Modified Rates of Import Duty on Certain Imported Articles Re: Sensitive Agricultural Products

January 12, 2006 EXECUTIVE ORDER NO. 489 MODIFYINGTHE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMSCODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE TARIFFREDUCTION SCHEDULE FOR 2006-2010 OF SENSITIVE AGRICULTURAL PRODUCTS TRANSFERRED FROM THE AGRICULTURAL PRODUCTSENSITIVE LIST (SL) TO THE COMMON EFFECTIVE PREFERENTIAL TARIFFINCLUSION LIST (CEPT-IL) 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; HIcTDE 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 no 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; WHEREAS, Executive Order 263 issued on 30 December 2003 prescribed the 2003-2005 CEPT rate schedule for subject articles; WHEREAS, Section 402 of the Tariff and Customs Code of 1978 (PD 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 2006-2010 schedule indicated in Columns 4-8 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. In the event that any subsequent change is made in the basic (Most Favored Nation) Philippine rate of duty on any of the article listed in Annex "A" to a rate lower than the rate prescribed in Columns 4-8 of Annex "A" , such article shall automatically be accorded the corresponding reduced duty. SECTION 3. From the date of effectivity of this Order, all articles listed in Annex "A" 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 4. 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 5. This Executive Order shall take effect immediately following its complete publication in two (2) newspapers of general circulation in the Philippines. ICHcTD DONE in the City of Manila, this 12th day of January, in the year of Our Lord, Two Thousand and Six. By the President: (SGD.) EDUARDO R. ERMITA Executive Secretary ANNEX "A" SENSITIVE AGRICULTURAL PRODUCTS GRANTED CONCESSION UNDER THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) FOR THE ASEAN FREE TRADE AREA (AFTA) HDG. APPLICABLE ASEAN CEPT NO. HS CODE DESCRIPTION 1 January of Year 2006 2007 2008 2009 2010 (1) (2) (3) (4) (5) (6) (7) (8) 02.03 Meat of swine, fresh, chilled or frozen. - Fresh or chilled: 0203.11.00 - - Carcasses and half- carcasses A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0203.12.00 - - Hams, shoulders and cuts thereof, with bone in A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0203.19.00 - - Other: A. Pork bellies a. In-Quota 30 30 30 20 5 b. Out-Quota 30 30 30 20 5 B. Fore-ends and cuts thereof a. In-Quota 30 30 30 20 5 b. Out-Quota 30 30 30 20 5 C. Other a. In-Quota 30 30 30 20 5 b. Out-Quota 30 30 30 20 5 - Frozen: 0203.21.00 - - Carcasses and half- carcasses A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0203.22.00 - - Hams, shoulders and cuts thereof, with bone in 30 30 30 20 5 A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0203.29 00 - - Other A. Pork bellies a. In-Quota 30 30 30 20 5 b. Out-Quota 30 30 30 20 5 B. Fore-ends and cuts thereof a. In-Quota 30 30 30 20 5 b. Out-Quota 30 30 30 20 5 C. Other a. In-Quota 30 30 30 20 5 b. Out-Quota 30 30 30 20 5 02.07 Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen. - Of fowls of the species Gallus domesticus: 0207.11.00 - - Not cut in pieces, fresh or chilled A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.12.00 - - Not cut in pieces frozen: A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.13.00 - - Cuts and offal, fresh or chilled A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.14 - - Cuts and offal, frozen: 0207.14.10 - - - Wings A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.14.20 - - - Thighs A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.14.30 - - - Livers A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.14.90 - - - Other A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 - Of turkeys: 0207.27 - - Cuts and offal, frozen: 0207.27.10 - - - Livers A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.27.90 - - - Other A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 - Of ducks, geese or guinea fowls: 0207.32 - - Not cut in pieces, fresh or chilled: 0207.32.10 - - - Of ducks A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.32.20 - - - Of geese or guinea fowls A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.35.00 - - Other, fresh or chilled A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 0207.36 - - Other, frozen: 0207.36.10 - - - Fatty livers A. In-Quota 30 30 30 20 5 B. Out-Quota 30 30 30 20 5 10.05 Maize (corn). 1005.90 - Other: 1005.90.90 - - Other A. In-Quota 35 35 35 30 5 B. Out-Quota 40 40 40 30 5