MALACAÑANG
ManilaBY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 418 April 4, 2005
MODIFYING THE TARIFF NOMENCLATURE AND RATES OF IMPORT DUTY ON USED MOTOR VEHICLES UNDER SECTION 104 OF THE TARIFF AND CUSTOMS CODE OF 1978 (PRESIDENTIAL DECREE NO. 1464, AS AMENDED)
WHEREAS, it is the policy of the State to maintain a balance between development and environmental protection, and hence, between motorization and air quality management;
WHEREAS, it is the policy of the State to protect the public against unreasonable risks to injury associated with consumer products;
WHEREAS, there is a need to mitigate the impact of used motor vehicle trading on air quality and road safety;
WHEREAS, Article II:1(b) of the 1994 General Agreement on Tariffs and Trade allows the unilateral imposition of other duties and charges on tariff items that were not previously the subject of concession;
WHEREAS, motor vehicles were not covered by Schedule LXXV – Philippine Schedule of Concessions and therefore, do not have tariff bindings;
WHEREAS, Section 401 of the Tariff and Customs Code...
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Executive Orders
Modifying The Tariff Nomenclature and Rates of Import Duty on Used Motor Vehicles under Section 104 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464, as amended)
Executive Order No. 418
Summary of Executive Order No. 418
Purpose and Policy Considerations
- To maintain a balance between development and environmental protection, and between motorization and air quality management. (Preamble)
- To protect the public against unreasonable risks to injury associated with consumer products. (Preamble)
- To mitigate the impact of used motor vehicle trading on air quality and road safety. (Preamble)
Tariff Rates on Used Motor Vehicles
- The articles listed in Annex "A" of the Order, as classified under Section 104 of the Tariff and Customs Code of 1978, shall be subject to the rates of import duty indicated opposite each article, except for trucks, buses, and special purpose vehicles. (Section 1)
- In addition to the regular rates of import duty, the articles listed in Annex "A" shall be subject to an additional specific duty of PhP500,000.00. (Section 2)
Indexation of Specific Duty
- The Secretary of Finance shall index the amount of specific duty once every two (2) years if the change in the exchange rate of the Philippine peso against the U.S. dollar is more than ten percent (10%) from the date of effectivity or the last revision date. (Section 3)
- If the change in the exchange rate is more than twenty percent (20%) at any time within the two-year period, the Secretary of Finance shall index the amount by the full rate of depreciation or appreciation. (Section 3)
Definition of "Used" Motor Vehicles
- A motor vehicle shall be considered "used" and subject to the prescribed duties if: (Section 4)
a) It has been sold, registered, and operated on the roads/highways of any foreign state or country; or
b) It is an imported motor vehicle with a mileage of more than 200 kilometers, regardless of year model.
Effectivity and Application
- Upon the effectivity of this Order, the articles listed in Annex "A" that are entered and withdrawn from warehouses in the Philippines shall be levied the prescribed rates of import and specific duties. (Section 5)
- This Order shall take effect thirty (30) days following its complete publication in two (2) newspapers of general circulation in the Philippines. (Section 7)
Revocation and Modification
- All Presidential issuances, administrative rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly. (Section 6)
Purpose and Policy Considerations
- To maintain a balance between development and environmental protection, and between motorization and air quality management. (Preamble)
- To protect the public against unreasonable risks to injury associated with consumer products. (Preamble)
- To mitigate the impact of used motor vehicle trading on air quality and road safety. (Preamble)
Tariff Rates on Used Motor Vehicles
- The articles listed in Annex "A" of the Order, as classified under Section 104 of the Tariff and Customs Code of 1978, shall be subject to the rates of import duty indicated opposite each article, except for trucks, buses, and special purpose vehicles. (Section 1)
- In addition to the regular rates of import duty, the articles listed in Annex "A" shall be subject to an additional specific duty of PhP500,000.00. (Section 2)
Indexation of Specific Duty
- The Secretary of Finance shall index the amount of specific duty once every two (2) years if the change in the exchange rate of the Philippine peso against the U.S. dollar is more than ten percent (10%) from the date of effectivity or the last revision date. (Section 3)
- If the change in the exchange rate is more than twenty percent (20%) at any time within the two-year period, the Secretary of Finance shall index the amount by the full rate of depreciation or appreciation. (Section 3)
Definition of "Used" Motor Vehicles
- A motor vehicle shall be considered "used" and subject to the prescribed duties if: (Section 4)
a) It has been sold, registered, and operated on the roads/highways of any foreign state or country; or
b) It is an imported motor vehicle with a mileage of more than 200 kilometers, regardless of year model.
Effectivity and Application
- Upon the effectivity of this Order, the articles listed in Annex "A" that are entered and withdrawn from warehouses in the Philippines shall be levied the prescribed rates of import and specific duties. (Section 5)
- This Order shall take effect thirty (30) days following its complete publication in two (2) newspapers of general circulation in the Philippines. (Section 7)
Revocation and Modification
- All Presidential issuances, administrative rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly. (Section 6)