Modified Rates of Duty on Certain Imported Articles under P.D. No. 1464

November 5, 2006 EXECUTIVE ORDER NO. 575 MODIFYINGTHE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMSCODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THEASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF HONDA CARS PHILIPPINES, INC. (HCPI) AND HONDA PARTS MANUFACTURINGCORPORATION (COE NO. HONDA/2006/46) WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the ASEAN Industrial Cooperation Scheme (AICO) signed in Singapore on 27 April 1996; CDISAc WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Honda Cars Philippines, Inc. along with Indonesia; WHEREAS, under the Honda AICO Certificate of Eligibility No. Honda/2006/46, the Philippines (Honda Cars Philippines, Inc. and Honda Parts Manufacturing Corporation) will import from Indonesia (PT. Honda Prospect Motor and PT. Honda Precision Parts Manufacturing) certain original equipment manufacture (OEM) automotive parts/components for Honda Civic, Honda City and Honda CR-V. In exchange, Indonesia (PT. Honda Prospect Motor and PT. Honda Precision Parts Manufacturing) will import from the Philippines complementary parts/components for the OEM of Honda CR-V, Jazz and Stream; WHEREAS, AICO Certificate of Eligibility No. Honda/2006/46 was issued on 19 July 2006, in favor of the participating companies in the Honda AICO Arrangement; WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, as amended, participating companies in the approved Honda AICO Arrangements shall qualify for 0% preferential tariff rate to be extended by Indonesia and the Philippines as participating countries. NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, 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 the AICO rate of 0% on parts/components as specified in Column 5 thereof. TcIHDa SECTION 2. The AICO rate provided in Annex "A" shall be accorded to the AICO entity in Indonesia (PT Honda Prospect Motor and PT Honda Precision Parts Manufacturing) upon the effectivity of this Executive Order. SECTION 3. 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 AICO preferential tariff rates specified under Section 1 hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin-Form " D ". SECTION 4. 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 5. This Executive Order shall take effect immediately after its publication in two (2) national newspapers of general circulation in the Philippines. DONE in the City of Manila, this 5th day of November, in the year of Our Lord, Two Thousand and Six. ANNEX A ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME OF HONDA CARS PHILIPPINES, INC. (HCPI) Recommended AHTN Model/Type Product Description Source Country/ AICO Preferential HDG. NO. (AICO Company) Rate (%) (1) (2) (3) (4) (5) 8703.9026A Honda City Various Components/Parts: Indonesia/ 0 Passenger cars KNUCKLE COMP, R FR (ABS) (Honda Prospect KNUCKLE COMP, R FR Motor /PT. KNUCKLE COMP, R FR Honda Precision Parts KNUCKLE COMP, L FR (ABS) Manufacturing KNUCKLE COMP, L FR KNUCKLE COMP, L FR 8708.90.27A Honda Civic Various Components/Parts: Indonesia/ 0 passenger cars AT MISS, ASSY 1.8L (Honda Prospect KNUCKLE R FR Motor /PT. KNUCKLE L FR Honda Precision Parts Manufacturing 8703.90.28A Honda Civic AT MISS, ASSY 2.0L Indonesia/ 0 passenger cars KNUCKLE R FR (Honda Prospect KNUCKLE L FR Motor /PT. Honda Precision Parts Manufacturing 8703.9041A CR-V Light Various Components/Parts: Indonesia/ 0 Commercial AT MISS ASSY (Honda Prospect Vehicle MAINSHAFT Motor /PT. COUNTERSHAFT Honda Precision Parts GEAR, COUNTER 2ND Manufacturing GEAR, COUNTER 5TH GEAR COMP, MAIN 5TH GEAR, TRANSFER DRIVE DIFF.ASSY GEAR, FINAL DRIVEN GEAR, COUNTER LOW GEAR COMP, MAIN 3RD GEAR COMP, MAIN 4TH 8703.9041A CR-V Light Various Components/Parts: Indonesia/ 0 Commercial GEAR, COUNTER 3RD (Honda Prospect Vehicle GEAR, COUNTER 4TH Motor /PT. KNUCKLE COMP, R RR ABS Honda Precision Parts KNUCKLE COMP, L RR ABS Manufacturing HOOD, COMP PANEL R, FR FENDER PANEL L, FR FENDER PANEL, ROOF PANEL R, RR INSIDE PANEL L, RR INSIDE FLOOR, FRONT FLOOR, REAR TAIL GATE COMP LID ASSY, CARGO FLOOR 8703.9052A CR-V Light AT MISS ASSY Indonesia/ 0 Commercial MAINSHAFT (Honda Prospect Vehicle COUNTERSHAFT Motor /PT. GEAR, COUNTER 2ND Honda Precision Parts GEAR, COUNTER 5TH Manufacturing GEAR COMP, MAIN 5TH DIFF.ASSY GEAR, FINAL DRIVEN KNUCKLE COMP, R RR ABS KNUCKLE COMP, L RR ABS FLOOR, REAR GEAR, COUNTER LOW GEAR COMP, MAIN 3RD GEAR COMP, MAIN 4TH GEAR, COUNTER 3RD GEAR, COUNTER 4TH KNUCKLE COMP, R RR ABS KNUCKLE COMP, L RR ABS 8703.9052A CR-V Light Various Components/Parts: Indonesia/ 0 Commercial HOOD, COMP (Honda Prospect Vehicle PANEL R, FR FENDER Motor /PT. PANEL L, FR FENDER Honda Precision Parts PANEL, ROOF Manufacturing PANEL R, RR INSIDE PANEL L, RR INSIDE FLOOR, FRONT FLOOR, REAR TAIL GATE COMP. LID ASSY, CARGO FLOOR Published in The Manila Times on January 5, 2007 .