QuestionsQuestions (EXECUTIVE ORDER NO. 487)
It modifies the tariff duty rates on certain imported articles in order to implement the Philippines’ commitment to reduce tariffs for products in the Normal Track of the ASEAN–China Free Trade Area (ACFTA), consistent with the Tariff and Customs Code of 1978.
EO 487 cites: (1) the ASEAN–China Framework Agreement on Comprehensive Economic Cooperation (signed 4 Nov 2002), and (2) the Agreement on Trade in Goods (signed 29 Nov 2004). Together, they set the framework and schedules for tariff reduction for trade in goods.
They reflect the Parties’ commitment to establish the ASEAN–China Free Trade Area covering trade in goods, with implementation timelines by 2010 for ASEAN-6 and China, and by 2015 for newer ASEAN Member States.
It provides that tariff lines placed in the Normal Track shall have their applied MFN tariff rates gradually reduced and eliminated according to the modalities in Annex 1, with the objective of meeting the scheduled targets.
Applied MFN tariff rates above 20% shall be reduced to 20%.
They shall be reduced to 15%.
They shall be reduced to 10%.
They shall be reduced to 5%.
They shall be maintained (i.e., remain within 0% to 5%—the schedule states they are maintained).
It empowers the President, upon recommendation of the NEDA Board, to increase, reduce, or remove protective import duty rates and to modify the form of duty.
It approved the reduction in tariff rates on 1,124 tariff lines on 20 December 2005, as a step toward compliance with the tariff reduction modalities under the ASEAN–China Trade in Goods Agreement.
It requires that the specified articles shall be subject to the ACFTA rates in the columns referenced in the annexes, applicable only to imports coming from the Parties that grant tariff concessions for the same products under Article 3 of the Agreement on Trade in Goods.
The article is automatically accorded the corresponding reduced duty—i.e., the lower rate applies if the MFN becomes lower than the ACFTA rate specified in the annex columns.
Imports must comply with the Rules of Origin provided in Article 5 of the Agreement on Trade in Goods of the Framework Agreement.
From the date of effectivity of the Executive Order, as stated in Section 3.
It takes effect immediately following its complete publication in two (2) newspapers of general circulation in the Philippines.
It revokes or modifies any prior presidential issuances, administrative rules, or parts thereof that are contrary to or inconsistent with EO 487.