Question & AnswerQ&A (EXECUTIVE ORDER NO. 703)
CEPT stands for Common Effective Preferential Tariff, a scheme under the ASEAN Free Trade Area (AFTA) to reduce tariff rates on specified products among ASEAN member states.
Annex A lists the specific articles that are granted zero duty under the CEPT Scheme for AFTA. These articles, as classified under Section 104 of the Tariff and Customs Code of 1978, are subject to the ASEAN CEPT rates indicated in the annex.
The benefits of reduced or zero tariff rates under the Executive Order apply only if the imported articles comply with the Rules of Origin as provided in the Agreement on the CEPT Scheme for AFTA.
The ASEAN Economic Ministers agreed during their meeting in September 2002 to reduce CEPT rates on at least 80% of products in the Inclusion Lists of the original ASEAN Member States to zero percent by 2007.
The National Economic and Development Authority (NEDA) Board approved the grant of CEPT rates of 0% on various products in the Philippine Inclusion List during its meeting on December 18, 2007.
All presidential issuances, administrative rules, or regulations, or parts thereof, that are inconsistent or contrary to Executive Order No. 703 are repealed or modified accordingly.
The Executive Order takes effect immediately following its complete publication in two national newspapers of general circulation in the Philippines.
Section 402 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464), as amended, empowers the President upon recommendation of NEDA, to increase, reduce, or remove existing protective import duty rates and to modify the form of duty.