Modifying the Rates of Duty on Certain Imported Articles as Provided under the Tariff and Customs Code of 1978, as Amended, in Order to Implement the Preferential Tariff Rates on Certain Products under the ASEAN Industrial Cooperation (AICO) Scheme, in Favor of Toyota Motor Philippine Corporation (Toyota), Honda Cars Philippines, Inc. (Honda), and Nissan Motor Philippines, Inc. (Nissan)

March 18, 2002 EXECUTIVE ORDER NO. 87 MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMS CODE OF 1 97 8, AS AMENDED, IN ORDER TO IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF TOYOTA MOTOR PHILIPPINE CORPORATION (TOYOTA), HONDA CARS PHILIPPINES, INC. (HONDA), AND NISSAN MOTOR PHILIPPINES, INC. (NISSAN) 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; WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Toyota Motor Philippines Corporation, along with Indonesia and Thailand; in the approved AICO Arrangement of Honda Cars Philippines, Inc. along with Malaysia and Indonesia; and in the approved AICO Arrangement of Nissan Motor Philippines, Inc. along with Malaysia; WHEREAS, under the Toyota AICO Arrangement, it was agreed that the Philippines (Toyota Motor Philippines Corporation and Toyota Autoparts Philippines) will import from Indonesia (PT. Toyota Astra Motor) and Thailand (Toyota Motor Thailand Co. Ltd. and Siam Toyota Manufacturing Co.,Ltd.) certain original equipment manufacture (OEM) automotive parts/components for Corolla passenger cars (HS 8703.90 10).In exchange, Indonesia and Thailand will import from the Philippines complementary component parts for the OEM of Corolla and Kijang; WHEREAS, under the Honda AICO Arrangement, the Philippines (Honda Cars Philippines, Inc.) will import from Indonesia (PT. Honda Prospect Motor) and Malaysia (Oriental Assemblers Sdn. Bhd.,and Honda Autoparts Manufacturing (M) Sdn. Bhd.) certain original equipment manufacture (OEM) automotive parts/components for Honda Civic passenger cars (HS 8703.90 10).In exchange, Indonesia and Malaysia will import from the Philippines complementary component parts for the OEM of Honda Civic; aTEADI WHEREAS, under the Nissan AICO Arrangement, the Philippines (Nissan Motor Philippines, Inc.) will import from Malaysia (Tan Chong Motor Assemblies Sdn. Bhd. and Nippon Wiper Blade [Malaysia] Sdn. Bhd.) certain original equipment manufacture (OEM) automotive parts/components for Nissan Sentra passenger cars (HS 8703.90 10).In exchange, Malaysia will import from the Philippines complementary component parts for the OEM of Nissan Sentra; WHEREAS, AICO Certificate of Eligibility Nos. Toyota/2001/20 and Toyota /2001/22 were issued on 17 April 2001, in favor of the participating companies in the Toyota AICO Arrangement; AICO Certificate of Eligibility Nos. Honda/2001/10(A) and Honda/2001/11(A) were re-issued on 19 June 2001 and 28 November 2000, respectively, nullifying AICO Certificate of Eligibility Nos. Honda/2001/10 and Honda/2001/11 issued on 05 October 2000, in favor of the participating companies in the Honda AICO Arrangement; and AICO Certificate of Eligibility No. Nissan/2001/4 was issued on 29 May 2001, in favor of the participating companies in the Nissan AICO Arrangement; WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement of the AICO Scheme, participating companies in the approved Toyota, Honda and Nissan AICO Arrangements shall qualify for 0-5% preferential tariff rates to be extended by Indonesia, Thailand and the Philippines for Toyota; Indonesia, Malaysia and the Philippines for Honda; and Malaysia and the Philippines for Nissan as participating countries, effective within 45 days from the date of issuance of the Certificate of Eligibility by the ASEAN Secretariat. 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 5% on parts/components of Toyota Corolla passenger cars as specified in Column 6 thereof. SECTION 2. The AICO rate provided in Annex "A" shall be accorded to the AICO entity in Indonesia (PT. Toyota Astra Motor),and in Thailand (Toyota Motor Thailand, Co. Ltd. and Siam Toyota Manufacturing Co.,Ltd.) effective 17 April 2001. SECTION 3. The articles specially listed in Annex "B" hereof, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of 5% on parts/components of Honda Civic passenger cars as specified in Column 6 thereof. HCATEa SECTION 4. The AICO rate provided in Annex "B" shall be accorded to the AICO entities in Malaysia (Oriental Assemblies Sdn. Bhd.,Honda Autoparts Manufacturing (M) Sdn. Bhd.,and in Indonesia (PT. Honda Prospect Motor) effective 5 October 2000. SECTION 5. The articles specially listed in Annex "C" hereof, as classified under section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of 5% on parts/components of Nissan Sentra passenger cars as specified in Column 6 thereof. SECTION 6. The AICO rate provided in Annex "C" shall be accorded to the AICO entities in Malaysia (Tan Chong Motor Assemblies Sdn. Bhd. and Nippon Wiper Blade (Malaysia) Sdn. Bhd.) effective 29 May 2001. SECTION 7. In the event that any subsequent changes are made in the basic (Most Favored Nation) Philippine rate of duty on any of the articles listed in Annexes "A, B and C" ,to a rate lower than the AICO rate prescribed in Column 6 of Annexes "A, B and C" ,such articles shall automatically be accorded the corresponding reduced rate of duty. Effective 1 January 2003, the final CEPT rate on the subject articles shall apply. SECTION 8. Upon the effectivity of this Executive Order, the articles specially listed in the aforesaid Annexes "A, B and C " 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 9. Any revision/s to the part numbers appearing in Column 4 of Annexes "A, B and C" shall be communicated immediately to the Bureau of Customs by the Board of Investments within five (5) days after receipt of the official copy of the revised part numbers from the ASEAN Secretariat. SECTION 10. The Secretary of Finance in consultation with the National Economic & Development Authority (NEDA) shall issue the appropriate guidelines to implement and rationalize the preferential tariff privilege herein granted. SECTION 11. This Executive Order shall take effect immediately. DONE in the City of Manila, this 18th day of March, in the year of Our Lord, Two Thousand and Two. Published in the Manila Times and the Manila Standard on April 17, 2002. Annex "A" ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED TOYOTA AICO SCHEME APPLICABLE SOURCE AICO HS Code Model/ PRODUCT/ Part No. COUNTRY PREFERENTIAL Type PART NAME (AICO COMPANY) TARIFF (%) (1) (2) (3) (4) (5) (6) 8703.90 10 Corolla Various Components/Parts, Indonesia 5 Passenger (P.T. Toyota Car Cover Assy, Clutch 31210 Astra Motor Disc Assy, Clutch 31250 [TAM]) Body Assy, Throttle 22210 Body Assy, Throttle 22210 Canister Assy, Charcoal 77740 Flywheel 13405 Belt, V-Ribbed 90080 Plug, Spark 90080 Horn Assy, Low Pitched 86520 Lamp Assy, Courtesy 81230 Adjuster Sub-Assy, Fr Seat, Outer Rh 72011 Adjuster Sub-Assy, Fr Seat, Outer Lh 72012 Adjuster Sub-Assy, Fr Seat, Outer Lh 72012 Adjuster Sub-Assy, Fr Seat, Inner Rh 72021 Adjuster Sub-Assy, Fr Seat, Inner Lh 72022 Adjuster Sub-Assy, Fr Seat, Inner Lh 72022 Handle, Seat Track Adjusting 72211 Pipe Sub-Assy, Reclining Connecting 72501 Reinforce Sub-Assy, Fr Body Pir, Ctr 61037 Reinforce Sub-Assy, Ctr Body Pir, Inn Lh 61038 Reinforcement, Roof Side Rail, Outer Rh 61245 Reinforcement, Roof Side Rail, Outer Lh 61248 Reinforce Sub-Assy, Rocker, Outer Rh 61403 Reinforce Sub-Assy, Rocker, Outer Lh 61404 Shield, Fr Seat Cushion, Lwr Rh 71873 Shield, Fr Seat Cushion, Lwr Lh 71874 Cover, Seat Track Bracket, Inner Fr 72127 Cover, Seat Track Bracket, Inner Rh 72157 Cover, Seat Track Bracket, Inner Lh 72158 Louver Sub-Assy, Cowl Top Ventilator, Rh 55708 Shield, Cowl Vent Splash, Rh 55751 8703.90 10 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car Insulator, Engine Mt, Fr 12361 Motor Co. Insulator, Engine Mt, Fr 12361 Thailand Insulator, Engine Mt, Rr 12371 [TMT]) Insulator, Engine Mt. Rr 12371 Insulator, Engine Mt, Lh 12372 Fan Assy, W/Motor 16360 Support Sub-Assy, Radiator, Lwr 16504 Cushion Radiator Support 16523 Support Radiator 16533 Hose Radiator No. 1 16571 Hose Radiator No. 2 16572 Hose, Air Cleaner 17881 Coverter Assy, Monolithic 18450 Cable Assy, Transmission Control 33820 Cable Assy, Transmission Control 33820 Beam Assy, Rr Axle 42110 Beam Assy, Rr Axle 42110 Ornament S/A, Wheel Hub 42603 Ornament S/A, Wheel Hub 42603 Bracket Assy Strg Column Upr W/Switch 45020 Bracket Assy Strg Column Upr W/Switch 45020 Wheel Assy; Steering 45100 Wheel Assy, Steering 45100 Wheel Assy, Steering 45100 Button Assy, Horn 45130 Pad Assy, Steering Wheel 45130 Cover, Steering Column, Upr 45286 Cover, Steering Column, Lwr 45287 Lever Assy, Parking Brake 46210 Lever Assy, Parking Brake 46210 8703.90 10 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car Cylinder Assy, Brake Master 47200 Motor Co. Cylinder Assy, Brake Master 47200 Thailand Cylinder Assy, Brake Master 47200 (TMT]) Cylinder Assy, Brake Master 47200 Insulator, Fr Coil Spring, Upr 48157 Insulator, Fr Coil Spring, Lwr 48158 Insulator, Rr Coil Spring 48257 Absorber Assy, Shock, Fr 48510 Absorber Assy, Shock, Fr Lh 48520 Absorber Assy, Shock, Rr Rh 48530 Support Assy, Rr Suspension 48750 Support Assy, Rr Suspension 48755 Bar, Stabilizer 48811 Bar, Stabilizer, Rr 48812 Bush, Stabilizer Bar 48815 Cover Engine Under, Rh 51441 Cover Engine Under, Lh 51442 Cover Engine Under, Lh 51442 Cover, Fr Bumper 52119 Cover, Rr Bumper 52159 Arm Rr Bumper, Rh 52181 Grill Radiator 53111 Seal Hood, To Radiator Support 53381 Cable Assy, Hood Lock Control 53630 Insulator Assy, Dash Panel 55210 R/F Fr Floor Under, Rh 57417 Member Fr Floor Cross, Rh 57451 Member Fr Floor Cross, Lh 57452 Member Fr Floor Cross, Lh 57452 8703.9010 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car R/F S/A Fr Floor, Ctr 57509 Motor Co, Pan, Fr Floor 58111 Thailand Pan, Ctr Floor 58211 [TMT]) Pan, Ctr Floor 58211 Pan, Rr Floor 58311 Pan, Rr Floor 58311 Panel Rr Floor Side, Rh 58313 Panel Rr Floor Side, Lh 58314 Panel Body, Lwr Back 58371 Ret Lug Compt Dr Lock Striker 56373 R/F Body Lwr Back Panel 58375 Cover, Luggage Compartment Side, Rh 58773 Rf S/A. Fr Body Pir Lwr, Rh 61108 Rf S/A. Fr Body Pir Lwr, Lh 61109 Panel, Side Outer, Rh 61111 Panel, Side Outer, Rh 61111 Panel, Side Outer, Lh 61112 Panel, Side Outer, Lh 61112 Panel, Side Outer, Lh 61112 Panel Cowl Side, Rh 61121 Panel Cowl Side, Lh 61122 Gusset, Fr Body Pillar, Upr Inner, Rh 61143 Gusset, Fr Body Pillar, Upr Inner, Lh 61144 Pillar Fr Body Upr Inner, Rh 61161 Pillar Fr Body Upr Inner, Lh 61162 Panel, Quarter, Rh 61611 Panel, Quarter, Rh 61611 Panel, Quarter, Lh 61612 Panel, Quarter, Lh 61612 8703.90 10 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car Gusset Quarter Wheel Rr, Rh 61645 Motor Co. Gusset Quarter Wheel Fr, Rh 61646 Thailand Panel Roof Side Inner, Rh 61731 [TMT]) Panel Roof Side Inner, Lh 61732 Panel Roof Side Inner Rr, Rh 61735 Panel Roof Side Inner Rr, Lh 61736 R/F Back Window Opening, Rh 61741 R/F Back Window Opening, Lh 61742 Board, Cowl Side Trim, Rh 62111 Board, Cowl Side Trim, Lh 62112 Garnish, Center Pillar, Lwr Rh 62413 Garnish, Center Pillar, Lwr Lh 62414 Garnish, Roof Side, Inner Rh 62471 Garnish, Roof Side, Inner Lh 62472 Pad, Roof Side Inner Garnish 62475 Panel Roof 63111 Panel Windshield Header Inner 63132 Frame Back Window, Upr 63133 R/F Roof Panel Center 63141 R/F Roof Panel No. 3 63143 R/F Roof Panel No. 4 63144 Headlining Assy, Roof 63310 Headlining Assy, Roof 63310 Pad, Roof Silencer 63341 Pad, Roof Silencer, No. 2 63342 Pad, Roof Silencer, Rr 63343 Pad, Roof Headlining 63351 Panel Upper Back 64111 Panel Upper Back Inner 64112 8703.90 10 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car Reinforcement, Upper Back 64115 Motor Co. Panel Assy, Package Tray Trim 64330 Thailand Pad, Package Tray Trim Silencer 64334 [TMT]) Arm S/A, Lug Compt Dr Hinge 64503 Bar, Hinge Torsion, Rh 64531 Bar, Hinge Torsion, Lh 64532 Cable S/A, Luggage Door Control 64607 Lock Assy, Luggage Compt. Door 64610 Cover Assy, Luggage Compt. Trim, Rh 64710 Mat, Luggage Compartment Floor 64711 Cover, Luggage Compt Trim Fr 64717 Cover Assy, Luggage Compt. Trim, Lh 64720 Cover, Rr Combination Lamp Service, Rh 64745 Cover, Rr Combination Lamp Service, Lh 64746 Cover, Spare Wheel 64771 Panel Fr Door Outside, Rh 67111 Panel Fr Door Outside, Lh 67112 Panel Rr Door Outside, Rh 67113 Panel Rr Door Outside, Lh 67114 Panel Fr Door Inside, Rh 67141 Panel Fr Door Inside, Lh 67142 Panel Rr Door Inside, Rh 67143 Panel Rr Door Inside, Lh 67144 Beam S/A Door Side Impact Prot, Rh 67301 Beam S/A Door Side Impact Prot, Lh 67302 Beam S/A Rr Door Prot, Rh 67303 Beam S/A Rr Door Prot, Lh 67304 Reinforcement, Rr Door Lock, Rh 67337 Reinforcement, Rr Door Lock, Lh 67338 8703.90 10 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car Weatherstrip, Fr Door, Rh 67861 Motor Co. Weatherstrip, Fr Door, Lh 67862 Thailand Weatherstrip, Rr Door, Rh 67871 [TMT)) Weatherstrip, Rr Door, Lh 67872 Run, Fr Door Glass, Rh 68141 Run, Rr Door Glass, Rh 68142 Run, Fr Door Glass, Lh 68151 Run, Rr Door Glass, Lh 68152 Cylinder & Key Set 69005 Shield, Fr Seat Cushion, Rh 71811 Shield, Fr Seat Cushion, Lh 71812 Shield, Fr Seat Cushion, Inner Rh 71861 Shield, Fr Seat Cushion, Inner Lh 71862 Knob, Vertical Seat Adjuster 72457 Handle, Fr Seat Back Lock 72525 Handle, Reclining Adjuster Release, Lh 72526 Striker, S/A, Rr Seat Back Lock 72601 Adjuster Assy, Fr Shoulder Belt Anchor 73200 Belt Assy, Fr Seat Outer, Rh 73210 Belt Assy, Fr Seat Outer, Lh 73220 Belt Assy, Rr Seat Lap Type, Ctr W/Inner 73300 Belt Assy, Rr Seat Outer, Rh 73360 Reinforcement, Door Armset No. 1, Rh 74217 Reinforcement, Door Armset No. 1, Lh 74218 Reinforcement, Door Armset No. 2 74219 Visor Assy, Rh 74310 Visor Assy, Lh 74320 Visor Assy, Lh 74320 Visor Assy, Lh 74320 8703.90 10 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car Label, Passenger Air Bag, Caution 74598 Motor Co. Emblem, Radiator Grill 75311 Thailand Plate, Luggage Compt Door Name No. 2 75442 (TMT]) Plate, Luggage Compt Door Name No. 4 75444 Pipe S/A. Fuel Tank Filler 77011 Cable Sub-Assy, Fuel Lid Lock Control 77035 Fuel Tank, Fr 77111 Fuel Tank, Rr 77112 Plate F/Tank Separating No. 2 77122 Tube S/A, Fuel Suction 77203 Pipe Assy Fuel Tank Filler 77210 Cable Assy, Accelerator Control 78180 Head Lamp Assy, Rh 81110 Head Lamp Assy, Lh 81150 Lamp Assy, Map 81260 Lamp Assy, Rr Combination, Rh 81550 Lamp Assy, Rr Combination, Lh 81560 Lamp Assy, Rr, Rh 81580 Lamp Assy, Rr, Lh 81590 Lamp Assy, Side Turn Signal 81730 Switch Assy, Courtesy Lamp 84231 Switch Assy, Courtesy Lamp 84231 Switch Assy, Stop Lamp 84340 Mirror Assy, Inner Rr View 87810 Cover, Inner Mirror Stay 87834 Mirror Assy, Outlet Rr View, Rh 87910 Cover, Outer Mirror, Rh 87915 Cover, Outer Mirror, Rh 87915 Mirror Assy, Outer Rr View, Lh 87940 8703.90 10 Corolla Various Components/Parts: Thailand 5 Passenger (Toyota Car Cover, Outer Mirror, Lh 87945 Motor Co. Cover, Outer Mirror, Lh 87945 Thailand Emblem Symbol 90975 [TMT)) 8703.90 10 Corolla Various Components/Parts: Siam 5 Passenger (Toyota Car Gasket, Cylinder Head Cover 11213 Manufacturing Piston 13211 Co. Pin, Piston 13251 [SMT]) Sprocket, Crankshaft Timing 13521 Hose, Water By-Pass No. 1 16261 Hose, Water By-Pass No. 1 16261 Hose, Water By-Pass No. 2 16264 Hose, Water By-Pass No. 2 16264 Gasket, Oil Filter Cap 90080 Filter, Oil 90080 Annex "B" ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED HONDA AICO SCHEME APPLICABLE SOURCE AICO HS Code Model/ PRODUCT/ Part No. COUNTRY PREFERENTIAL Type PART NAME (AICO COMPANY) TARIFF (%) (1) (2) (3) (4) (5) (6) 8703.90 10 CIVIC Various Components/Parts: Malaysia 5 (Honda Autoparts Face, FR Bumper 71101-S5A-0000MA Manufacturing Sdn. Face RR BPR 71501-S5A-0000MA Bhd.) 8703.90 10 CIVIC Various Components/Parts: Indonesia 5 Wheel Assy, Strg 78500-SV4-0030 (P.T. Honda Prospect Pad Comp Strg Wheel 78530-SV4-0030 Motor) Annex "C" ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED NISSAN AICO SCHEME APPLICABLE SOURCE AICO HS Code Model/ PRODUCT/ Part No. COUNTRY PREFERENTIAL Type PART NAME (AICO COMPANY) TARIFF (%) (1) (2) (3) (4) (5) (6) 8703.90 10 SENTRA Various Components/Parts: Malaysia 5 (Tan Chong Motor Vehicle Part Lamp Assy-Room 26410 8M600 Assemblies Sdn. Bhd.) Vehicle Part Lamp Assy-Lic Plate 26510 4M500 and Vehicle Part Lamp Assy-Stop, High Mtg 26590 4M500 (Nippon Wiper Blade) Vehicle Part Arm Assy-WS Wipr, Driver 288818M500 Vehicle Part Blade Assy-WS Wiper 28890 8M500 Vehicle Part Arm Assy-WS Wipr, Asst 28886 8M500 Vehicle Part Blade Assy-WS Wiper 28890 8M510 Unit Gear & Linkg Assy-PS 490018M700 Vehicle Part Cover-Fr Door Corner, Inr, RH 80292 BM600 Vehicle Part Cover-Fr Door Corner, Inr, LH 80293 BM600 Body Panel Part Shell Fuel Tank Upper 17205 8M600 Body Panel Part Shell Fuel Tank Lower 17206 8M700 Body Panel Part Hoodledge Upr, RH 64112 5M000 Body Panel Part Hoodledge Upr, LH 64113 5M000 Body Panel Part Hoodledge Lwr, FR RH 64132 5M000 Body Panel Part Hoodledge Lwr, FR LH 64133 5M000 Body Panel Part Hoodledge Lwr, RR RH 64142 5M000 Body Panel Part Hoodledge Lwr, RR LH 64143 5M000