Modifying the Rates of Duty on Certain Imported Articles Under TCC

September 15, 1997 EXECUTIVE ORDER NO. 440 MODIFYING THE RATES OF DUTY ON CERTAINIMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMSCODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE MINIMUM 50% MARGIN OF PREFERENCE ON CERTAINPRODUCTS INCLUDED IN THE BRAND-TO-BRANDCOMPLEMENTATION SCHEME IN THE AUTOMOTIVE INDUSTRY UNDER THE BASIC AGREEMENT ON ASEAN INDUSTRIALCOMPLEMENTATION WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on ASEAN Industrial Complementation (BAAIC) signed in Manila on 16 June 1981; WHEREAS, the Philippines is a signatory to the Memorandum of Understanding (MOU) on the Brand-to-Brand Complementation (BBC) Scheme for the Automotive Industry under the BAAIC signed by the ASEAN Economic Ministers in Pattaya, Thailand on 18 October 1988; WHEREAS, the Philippines is a participating country in the approved BBC Schemes of Mitsubishi Motors Corporation along with Indonesia, Malaysia and Thailand; WHEREAS, under the Mitsubishi BBC Schemes approved on an ad referendum basis by Indonesia on 12 August 1996, by Malaysia and Thailand on 16 September 1996 and by the Philippines on 4 October 1996, the Philippines will import from Indonesia, Malaysia and Thailand certain component parts for the original equipment manufacture (OEM) of completely knocked-down (CKD) of Lancer (Models LA/LM/C/E/MG) passenger cars, L200 (PB/P-CAR) and Colt L300 light commercial vehicles, in exchange for Philippine exports of complementary component parts to the three participating countries; WHEREAS, under the MOU on the BBC Scheme in the Automotive Industry, the Philippines shall grant a minimum 50% Margin of Preference (MOP) to BBC products approved by the SEOM subject to the terms and conditions set out in Section 9(b) of said MOU; WHEREAS, under Section 9(b)(i) of the said MOU, the 50% MOP for existing BBC products shall be granted within 90 days of approval of the BBC products by the SEOM, and for new BBC products, the grant shall be extended from the actual date of commercial production of the products, or upon expiry of 30 months from the date of approval of the products whichever comes earlier; WHEREAS, the various component parts specified in Certificates of Eligibility (COEs) Nos. MMC/3/A/96, MMC/5/A/96, MMC/7/A/96, MMC/11/A/96 and MMC/16/A/96 issued on 23 December 1996 in favor of Mitsubishi Motors Corporation are existing products, i.e., already being manufactured at the time of their approval as BBC products; WHEREAS, under paragraph b(ii) of Section 9 of the MOU, non-participating countries shall initially waive their rights under Chapter II, Article 8, paragraph 2, of the ASEAN Preferential Trading Arrangements (PTA) for the first four years from date of granting of MOP and shall thereafter enjoy the MOP granted by participating countries as soon as they extend the same MOP; WHEREAS, under paragraphs b(ii) and b(iv) of Section 9 of the MOU, the waiver period shall be extended beyond the first four years for as long as the non-participating countries do not wish to grant the MOP up to a maximum waiver period of eight years. After the maximum eight-year waiver period, any entity in any member country, whether the member country is participating in the specific BBC Scheme or not, which produces the BBC product shall enjoy the same MOP in the participating countries for the BBC product; NOW, THEREFORE, I, FIDEL V. RAMOS, 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 a minimum 50% MOP as specified in Column 10 thereof. In effect, said articles shall be subject to the BBC Preferential Tariff in accordance with the schedule indicated opposite each article as specified in Columns 11, 12, 13, and 14 of Annex " A ". SECTION 2. The MOP provided on the articles specifically listed in Annex " A " shall be accorded exclusively to the BBC entity in Indonesia (P.T. Krama Yudha Tiga Berlian Motors KTB), to the BBC entity in Malaysia (Perusahaan Otomobil Nasional Sdn Bnd (PROTON) and to the BBC entity in Thailand (MMC Sittipol Co., Ltd. MSC) effective from 1 January 1997 up to December 31, 2000. Thereafter, the same MOP may be granted to a non-participating ASEAN country as soon as that country extends the same MOP itself. If the non-participating country does not wish to grant such MOP and maintains such position throughout the stipulated maximum waiver period of eight (8) years, the exclusive application of the MOP to Indonesia, Malaysia and Thailand shall then be extended up to December 31, 2004. SECTION 3. The 50% MOP accorded under this Executive Order shall remain effective regardless of any subsequent changes in the basic Philippine rate of duty on the aforementioned articles. cd 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 BBC Preferential Tariff specified under Section 1 hereof, subject to qualification under the Rules of Origin as prescribed in the Agreement on ASEAN Preferential Trading Arrangements, as amended. 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 Department of Trade and Industry within five (5) days after receipt of the official copy of the revised part numbers from the ASEAN Secretariat. cdt SECTION 6. This Executive Order shall take effect immediately. DONE in the City of Manila, this 15th day of September, in the year of Our Lord, Nineteen Hundred and Ninety-Seven. ARTICLES GRANTED 50% MARGIN OF PREFERENCE (MOP) UNDER THE APPROVED MITSUBISHI MOTORS BBC SCHEME SOURCE RATE OF DUTY (%) MARGIN OF APPLICABLE BBC HS CODE. MODEL/TYPE PRODUCT PART NO. COUNTRY PREFERENCE PREFERENTIAL TARIFF (%) PART NAME (BBC 1 JANUARY (%) 1 JANUARY COMPANY) 1997 1998 1999 2000 1997 1998 1999 2000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ex 8702.90 10 L300 Shaft Assy Propeller MB505170 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB505171 (P.T. Krama Commercial MB505172 Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Rear Axle Housing MB290002 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Carrier Assy MB393292 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Shaft Assy Axle MB664579 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 FRT Shock Absorber MT141246X Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Shock Absorber Rear MB515566 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB515568 (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Brake Assy FRT LH/RH MB316370 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB316371 (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Brake Assy RR LH/RH MB407580 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB407581 (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Hub Assy FRT MB891857Y Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8702.90 10 L300 Jack Set MB149048 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB149049 (P.T. Krama Commercial Yudha Tiga Vehicle for the Berlian Motors transport of persons (KTB)) ex 8703.90 10 Lancer Connecting Rod Assembly MD117080 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (P.T. Krama passenger car Yudha Tiga Berlian Motors (KTB)) ex 8703.90 10 Lancer Steering System: Malaysia 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (Perusahaan passenger car Gear and Linkage Assy Steering MB870948 Otomobil Gear Assy Power Steering MR130388 Nasional Gear and Link Assy Steering MB891740 Sdn. Bhd. Gear and Link Assy Steering MB489394X1 (PROTON)) ex 8703.90 10 Lancer Body Sheet Metal: Malaysia 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (Perusahaan passenger car Bushing MD574265 Otomobil Bellow Assy MD857089 Nasional Hinge, Assy T/LID, LH MB885673 Sdn. Bhd. Hinge, Assy T/LID, RH MB885674 (PROTON)) Duct, Air Intake MD177555 Foot Rest MB474856 RR Garnish Spkr, LH PW536063 RR Garnish Spkr, RH PW536064 Cover, I/PNL Lower, RH MB847656 ex 8703.90 10 Lancer Door Panel Group: Malaysia 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (Perusahaan passenger car Panel, FR Door, OTR, LH MB819303 Otomobil Panel, FR Door, OTR, RH MB819304 Nasional Panel, RR Door, OTR, LH MB819313 Sdn. Bhd. Panel, RR Door, OTR, RH MB819314 (PROTON)) Panel, RR Door, INR, LH MB819329 Panel, RR Door, INR, RH MB819330 Panel, FR Door, INR, LH MR200155 Panel, FR Door, INR, RH MR200156 Door, Front, LH M50B31E31001 Door, Front, RH M50B31E31002 Door, Rear, LH M50B32E31001 Door, Rear, RH M50B32E31002 Impact Bar FR LH MR106455 Impact Bar FR RH MR106456 Impact Bar RR LH MR106461 Impact Bar RR RH MR106462 ex 8703.90 10 Lancer Trim Group: Malaysia 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (Perusahaan passenger car W/Strip, FR DR Open INR, LH MB819673 Otomobil W/Strip, FR DR Open INR, RH MB819674 Nasional W/Strip, FR DR Open OTR, LH MR101187 Sdn. Bhd. W/Strip, FR DR Open OTR, RH MR101188 (PROTON)) W/Strip, RR DR Open INR, LH MB819677 W/Strip, RR DR Open INR, RH MB819678 W/Strip, RR DR Open OTR, LH MR101193 W/Strip, RR DR Open OTR, RH MR101194 ex 8703.90 10 Lancer Fuel Tank Group: Malaysia 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (Perusahaan passenger car Neck, Fuel Filler MB678940 Otomobil Lid Assy, Fuel Filler MB945548 Nasional Fuel Tube MB678884 Sdn. Bhd. Neck, Fuel Filler MB887050XI (PROTON)) ex 8703.90 10 Lancer Mirror Group: Malaysia 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (Perusahaan passenger car Mirror Assy, DR LH MB847973 Otomobil Mirror Assy, DR LH MB847974 Nasional Mirror Assy, DR LH MB847975 Sdn. Bhd. Mirror Assy, DR LH MB847976 (PROTON)) Delta Cover INR LH MB814099 Delta Cover INR LH MB814100 Delta Cover INR LH MB814101 Delta Cover INR LH MB814102 ex 8703.90 10 Lancer Suspension/Steering: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) MMC passenger car Bar Stabilizer MR198869 Sittipol Co., Axle Assy, Rear MB844919 Ltd. (MSC)) End Assy, Tie Rod MB871417 Absorber Assy, Rear MR244217 Wheel Assembly, Steering MR748222 ex 8703.90 10 Lancer Brake/Clutch System: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) MMC passenger car Lever Assy, Parking Brake MR748159 Sittipol Co., Cable, Parking Brake LH MR129921 Ltd. (MSC)) Cable, Parking Brake RH MR129922 Shield, Dust MB699270 Shield, Dust MB699271 Bearing Wheel MB808442 Member Assembly, m/c MR235331 Master Cylinder MR129910 Hose, Brake MR129882 Hose, Brake MR129787 Cable Assembly, M/T MR195779 ex 8703.90 10 Lancer Fuel System: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Valve Assembly MB678440 Sittipol Co., Pump Complete, Fuel MR135016 Ltd. (MSC)) Hose Assembly, Fuel High MR239558 Cap Assembly, Fuel Filler MB595538 Neck Assembly, Filler MR134966 ex 8703.90 10 Lancer Body Sheet Metal: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car C/MBR Assy, F/FLR FR MR185825 Sittipol Co., C/MBR Assy, F/FLR FR MR185826 Ltd. (MSC)) Sill, F/FLR Side INR LH MR185833 Sill, F/FLR Side INR RH MR185834 Pan, Front Floor MR186390 Reinf Assy, B/Bone MR186646 S/MBR, F/FLR INR LH MR186655 S/MBR, F/FLR INR RH MR186656 Rear Floor M50A12E83101 Bracket, Jack MB103189 Reinf, R/Seat Back LH MB830471 Reinf, R/Seat Back RH MB830472 Reinf, S/Belt R/FLR MB826207 Reinf, Towing Hook MB826215 Bracket, Fuel Tank RR MB826249 Bracket, Fuel Tank RR MB826250 Bracket, Spare Tire MB827695 Pan, Rear Floor MB826140 C/MBR, R/FLR MR220689 3 3 3 3 50 1.5 1.5 1.5 1.5 Reinf, Dash Panel Center MR169994 Reinf, Dash Panel MR248462 Brace, R/FLR Side MR185093 Brace, R/FLR Side MB827140 Rail, Roof RR MR185113 Rail, Roof FR MR185156 Bow, Roof MR185158 Rear End Structure M50A23E80101 ex 8703.90 10 Lancer Loose Panel: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Cover Under LH MR185645 Sittipol Co., Cover Under RH MR185648 Ltd. (MSC)) Panel, Heat Protector MR199084 Panel, Air Guide MR236447 Panel, Air Guide MR236448 ex 8703.90 10 Lancer Trunk Hardware: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Torsion Bar, Trunklid LH MR186303 Sittipol Co., Torsion Bar, Trunklid RH MR186304 Ltd. (MSC)) ex 8703.90 10 Lancer Door Locking: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Check Door MB819505 Sittipol Co., Striker MB867059 Ltd. (MSC)) Latch Assembly, Front Door MR185893 Latch Assembly, Front Door MR185894 Latch Assembly, Rear Door MR186477 Latch Assembly, Rear Door MR186478 Check Door MR248283 ex 8703.90 10 Lancer Door Panel: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Sash, F/DR Lower RR MB819523 Sittipol Co., Sash, F/DR Lower RR MB819524 Ltd. (MSC)) Sash, R/DR Center MR184639 Sash, R/DR Center MR184640 ex 8703.90 10 Lancer Trim Panel: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Trim, Cowl Side LH MR187927 (MR748293) Sittipol Co., Trim, Cowl Side RH MR187928 (MR748295) Ltd. (MSC)) Trim, Center Pillar Lower MR189941 (MR748301) Trim, Center Pillar Lower MR189942 (MR748303) Trim, Rear Pillar MR189961 (MR748308) Trim, Rear Pillar MR189962 (MR748309) Trim, R/Seat Back Brace MB817319 (MB755722) Trim, R/Seat Back Brace MB817320 (MB755723) Grille, Radiator MR191518 Grip, Assist MR270114 (MR270117) Grip, Assist MR270115 (MR270118) Grip, Assist MR270116 (MR270119) Scuff, Plate FR LH MB817365 (MB748400) Scuff, Plate FR RH MB817366 (MB748402) Scuff, Plate RR LH MB817369 (MB748404) Scuff, Plate RR RH MB817370 (MB748406) Duct, Rear Vent MR201255 ex 8703.90 10 Lancer Electrical System: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Lamp Assy, S/Turn MB821172 Sittipol Co., Lamp Assy, Lic Plate MB821101 Ltd. (MSC)) Lamp Assy, T/Room MB529091 Lamp Assy, Room MR748283 Switch, Mirror MB561810 Switch, Hazard MR201510 ex 8703.90 10 Lancer Steering System: Thailand 3 3 3 3 50 1.5 1.5 1.5 1.5 (LA/LM/C/E/MG) (MMC passenger car Gear and Link Assy Strg. MB870949X2 Sittipol Co., Gear Assy Power Strg. MB911897X2 Ltd. (MSC)) ex 8704.90 10 L300 Shaft Assy Propeller MB505170 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB505171 (P.T. Krama Commercial MB505172 Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Rear Axle Housing MB290002 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Carrier Assy MB393292 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Shaft Assy Axle MB664579 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 FRT Shock Absorber MT141246X Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Shock Absorber Rear MB515566 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB515568 (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Brake Assy FRT LH/RH MB316370 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB316371 (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Brake Assy RR LH/RH MB407580 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB407581 (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Hub Assy FRT MB891857Y Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L300 Jack Set MB149048 Indonesia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light MB149049 (P.T. Krama Commercial Yudha Vehicle for the Tiga Berlian transport of Motors (KTB)) goods ex 8704.90 10 L200 (PB/P-CAR) Engine Parts: Malaysia 3 3 3 3 50 1.5 1.5 1.5 1.5 Light Commercial (Perusahaan Vehicle Shaft, O/P Gear Drive MD099211 Otomobil Key MD000606 Nasional Sprocket counter MD050179 Sdn. Bhd. Body Oil Jet MD319528Y (PROTON)) Body Oil Jet MD319530Y Body Oil Jet MD319536Y Body Oil Jet MD316538Y Body Oil Jet ME200408 Sprocket Balance MD199039 Sprocket Camshaft ME200748 Sprocket Crank MD164831