Question & AnswerQ&A (EXECUTIVE ORDER NO. 245)
The primary purpose of Executive Order No. 245 is to modify the rates of duty on certain imported articles as provided under the Tariff and Customs Code of 1978 to implement preferential tariff rates under the ASEAN Industrial Cooperation (AICO) Scheme in favor of Nissan Motor Philippines, Inc.
The Executive Order covers original equipment manufacturer (OEM) automotive parts/components for Nissan Sentra passenger cars classified under HS code 8703.90 10.
The countries involved are the Philippines and Thailand, with Nissan Motor Philippines, Inc. and Siam Nissan Automobile Co. Ltd. as the participating companies.
A preferential tariff rate of 3% is granted on parts/components of Nissan Sentra passenger cars as specified in Annex A of the Executive Order.
The qualification is evidenced by the Certificate of Origin - Form "D" issued under the rules of origin for the ASEAN Common Effective Preferential Tariff (CEPT).
If the MFN rate is lowered below the AICO rate, the articles will automatically be accorded the reduced MFN rate of duty instead of the AICO rate.
The Board of Investments is responsible for immediately communicating any revisions to part numbers or changes in the AICO company to the Bureau of Customs within five days after receiving the official copy of the Certificate of Eligibility (COE).
The Executive Order became effective immediately upon its signing on October 3, 2003.
The scope covers the specific automotive parts listed in Annex A, imported under the Nissan AICO Arrangement, which are to be accorded the preferential tariff rates as specified, subject to compliance with the rules of origin and certification requirements.