EXECUTIVE ORDER NO. 335 May 16, 1996
MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE MINIMUM 50% MARGIN OF PREFERENCE ON CERTAIN PRODUCTS INCLUDED IN THE BRAND-TO-BRAND COMPLEMENTATION SCHEME IN THE AUTOMOTIVE INDUSTRY UNDER THE BASIC AGREEMENT ON ASEAN INDUSTRIAL COMPLEMENTATION
WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on ASEAN Industrial Complementation (BAAIC) signed in Manila on 16 June 1981;
WHEREAS, the Philippines is a signatory to the Memorandum of Understanding on the Brand-to-Brand Complementation (BBC) Scheme in the Automotive Industry under the BAAIC signed by the ASEAN Economic Ministers in Pattaya, Thailand on 18 October 1988;
WHEREAS, the Philippines is a participating country in the approved BBC Scheme of Nissan Motor Co., Ltd. along with Malaysia and Thailand and in the approved BBC Scheme of Asian Carmakers Corporation along with Malaysia;
WHEREAS, at the Meeting of the ASEAN Senior Economic Officials (SEOM) held in Jakarta, Indonesia on 8-10 December 1993,...
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Executive Orders
Modifying the rates of duty on certain imported articles as provided under the tariff and customs code of 1978, as amended, in order to implement the minimum 50% margin of preference on certain products included in the brand-to-brand complementation scheme in the automotive industry under the basic agreement on asean industrial complementation
Executive Order No. 335
This Executive Order modifies the rates of duty on certain imported articles to implement the minimum 50% margin of preference on certain products included in the Brand-to-Brand Complementation (BBC) Scheme in the automotive industry under the Basic Agreement on ASEAN Industrial Complementation.
Background and Rationale:
- The Philippines is a party to the Basic Agreement on ASEAN Industrial Complementation (BAAIC) and a signatory to the Memorandum of Understanding on the BBC Scheme in the Automotive Industry.
- The Philippines is a participating country in the approved BBC Schemes of Nissan Motor Co., Ltd. and Asian Carmakers Corporation.
- Under the Memorandum of Understanding, the Philippines shall grant a minimum 50% Margin of Preference (MOP) to approved BBC products.
Provisions:
Section 1: Articles listed in Annex "A" shall be accorded a minimum 50% MOP and subject to the BBC Preferential Tariff as per the schedule.
Section 2: Articles listed in Annex "B" shall be accorded a minimum 50% MOP and subject to the BBC Preferential Tariff as per the schedule.
Section 3: The MOP on hoodledge parts for Nissan AD Resort (Model Y 10) pick-up shall be accorded exclusively to the BBC entity in Malaysia (Tan Chong & Sons Motor Co., Sdn. Bhd.) from 1 March 1994 to 28 February 1998. The MOP on door and bumper trims, engine parts, and body parts shall be accorded exclusively to the BBC entity in Thailand (Siam Nissan Automobile Co., Ltd.) from 1 April 1994 to 30 March 1998. After these periods, the MOP may be granted to non-participating ASEAN countries if they extend the same MOP, or the exclusive application may be extended for up to 8 years.
Section 4: The MOP on sheet glass for BMW (3-series model) passenger cars shall be accorded exclusively to the BBC entity in Malaysia (Auto Bavaria Division Tractors Malaysia (1992) Sdn. Bhd.) from 1 November 1994 to 30 October 1998. After this period, the MOP may be granted to non-participating ASEAN countries if they extend the same MOP, or the exclusive application may be extended for up to 8 years.
Section 5: After the exclusive periods, the MOP shall be extended to any entity in another ASEAN member country producing the specified BBC products, whether participating in the BBC Schemes or not.
Section 6: The 50% MOP shall remain effective irrespective of any subsequent changes in the basic Philippine rate of duty.
Section 7: Upon effectivity, the articles shall be subject to qualification under the Rules of Origin and pay the applicable BBC Preferential Tariff.
Section 8: Revisions to the part numbers shall be communicated by the ASEAN Secretariat and implemented by the Bureau of Customs within 5 days.
Section 9: This Executive Order shall take effect immediately.
Background and Rationale:
- The Philippines is a party to the Basic Agreement on ASEAN Industrial Complementation (BAAIC) and a signatory to the Memorandum of Understanding on the BBC Scheme in the Automotive Industry.
- The Philippines is a participating country in the approved BBC Schemes of Nissan Motor Co., Ltd. and Asian Carmakers Corporation.
- Under the Memorandum of Understanding, the Philippines shall grant a minimum 50% Margin of Preference (MOP) to approved BBC products.
Provisions:
Section 1: Articles listed in Annex "A" shall be accorded a minimum 50% MOP and subject to the BBC Preferential Tariff as per the schedule.
Section 2: Articles listed in Annex "B" shall be accorded a minimum 50% MOP and subject to the BBC Preferential Tariff as per the schedule.
Section 3: The MOP on hoodledge parts for Nissan AD Resort (Model Y 10) pick-up shall be accorded exclusively to the BBC entity in Malaysia (Tan Chong & Sons Motor Co., Sdn. Bhd.) from 1 March 1994 to 28 February 1998. The MOP on door and bumper trims, engine parts, and body parts shall be accorded exclusively to the BBC entity in Thailand (Siam Nissan Automobile Co., Ltd.) from 1 April 1994 to 30 March 1998. After these periods, the MOP may be granted to non-participating ASEAN countries if they extend the same MOP, or the exclusive application may be extended for up to 8 years.
Section 4: The MOP on sheet glass for BMW (3-series model) passenger cars shall be accorded exclusively to the BBC entity in Malaysia (Auto Bavaria Division Tractors Malaysia (1992) Sdn. Bhd.) from 1 November 1994 to 30 October 1998. After this period, the MOP may be granted to non-participating ASEAN countries if they extend the same MOP, or the exclusive application may be extended for up to 8 years.
Section 5: After the exclusive periods, the MOP shall be extended to any entity in another ASEAN member country producing the specified BBC products, whether participating in the BBC Schemes or not.
Section 6: The 50% MOP shall remain effective irrespective of any subsequent changes in the basic Philippine rate of duty.
Section 7: Upon effectivity, the articles shall be subject to qualification under the Rules of Origin and pay the applicable BBC Preferential Tariff.
Section 8: Revisions to the part numbers shall be communicated by the ASEAN Secretariat and implemented by the Bureau of Customs within 5 days.
Section 9: This Executive Order shall take effect immediately.