As Amended, In Order To Implement The Philippine Tariff Commitments On Certain Products Included In The Sensitive List And The Transfer Of Certain Tariff Lines From The Sensitive Track To The Normal Track Under The Association Of Southeast Asian Nations (ASEAN) – Korea Free Trade Area (AKFTA)

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER No. 74

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES (TCCP), AS AMENDED, IN ORDER TO IMPLEMENT THE PHILIPPINE TARIFF COMMITMENTS ON CERTAIN PRODUCTS INCLUDED IN THE SENSITIVE LIST AND THE TRANSFER OF CERTAIN TARIFF LINES FROM THE SENSITIVE TRACK TO THE NORMAL TRACK UNDER THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) – KOREA FREE TRADE AREA (AKFTA)

WHEREAS, the ASEAN Member States and the Republic of Korea (“The Parties”) signed the Framework Agreement on Comprehensive Economic Cooperation (“Framework Agreement”) on 13 December 2005 in Kuala Lumpur, Malaysia;

WHEREAS, Articles 1.3 and 2.1 of the Framework Agreement reflect the Parties’ commitment to establish the AKFTA covering trade in goods;

WHEREAS, to achieve the objective of the Framework Agreement, the Agreement on Trade in Goods (TIG) or the “TIG Agreement” was signed by the Economic Ministers of the Parties on 24 August 2006 in Kuala Lumpur, Malaysia;

WHEREAS, Article 3(2)(b) of...

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Summary of Executive Order No. 74

Reduction of Tariff Rates on Articles in the Sensitive List
- Articles listed in Annex A, classified under Section 104 of the TCCP, shall be subject to the rates of import duty indicated in Columns 4-8 of Annex A. (Section 1)
- The tariff rates shall be reduced to 20% not later than 2012 and subsequently reduced to 0-5% not later than 2016, as per the ASEAN-Korea Free Trade Area (AKFTA) agreement. (Preamble)

Transfer of Articles from Sensitive to Normal Track
- Articles listed in Annex B, classified under Section 104 of the TCCP, shall be subject to the AKFTA rates of import duty indicated in Column 3 of Annex B. (Section 2)

Applicable AKFTA Rate
- For the Republic of Korea and the ASEAN 9 countries, the applicable rate shall be the AKFTA rate, subject to the submission of the proper Certificate of Origin (CO) Form AK. (Section 3)
- The Tariff Commission may issue tariff classification rulings to confirm the applicable rates of duty for particular products. (Section 3)

Rules of Origin
- All articles listed in Annexes A and B shall be subject to compliance with the Rules of Origin as provided for in Article 5 of the AKFTA Agreement on Trade in Goods. (Section 4)

Right of Recourse
- The Philippines reserves the right to invoke trade remedy measures provided for in its laws, the AKFTA Agreement, and other relevant international agreements against import surges. (Section 5)

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

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

Effectivity Clause
- This Executive Order shall take effect immediately upon publication in a newspaper of general circulation. (Section 8)