(NAR) VOL. 7 NO. 2 / APRIL-JUNE 1996; 92 OG No. 31, 4770 (July 29, 1996)
WHEREAS, the Philippines is a Contracting Party to
the Basic Agreement on ASEAN Industrial Complementation (BAAIC) signed
in Manila on 16 June 1981;
WHEREAS, the Philippines is a
signatory to the Memorandum of Understanding (MOU) on the Brand-to-Brand
Complementation (BBC) Scheme in the Automotive Industry under the BAAIC
signed by the ASEAN Economic Ministers in Pattaya, Thailand on 18
October 1988;
WHEREAS, the Philippines is a participating country
in the approved BBC Scheme of Toyota Motor Corporation along with
Malaysia and Thailand;
WHEREAS, at the 35th Meeting of the
Committee on Industry, Minerals and Energy (COIME) held on 16-18 July
1992 in Manila, it was agreed that under the Toyota Motor Corporation
BBC Scheme, the Philippines will import link assembly, steering gear and
radiator from Malaysia and panel, dash lower from Thailand in exchange
for Philippine exports of transmission assembly;
WHEREAS, at the
Meeting of the ASEAN Senior Economic Officials (SEOM) held in Jakarta,
Indonesia on 4 October 1993, a nomination submitted by Toyota Motor
Corporation for the change in tariff classification of link assembly,
steering gear, among others, for TUV motor vehicles for the transport of
passengers and goods was considered and approved;
WHEREAS, at
the SEOM held in Jakarta, Indonesia on 5-7 December 1994, it was agreed
that under the Toyota Motor Corporation BBC Scheme, the Philippines will
import transmission parts, cover luggage compartment trims and engine
parts from Malaysia in exchange for Philippine exports of transmission
assembly;
WHEREAS, under the MOU in the BBC Scheme in the
Automotive Industry, the Philippines shall grant a minimum 50% Margin of
Preference (MOP) to BBC products approved by the COIME/SEOM subject to
the terms and conditions set out in Section 9(b) of said MOU;
NOW,
THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, pursuant to
the powers vested in me under Section 402 of the Tariff and Customs
Code of 1978, as amended, do hereby order:
SECTION 1. The articles specifically listed in Annex "A
*"
as classified under Section 104 of the Tariff and Customs Code of 1978,
as amended, shall be accorded a minimum 50% MOP as specified in Column
13 thereof. In effect, such articles shall be subject to the BBC
Preferential Tariff in accordance with the schedule indicated opposite
each article as specified in Columns 14, 15, 16, 17, 18, 19 and 20 of
Annex "A
*".
SECTION 2.
The MOP provided in Annex "A" on radiator and panel; dash lower for
Corolla (Models EE 100, EE 101, AE 101) passenger cars under the Toyota
Motor Corporation BBC Scheme shall be accorded exclusively to the BBC
entity in Malaysia (UMW Toyota Motor Sdn. Bhd.) and in Thailand (Toyota
Motor Thailand Co. Ltd.), respectively, effective from 15 October 1992
up to 14 October 1996. Thereafter, the same MOP may be granted to a
non-participating ASEAN country as soon as that country extends the same
MOP itself. If the non-participating country does not wish to grant
such MOP and maintains such position throughout the stipulated maximum
waiver period of eight (8) years, the exclusive application of the MOP
to Malaysia and Thailand shall then be extended up to 13 October 2000.
SECTION
3. The MOP provided in Annex "A" on link assembly, steering gear for
TUV (Models KF40, KF50, CF50) motors vehicles for the transport of
passengers and goods under the Toyota Motor Corporation BBC Scheme shall
be accorded exclusively to the BBC entity in Malaysia (UMW Toyota Motor
Sdn. Bhd.) effective 04 October 1993 up to 03 October 1997. Thereafter,
the same MOP may be granted to a non-participating ASEAN country as
soon as that country extends the same MOP itself. If the
non-participating country does not wish to grant such MOP and maintains
such position throughout the stipulated maximum waiver period of eight
(8) years, the exclusive application of the MOP to Malaysia shall then
be extended up to 02 October 2001.
SECTION 4. The MOP provided in
Annex "A" on transmission parts of Liteace (Models KM 36, CM36)
commercial vehicles and TUV (Models KF40, KF50, CF50) motor vehicles for
the transport of passengers and goods and on trim parts for Corolla
(Models EE 100, EE 101, AE 101) passenger cars under the Toyota Motor
Corporation BBC Scheme shall be accorded exclusively to the BBC entity
in Malaysia (UMW Toyota Motor Sdn. Bhd.) effective 1 January 1995 up to
30 December 1998. Thereafter, the same MOP may be granted to a
non-participating ASEAN country as soon as that country extends the same
MOP itself. If the non-participating country does not wish to grant
such MOP and maintains such position throughout the stipulated maximum
waiver period of eight (8) years, the exclusive application of the MOP
to Malaysia shall then be extended up to 29 December 2002.
SECTION
5. The 50% MOP accorded under this Executive Order shall remain
effective regardless of any subsequent changes in the basic Philippine
rate of duty on the afore-mentioned articles.
SECTION 6. Upon the
effectivity of this Executive Order, all the afore-mentioned articles
entered or withdrawn from warehouses in the Philippines for consumption
shall be subject to qualification under the Rules of Origin as
prescribed in the Agreement on ASEAN Preferential Trading Arrangements,
as amended, and shall pay the applicable BBC Preferential Tariff
specified under Section 1 hereof.
SECTION 7. Any revision/s to
the part numbers appearing in Column 4 of Annex "A" shall be
communicated immediately to the Philippine Government by the ASEAN
Secretariat. The Department of Trade and Industry shall endorse the same
to the Bureau of Customs within five (5) days after receipt of the
official copy of the revised part numbers for implementation.
SECTION 8. This Executive Order shall take effect immediately.
Adopted: 16 May 1996
(SGD.) FIDEL V. RAMOS
President of the Philippines
By the President:
(SGD.) RUBEN D. TORRES
Executive Secretary
*Text available at Office of the National Administrative Register , U.P. Law Center, Diliman, Quezon City.