Modified Nomenclature and Rates of Import Duty on Used Motor Vehicles

April 4, 2005

EXECUTIVE ORDER NO. 419

MODIFYING THE TARIFF NOMENCLATURE AND RATES OF IMPORT DUTY ON USED MOTOR VEHICLES UNDER SECTION 104 OF THE TARIFF AND CUSTOMS CODE OF 1978 (PRESIDENTIAL DECREE NO. 1464, AS AMENDED)

WHEREAS, it is the policy of the State to maintain a balance between development and environmental protection, and hence, between motorization and air quality management; DAcSIC

WHEREAS, it is the policy of the State to protect the public against unreasonable risks to injury associated with consumer products;

WHEREAS, there is a need to mitigate the impact of used motor vehicle trading on air quality and road safety;

WHEREAS, Article II:1(b) of the 1994 General Agreement on Tariffs and Trade allows the unilateral imposition of other duties and charges on tariff items that were not previously the subject of concession;

WHEREAS, motor vehicles were not covered by Schedule LXXV — Philippine Schedule of Concessions and therefore, do not have tariff bindings;

WHEREAS, Section 401 of the Tariff and Customs Code of 1978, as amended, empowers the President of the Philippines to increase, reduce, or remove existing rates of import duty, as well as to modify the form of duty and to tariff nomenclature under Section 104 of the Code;

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, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the rates of import duty indicated opposite each article, except for trucks, buses and special purpose vehicles.

SECTION 2. In addition to the regular rates of import duty, 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 subject to additional specific duty of PP500,000.00.

SECTION 3. The amount of specific duty will be indexed by the Secretary of Finance once every two (2) years if the change in the exchange rate of the Philippine peso against the United States (U.S.) dollar is more than ten percent (10%) from the date of the effectivity of this Order, in the case of initial adjustment and from the last revision date in the case of subsequent adjustments.

In case the change in the exchange rate of the Philippine peso against the US dollar is more than twenty percent (20%) at any time within the two-year period referred to above, the Secretary of Finance shall index the amount by the full rate of depreciation or appreciation, as the case may be.

SECTION 4. The following motor vehicles shall be considered "used" and shall be subject to the duties herein prescribed: (a) all motor vehicles that have been sold, registered and operated in the roads/highways of any foreign state or country; or (b) all imported motor vehicles that has a mileage of more than 200 kilometers regardless of year model.

SECTION 5. Upon the effectivity of this Executive Order, the articles specifically listed in the aforesaid Annex, which are entered and withdrawn from warehouses in the Philippines, shall be levied the rates of import and specific duties herein prescribed.

SECTION 6. All Presidential issuances, administrative rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly.

SECTION 7. This Executive Order shall take effect thirty (30) days following its complete publication in two (2) newspapers of general circulation in the Philippines. TCADEc

Done in the City of Manila, this 4th day of April, in the year of Our Lord, Two Thousand and Five.

Published in The Manila Times on April 21, 2005.

ANNEX A

 

Hdg.	Tariff Code	Description	MFN Rate
				of Duty (%)
87.02		Motor vehicles for the transport of ten or more persons
		including the driver.
	8702.10	- With compression-ignition internal combustion piston engine
		(diesel or semi-diesel):
		- - For the transport of less than 16 persons:
		- - - Motor buses:
		- - - - CBU/Other:
	8702.10.06	- - - - - Of a gross vehicle weight not exceeding 5 t
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8702.10.07	- - - - - Of a gross vehicle weight exceeding 5 t but not
			exceeding 6 t
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, 6t, NEW	20
			Ex OF A CYLINDER CAPACITY' EXCEEDING
			3,200 cc, other, new	25
		- - - Other:
		- - - - CBU/Other:
	8702.10.15	- - - - - Of a gross vehicle weight not exceeding 5 t
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8702.10.16	- - - - - Of a gross vehicle weight exceeding 5 t but not
			exceeding 6 t
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, 6t, NEW	20
			Ex OF A CYLINDER CAPACITY EXCEEDING'
			3,200 cc, other, NEW	25
	8702.10.17	- - - - - Of a gross vehicle weight exceeding 6 t but not
			exceeding 24 t
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, exceeding 6 t but not exceeding 18t, NEW	20
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, exceeding 18 t but not exceeding 24 t, NEW	25
	8702.10.18		- - - - - Of a gross vehicle weight exceeding 24 t
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8702.90	- Other:
		- - For the transport of less than 16 persons:
		- - - Other:
	8702.90.22	- - - - CBU/Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
87.03		Motor cars and other motor vehicles principally designed for the
		transport of persons (other than those of heading 87.02),
		including station wagons and racing cars.
		- Other vehicles, with spark-ignition internal combustion
		reciprocating piston engine:
	8703.23	- - Of a cylinder capacity exceeding 1,500 cc but not
		exceeding 3,000 cc:
		- - - Motor cars (including station wagons, sports cars and
			racing cars) for the transport of 8 persons or less
			including the driver:
		- - - - CBU/Other:
	8703.23.23	- - - - - Of a cylinder capacity 2,000 cc and above but less than
			2,500 cc:
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8703.23.24	- - - - - Of a cylinder capacity 2,500 cc and above
			Ex NEW	35
		- - - Other, for the transport of 8 persons or less:
		- - - - Four wheel drive vehicles, CBU/Other:
	8703.23.33	- - - - Of a cylinder capacity 2,000 cc and above but less than
			2,500 cc
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8703.23.34	- - - - - Of a cylinder capacity 2,500 cc and above ex NEW	35
		- - - - Other:
	8703.23.43	- - - - - Of a cylinder capacity 2,000 cc and above but less than
			2,500 cc
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8703.23.44	- - - - - Of a cylinder capacity 2,500 cc and above
			Ex NEW	35
		- - - Other, for the transport of 9 persons including the driver:
		- - - Motor cars (including station wagons, sports cars and racing cars):
		- - - - - CBU/Other:
	8703.23.53	- - - - - - Of a cylinder capacity 2,000 cc and above but
			less than 2,500 cc
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8703.23.54	- - - - - - Of a cylinder capacity 2,500 cc and above
			Ex NEW	35
		- - - - Four wheel drive vehicles, CBU/Other:
	8703.23.63	- - - - - Of a cylinder capacity 2,000 cc and above but less than
			2,500 cc
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8703.23.64	- - - - - Of a cylinder capacity 2,500 cc and above
			Ex NEW	35
		- - - - Other:
	8703.23.73	- - - - - Of a cylinder capacity 2,000 cc and above but less than
			2,500 cc
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8703.23.74	- - - - - Of a cylinder capacity 2,500 cc and above
			Ex NEW	35
	8703.24	- - Of a cylinder capacity exceeding 3,000 cc:
		- - - Of a cylinder capacity exceeding 3,000 cc but not
			exceeding 4,000 cc:
		- - - - Motor cars (including station wagons, sports cars and
			racing cars) for the transport of 8 persons or less including
			driver:
	8703.24.22	- - - - - CBU/Other
			Ex NEW	35
		- - - - Other, for the transport of 8 persons or less:
	8703.24.32	- - - - - Four wheel drive vehicles, CBU/Other
			Ex NEW	35
	8703.24.34	- - - - - Other
			Ex NEW	35
		- - - - Other, for the transport of 9 persons including the driver:
	8703.24.42	- - - - - Four wheel drive vehicles, CBU/Other:
			Ex NEW	35
	8703.24.44	- - - - - Motor cars (including station wagons, sports cars and
			racing cars), CBU/Other
			Ex NEW	35
	8703.24.46	- - - - - Other:
			Ex NEW	35
		- - - Of a cylinder capacity exceeding 4,000 cc:
		- - - - Motor Cars (including station wagons, sports cars and
			racing cars) for the transport of 8 persons or less
			including driver:
	8703.24.62	- - - - - CBU/Other
			Ex NEW	35
		- - - - Other, for the transport of 8 persons or less:
	8703.24.72	- - - - - Four wheel drive vehicles, CBU/Other
			Ex NEW	35
	8703.24.74	- - - - - Other
			Ex NEW	35
		- - - - Other for the transport of 9 persons including the driver:
	8703.24.82	- - - - - Four wheel drive vehicles, CBU/Other
			Ex NEW	35
	8703.24.84	- - - - - Motor cars (including station wagons, sports cars and
			racing cars), CBU/Other Ex NEW	35
	8703.24.86	- - - - - Other
			Ex NEW	35
		- Other vehicles, with compression-ignition internal
		combustion piston engine (diesel or semi-diesel):
	8703.33	- - Of a cylinder capacity exceeding 2,500 cc:
		- - - Of a cylinder capacity exceeding 3,000 cc but not
			exceeding 4,000 cc:
		- - - - Motor cars (including station wagons, sports cars and
			racing cars) for the transport of 8 persons or less
			including driver:
	8703.33.52	- - - - - CBU/Other, new
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc	35
		- - - - Other, for the transport of 8 persons or less:
	8703.33.55	- - - - - Four wheel drive vehicles, CBU/Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
	8703.33.57	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
		- - - - Other, for the transport of 9 persons including the driver:
	8703.33.59	- - - - - Four wheel drive vehicles, CBU/Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
	8703.33.62	- - - - - New motor cars (including station wagons sports cars and
			racing cars); CBU/Other
			EX OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
	8703.33.65	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
		- - - - Of a cylinder capacity exceeding 4,000 cc:
		- - - - Motor cars (including station wagons, sports cars
			and racing cars) for the transport of 8 persons or less
			including the driver:
	8703.33.82	- - - - - CBU/Other, new	35
		- - - - Other, for the transport of 8 persons or less:
	8703.33.85	- - - - - Four wheel drive vehicles, CBU/Other
			Ex NEW	35
	8703.33.87	- - - - Other
			Ex NEW	35
		- - - - Other, for the transport of 9 persons including the driver:
	8703.33.89	- - - - - Four wheel drive vehicles, CBU/Other Ex NEW
	8703.33.92	- - - - - New motor cars (including station wagons, sports cars
			and racing cars), CBU/Other	35
87.04		Motor vehicles for the transport of goods.
		- Other with compression ignition internal combustion piston
		engine (diesel or semi-diesel);
	8704.21	- - g.v.w. not exceeding 5 t.
		- - - Complete Built Up (CBU)/Other:
	8704.21.25	- - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
	8704.21.26	- - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
	8704.21.29	- - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
	8704.22	- - g.v.w. exceeding 5 but not exceeding 20 t:
		- - - Completely Built-Up (CBU)/Other:
		- - - - g.v.w. not exceeding 6 t:
	8704.22.45	- - - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc NEW	35
	8704.22.46	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
	8704.22.49	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	35
		- - - - g.v.w. exceeding 6 t but not exceeding 10 t:
	8704.22.55	- - - - - Other vans, pick-up trucks And similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.22.56	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.22.59	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
		- - - - g.v.w. exceeding 10 t but not exceeding 20 t:
	8704.22.65	- - - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER-CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.22.66	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.22.69	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.23	- - g.v.w exceeding 20 t:
		- - - - Completely Built Up (CBU)/Other:
		- - - - g v.w. not exceeding 24 t:
	8704.23.35	- - - - - Other vans pick up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.23.36	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.23.39	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
		- - - - g.v.w. exceeding 24 t:
	8704.23.45	- - - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.23.46	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
	8704.23.49	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			3,200 cc, NEW	25
		- Other, with spark-ignition internal combustion piston engine:
	8704.31	- - g.v.w. not exceeding 5 t:
		- - - Completely Built Up (CBU)/Other:
	8704.31.25	- - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8704.31.26	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8704.31.29	- - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8704.32	- - g.v.w. exceeding 5 t:
		- - - Completely Built-up (CBU)/Other:
		- - - - g.v.w. not exceeding 6 t:
	8704.32.58	- - - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc NEW	35
	8704.32.61	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
	8704.32.62	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	35
		- - - - g.v.w. exceeding 6 t; but not exceeding 10 t:
	8704.32.67	- - - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100, NEW	25
	8704.32.68	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
	8704.32.69	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
		- - - - g.v.w. exceeding 10 t but not exceeding 20 t:
	8704,32,75	- - - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY' EXCEEDING
			2,100 cc, NEW	25
	8704.32.76	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
	8704.32.77	- - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
		- - - g.v.w. exceeding 20 but not exceeding 24 t:
	8704.32.84	- - - - - Other vans, pick-up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
	8704:32.85	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
	8704.32.86	- - - - - - Other
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
		- - - g.v.w. exceeding 24 t.
	8704.32.93	- - - - - Other vans, pick up trucks and similar vehicles
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
	8704.32.94	- - - - - Ordinary lorries (trucks)
			Ex OF A CYLINDER CAPACITY EXCEEDING
			2,100 cc, NEW	25
	8704.32.95	- - - - - Other
			Ex OF A CYLINDER CAPACITY, EXCEEDING
			2,100 cc, NEW	25
87.11		Motorcycles (Including mopeds) and cycles fitted with an
		auxiliary motor, with or without side-cars; side-cars.
	8711.30	- With reciprocating internal combustion piston engine of a
		cylinder capacity exceeding 250 cc but not exceeding 500 cc.
	8711.30.30	- - Other, CBU/Other	35
	8711.40	-With reciprocating internal combustion piston engine of a
		cylinder capacity exceeding 50 cc but not exceeding 500 cc.
	8711.40.30	- - Other, CBU/Other	35
	8711.50	- With reciprocating internal combustion piston engine of a cylinder
		capacity exceeding 800 cc:
	8711.50.30	- - Other, CBU/Other	35