QuestionsQuestions (EXECUTIVE ORDER NO. 485)
EO 485 cited Section 402 of the Tariff and Customs Code of 1978 (PD 1464), as amended. It empowers the President, upon NEDA recommendation, to increase, reduce, remove protective rates of import duty, and to modify the form of duty.
EO 485 was anchored on the ASEAN–China Framework Agreement on Comprehensive Economic Cooperation (signed 4 November 2002) and specifically its Article 6 (Early Harvest Programme), as well as the MOU between the Governments of the Philippines and China on the Early Harvest Programme (signed 27 April 2005).
It is an integral part of the ASEAN–China FTA and covers certain products to be granted tariff reductions, with the Philippines and China agreeing to eliminate tariffs of certain products by 1 January 2006.
The NEDA Board approved the grant of zero tariffs on 214 tariff lines. This is relevant because EO 485 is implemented “upon the recommendation” of NEDA, as contemplated by Section 402 of PD 1464.
Imports of the articles specifically listed in Annex A and Annex B are subject to the ACFTA rates according to the schedule in Column 4 of the annexes, and the ACFTA rates apply for imports from ACFTA parties applying tariff concessions under Article 6 of the Framework Agreement.
It conditions the ACFTA rates on (1) the goods being within the tariff lines listed in the annexes, (2) being classified under Section 104 of PD 1464, and (3) the imports coming from parties applying tariff concession for the same product pursuant to Article 6.
EO 485 states that the articles are “as classified under Section 104” of PD 1464, meaning proper tariff classification is a prerequisite to apply the ACFTA rates.
They must comply with the Rules of Origin provided for in Article 5 of the Agreement on Trade in Goods of the Framework Agreement.
It applies to all articles listed in the annexes that are entered into or withdrawn from warehouses in the Philippines for consumption from the date of effectivity of the EO.
It does not automatically apply. Even for listed goods, Section 2 requires compliance with the Rules of Origin, and Section 1 limits the ACFTA rates to imports from parties that grant tariff concession under Article 6.
It repeals or modifies all presidential issuances and administrative rules/regulations (or parts thereof) that are contrary or inconsistent with EO 485.
It takes effect immediately following its complete publication in two (2) newspapers of general circulation in the Philippines.
It authorizes the modification of duty rates by prescribing that listed tariff lines shall be subject to ACFTA rates (including zero tariffs for the approved lines), consistent with the President’s statutory authority under PD 1464 and the ACFTA Early Harvest commitment.
The EO references the Rules of Origin “as provided for in Article 5 of the Agreement on Trade in Goods of the Framework Agreement.”
The annexes identify the specific articles/tariff lines and products granted concessions; they supply the tariff schedules (Column 4) that determine the ACFTA rates to be applied.