Modifying the Rates of Duty on Certain Imported Articles Re: AICO Scheme for Honda

December 30, 2003

EXECUTIVE ORDER NO. 260

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 HONDA CARS PHILIPPINES, INC. (HCPI)-(COE NOS. HONDA/2003/27 AND HONDA/2003/29)

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; IcCDAS

WHEREAS, the Philippines is a participating country in the approved AICO Arrangements of Honda Cars Philippines, Inc. (HCPI) along with Thailand and Malaysia;

WHEREAS, under the Honda AICO Arrangement, the Philippines (Honda Cars Philippines, Inc.) will import from Thailand (Honda Automobile (Thailand) Co. Ltd.) and Malaysia (Honda Malaysia Sdn. Bhd.) certain original equipment manufacture (OEM) automotive parts/components for Honda Civic passenger cars (HS 8703.90 10).In exchange, Thailand and Malaysia will import from the Philippines complementary parts/components for the (OEM) of Honda Civic, Honda City, Honda Accord and CR-V;

WHEREAS, AICO Certificate of Eligibility Nos. Honda/2003/27 and Honda/2003/29 were issued on 11 and 29 August 2003, respectively, 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, participating companies in the approved Honda, AICO Arrangements shall qualify for 0—5% preferential tariff rates to be extended by Thailand, Malaysia and the Philippines as participating countries.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, pursuant to 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 accorded the AICO rate of 3% on parts/components of Honda Civic (HS 8703.90 10) as specified in Column 6 thereof.

SECTION 2. The AICO rate provided in Annex "A" shall be accorded to the AICO entity in Thailand (Honda Automobile (Thailand) Co. Ltd.) and Malaysia (Honda Malaysia Sdn. Bhd.) upon the effectivity of this Executive Order.

SECTION 3. In the event that any subsequent changes are made in the basic (MFN) Philippine rate of duty on any of the articles listed in Annex "A" to a rate lower than the AICO rate prescribed in Column 6 of Annex "A" such articles shall automatically be accorded the corresponding reduced rate of duty.

SECTION 4. 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 compliance with the Rules of Origin for the Common Effective Preferential Tariff (CEPT).

SECTION 5. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 30th day of December, in the year of Our Lord, Two Thousand and Three.

Published in Malaya on January 10, 2004.

ANNEX "A"

ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED HONDA AICO SCHEME

					Applicable AICO
HS Code	Model/Type	Product Description	Part No.	Source Country/	Preferential
				(AICO Company)	Tariff (%)
(1)	(2)	(3)	(4)	(5)	(6)
8703.90 10	Honda CIVIC	PAN COMP, OIL	11200-PLC-0000	Thailand	3
	passenger car	COVER ASSY, R SIDE	11300-PLC-0000	(Honda Automobile
		COVER COMP, CYLN HEAD	12310-PLC-0000	(Thailand) Co. Ltd.)
		PKG, HEAD COVER	12341-PLC-0000
		PULLEY, T/B DRIVE	13621-PLD-0030
		CASE ASSY, AIR CLEANER	17200-PLC-Y000
		CHAMBER ASSY, RESONATOR	17230-PLC-0000
		TUBE ASSY B, AIR INTAKE	17243-PLC-0000
		CONN TUBE, AIR INTAKE	17244-PLC-0000
		RESERVE TANK ASSY	19100-PLC-0000
		PIPE, CONNECTING ASSY	19510-PMV-T000
		BRKT, COMPRESSOR	38930-PLC-0000
		DAMPER FR SUB FRAME RR	50205-S5A-0000
		BRKT, P/S PUMP	56997-PLR-A000
		EXTN R, DA/BD SIDE MBR	61126-S5A-3000
		EXTN L, DA/BD SIDE MBR	61127-S5A-3000
		LOWER UNDER BACK FRM SUB COMP	81126-S5A-J000-XB
		SHOLD SLIDE ADJR	81460-S84-A000-M2
		BELT ASSY OUTER R RR SEAT	82450-S5H-T000-M5
		BELT ASSY, INNER R RR SEAT	82455-S5H-T000-M5
		BELT ASSY, OUTER L RR SEAT	82850-S5H-T000-M5
		BELT ASSY, INNER L RR SEAT	82855-S5K-D000-M5
8703.90 10	Honda CIVIC	SHAFT ASSY FR, R DRIVE	44305-S5D-A000-M1	Malaysia	3
	passenger car	SHAFT ASSY FR, L DRIVE	44306-S5D-A000-M1	(Honda Malaysia Sdn. Bhd.)
		SHAFT ASSY FR, R DRIVE	44305-S5D-A100-M1
		SHAFT ASSY FR, L DRIVE	44306-S5D-A100-M1
		SHAFT ASSY FR, R DRIVE	44305-S5D-A500-M1
		SHAFT ASSY FR, L DRIVE	44306-S5D-A500-M1
		SHAFT ASSY FR, R DRIVE	44305-S5D-A600-M1
		SHAFT ASSY FR, L DRIVE	44306-S5D-A600-M1