Modified Rates of Duty on Certain Imported Articles Re: AICO Scheme for Toyota

March 31, 2003 EXECUTIVE ORDER NO. 191 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 TOYOTA MOTOR PHILIPPINES CORPORATION AND TOYOTA AUTOPARTS PHILIPPINES, INC. (TOYOTA)-(COE NO. TOYOTA /2002/28) 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 Arrangement of Toyota Motor Philippines Corporation and Toyota Autoparts Philippines, Inc., along with Thailand; WHEREAS, under the Toyota AICO arrangement, the Philippines (Toyota Motor Philippines Corporation and Toyota Autoparts Philippines, Inc.) will import from Thailand (Toyota Motor Thailand Co. Ltd.) certain original equipment manufacture (OEM) automotive parts/components for Toyota Corolla and Camry passenger cars (HS 8703.90.10). In exchange, Thailand will import from the Philippines complementary parts/components for the OEM of Soluna; WHEREAS, AICO Certificate of Eligibility (COE) No. Toyota/2002/28 was issued on 19 December 2002, in favor of the participating companies in the Toyota AICO Arrangement; WHEREAS, in consonance with Article 5 and 7 of the Basic Agreement of the AICO Scheme, participating companies in the approved Toyota AICO Arrangement shall qualify for 05% preferential tariff rates to be extended by Thailand and the Philippines as participating countries; 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 of Toyota Corolla and Camry, (HS 8703.90 10) as specified in Column 6 thereof. SECTION 2. The AICO rate provided in Annex "A" shall be accorded to the AICO entity in Thailand (Toyota Motor Thailand Co. Ltd.) upon the effectivity of this Executive Order. DCTSEA 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 6 of Annex "A" , such articles shall automatically be accorded the corresponding reduced rate of duty. 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 Section 1 and 3 hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin Form "D". SECAHa SECTION 5. Any revision/s to the part numbers appearing in Column 4 of Annex "A" shall be communicated immediately to the Bureau of Customs by the Board of Investments within five (5) days after receipt of the official copy of the revised part number/s from the ASEAN Secretariat. SECTION 6. This Executive Order shall take effect immediately. DONE in the City of Manila, this 31st day of March, in the year of Our Lord, Two Thousand and Three. Published in the Manila Standard on April 5, 2003. NOMINATION LIST OF PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME (PHILIPPINES-THAILAND) HS CODE MODEL/ TYPE PRODUCT DESCRIPTION PART NO. SOURCE COUNTRY (AICO COMPANY) RECOMMENDED AICO PREFERENTIAL RATE (%) (1) (2) (3) (4) (5) (6) 8703.90 10 Corolla PANEL RADIO RECEIVER 86221 Thailand (Toyota Motor Thailand Co., Ltd.) 3 PANEL RADIO RECEIVER 86221 HINGE SUB-ASSY, RR SEAT BACK, CTR 71305 PANEL SUB-ASSY, INSTR CSTR FIN, CTR 55406 HUB & BRG ASSY, RR AXLE W/E S.C ROTOR 42450 HUB & BEARING ASSY, RR AXLE: 42410 INSULATOR SUB-ASSY, ENGINE MOUNTING 12305 RH PANEL SUB-ASSY, INSTRUMENT, UPR 55302 MUDGUARD, SIDE; RH 76911 MUDGUARD, SIDE, RH L/PAINT 76911 MUDGUARD, SIDE, LH 76912 MUDGUARD SIDE FR RH 76915 MUDGUARD SIDE FR LH 76916 MUDGUARD SIDE, LH L/PAINT 76912 CROSSMEMBER SUB-ASSY, FR SUSPENSION 51201 MEMBER SUB-ASSY; ENGINE MOUNTING, 51204 CTR MEMBER SUB-ASSY, ENGINE MOUNTING, 51204 CTR 8703.90 10 Camry PLUG SET, HOLE 58707 Thailand (Toyota Motor Thailand Co., Ltd.) 3 FRAME SUB-ASSY, RR SEAT 71017 ADJUSTER SUB-ASSY FR SEAT HEADREST 71904 BELT ASSY, FR SEAT, INNER 73230 BACK PLATE, LUGGAGE COMPT DOOR NAME, NO. 4 75444 8703.90 10 Camry BAND SUB-ASSY, FUEL TANK, RH 77601 Thailand (Toyota Motor Thailand Co., Ltd.) 3 BAND SUB-ASSY, FUEL TANK, LH 77602 LABEL, FUSE BLOCK NOTICE 82683 CLAMP, WIRING HARNESS 82711 FASTENER, HOOK 90530 BOLT, W/ WASHER 90901