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)

Executive Order No. 89

Summary of Executive Order No. 89

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

- The Philippines is a party to the ASEAN Industrial Cooperation (AICO) Scheme, which allows preferential tariff rates for participating companies. (Preamble)
- Honda Cars Philippines, Inc. (Honda) is a participating company in the approved AICO Arrangement along with Thailand. (Preamble)
- Under the Honda AICO Arrangement:
- The Philippines (Honda Cars Philippines, Inc.) will import certain original equipment manufacture (OEM) automotive parts/components for Honda Civic passenger cars (HS 8703.90 10) from Thailand (Honda Automobile Thailand Co. Ltd.). (Preamble)
- Thailand will import complementary component parts for the OEM of Honda Civic from the Philippines. (Preamble)
- AICO Certificate of Eligibility (COE) No. Honda/2000/9(A) was re-issued on 21 September 2001, nullifying the previous certificate. (Preamble)
- Participating companies in the approved Honda AICO Arrangement shall qualify for 0 - 5% preferential tariff rates between Thailand and the Philippines, effective within 45 days from the date of issuance of the Certificate of Eligibility. (Preamble)

Section 1: The articles listed in Annex "A" shall be accorded the AICO rate of 3%. (Section 1)

Section 2: The AICO rate of 3% shall be accorded to the AICO entity in Thailand (Thai Summit Mitsuba Mfg. Co. Ltd.) effective 21 September 2001. (Section 2)

Section 3: If the basic Philippine rate of duty on any of the articles in Annex "A" is reduced to a rate lower than the AICO rate of 3%, the lower rate shall automatically apply. Effective 01 January 2003, the final CEPT rate on the article shall apply. (Section 3)

Section 4: Upon the effectivity of this Executive Order, the articles in Annex "A" entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rate of 3%, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form "D". (Section 4)

Section 5: Any revision to the part numbers appearing in Column 4 of Annex "A" shall be communicated immediately to the Bureau of Customs by the Board of Investments within five (5) days after receipt of the official copy of the revised part numbers from the ASEAN Secretariat. (Section 5)

Section 6: The Secretary of Finance in consultation with the National Economic & Development Authority (NEDA) shall issue the appropriate guidelines to implement and rationalize the preferential tariff herein granted. (Section 6)

Section 7: This Executive Order shall take effect immediately. (Section 7)