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 Preferential Tariff Rates on Certain Products Under The Asean Industrial Cooperation (AICO) Scheme, In Favor Of Honda Cars Philippines, Inc. (Honda) - (COE NO. HONDA/2001/14)

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

Executive Order No. 92 April 9, 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 PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF HONDA CARS PHILIPPINES, INC. (HONDA) - (COE NO. HONDA/2001/14)

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

WHEREAS, the Philippines is a participating country in the approved AICO Arrangement of Honda Cars Philippines, Inc. along with Thailand;

WHEREAS, under the Honda AICO Arrangement, the Philippines (Honda Cars Philippines, Inc.) will import from Thailand (Honda Automobile [Thailand] Co. Ltd.) certain original equipment manufacturer (OEM) automotive parts/ components for Honda Civic passenger cars (HS 8703.90 10) and in exchange, Thailand will import from the Philippines complementary component parts for the OEM of Honda Civic;

WHEREAS, AICO Certificate of Eligibility No.Honda/2001/14 was issued...

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Summary of Executive Order No. 92

Preferential Tariff Rates for Honda Cars Philippines, Inc. under the ASEAN Industrial Cooperation (AICO) Scheme

- The Philippines is a party to the ASEAN Industrial Cooperation (AICO) Scheme, which allows for preferential tariff rates on certain products traded between participating countries. (Preamble)
- Honda Cars Philippines, Inc. (Honda) is participating in an approved AICO Arrangement with Thailand, where:
    - Honda will import certain original equipment manufacturer (OEM) automotive parts/components for Honda Civic passenger cars from Thailand. (Section 1, Annex A)
    - In exchange, Thailand will import complementary component parts for the OEM of Honda Civic from the Philippines. (Preamble)
- Honda was issued AICO Certificate of Eligibility No. Honda/2001/14 on November 13, 2001, qualifying it for 0-5% preferential tariff rates from Thailand and the Philippines. (Preamble)
- The articles listed in Annex "A" shall be accorded the AICO rate of 5% on parts/components of Honda Civic passenger cars (HS 8703.90 10). (Section 1)
- The 5% AICO rate shall be accorded to the AICO entity in Thailand (Honda Automobile Thailand Co. Ltd.) upon the effectivity of this Executive Order. (Section 2)
- If the basic Philippine rate of duty on any of the articles in Annex "A" is subsequently reduced to a rate lower than the 5% AICO rate, the lower rate shall automatically apply. Effective January 1, 2003, the final CEPT rate shall apply. (Section 3)
- The articles in Annex "A" shall pay the applicable 5% AICO preferential tariff rate upon entry or withdrawal from warehouses in the Philippines, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form "D". (Section 4)
- Any revisions to the part numbers in Annex "A" shall be communicated to the Bureau of Customs by the Board of Investments within 5 days after receipt from the ASEAN Secretariat. (Section 5)
- The Executive Order takes effect immediately. (Section 6)