Question & AnswerQ&A (EXECUTIVE ORDER NO. 704)
EO No. 704 amends Section 4 of Executive Order No. 486 dated January 12, 2006.
The reversion of the CEPT tariff reduction schedule under EO No. 486 is triggered once the naphtha cracker plant is in commercial operation.
EO No. 704 expands scope by allowing the reversion of CEPT rates to EO 161 (s. 2003) levels not only when a naphtha cracker plant is in operation but also when any plant that uses other technologies for domestic production of ethylene, propylene, and other monomers is in commercial operation.
The Department of Trade and Industry, in coordination with the National Economic and Development Authority, the Department of Finance, the Tariff Commission, and the Bureau of Customs, shall promulgate the implementing rules and regulations.
The CEPT tariff rates will revert to EO 161 (s. 2003) levels.
EO No. 704 shall take effect immediately following its complete publication in two newspapers of general circulation.
Including "any plant that uses other technology" broadens the scope to cover technological advancements beyond naphtha cracking, ensuring that the tariff reversion applies to all domestic producers of ethylene, propylene, and related monomers, regardless of production technology.
The Tariff Commission and Bureau of Customs assist in the coordination and implementation of the rules and regulations governing the reversion of CEPT tariff rates on petrochemical and plastic products.