Modifying the Rates of Import Duty on Certain Imported Articles Re: 4th ACOTT Meeting

December 21, 1977 EXECUTIVE ORDER NO. 492 MODIFYING THE RATES OF IMPORTDUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER REPUBLIC ACT NO.1937, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMSCODE OF THE PHILIPPINES, AS AMENDED, IN ORDER TO IMPLEMENTTHE MARGINS OF TARIFF PREFERENCE IN ACCORDANCEWITH THE ASEAN AGREEMENT ON PREFERENTIAL TRADINGARRANGEMENTS WITH RESPECT TO CERTAINARTICLES NEGOTIATED DURING THE FOURTH MEETING OF THE ASEAN COMMITTEE ONTRADE AND TOURISM Pursuant to the powers vested in me by Section 402 of Republic Act No. 1937, as amended, I, FERDINAND E. MARCOS, President of the Philippines, do hereby direct and order; cd SECTION 1. The articles specifically listed in Annex "A" hereof as classified under Section 104 of Republic Act No. 1937, as amended, shall be accorded the margin of tariff preference as specified in column 4 of said Annex "A" hereof. In effect, such articles shall be subject to the Preferential Tariff for ASEAN indicated in Column 5 of said Annex A. casia SECTION 2. In the event that any subsequent changes are made in the basic Philippine rate of duty on any of the abovementioned articles such articles shall automatically be accorded the corresponding margins of preference indicated in column 4 of Annex A. SECTION 3. After the effective date of this Order, all the above-described articles entered or withdrawn from warehouse in the Philippines for consumption shall be subject to the rates of import duty herein prescribed subject to qualification under the Rules of Origin as prescribed in the Agreement on ASEAN Preferential Trading Arrangements ratified on August 1, 1977. SECTION 4. This Order shall take effect as of 1 January 1978. Done in the City of Manila, this 21st day of December, in the year of Our Lord, nineteen hundred and seventy-seven. ANNEX A Present Preferential Product Rate of Margin of Tariff for BTN Description Duty Preference ASEAN ex. 02.01 Meat or Offal from 10% 30% 7% bovine cattle cda ex. 07.05 B Mongo beans (green and yellow) 70% 20% 56% 10.05 Maize 70% 20% 56% ex. 15.07 Palm oil (crude and refined) 20% 20% 16% ex. 15.07 Palm kernel oil 20% 20% 16% ex. 25.20 Crude gypsum 20% 20% 16% 27.01 Anthracite coal 10% 20% 8% ex. 27.13 Paraffin wax 20% 10% 18% ex. 40.11 A Tractor tires 20% 10% 18% 70.06 B Cast, rolled, drawn acd or blown glass (including flashed or wired glass) in rectangles, surface ground or polished but not further worked 70% 30% 49% 70.10 B Glass jars for baby foods 50% 20% 40% ex. 84.51 Portable electric typewriters 20% 20% 16% ex. 84.62 Ball bearings 10% 10% 9% ex. 85.24 Graphite and carbon electrodes 30% 10% 27% EXHIBIT I Resins, Inc. Projected Income Statement Based on 10% and 30% Tariff, Rate SALES 10% 30% QTY. AMOUNT AMOUNT (MT) (P/000) (P 000) Export 1,200 3,555 3,555 Domestic 3,000 12,639 14,976 Interplant Transfer 3,000 12,261 14,529 TOTAL 7,200 28,455 33,060 LESS: Cost of Sales Raw Materials (Net of duty drawback) 19,380 19,380 Direct Labor 259 259 Utilities and Fuel 4,716 4,716 Indirect Labor 430 430 Supplies 420 420 Insurance 122 122 Repairs and Maintenance 775 775 Depreciation 1,524 1,524 Other Expenses 390 390 TOTAL 28,016 28,016 Gross Profit 435 5,044 Loss: Administrative Expenses 636 636 Financial Charges 1,264 1,264 TOTAL 1,900 1,900 Net Income (loss) Before Tax (1,461) 3,144 Income Tax Due 1,090 Net Income After Tax 2,054