(NAR) VOL. 7 NO. 2 / APRIL-JUNE 1996; 92 OG No. 31, 4781 (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 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 Nissan Motor Co., Ltd. along with
Malaysia and Thailand and in the approved BBC Scheme of Asian Carmakers
Corporation along with Malaysia;
WHEREAS, at the Meeting of the
ASEAN Senior Economic Officials (SEOM) held in Jakarta, Indonesia on
8-10 December 1993, it was agreed that under the Nissan Motor Co., Ltd.
BBC Scheme, the Philippines will import certain hoodledge parts from
Malaysia and door and bumper trims, engine parts and body parts of metal
from Thailand in exchange for Philippine exports of certain body parts
of metal and injection parts to the said two countries;
WHEREAS,
at the Meeting of the ASEAN Senior Economic Officials held in Jakarta,
Indonesia on 2-4 August 1994, it was agreed that under the Asian
Carmakers Corporation BBC Scheme, the Philippines will import sheet
glass from Malaysia in exchange for Philippine exports of aluminum alloy
wheels to Malaysia;
WHEREAS, under the Memorandum of
Understanding on the BBC Scheme in the Automotive Industry, the
Philippines shall grant a minimum 50% Margin of Preference (MOP) to BBC
products approved by the SEOM subject to the terms and conditions set
out in Section 9(b) of said Memorandum;
WHEREAS, under Section
9(b)(i) of the said Memorandum of Understanding, the 50% MOP for
existing BBC products shall be granted within 90 days of approval of the
BBC products by the SEOM, and for new BBC products, the grant shall be
extended from the actual date of commercial production of the products,
or upon expiry of 30 months from the date of approval of the products
whichever comes earlier;
WHEREAS, under the Nissan BBC Scheme,
hoodledge parts listed in Certificate of Eligibility No. N 5 A/93 have
been existing at the time of approval by the SEOM held on 8-10 December
1993; whereas, the door and bumper trims, engine parts and body parts of
metal listed in Certificate of Eligibility Nos. N I A/93 and N I /94
are new BBC products whose commercial production started in April 1994;
WHEREAS,
under the Asian Carmakers BBC Scheme, the sheet glass items listed in
Certificate of Eligibility No. 033 have been existing at the time of
approval by the SEOM held on 3-4 August 1994;
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
11 thereof. Accordingly, said articles shall be subject to the BBC
Preferential Tariff in accordance with the schedule indicated in Columns
12, 13, 14, 15 and 16 of said Annex "A".
SECTION 2. The articles specifically listed in Annex "B
*"
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 9
thereof. Accordingly, said articles shall be subject to the BBC
Preferential Tariff in accordance with the schedule indicated in Columns
10, 11 and 12 of said Annex "B".
SECTION 3. The MOP provided in
Annex "A" on hoodledge parts for Nissan AD Resort (Model Y 10) pick-up
under the Nissan Motor Co., Ltd. BBC Scheme shall be accorded
exclusively to the BBC entity in Malaysia (Tan Chong & Sons Motor
Co., Sdn. Bhd.) effective from 1 March 1994 up to 28 February 1998. The
MOP also herein provided on door and bumper trims, engine parts and body
parts for Nissan AD Resort (Model Y 10) pick-up under Thailand (Siam
Nissan Automobile Co., Ltd.) effective 1 April 1994 up to 30 March 1998.
Thereafter, this 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 with respect
to hoodledge parts shall then be extended up to 27 February 2002 and in
the case of door and bumper trims, engine parts and body parts of
metal, the exclusive application of the MOP to Thailand shall be
extended up to 29 March 2002.
SECTION 4. The MOP provided in
Annex "B" on sheet glass for BMW (3-series model) passenger can under
the Asian Carmakers Corporation BBC Scheme shall be accorded exclusively
to the BBC entity in Malaysia (Auto Bavaria Division Tractors Malaysia
(1992) Sdn. Bhd.) effective from 1 November 1994 up to 30 October 1998.
Thereafter, this 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 October 2002.
SECTION 5. Effective 28
February 2002 with respect to hoodledge parts and effective 30 March
2002 in the case of door and bumper trims, engine parts and body parts
of metal, the MOP shall be extended to any entity in another ASEAN
member country which produces the above-mentioned Nissan BBC products as
listed in Annex "A" hereof, whether that country is participating in
the Nissan BBC Schemes or not. Effective 30 October 2002, the MOP shall
be extended to any entity in another ASEAN member country which produces
the Asian Carmakers BBC products listed in Annex "B" hereof, whether
that country is participating in the Asian Carmakers BBC Scheme or not.
SECTION
6. The 50% MOP accorded under this Executive Order shall remain
effective irrespective of any subsequent changes in the basic Philippine
rate of duty on the above-mentioned articles.
SECTION 7. Upon
the effectivity of this Executive Order, all the above-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 8. Any
revision/s to the part numbers appearing in Column 4 of Annexes "A" and
"B" 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 number for
implementation.
SECTION 9. 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.