EXECUTIVE ORDER NO. 814
WHEREAS, the Framework
Agreement on Comprehensive Economic Cooperation (Framework Agreement)
between the Association of South East Asian Nations (ASEAN) and the
People’s Republic of China (China) was signed by the Heads of
Government/State of the ASEAN Member States and China on 4 November
2002 in Cambodia;
WHEREAS,
Articles 2(a), 3(1), and 8(1) of the Framework Agreement reflect the
Parties’ commitment to establish the ASEAN-China Free Trade Area
(ACFTA) covering trade in goods by 2010 for ASEAN 6 and China, and by
2015 for the newer ASEAN Member
States;
WHEREAS, the Agreement on
Trade in Goods of the Framework Agreement was signed by the Economic
Ministers of the Parties on 29 November 2005 in
Laos;
WHEREAS, Article 3(2)(a) of
the Agreement on Trade in Goods of the Framework Agreement provides
that tariff lines placed in the Normal Track by each Party shall have
their respective applied Most Favored Nation (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, as an integral
part of its commitments, each Party shall eliminate all its tariff
lines placed in the Normal Track not later than 1 January 2010, with
flexibility to have tariffs on some tariff lines, not exceeding 150
tariff lines, eliminated not later than 1 January 2012. For the
Philippines, the list of products for flexibility exceeding 150 tariff
lines shall be determined after a review in
2008;
WHEREAS, during the
29
th ASEAN-China Trade Negotiating Group
Meeting, it was agreed that a review of the Sensitive Track be
initiated with the end in view to improve market access pursuant to the
provisions of paragraph 2, Article 17 of the Agreement of Trade in
Goods of the Framework
Agreement;
WHEREAS, the NEDA
Board approved on 10 February and 26 May 2009 the 2009-2012 tariff
reduction schedule under the Normal Track of the ACFTA in compliance
with the Philippines’ commitment under the Framework Agreement; and the
transfer of certain tariff lines from the Sensitive Track to the Normal
Track;
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 Annex “A” hereof (2009-2012 Philippine Schedule
of Tariff Reduction under the Normal Track of the ACFTA), as classified
under Section 104 of the Tariff and Customs Code of 1978, as amended,
shall be subject to the ACFTA rates in accordance with the schedule
indicated in Columns 4-7 of Annex “A”. The ACFTA rates so indicated
shall be accorded to imports coming from the Parties to 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. The articles specifically listed in Annex “B” hereof
(Articles Transferred from Sensitive Track to the Normal Track of the
ACFTA), as classified under Section 104 of the Tariff and Customs Code
of 1978, as amended, shall be subject to the ACFTA rates in accordance
with the schedule indicated in Columns 4-7 of Annex “B”. The ACFTA
rates so indicated shall be accorded to imports coming from the Parties
to 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 3. For ASEAN 9
(i.e. Brunei Darussalam, Cambodia, Indonesia, Lao Peoples Democratic
Republic, Malaysia, Myanmar, Singapore, Thailand, and Vietnam), the
applicable rate shall be the ACFTA rate subject to the submission of
the proper Certificate of Origin, Form E. 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
4. In the event that any subsequent changes are made in the
basic MFM Philippine rates of duty on any of the article listed in
Annexes “A” and “B” to a rate lower than the rate prescribed in Columns
4-7 of said Annexes, such article shall automatically be accorded the
corresponding reduced duty.
SECTION
5. From the date of effectivity of this Order, all articles
listed in Annexes “A” and “B” 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 6.
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 7. 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 30
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