Question & AnswerQ&A (EXECUTIVE ORDER NO. 191)
The main purpose is to modify the rates of duty on certain imported articles under the Tariff and Customs Code of 1978 to implement preferential tariff rates for products under the ASEAN Industrial Cooperation (AICO) Scheme in favor of Toyota Motor Philippines Corporation and Toyota Autoparts Philippines, Inc.
Toyota Motor Philippines Corporation and Toyota Autoparts Philippines, Inc. benefit from the preferential tariff rates.
The AICO Scheme is a regional cooperation agreement among ASEAN member countries to promote industrial cooperation by allowing preferential tariff rates on certain products produced under approved arrangements.
The products covered are certain original equipment manufacturer (OEM) automotive parts/components for Toyota Corolla and Camry passenger cars (HS 8703.90.10).
The tariff rate applied to the specified articles under the Toyota AICO arrangement is a preferential rate of 3%.
If the MFN rate is lowered below the AICO rate, the lower MFN rate will automatically apply to the articles covered under the AICO arrangement.
Importers must present a Certificate of Origin - Form "D" to qualify for the preferential tariff rates.
The Executive Order takes effect immediately upon its issuance on March 31, 2003.
It was signed and promulgated by President Gloria Macapagal-Arroyo and countersigned by Executive Secretary Alberto G. Romulo.
The COE certifies that the participating companies and products are approved under the AICO Scheme and thus qualify for the preferential tariff rates agreed under the arrangement.
She is exercising powers vested under Section 402 of the Tariff and Customs Code of 1978, as amended.
Any revision to the part numbers must be communicated by the Board of Investments to the Bureau of Customs within five days after receiving the revised part numbers from the ASEAN Secretariat.