Question & AnswerQ&A (EXECUTIVE ORDER NO. 678)
The MFN rate of import duty is the rate prescribed for certain articles listed in Annex aAa; it ensures that these articles are subject to the preferential import duty rates accorded to the Most-Favoured-Nation, promoting fairness and competitiveness in import tariffs.
The articles specifically listed in Annex aAa, as classified under Section 104 of the Tariff and Customs Code of 1978, are those affected and subject to the MFN rates of import duty indicated for each.
Tariff headings not enumerated in the Annex or those listed with the symbol 'ax x xa' shall maintain their existing nomenclature and rates of import duty, which will remain in force and effect.
The Executive Order took effect thirty (30) days after its complete publication in a national newspaper of general circulation in the Philippines.
All presidential issuances, administrative rules, or regulations inconsistent or contrary to Executive Order No. 678 are revoked or modified accordingly.
The Executive Order was signed by President Gloria Macapagal-Arroyo and Executive Secretary Eduardo R. Ermita.
Section 3 specifies that upon effectivity, articles listed in Annex aAa and entered and withdrawn from warehouses in the Philippines for consumption shall be levied the MFN rates of duty prescribed in the schedule.
The text of Annex aAa is available at the Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.