Modifying the Rates of Duty on Certain Imported Articles Re: Common Effective Preferential Tariff Inclusion List

December 30, 2003 EXECUTIVE ORDER NO. 263 MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMSCODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENTTHE TRANSFER OF THE LAST TRANCH OF PRODUCTS FROM THE AGRICULTURAL PRODUCTSENSITIVE LIST (SL) TO THE COMMON EFFECTIVE PREFERENTIAL TARIFFINCLUSION LIST (CEPT-IL) AND THE MODIFICATION OF THE CEPT RATE ON OIL CAKE AND OTHER SOLID RESIDUES OF MAIZE (CORN) GERM, SODIUM TRIPOLYPHOSPHATES AND CASSAVA STARCH WHEREAS, the Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, Lao People's Democratic Republic, Malaysia, Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Viet Nam, signed the Protocol on the Special Arrangement for Sensitive and Highly Sensitive Products on 30 September 1999; HCEaDI WHEREAS, Member States ( i . e ., Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand) phased-in sensitive products to the CEPT Scheme beginning on 01 January 2001 with flexibility but not later than 01 January 2003 and shall complete the phasing-in by 01 January 2010; WHEREAS, Article III of the Protocol provides that the beginning rate shall be the applied rate and the ending tariff rates shall be 0-5%; WHEREAS, on 5 November 2001, the NEDA Board approved the 2001-2010 Philippine CEPT Schedule for sensitive agricultural products; WHEREAS, on 9 December 2003, the NEDA Board confirmed the phasing-in of 44 sensitive agricultural products to the CEPT-IL in 2003 and approved the modification of the CEPT rate on oil cake and other residues of maize (corn) germ, sodium tripolyphosphates and cassava starch, respectively; WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464), as amended, empowers the President, upon the recommendation of the National Economic and Development Authority, to increase, reduce or remove existing protective rates of import duty, as well as to modify the form of duty. NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order: SECTION 1. The articles specifically listed in Annex "A" hereof (Sensitive Agricultural Products Granted Concession under the CEPT for the AFTA), as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the ASEAN CEPT rate in accordance with the year 2003-2005 schedule indicated in Columns 4-6 of Annex "A". The ASEAN CEPT rates so indicated shall be accorded to imports coming from ASEAN Member States applying CEPT concession to the same product pursuant to Article 4 of the CEPT Agreement and its Interpretative Notes. SECTION 2. The articles specifically listed in Annex "B" hereof (Articles Granted Concessions under the CEPT for the AFTA), as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the ASEAN CEPT rate indicated in Column 4 of Annex "B". The ASEAN CEPT rates so indicated shall be accorded to imports coming from ASEAN Member States applying CEPT concession to the same product pursuant to Article 4 of the CEPT Agreement and its Interpretative Notes. 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 Annexes "A" and "B" to a rate lower than the rate prescribed in Columns 4-6 of Annex "A" and Column 4 of Annex "B", such articles shall automatically be accorded the corresponding reduced duty. SECTION 4. From the date of effectivity of this Order, all articles listed in Annexes "A" and "B" entered or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty therein prescribed subject to qualification under the Rules of Origin as provided for in the Agreement on the CEPT Scheme for the AFTA signed on 28 January 1992. SECTION 5. All Presidential issuances, administrative rules and regulations, or parts thereof, which are contrary or inconsistent with this Executive Order are hereby repealed or modified accordingly. SECTION 6. This Executive Order shall take effect immediately following its complete publication in two (2) newspapers of general circulation in the Philippines. DONE in the City of Manila, this 30th day of December, in the year of Our Lord, Two Thousand and Three. Published in the Manila Times and Today on January 10, 2004. Annex "A" SENSITIVE PRODUCTS GRANTED CONCESSION UNDER THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) FOR THE ASEAN FREE TRADE AREA (AFTA) APPLICABLE ASEAN RATE (%) HDG. NO. CODE HS DESCRIPTION 2003 2004 2005 (1) (2) (3) (4) (5) (6) 02.03 Meat of swine, fresh, chilled or frozen - Fresh or chilled: 0203.11 - - - Carcasses and half-carcasses: 0203.11 10 - - - In-Quota 30 30 30 0203.11 20 - - - Out-Quota 40 40 40 0203.12 - - Hams, shoulders and cuts thereof with bone in 30 30 30 0203.22 10 - - - In-Quota 0203.22 20 - - - Out-Quota 40 40 40 0203.29 - - Other. 0203.29 10 - - - Pork bellies. 0203.29 11 - - - - In-Quota 30 30 30 0203.29 12 - - - - Out-Quota 40 40 40 0201.29 20 - - - Fore-ends and cuts thereof: 0203.29 21 - - - - In-Quota 30 30 30 0203.29 22 - - - - Out-Quota 40 40 40 0203.29 90 - - - Other 0203.29 91 - - - - In-Quota 30 30 30 0203.29 92 - - - - Out-Quota 40 40 40 02.07 Meat and edible offal, of the poultry of heading No. 01.05, fresh, chilled or frozen - Of fowls of the species Gallus domesticus: 0207.11 - - Not cut in pieces, fresh or chilled. 0207.11 10 - - - In-Quota 40 40 40 0207.11 20 - - - Out-Quota 40 40 40 0207.12 - - Not cut in pieces, frozen: 0207.12 10 - - - In-Quota 40 40 40 0207.12 20 - - - Out-Quota 40 40 40 0207.13 - - Cuts and offal, fresh or chilled: 0207.13 10 - - - In-Quota 40 40 40 0207.13 20 - - - Out-Quota 40 40 40 0207.14 - - Cuts and offal, frozen: 0207.14 10 - - - Liver: 0207.14 11 - - - - In-Quota 40 40 40 0207.14 12 - - - - Out-Quota 40 40 40 0207.14 90 - - - Other. 0207.14 91 - - - - In-Quota 40 40 40 0207.14 92 - - - - Out-Quota 40 40 40 0207.27 - - Cuts and offal, frozen. 0207.27 10 - - - Liver 0207.27 11 - - - - In-Quota 40 40 40 0207.27 12 - - - - Out-Quota 40 40 40 0207.27 90 - - - Other. 0207.27 91 - - - - In-Quota 30 30 30 0207.27 92 - - - - Out-Quota 40 40 40 - Of ducks, geese or guinea fowls. 0207.32 - - Not cut in pieces, fresh or chilled 0207.32 10 - - - Of ducks. 0207.32 11 - - - - In-Quota 40 40 40 0207.32 12 - - - - Out-Quota 40 40 40 0207.32 20 - - - Of geese or guinea fowls. 0207.32 21 - - - - In-Quota 30 30 30 0207.32 22 - - - - Out-Quota 40 40 40 0207.35 - - Other, fresh or chilled. 0207.35 10 - - - In-Quota 40 40 40 0207.35 20 - - - Out-Quota 40 40 40 0207.36 - - Other, frozen 0207.36 10 - - - Fatty livers: 40 40 40 0207.36 11 - - - - In-Quota 0207.36 12 - - - - Out-Quota 40 40 40 10.05 Maize (corn) 1005.90 - Other 1005.90 90 - - - Other 1005.90 91 - - - - In-Quota 35 35 35 1005.90 92 - - - - Out-Quota 50 50 50 Annex "B" ARTICLES GRANTED CONCESSION UNDER THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR THE ASEAN FREE TRADE AREA (AFTA) HS Heading HS Code Description Applicable CEPT Rate of Duty (%) (1) (2) (3) (4) 11.08 Starches; inulin. - Starches: 1108.14 00 - - Manioc (cassava) starch 5 23.06 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading 23.04 or 23.05. 2306.70 00 - Of maize (corn) germ 5 28.35 Phosphinates (hypophosphites), phosphonates (phosphites) and phosphates; polyphosphates, whether or not chemically defined. - Polyphosphates: 2835.31 00 - - Sodium triphosphate (sodium tripolyphosphate) 5