EXECUTIVE ORDER NO. 812
WHEREAS, Articles 1.3 and
2.1 of the Framework Agreement on Comprehensive Economic Cooperation
(Framework Agreement) Between the Association of South East Asian
Nations (ASEAN) and the Republic of Korea reflects the Parties’
commitment to establish the ASEAN - Korean Free Trade Area covering
Trade in Goods;
WHEREAS, Article
3.2(a) of the Trade in Goods (TIG) Agreement of the Framework Agreement
provides that tariff lines placed in the Normal Track by each Party
shall have their respective applied MFN tariff rates gradually reduced
and eliminated in accordance with the modalities set out in Annex 1 of
the Agreement with the objective of achieving the targets prescribed in
the threshold therein;
WHEREAS,
the aforesaid Annex 1 Section 5(b) of the TIG Agreement provides that
ASEAN 6 shall implement the following targets and thresholds: (ii)
eliminate tariffs for at least 90% of the tariff lines placed in the
Normal Track not later that 1 January 2009; (iii) eliminate all tariff
lines by 2010 with flexibility on 5% of the total lines, or as listed
in the agreed schedule, not later than 1 January
2012;
WHEREAS, the NEDA Board
during its meeting on 31 March 2009 approved the grant of AKFTA rates
of 0% on 90% of the products in the Normal Track with
flexibility;
WHEREAS, Section 402
of the Tariff and Customs Code of 1978 (PD 1464), as amended, empowers
the President of the Republic of the Philippines, upon the
recommendation of the National Economic and Development Authority, to
modify import duties for the promotion of foreign
trade;
NOW, THEREFORE, I, GLORIA
MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby
order;
SECTION 1. The articles
specifically listed in the Annex (Articles Granted Tariff Concession
Under the Normal Track of the ASEAN - Korea Free Trade Area) hereof, as
classified under Section 104 of the Tariff and Customs Code of 1978, as
amended, shall be subject to the AKFTA rates in accordance with the
schedule indicated in Columns 4-6 of the Annex. The AKFTA rates so
indicated shall be accorded to imports coming from the parties of the
Agreement on Trade in Goods of the Framework Agreement applying tariff
concession to the same product pursuant to Article 3 of the Agreement
on Trade in Goods of the Framework
Agreement.
SECTION 2. For ASEAN 8
(i.e. Brunei Darussalam, Cambodia, Indonesia, Lao Peoples Democratic
Republic, Malaysia, Myanmar, Singapore and Vietnam) the applicable rate
shall be the AKFTA rate, subject to the submission of the proper
Certification of Origin, Form AK. The Tariff Commission pursuant to
Section 1313(a) of the Tariff and Customs Code of the Philippines, as
amended, may, upon request, issue tariff classification rulings to
confirm the applicable rates of duty of particular products subject to
this section.
SECTION 3. In the
event that any subsequent change is made in the basic (MFN) Philippine
rate of duty on any of the articles listed in the Annex to a rate lower
than the rate prescribed in Columns 4-6 of the Annex, such article
shall automatically be accorded the corresponding reduced
duty.
SECTION 4. From the date of
effectivity of this Order, all articles listed in the Annex entered
into or withdrawn from warehouses in the Philippines for consumption
shall be imposed the rates of duty therein prescribed subject to
compliance with the Rules of Origin as provided for in Article 5 of the
Agreement on Trade in Goods of the Framework
Agreement.
SECTION 5. All
presidential issuances, administrative rules and regulations, or parts
thereof, which are contrary to or inconsistent with this Executive
Order are hereby revoked or modified
accordingly.
SECTION 6. This
Executive Order shall take effect fifteen (15) days following its
complete publication in the official gazette or in a newspaper of
general circulation in the Philippines.
Done in the
City of Manila this 18
th day of June, in the
year of Our Lord, Two Thousand and Nine.
(Sgd.) GLORIA M.
ARROYO
By the
President:
(Sgd.) EDUARDO R.
ERMITAExecutive
Secretary