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 Goya, Inc. (GOYA)

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

Executive Order No. 86 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 PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF GOYA, INC. (GOYA)

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 AICO Scheme seeks to improve the competitive position of ASEAN Companies in the global and ASEAN markets by providing the means to apply the principles of economies of scale and scope in the manufacturing process, supported by preferential import duties to enhance across ASEAN border transactions;

WHEREAS, the Philippines is a participating country in the approved AICO Scheme of GOYA, Inc., along with Indonesia;

WHEREAS, under the Goya AICO Arrangement, it was agreed that the Philippines (GOYA, Inc.) will import FOX's Fruit, FOX's Mints and POLO...

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Summary of Executive Order No. 86

Preferential Tariff Rates on Certain Products under the ASEAN Industrial Cooperation (AICO) Scheme for Goya, Inc.

- The Philippines is a participating country in the AICO Scheme of Goya, Inc., along with Indonesia. (Whereas clauses)
- Under the Goya AICO Arrangement, the Philippines (Goya, Inc.) will import certain products from Indonesia, and Indonesia (PT. Nestle Indonesia) will import certain products from the Philippines. (Whereas clause)
- AICO Certificate of Eligibility No. Nestle/2001/4 (A) was reissued on July 30, 2001, in favor of the participating companies in the Goya, Inc. AICO Arrangement. (Whereas clause)
- Participating companies in the approved Goya, Inc. Arrangement shall qualify for 0-5% preferential tariff rates, effective within 45 days from the date of issuance of the Certificate of Eligibility. (Whereas clause)

Provisions:

- The articles listed in Annex "A" shall be accorded the AICO rate of 5%. (Section 1)
- The AICO rate in Annex "A" shall be accorded to the AICO entity in Indonesia (PT. Nestle Indonesia) effective July 24, 2001. (Section 2)
- If any subsequent changes are made in the basic Philippine rate of duty on any of the articles listed in Annex "A" to a rate lower than the AICO rate, such articles shall automatically be accorded the corresponding reduced rate of duty. Effective January 1, 2003, the final CEPT rate on the subject articles shall apply. (Section 3)
- The articles listed in Annex "A" entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rates, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form "D". (Section 4)
- The Secretary of Finance, in consultation with the National Economic and Development Authority (NEDA), shall issue appropriate guidelines to implement and rationalize the preferential tariff privilege. (Section 5)
- The Executive Order shall take effect immediately. (Section 6)