Modified Nomenclature and Rates of Import Duty on Used Motor Vehicles

April 4, 2005 EXECUTIVE ORDER NO. 419 MODIFYING THE TARIFF NOMENCLATURE AND RATES OF IMPORT DUTY ON USED MOTOR VEHICLES UNDER SECTION 104 OF THE TARIFF AND CUSTOMSCODE OF 1978 (PRESIDENTIAL DECREE NO. 1 46 4, AS AMENDED) WHEREAS, it is the policy of the State to maintain a balance between development and environmental protection, and hence, between motorization and air quality management; DAcSIC WHEREAS, it is the policy of the State to protect the public against unreasonable risks to injury associated with consumer products; WHEREAS, there is a need to mitigate the impact of used motor vehicle trading on air quality and road safety; WHEREAS, Article II:1(b) of the 1994 General Agreement on Tariffs and Trade allows the unilateral imposition of other duties and charges on tariff items that were not previously the subject of concession; WHEREAS, motor vehicles were not covered by Schedule LXXV Philippine Schedule of Concessions and therefore, do not have tariff bindings; WHEREAS, Section 401 of the Tariff and Customs Code of 1978, as amended, empowers the President of the Philippines to increase, reduce, or remove existing rates of import duty, as well as to modify the form of duty and to tariff nomenclature under Section 104 of the Code; 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 rates of import duty indicated opposite each article, except for trucks, buses and special purpose vehicles. SECTION 2. In addition to the regular rates of import duty, 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 additional specific duty of PP500,000.00. SECTION 3. The amount of specific duty will be indexed by the Secretary of Finance once every two (2) years if the change in the exchange rate of the Philippine peso against the United States (U.S.) dollar is more than ten percent (10%) from the date of the effectivity of this Order, in the case of initial adjustment and from the last revision date in the case of subsequent adjustments. In case the change in the exchange rate of the Philippine peso against the US dollar is more than twenty percent (20%) at any time within the two-year period referred to above, the Secretary of Finance shall index the amount by the full rate of depreciation or appreciation, as the case may be. SECTION 4. The following motor vehicles shall be considered "used" and shall be subject to the duties herein prescribed: (a) all motor vehicles that have been sold, registered and operated in the roads/highways of any foreign state or country; or (b) all imported motor vehicles that has a mileage of more than 200 kilometers regardless of year model. SECTION 5. Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annex, which are entered and withdrawn from warehouses in the Philippines, shall be levied the rates of import and specific duties herein prescribed. SECTION 6. All Presidential issuances, administrative rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly. SECTION 7. This Executive Order shall take effect thirty (30) days following its complete publication in two (2) newspapers of general circulation in the Philippines. TCADEc Done in the City of Manila, this 4th day of April, in the year of Our Lord, Two Thousand and Five. Published in The Manila Times on April 21, 2005 . ANNEX A Hdg. Tariff Code Description MFN Rate of Duty (%) 87.02 Motor vehicles for the transport of ten or more persons including the driver. 8702.10 - With compression-ignition internal combustion piston engine (diesel or semi-diesel): - - For the transport of less than 16 persons: - - - Motor buses: - - - - CBU/Other: 8702.10.06 - - - - - Of a gross vehicle weight not exceeding 5 t Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8702.10.07 - - - - - Of a gross vehicle weight exceeding 5 t but not exceeding 6 t Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, 6t, NEW 20 Ex OF A CYLINDER CAPACITY' EXCEEDING 3,200 cc, other, new 25 - - - Other: - - - - CBU/Other: 8702.10.15 - - - - - Of a gross vehicle weight not exceeding 5 t Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8702.10.16 - - - - - Of a gross vehicle weight exceeding 5 t but not exceeding 6 t Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, 6t, NEW 20 Ex OF A CYLINDER CAPACITY EXCEEDING' 3,200 cc, other, NEW 25 8702.10.17 - - - - - Of a gross vehicle weight exceeding 6 t but not exceeding 24 t Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, exceeding 6 t but not exceeding 18t, NEW 20 Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, exceeding 18 t but not exceeding 24 t, NEW 25 8702.10.18 - - - - - Of a gross vehicle weight exceeding 24 t Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8702.90 - Other: - - For the transport of less than 16 persons: - - - Other: 8702.90.22 - - - - CBU/Other Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 87.03 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars. - Other vehicles, with spark-ignition internal combustion reciprocating piston engine: 8703.23 - - Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: - - - Motor cars (including station wagons, sports cars and racing cars) for the transport of 8 persons or less including the driver: - - - - CBU/Other: 8703.23.23 - - - - - Of a cylinder capacity 2,000 cc and above but less than 2,500 cc: Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8703.23.24 - - - - - Of a cylinder capacity 2,500 cc and above Ex NEW 35 - - - Other, for the transport of 8 persons or less: - - - - Four wheel drive vehicles, CBU/Other: 8703.23.33 - - - - Of a cylinder capacity 2,000 cc and above but less than 2,500 cc Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8703.23.34 - - - - - Of a cylinder capacity 2,500 cc and above ex NEW 35 - - - - Other: 8703.23.43 - - - - - Of a cylinder capacity 2,000 cc and above but less than 2,500 cc Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8703.23.44 - - - - - Of a cylinder capacity 2,500 cc and above Ex NEW 35 - - - Other, for the transport of 9 persons including the driver: - - - Motor cars (including station wagons, sports cars and racing cars): - - - - - CBU/Other: 8703.23.53 - - - - - - Of a cylinder capacity 2,000 cc and above but less than 2,500 cc Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8703.23.54 - - - - - - Of a cylinder capacity 2,500 cc and above Ex NEW 35 - - - - Four wheel drive vehicles, CBU/Other: 8703.23.63 - - - - - Of a cylinder capacity 2,000 cc and above but less than 2,500 cc Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8703.23.64 - - - - - Of a cylinder capacity 2,500 cc and above Ex NEW 35 - - - - Other: 8703.23.73 - - - - - Of a cylinder capacity 2,000 cc and above but less than 2,500 cc Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8703.23.74 - - - - - Of a cylinder capacity 2,500 cc and above Ex NEW 35 8703.24 - - Of a cylinder capacity exceeding 3,000 cc: - - - Of a cylinder capacity exceeding 3,000 cc but not exceeding 4,000 cc: - - - - Motor cars (including station wagons, sports cars and racing cars) for the transport of 8 persons or less including driver: 8703.24.22 - - - - - CBU/Other Ex NEW 35 - - - - Other, for the transport of 8 persons or less: 8703.24.32 - - - - - Four wheel drive vehicles, CBU/Other Ex NEW 35 8703.24.34 - - - - - Other Ex NEW 35 - - - - Other, for the transport of 9 persons including the driver: 8703.24.42 - - - - - Four wheel drive vehicles, CBU/Other: Ex NEW 35 8703.24.44 - - - - - Motor cars (including station wagons, sports cars and racing cars), CBU/Other Ex NEW 35 8703.24.46 - - - - - Other: Ex NEW 35 - - - Of a cylinder capacity exceeding 4,000 cc: - - - - Motor Cars (including station wagons, sports cars and racing cars) for the transport of 8 persons or less including driver: 8703.24.62 - - - - - CBU/Other Ex NEW 35 - - - - Other, for the transport of 8 persons or less: 8703.24.72 - - - - - Four wheel drive vehicles, CBU/Other Ex NEW 35 8703.24.74 - - - - - Other Ex NEW 35 - - - - Other for the transport of 9 persons including the driver: 8703.24.82 - - - - - Four wheel drive vehicles, CBU/Other Ex NEW 35 8703.24.84 - - - - - Motor cars (including station wagons, sports cars and racing cars), CBU/Other Ex NEW 35 8703.24.86 - - - - - Other Ex NEW 35 - Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel): 8703.33 - - Of a cylinder capacity exceeding 2,500 cc: - - - Of a cylinder capacity exceeding 3,000 cc but not exceeding 4,000 cc: - - - - Motor cars (including station wagons, sports cars and racing cars) for the transport of 8 persons or less including driver: 8703.33.52 - - - - - CBU/Other, new Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc 35 - - - - Other, for the transport of 8 persons or less: 8703.33.55 - - - - - Four wheel drive vehicles, CBU/Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 8703.33.57 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 - - - - Other, for the transport of 9 persons including the driver: 8703.33.59 - - - - - Four wheel drive vehicles, CBU/Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 8703.33.62 - - - - - New motor cars (including station wagons sports cars and racing cars); CBU/Other EX OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 8703.33.65 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 - - - - Of a cylinder capacity exceeding 4,000 cc: - - - - Motor cars (including station wagons, sports cars and racing cars) for the transport of 8 persons or less including the driver: 8703.33.82 - - - - - CBU/Other, new 35 - - - - Other, for the transport of 8 persons or less: 8703.33.85 - - - - - Four wheel drive vehicles, CBU/Other Ex NEW 35 8703.33.87 - - - - Other Ex NEW 35 - - - - Other, for the transport of 9 persons including the driver: 8703.33.89 - - - - - Four wheel drive vehicles, CBU/Other Ex NEW 8703.33.92 - - - - - New motor cars (including station wagons, sports cars and racing cars), CBU/Other 35 87.04 Motor vehicles for the transport of goods. - Other with compression ignition internal combustion piston engine (diesel or semi-diesel); 8704.21 - - g.v.w. not exceeding 5 t. - - - Complete Built Up (CBU)/Other: 8704.21.25 - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 8704.21.26 - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 8704.21.29 - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 8704.22 - - g.v.w. exceeding 5 but not exceeding 20 t: - - - Completely Built-Up (CBU)/Other: - - - - g.v.w. not exceeding 6 t: 8704.22.45 - - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc NEW 35 8704.22.46 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 8704.22.49 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 35 - - - - g.v.w. exceeding 6 t but not exceeding 10 t: 8704.22.55 - - - - - Other vans, pick-up trucks And similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.22.56 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.22.59 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 - - - - g.v.w. exceeding 10 t but not exceeding 20 t: 8704.22.65 - - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER-CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.22.66 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.22.69 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.23 - - g.v.w exceeding 20 t: - - - - Completely Built Up (CBU)/Other: - - - - g v.w. not exceeding 24 t: 8704.23.35 - - - - - Other vans pick up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.23.36 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.23.39 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 - - - - g.v.w. exceeding 24 t: 8704.23.45 - - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.23.46 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 8704.23.49 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 3,200 cc, NEW 25 - Other, with spark-ignition internal combustion piston engine: 8704.31 - - g.v.w. not exceeding 5 t: - - - Completely Built Up (CBU)/Other: 8704.31.25 - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8704.31.26 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8704.31.29 - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8704.32 - - g.v.w. exceeding 5 t: - - - Completely Built-up (CBU)/Other: - - - - g.v.w. not exceeding 6 t: 8704.32.58 - - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc NEW 35 8704.32.61 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 8704.32.62 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 35 - - - - g.v.w. exceeding 6 t; but not exceeding 10 t: 8704.32.67 - - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 2,100, NEW 25 8704.32.68 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 8704.32.69 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 - - - - g.v.w. exceeding 10 t but not exceeding 20 t: 8704,32,75 - - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY' EXCEEDING 2,100 cc, NEW 25 8704.32.76 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 8704.32.77 - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 - - - g.v.w. exceeding 20 but not exceeding 24 t: 8704.32.84 - - - - - Other vans, pick-up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 8704:32.85 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 8704.32.86 - - - - - - Other Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 - - - g.v.w. exceeding 24 t. 8704.32.93 - - - - - Other vans, pick up trucks and similar vehicles Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 8704.32.94 - - - - - Ordinary lorries (trucks) Ex OF A CYLINDER CAPACITY EXCEEDING 2,100 cc, NEW 25 8704.32.95 - - - - - Other Ex OF A CYLINDER CAPACITY, EXCEEDING 2,100 cc, NEW 25 87.11 Motorcycles (Including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars. 8711.30 - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 250 cc but not exceeding 500 cc. 8711.30.30 - - Other, CBU/Other 35 8711.40 -With reciprocating internal combustion piston engine of a cylinder capacity exceeding 50 cc but not exceeding 500 cc. 8711.40.30 - - Other, CBU/Other 35 8711.50 - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 800 cc: 8711.50.30 - - Other, CBU/Other 35