Modifying the Rates of Duty on Certain Imported Articles Re: AICO Scheme for Honda

December 30, 2003 EXECUTIVE ORDER NO. 260 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 HONDA CARS PHILIPPINES, INC. (HCPI)-(COE NOS. HONDA/2003/27 AND HONDA/2003/29) 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; IcCDAS WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Honda Cars Philippines, Inc. (HCPI) along with Thailand and Malaysia; WHEREAS, under the Honda AICO Arrangement, the Philippines (Honda Cars Philippines, Inc.) will import from Thailand (Honda Automobile (Thailand) Co. Ltd.) and Malaysia (Honda Malaysia Sdn. Bhd.) certain original equipment manufacture (OEM) automotive parts/components for Honda Civic passenger cars (HS 8703.90 10).In exchange, Thailand and Malaysia will import from the Philippines complementary parts/components for the (OEM) of Honda Civic, Honda City, Honda Accord and CR-V; WHEREAS, AICO Certificate of Eligibility Nos. Honda/2003/27 and Honda/2003/29 were issued on 11 and 29 August 2003, respectively, in favor of the participating companies in the Honda AICO Arrangement; WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, participating companies in the approved Honda, AICO Arrangements shall qualify for 05% preferential tariff rates to be extended by Thailand, Malaysia and the Philippines as participating countries. NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, pursuant to the powers vested in me by law, 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 Honda Civic (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 (Honda Automobile (Thailand) Co. Ltd.) and Malaysia (Honda Malaysia Sdn. Bhd.) upon the effectivity of this Executive Order. SECTION 3. In the event that any subsequent changes are made in the basic (MFN) 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 hereof, subject to compliance with the Rules of Origin for the Common Effective Preferential Tariff (CEPT). SECTION 5. This Executive Order shall take effect immediately. DONE in the City of Manila, this 30th day of December, in the year of Our Lord, Two Thousand and Three. Published in Malaya on January 10, 2004. ANNEX "A" ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED HONDA AICO SCHEME Applicable AICO HS Code Model/Type Product Description Part No. Source Country/ Preferential (AICO Company) Tariff (%) (1) (2) (3) (4) (5) (6) 8703.90 10 Honda CIVIC PAN COMP, OIL 11200-PLC-0000 Thailand 3 passenger car COVER ASSY, R SIDE 11300-PLC-0000 (Honda Automobile COVER COMP, CYLN HEAD 12310-PLC-0000 (Thailand) Co. Ltd.) PKG, HEAD COVER 12341-PLC-0000 PULLEY, T/B DRIVE 13621-PLD-0030 CASE ASSY, AIR CLEANER 17200-PLC-Y000 CHAMBER ASSY, RESONATOR 17230-PLC-0000 TUBE ASSY B, AIR INTAKE 17243-PLC-0000 CONN TUBE, AIR INTAKE 17244-PLC-0000 RESERVE TANK ASSY 19100-PLC-0000 PIPE, CONNECTING ASSY 19510-PMV-T000 BRKT, COMPRESSOR 38930-PLC-0000 DAMPER FR SUB FRAME RR 50205-S5A-0000 BRKT, P/S PUMP 56997-PLR-A000 EXTN R, DA/BD SIDE MBR 61126-S5A-3000 EXTN L, DA/BD SIDE MBR 61127-S5A-3000 LOWER UNDER BACK FRM SUB COMP 81126-S5A-J000-XB SHOLD SLIDE ADJR 81460-S84-A000-M2 BELT ASSY OUTER R RR SEAT 82450-S5H-T000-M5 BELT ASSY, INNER R RR SEAT 82455-S5H-T000-M5 BELT ASSY, OUTER L RR SEAT 82850-S5H-T000-M5 BELT ASSY, INNER L RR SEAT 82855-S5K-D000-M5 8703.90 10 Honda CIVIC SHAFT ASSY FR, R DRIVE 44305-S5D-A000-M1 Malaysia 3 passenger car SHAFT ASSY FR, L DRIVE 44306-S5D-A000-M1 (Honda Malaysia Sdn. Bhd.) SHAFT ASSY FR, R DRIVE 44305-S5D-A100-M1 SHAFT ASSY FR, L DRIVE 44306-S5D-A100-M1 SHAFT ASSY FR, R DRIVE 44305-S5D-A500-M1 SHAFT ASSY FR, L DRIVE 44306-S5D-A500-M1 SHAFT ASSY FR, R DRIVE 44305-S5D-A600-M1 SHAFT ASSY FR, L DRIVE 44306-S5D-A600-M1