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 Preferental Tariff Rates on Certain Products Under The Asean Industrial Cooperation (AICO) Scheme, In Favor of Toyota Motor Philippine Orporation (TOYOTA), Honda Cars Philippines, Inc. (HONDA), and Nissan Motor Philippines, Inc. (NISSAN)

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

Executive Order No. 87 March 18, 2002

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 PREFERENTAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF TOYOTA MOTOR PHILIPPINE ORPORATION (TOYOTA), HONDA CARS PHILIPPINES, INC. (HONDA), AND NISSAN MOTOR PHILIPPINES, INC. (NISSAN)

WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN Industrial Cooperation Scheme ( AICO) signed in Singapore on 27 April 1996;

WHEREAS, the Philippines is a participating country in the approved (AICO) Arrangement of Toyota Motor Corporation, along with Indonesia and Thailand; in the approved AICO Arrangement of Honda Cars Philippines, Inc. along with Malaysia and Indonesia; and in the approved AICO Arrangement of Nissan Motor Philippines, Inc. along with Malaysia;

WHEREAS, under the Toyota AICO Arrangement, it was agreed that the Philippines (Toyota Motor Philippines Corporation and Toyota Autoparts Philippines) will import from Indonesia...

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Summary of Executive Order No. 87

Preferential Tariff Rates for Toyota, Honda, and Nissan under ASEAN Industrial Cooperation (AICO) Scheme

- Grants preferential tariff rates of 5% on certain imported automotive parts/components for Toyota Corolla, Honda Civic, and Nissan Sentra passenger cars under the AICO Scheme. (Sections 1, 3, 5)
- The 5% AICO rate applies to imports from the following companies:
    - Toyota: PT. Toyota Astra Motor (Indonesia), Toyota Motor Thailand Co. Ltd., and Siam Toyota Manufacturing Co. Ltd. (Thailand) (Section 2)
    - Honda: Oriental Assemblies Sdn. Bhd., Honda Autoparts Manufacturing (M) Sdn. Bhd. (Malaysia), and PT. Honda Prospect Motor (Indonesia) (Section 4)
    - Nissan: Tan Chong Motor Assemblies Sdn. Bhd. and Nippon Wiper Blade (Malaysia) Sdn. Bhd. (Malaysia) (Section 6)
- The preferential rates are effective from the following dates:
    - Toyota: April 17, 2001 (Section 2)
    - Honda: October 5, 2000 (Section 4)
    - Nissan: May 29, 2001 (Section 6)
- If the basic Philippine duty rate on any listed article becomes lower than the 5% AICO rate, the lower rate shall apply. (Section 7)
- Effective January 1, 2003, the final CEPT rate on the subject articles shall apply. (Section 7)
- The articles must qualify under the Rules of Origin for the CEPT and be evidenced by a Certificate of Origin - Form "D". (Section 8)
- The Board of Investments shall communicate any revisions to the part numbers to the Bureau of Customs within 5 days of receiving the revised part numbers from the ASEAN Secretariat. (Section 9)
- The Secretary of Finance, in consultation with NEDA, shall issue guidelines to implement and rationalize the preferential tariff privilege. (Section 10)