Reduction of Rates of Import Duty on Compressed Natural Gas Motor Vehicles and Natural Gas Vehicle Industry-Related Equipment

December 31, 2004 EXECUTIVE ORDER NO. 396 REDUCING THERATES OF IMPORT DUTY ON COMPRESSED NATURAL GAS MOTOR VEHICLES AND NATURAL GAS VEHICLE INDUSTRY-RELATEDEQUIPMENT, PARTS AND COMPONENTS UNDER SECTION 104 OF THE TARIFF AND CUSTOMSCODE OF 1978 (PRESIDENTIAL DECREE NO. 1 46 4), AS AMENDED WHEREAS, the Natural Gas Vehicle Program for Public Transport (NGVPPT),which was launched on 16 October 2002, aims to enhance energy supply security in the transport sector through fuel diversification using indigenous natural gas as a clean alternative fuel for transport; WHEREAS, Executive Order 164 (Modifying the Nomenclature and the Rates of Import Duty on Various Products Under Section 104 of the Tariff and Customs Code of 1978), issued on 10 January 2003, reduced the rates of duty on natural gas vehicle (NGV) industry-related equipment, parts and components to encourage active private sector participation in the NGVPPT in terms of providing the necessary support, logistics and infrastructure; WHEREAS, Executive Order 290 (Implementing the Natural Gas Vehicle Program for Public Transport),issued on 24 February 2004, aims to ensure the effective implementation of the NGVPPT; WHEREAS, import duties of 0% on compressed natural gas (CNG) motor vehicles and NGV industry-related equipment, parts and components will serve as further incentive to NGVPPT participants to invest in CNG buses and equipment; WHEREAS, Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464), as amended, empowers the President of the Republic of the Philippines to increase, reduce, or remove existing rates of import duty, as well as to modify the form of duty and the tariff nomenclature, under Section 104 of the Code; CSEHIa 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, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the Most-Favoured-Nation (MFN) import duty for the period in accordance with the schedule indicated opposite each article. SECTION 2. The nomenclature and the rates of import duty on tariff headings not enumerated and those listed but represented by the symbol "X X X" shall remain in force and in effect. SECTION 3. Upon the effectivity of this Executive Order, all articles listed in Annex "A" hereof which are entered or withdrawn from warehouses in the Philippines for consumption shall be levied the MFN rates of duty therein prescribed. SECTION 4. The Department of Energy, in coordination with the Department of Trade and Industry, the National Economic and Development Authority and the Bureau of Customs, shall promulgate the implementing rules and regulations that will govern the implementation of this Executive Order. SECTION 5. All Presidential issuances, administrative rules and regulations, or parts thereof, which are contrary to or inconsistent with this Executive Order are hereby revoked or modified accordingly. SECTION 6. This Executive Order shall take effect thirty (30) days following its complete publication in two (2) newspapers of general circulation in the Philippines. DONE in the City of Manila, this 31st day of December, in the year of Our Lord, Two Thousand and Four. ANNEX A Hdg. Tariff Description Rate of Code Duty (%) 39.23 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics. 3923.10 - X X X to 3923.50.90 3923.90 00 - Other 15 * 73.11 Containers for compressed or liquefied gas, of iron or steel. - Seamless steel cylinders, except for LPG: 7311.00.11 -- Of a capacity of less than 30 l 1 * 7311.00.12 -- Of a capacity of 30 l or more but less than 110 litres 1 * 7311.00.19 -- Other 1 * - X X X 7311.00.91 -- X X X to 7311.00.99 76.13 7613.00.00 Aluminum containers for compressed or liquefied gas. 7 * 84.07 Spark-ignition reciprocating or rotary internal combustion piston engines. 8407.10.00 - X X X to 8407.29.90 - Reciprocating piston engines of a kind used for the propulsion of vehicles of Chapter 87: 8407.31.00 -- X X X to 8407.33.90 8407.34 -- Of a cylinder capacity exceeding 1,000 cc: --- Fully assembled: 8407.34.11 ---- X X X 8407.34.12 ---- XXX 8407.34.13 ---- XXX 8407.34.19 ---- Other 10 * --- XXX 8407.34.21 ---- X X X to 8407.90.90 84.09 Parts suitable for use solely or principally with the engines of heading 84.07 or 84.08. 8409.10.00 - X X X - Other: 8409.91 -- X X X to 8409.91.79 8409.99 -- Other: --- XXX 8409.99.11 ---- X X X to 8409.99.39 --- For other vehicles of Chapter 87: 8409.99.41 ---- X X X to 8409.99.46 8409.99.49 ---- Other 1 * --- X X X 8409.99.51 ---- X X X to 8409.99.69 84.14 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters. 8414.10 - X X X to 8414.80.99 8414.90 - Parts: -- Of electrically operated equipment: 8414.90.11 --- XXX 8414.90.12 --- XXX 8414.90.13 --- XXX 8414.90.14 --- Of subheading 8414.30, 8414.80 5 * 8414.90.19 --- Other 5 * -- Of non-electrically operated equipment: 8414.90.91 --- XXX 8414.90.92 --- XXX 8414.90.93 --- Of subheadings 8414.30 and 8414.80 5 * 8414.90.99 --- Other 5 * 84.21 Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases. - XXX 8421.11.00 -- X X X to 8421.29.90 - Filtering or purifying machinery and apparatus for gases: 8421.31 -- Intake air filters for internal combustion engines: 8421.31.10 --- XXX 8421.31.20 --- For motor vehicles of Chapter 87 10 * 8421.31.90 --- XXX to 8421.99.99 84.81 Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves. 8481.10 - XXX 8481.10.10 -- XXX to 8481.20.90 8481.30 - Check (nonreturn) valves: -- Of iron or steel: 8481.30.11 --- XXX 8481.30.19 --- Other 5 * -- Of copper or copper alloys: 8481.30.21 --- Of 25 mm or less in internal diameter 5 * 8481.30.22 --- X X X 8481.30.23 --- X X X 8481.30.29 --- Other 5 * -- Of other metals: 8481.30.31 --- X X X 8481.30.39 --- Other 5 * -- XXX 8481.30.41 --- XXX to 8481.90.90 87.02 Motor vehicles for the transport of ten or more persons, including the driver. 8702.10 - X X X to 8702.10.68 8702.90 - Other: -- For the transport of less than 16 persons: --- XXX 8702.90.11 ---- X X X to 8702.90.22B -- For the transport of 16 persons or more but less than 30 persons: --- Motors buses: 8702.90.31 ---- X X X 8702.90.32 ---- CBU/Other A. XXX B. Other 20 * --- Other: 8702.90.41 ---- XXX 8702.90.42 ---- CBU/Other A. XXX B. Other 20 * -- For the transport of 30 persons and more: --- Buses designed specially for use in airport: 8702.90.51 ---- X X X 8702.90.52 ---- CBU/Other A. XXX B. Other 20 * --- Other motors buses: 8702.90.61 ---- XXX 8702.90.62 ---- CBU/Other A. XXX B. Other 20 * --- Other: 8702.90.91 ---- X X X 8702.90.92 ---- CBU/Other A. XXX B. Other 20 * 90.26 Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flowmeters, level gauges, manometers, heat meters),excluding instruments and apparatus of heading 90.14, 90.15, 90.28 or 90.32. 9026.10 - X X X to 9026.10.90 9026.20 - For measuring or checking pressure: 9026.20.10 -- Pressure gauges for motor vehicles, electrically operated 10 * 9026.20.20 -- Pressure gauges for motor vehicles, not electrically operated 10 * 9026.20.30 -- X X X to 9026.90.20 90.28 Gas, liquid or electricity supply or production meters, including calibrating meters therefor. 9028.10 - Gas meters: 9028.10.10 -- Gas meters of a kind mounted in gas containers 1 * 9028.10.90 -- X X X to 9028.90.90 90.32 Automatic regulating or controlling instruments and apparatus. 9032.10 - X X X 9032.10.10 -- X X X 9032.10.20 -- X X X 9032.20 - Manostats: 9032.20.10 -- Electrically operated 1 * 9032.20.20 -- Not electrically operated 1 * - XXX 9032.81.00 -- X X X to 9032.90.90 * Duty free when imported with certification from the Department of Energy (DOE) that articles will be used for the Natural Gas Vehicle Program for Public Transport.