Modifying the Rates of Duty on Certain Imported Articles Re: AICO Scheme for Philippine Auto Components, Inc.

January 10, 2003 EXECUTIVE ORDER NO.162 MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMSCODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF PHILIPPINE AUTO COMPONENTS, INC. (PAC) WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996; WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Philippine Auto Components, Inc. along with Thailand; WHEREAS, under the PAC AICO Arrangement, the Philippines (Philippine Auto Components, Inc.) will import from Thailand (Denso Thailand Co.,Ltd) fan assy and shroud assy (HS Hdg No. 8414.90 00);evaporators for air-conditioning machines (HS Hdg. No. 8419.89 10);upper/lower tanks AI radiators, subassy, lower tanks for AI radiators (HS Hdg. No. 8708.91 10);and core subassy (AI radiators) (HS Hdg. No. 8708.91 20).In exchange, Thailand will import from the Philippines fuel pump module assy (HS Hdg. No. 8413.30 00); WHEREAS, AICO Certificate of Eligibility (COE) No. Denso/2002/6 was issued on 12 November 2002, in favor of the participating companies in the Denso AICO Arrangement; WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, participating companies in the approved Denso AICO Arrangements shall qualify for 05% preferential tariff rates to be extended by Thailand and the Philippines for Denso as participating countries, effective within 45 days from the date of issuance of the Certificate of Eligibility No. Denso/2002/6 by the ASEAN Secretariat. SEIDAC NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, 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" hereof, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of 3% on parts/components as specified in Column 5 thereof. SECTION 2. The AICO rate provided in Annex "A" shall be accorded to the AICO entity in Thailand (Denso Thailand Co. Ltd.) effective 12 November 2002. SECTION 3. In the event that any subsequent changes are made in the basic (Most Favored Nation) Philippine rate of duty on any of the articles listed in Annex "A" to a rate lower than the AICO rate prescribed in Column 5 of Annex "A" ,such articles shall automatically be accorded the corresponding reduced rate of duty. Effective 1 January 2003, the final CEPT rate on the subject articles shall apply. SECTION 4. Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annex "A" which are entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rates specified under Sections 1 hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin Form "D". SECTION 5. This Executive Order shall take effect immediately. DONE in the City of Manila, this 10th day of January, in the year of Our Lord, Two Thousand and Three. Published in the Manila Times on January 14, 2003. ANNEX "A" ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED PHILIPPINE AUTO COMPONENTS, INC. (PAC) AICO SCHEME Applicable H.S. Code Applied Final Product Description Source Country AICO Preferential Product (AICO Company) Tariff (%) (1) (2) (3) (4) (5) 8414.90 00 Fans Fan assembly and shroud assembly Thailand 3 (DENSO (Thailand Co.,Ltd.) 8419.89 10 Evaporators Evaporators for air-conditioning Thailand 3 machines for motor vehicles (DENSO (Thailand Co.,Ltd.) 8708.91 10 Aluminum Upper/lower tanks; Thailand 3 radiators tanks subassembly, lower (DENSO (Thailand Co.,Ltd.) 8708.91 20 Aluminum Core subassembly Thailand 3 radiators (DENSO (Thailand Co.,Ltd.)